Who needs to get IEC registration

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Who needs to get IEC registration
 

The possibility of trading outside India is very enticing for businesses as it opens up a larger market to sell their products and services. Additionally, there are many opportunities to be had in trading with other countries, such as accessing new resources, forming partnerships with foreign companies, and more.

That said, trading outside India is different from trading inside India. You need a few more documents and procedures to get started. One of the most important things you need is an IEC registration.


What is IEC?

IEC stands for Import Export Code and is required by businesses that want to trade goods and services outside of India. The code is issued by the Directorate General of Foreign Trade and is needed for customs clearance when importing or exporting goods.

Getting an IEC is a fairly simple process. You need to fill out an application form and submit it along with the required documents. These include a copy of your PAN card, a copy of your business registration certificate, and a bank statement showing that you have the minimum amount of capital required for trading.

Once you have all the required documents, you can submit your application form to the Directorate General of Foreign Trade. The process usually takes around 2-3 weeks and you will receive your IEC code by post.

Which businesses need IEC?

Any business that wants to trade outside of India needs to have an IEC registration. This includes businesses that want to export goods or services, import goods or services, or even engage in e-commerce with foreign countries.

The IEC is not required for businesses that want to trade only within India.

Do I need an IEC if I’m a sole proprietor?

Yes, even sole proprietors need to have an IEC registration if they want to trade outside of India.

Is IEC Mandatory?

Yes, the IEC is mandatory for businesses that want to trade outside of India. Without an IEC registration, you will not be able to import or export goods.

To get an IEC registration, your business will need to have a PAN number, a business registration certificate, and a bank statement showing that you have the minimum amount of capital required for trading.

Validity of IEC

Your IEC registration is valid for a lifetime and there is no need to renew it.

However, if you want to make changes to your IEC registration, such as changing your business address or the bank account that is linked to your IEC, you will need to notify the Directorate General of Foreign Trade.

Benefits of having IEC

There are many benefits of having IEC registration, such as:
- An easier process of customs clearance
- Ability to avail of certain schemes and incentives offered by the government
- No need to pay taxes on exports
- Access to duty-free imports
- Faster processing of shipping documents
- Preferential treatment in certain government schemes
- Ability to open a foreign currency account

These are just some of the benefits that businesses can enjoy by having an IEC registration. If you’re thinking of trading outside of India, be sure to get your IEC code before getting started.
 

Exceptions to IEC

In the following instances, you won't need IEC:
Imports and exports made for purposes other than commercial/trading like personal or charity reasons
Imports and exports made by the government of India or for defence purposes
When the trader is registered under GST. In that case, the PAN number will be used as the IEC.

Overall, having IEC registration makes the process of exporting and importing much smoother and easier when you are trading overseas. It also allows businesses to take advantage of various schemes and incentives offered by the government.

We can help you with your IEC registration so that you can get started with trading overseas. Please feel free to contact us for more information.
 

 

 

 


Author : Nivetha

Date     : 28-Jul-2022


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