Exporter and Importer of any country need to register the company with several authorities, institutions, and government schemes. Such registration or policy helps the company to grow continuously without any hurdles in the form of incentives/benefits while conducting export and import trade. IEC (Import Export Code) is a number given by the Director of Foreign trade that is mandatory for importing and exporting goods and services from India. In simple words, to expand the goods or services from the national market to the international market requires acquiring IEC. IEC is mandatory to avail export scheme benefits from customs and export promotion council, DGFT, etc.
Import Export Code is a registration certificate needed to export/import any product and it plays an immense role in a business. Apart from other incentives, some major features for importing or exporting code registration.
An importer-exporter have to register the company with several authorities and institutions that directly or indirectly assist the organization to conduct trade. Mentioned below are some of the institutions to register the company with IEC:
a) Registration of Company: Importers/Exporters require to register the categories of company chosen under suitable Act within the country for conducting import and export operations such as a partnership company have to register under the Indian Partnership Act, 1932, a joint-stock company within the Companies Act, 1956, etc.
b) Open Bank Account: Importer and Exporters need to open a company bank account in the commercial bank authorized by (RBI) to deal in foreign currency transactions. Any kind of monetary transaction company is directed through this account. Such a bank also assists as a source of pre-shipment and post-shipment finance for the exporters.
c) Obtaining Importer-Exporter Code Number (IEC No.): Earlier obtaining Exporter's Code Number from RBI was mandatory which is now changed by Import export code which is now issued by the Direct General for Foreign Trade. IEC can be obtained by applying by paying a fee of Rs. 1000.
d) Attaining Permanent Account Number (PAN): An exporter must register its company with Income Tax Authorities and attain a Permanent Account number to avail of export income benefits.
e) Registration with GST: GST registration is mandatory for each imported while exporting goods from one country to another. Goods purchased for exports are exempted from other taxes.
f) Registering with the Export Promotion Council (EPC): The exporter needs to register themselves with the Export Promotion council and get a Registration cum Membership certificate to avail of benefits under Foreign Trade Law.
g) Registration with Export Credit and Guarantee Corporation of India (ECGC): To protect exporters from commercial and political risks it is essential to register themselves with ECGC. ECGS aids exporters to seek financial aid and guidance from financial institutions including Banks.
h) Registration with other Authorities: Some other essential authorities under which exported needs to register are listed below-
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