Before starting an export business, one must have a product/ service that can be sold to the customers. And should do R&D of the customer behavior and legal compliances, if any, required in the country where they want to sell their products. Find the target audience before starting the export business.
- Decide the constitution of the business enterprises Like Proprietorship Concern, Partnership Firm, Private Limited company, etc after taking into account all tax benefits.
- Get GST Registration.
- Apply for Import Export Code.
- Open Bank Account.
- Get a brief Idea of legal compliances to be done in the Foreign Country.
- Other product-specific licenses as required (if any).
- Marketing strategies as required to reach the target audience.
- Arrangement of Initial corpus to start export business.
In India Export/Import business is regulated by The Foreign Trade (Development and Regulation) Act 1992 and the procedure is explained on regular basis by Foreign Trade Policy.
The Government of India is focusing to increase Exports. The government is also focusing to make almost all export-related documentation and formalities online. The DGFT website is playing a very vital role in it. Before starting the export business one must know under which category our products fall (Free Exports, Regulated Exports and Prohibited Export) and further the proceedings will be done accordingly. One must obtain Import Export Code which is now required to be renewed (Re-validation) on annual basis.
Mandatory Documents required for Exports of Goods:
- Bill of lading/ Airway Bill
- Commercial Invoice Cum Packing List
- Shipping Bill/ Bill of Export
If an exporter deals in prohibited goods or goods under the restricted category or provides false information/ details then his Import export code may be canceled and a monetary penalty will be levied.