How to Start Import Export Business in India Legally?
Exports and Imports are important for a country's economy as it provides those products which are not available in ones country. It is a profitable business as the difference in economies of countries increase revenue. A country is also benefitted as foreign exchange is generated through them. But have you ever wondered to ask this question "How to Start Import Export Business in India Legally?"
Starting an import export business in India is an easy process although its a little lengthy. One needs to get approval and permissions from various departments before he can legally start importing and exporting. Any person irrespective of the form of entity, viz. Sole proprietorship, partnership, HUF, Company, trust, co-operative society, etc. can engage in export and import business in India. To start such a business first a person needs to form a legal entity, like partnership registration, registration of private limited company.
The second step is to obtain a PAN card in the name of the entity. For a sole proprietorship and HUF the owner's PAN Card will be used. The next step is to open a current account at a bank. A branch that provides international transactions would be preferable as you won't need to visit the bigger branch every time a transaction is to be initiated.
Subsequently, you'll need to get VAT registration done to legally sell goods. The import export of goods is regulated by Central Board of Excise and Customs. A person who imports exports goods must also register with the Central Excise Department. After all these legal formalities are done with, a person must obtain Export and Import Code from The Controller of Foreign Trade by submitting application in Form ANF-2A. The Form contains 4 parts that are mandatorily required to be filled. The last part contains a declaration which needs to he signed by the applicant, viz. proprietor, partner, authorized director etc. It should then be submitted along with the prescribed fees.
The documents that must be annexed with the Form are
- ID proof,
- address proof,
- photo ID,
- copy of PAN Card,
- Export and VAT registration and
- a self addressed envelope.
Once the authorization is received a person can begin exporting and importing.
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