Starting an import export business in India can be difficult. New exporters will almost certainly have a thousand questions, ranging from the documents required to the legal guidelines they must follow. Unfortunately, this information is scarce and dispersed across various sources on the internet, making it difficult to locate.
This step-by-step guide will walk you through the various activities required to get your export business off the ground, from selecting the most effective type of business model to identifying the right markets and buyers, to finalizing your documentation and preparing to ship your first order. If you follow these steps, you should be prepared to embark on your journey into the world of international trade.
Obtain a PAN Card
Starting a new export business necessitates a number of documents, beginning with a PAN Card. To register your business, you and your partner(s) must have valid identity and address proofs. Every registered business entity must apply for a PAN Card (PAN) with the Income Tax Department.
Choose a Business Entity Type
To begin an export import business, you must first decide on the form your company will take based on the ownership structure. Then you must register your new business and choose a name for your company. A sole proprietorship, a partnership, an LLP, a private limited company, or a public limited company can all be formed.
Open a Savings Account
A current account is a bank account that is used by businesses. To transact with customers and vendors, your new export import business will require a current account. The documents needed to open a current account differ according to the type of business entity.
Remember to include the IEC Code!
Anyone looking to start an import/export business must have the IEC Code. The IEC Code application form will be accompanied by a number of supporting documents, which will be filed with the Director General of Foreign Trade.
Select your export product.
Choosing the right product is critical to the success of your export import business plan. Such as choosing India’s most exported product could be a good idea. There are numerous factors to consider, such as the state of international markets, regulations, export trends, and so on. More detailed information, as well as a rough guide to point you in the right direction, can be found in our guide to choosing the right export product.
Identifying Potential Customers for Your Product
Following the selection of the product and market, the next step in your business plan would be to determine how to find buyers for your export product. You can collect leads for your product in a variety of ways, including creating a website, registering on buyer-seller platforms, and attending trade shows and exhibitions.
In the end, following completion of these steps, your newly established export business is ready to begin operational activities such as finalizing the shipping partner as well as transportation exporter clearing agent, evaluating potential markets, and expanding your business in overseas markets.