{"id":21305,"date":"2020-12-08T14:05:26","date_gmt":"2020-12-08T08:35:26","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21305"},"modified":"2025-01-06T18:16:33","modified_gmt":"2025-01-06T12:46:33","slug":"how-the-iec-for-startup-could-be-beneficial-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-the-iec-for-startup-could-be-beneficial-in-india\/","title":{"rendered":"How the IEC for Startup could be Beneficial in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Most Startup in India doesn\u2019t experience a smooth journey while\nestablishing a business for international trading. There are countless\nrequirements one has to fulfill before getting engaged with such a business. IEC\nfor Startup is the basic requirement for starting the export business in India\nwhich also lures a lot of benefits o its holders.<\/p>\n\n\n\n<p>IEC is one such requirement that is mandatory for the individual\nwho has dreamt of establishing a successful exporting business in India. It has\nbeen noticed that there is a lot of confusion among the startups regarding the\nimport-export code and its benefits. In this blog, we would be unfolding some\ncrucial facts regarding the same and explains why the IEC for Startup is so\nimportant. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Exporter Requires the IEC Registration?<\/h2>\n\n\n\n<p>Given the existing export-import policy, no entities could enter into the business of global trading unless they possess an IEC number. The IEC number act as a green card for startups and business willing to enter into exporting business. IEC number is required to be mentioned in the shipping bill while exporting goods outside India. It is important to note down that the IEC is issued by the <strong>Directorate General of Foreign Trade (<\/strong><em><strong>DGFT<\/strong><\/em><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/\"><strong>[1]<\/strong><\/a><\/sup><strong>) <\/strong>Organization.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does IEC number for Startup Serves any Benefits to its Holders?<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-IEC-code.png\" alt=\"Benefits of IEC Registration\" class=\"wp-image-21306\" width=\"562\" height=\"562\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-IEC-code.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-IEC-code-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-IEC-code-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-IEC-code-768x768.png 768w\" sizes=\"(max-width: 562px) 100vw, 562px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Following are the prominent benefits that Startups can avail by obtaining the IEC.&nbsp;&nbsp;<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">Access to Global Market<\/h4>\n\n\n\n<p>With IEC number at your disposal, Startup has the liberty to\nexpand their business in the overseas market. It does not only help them to\nscale up their business but also let them make a considerable profit.\nInternational markets aren\u2019t hard to target if Startup have the right license\nand registration at the back up.&nbsp;IEC for Startup allows the access to\nglobal market. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Lifetime Validity<\/h4>\n\n\n\n<p>Starts up are always more concerned about the validity of the government license since the majority of them seek periodic renewals. However, that\u2019s not the case with <a href=\"https:\/\/corpbiz.io\/iec-registration\" title=\"IEC Code Registration\"><strong>IEC registration<\/strong><\/a> as it offers lifetime validity to its users. That means you don\u2019t have to renew it again and again on a reoccurring basis once you obtained it from the authority.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">No Maintenance Charges<\/h4>\n\n\n\n<p>Once you successfully availed the IEC from the relevant\nauthority, you don\u2019t have to worry about entertaining additional charges for\nits maintenance. Moreover, it also must be noted that IEC registration is free\nfrom any applicable hidden charges. The only cost you need to address is when\nyou applied for this code.&nbsp;IEC for Startup doesn\u2019t imposed any requirement\nfor additional or maintenance fees.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Mitigates the Risk of Fraudulent Transportation<\/h4>\n\n\n\n<p>The majority of Startups inherently approached cautiously when\nit comes to addressing legal and financial obligations even if it is related to\nlogistical supports. Even with tighter legal compliances, international trading\nfaces the constant threat of illegal transportation that further translated\ninto a loss of revenues for the companies. <\/p>\n\n\n\n<p>However, the companies who execute their trade with IEC are more\nlikely to mitigate this threat up front. Therefore, obtaining IEC is a good\nidea for startups who were scared to enter the global market due to this\nreason.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Access to Export Incentive<\/h4>\n\n\n\n<p>Not all Startups are financially blessed and often run into a\nscarcity of funds while executing their global trading. Fortunately, government\nand authorities are aware of this fact and have launched various\ngrowth-oriented schemes that work for the betterment of the exporter and\nimporters.<\/p>\n\n\n\n<p>Export Incentive comes under the government-oriented schemes\nthat offer regulatory, legal, and monetary benefit to the IEC holders to\naccelerate the export rate in the country. Even if you are an owner of a newly\nlaunched company that holds IEC registration, you are eligible to avail the\nbenefits of the export incentive.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Availability of Growth-oriented Schemes<\/h4>\n\n\n\n<p>To expand the exporting capabilities of the country, the GOI in association with several authorities has launched ample schemes under which a wide array of subsidies is provided to the companies including the starts up. After filing Letter of Undertaking under <strong><a href=\"https:\/\/corpbiz.io\/gst-registration\" title=\"GST Registration\">Goods and Services Tax<\/a><\/strong>, the exporters don\u2019t have to address tax obligations to make exports. Some of the viable benefits that the government offers to export companies are as follow:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Duty Drawbacks<\/h4>\n\n\n\n<p>Duty drawbacks are an incentive scheme that promotes the trading\nof exportable goods. Essentially, duty drawback fetches more overseas exchanges\nfor the country and acts as a core catalyst for export. In general, duty drawback is referred\nto as a waiver or reduction in whole or in part of customs duties assessed upon\nthe importation of goods.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Merchandise Exports from\nIndia Scheme (MEIS)<\/h4>\n\n\n\n<p>Through this scheme, the startups can avail rewards to offset\nthe overhead cost and infrastructural inefficiencies. The MEIS scheme is\nessentially launched as an incentive scheme to boost the exporting activities\nwithin the country. The MEIS scheme is all about the Duty Credit Scrips that\nhelps in:-&nbsp;<\/p>\n\n\n\n<ul>\n<li>Paying basic &amp; additional customs duty prescribed u\/s 3(1),\n3(3), and 3(5) of the Customs Tariff Act, 1975, for importing of input as well\nas capital goods, expect items enlisted in Appendix 3A.&nbsp;<\/li>\n\n\n\n<li>Paying central excise duties on the inputs procured\ndomestically.&nbsp;<\/li>\n\n\n\n<li>Paying basic &amp; additional custom duty mentioned u\/s 3(1),\n3(3) and 3(5) of the Customs Tariff Act, 1975 &amp; fees prescribed under\nparagraph 3.18 of this Policy.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Service Exports from India\nScheme (SEIS)<\/h4>\n\n\n\n<p>Service Exports from India Scheme (SEIS) essentially intends to\nfacilitate the export of service from our country by rendering duty scrip\ncredit for eligible exports. As per the scheme, service providers from Indian\nTerritory would be eligible to avail of reward under the SEIS scheme, for\nall&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Exemption on GST&nbsp;<\/h4>\n\n\n\n<p>Exporters across the nation are exempted from paying GST on\nexportable goods after filing the Letter of undertaking- LUT. Business owners\nwho opt to file GST before dispatching the shipment to overseas locations can\nfile the return for the same.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>We hope this write-up provides you enough reasons on why the IEC for Startup could be beneficial in India. IEC is mandatory, and you must obtain it without exception before setting up an exporting business. Connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert if you need professional-grade services for the same.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/dgft-to-rolled-out-revamped-online-services-for-iec-holders\/\">\nDGFT to Rolled Out Revamped Online Services for IEC Holders\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most Startup in India doesn\u2019t experience a smooth journey while establishing a business for international trading. There are countless requirements one has to fulfill before getting engaged with such a business. IEC for Startup is the basic requirement for starting the export business in India which also lures a lot of benefits o its holders. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":21310,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1293],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4690,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21305"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21305"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21305\/revisions"}],"predecessor-version":[{"id":68206,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21305\/revisions\/68206"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21310"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}