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IEC Registration

IEC code is required to be obtained by anyone willing to start an import/export business in India. IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) online.

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  • Expert Consultation
  • Document Evaluation
  • Application Drafting
  • Issuance Of License

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What is IEC Registration

In the present era of ever-growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits finds it important to operate globally by stepping abroad.

There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds.

Several procedures and laws shall be followed before going global, Import-Export Code license being one of such prerequisites for the businesses looking forward to kicking start their Import-Export business in India that is explained here.

Benefits of IEC Registration in India

IEC code is also known as Import-Export code issued by DGFT, which is one of the mandatory requirements for doing the business of import and export in India. A benefit of getting this license is the license holder gets the advantages of new business opportunities along with exposure in the international market. Also, a business can go online by enrolling themselves in international commercial centres such as Amazon Inc, eBay Inc, Alibaba.com, etc. Following other benefits of getting IEC registration are:

  • With IEC code entrepreneur can distribute their products and services abroad with an ease
  • Businesses can go global and expand the business through diversification or in other new ways.
  • IEC license holders get the various advantages for their exports through DGFT export promotion scheme, export promotion council, etc
  • IEC code is once for all. Therefore there is no need for any further return filing or any other compliance after obtaining IEC license.
  • IEC code is valid for the lifetime with no requirement of renewal making it a one-time investment
  • After approval of DGFT, the IEC code is allotted in just ten days. Furthermore, no additional proof is required thereafter.

Features of IEC Registration in India

Other elements of the Import Export code are as follows:

  • Business Expand

    Through the IEC business is expanded and developed by going global for selling products and services outside India that overall develop and expand the business.

  • Benefits of Government's Schemes

    The Government of India promotes the entrepreneur for exporting the products out of India and thus with IEC code exporters can easily claim advantages from customs, DGFT export promotion schemes, export promotion council, etc.

  • Subsidies

    Based on IEC Code business engaged in import and export activities, can take the advantages of fare subsidies provided by the Government

  • Lifetime Validity

    IEC code allotted is for the entire life of the business; therefore, as long as the entrepreneur's business is running, there is no renewal requirement for such license. Therefore once obtained the IEC code can be used for every department and transaction undertaken by the business.

  • Return filing

    There is no requirement of subsequent documentation of any return. There is no compliance to be followed for keeping the IEC License legitimate and therefore, it is just a one-time expense with no further filling.

The requirement of Import Export Code Registration

Import Export Code Registration is required to be obtained by anyone willing to start an import/export business in India. IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) online. Merchants cannot import without holding valid IEC code nor can exporters claim benefits availed under export schemes without such code. Following are the situations where IEC is required:

  • IEC code is demanded by custom authorities in case the importer clears his shipment from the customs.
  • IEC code is required when the importer makes the payment abroad through his bank, and such bank demands IEC code from such importer
  • IEC code is needed by the customs port when the exporter sends his shipments.
  • IEC code is needed in case the foreign payment is received by an exporter directly into his account for the export made.
  • For availing various advantages from DGFT, customs, export promotion council, and such other statutory body.

Online IEC Registration Procedure

Before applying for Import Export Code Registration, check whether you are eligible for obtaining IEC code or no such requirement. In case of eligible entity following is the procedure to apply for IEC registration online:

  • Complete and fill the Form 2A as per the prescribed “Aayaat Niryaat format.
  • File the completed form online to DGFT
  • Attach the following necessary documents with the form:

    • PAN card of an applicant

    • Copy of any one of the following Ids issued by Government such as Driving License/Aadhar/Voter Id

    • Certificate of Incorporation in case of a company

    • Partnership deed in case an applicant is a partnership firm

    • Details of personal account or company’s current account

    • Copy of cancelled cheque

    • Address proof of the place where the registered office is situated such as electricity bill/rent agreement/registry etc.

  • Once the form is completed along with all the attachments, the applicant needs to attach his DSC to such form and file an application online to DGFT along with paying the prescribed fee online.
  • Authority after the verification of the application shall allocate the IEC code on the Email Id of an applicant mentioned on such application.

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