{"id":35938,"date":"2021-09-24T11:27:58","date_gmt":"2021-09-24T05:57:58","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=35938"},"modified":"2022-01-19T11:26:51","modified_gmt":"2022-01-19T05:56:51","slug":"how-to-start-export-business-from-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-start-export-business-from-india\/","title":{"rendered":"How to Start Export Business in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In India, the Make in India initiative introduced by the NDA-led government has witnessed positive changes in exports &amp; imports. In Financial Year 2017-18, the export valuation of India was increased by 9.98%. The overall valuation of commodities exported in FY 2016-17 was $ 275,852 million, while in 2017-18, the export escalated to 303,376 million. In consideration of the prevailing economic state of the nation, establishing an export business can be incredibly profitable.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Detailed Guide\non how to start export business in India<\/h2>\n\n\n\n<p>Following is the step-by-step guide that will help you start export\nbusiness from India without minimal of hassles: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Setup\nOrganization <\/h3>\n\n\n\n<p>The first and foremost is to set up a company by selecting one of\nthe following legal business structures: <\/p>\n\n\n\n<ul><li>Partnership Firm<\/li><li>LLP<\/li><li>Private Limited Company <\/li><li>One Person Company<\/li><li>Public Limited Company <\/li><\/ul>\n\n\n\n<p>Once you select an apt business structure that offer best fit for your need, make sure to do some research on company name and market. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Open a Current\nBank Account<\/h3>\n\n\n\n<p>Open a current bank account in a bank that has the required foreign\nexchange authorization. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Avail Permanent\nAccount Number (PAN)<\/h3>\n\n\n\n<p>All entities in an EXIM domain are mandated to obtain a Permanent\nAccount Number (PAN) from the IT department. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secure Import\nexport code from DGFT<\/h3>\n\n\n\n<p>An importer-exporter Code, broadly known as IEC, is a ten-digit code that is granted against the Permanent Account Number from the Directorate General of Foreign Trade (aka DGFT). <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC Registration<\/strong><\/a> is an absolute mandate for entities willing to start export business from India. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secure RCMC\nfrom Export Promotion Council<\/h3>\n\n\n\n<p>A Registration cum Membership Certificate (aka RCMC) is necessary\nfor accessing benefits cited under the prevailing Foreign Trade Policy (FTP).\nAdditionally, an RCMC also facilitates the Indian exporter access to service\n&amp; assistance by relevant Community Boards, Export Promotion Councils, and\nother related agencies. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choose\nEligible Products and Market<\/h3>\n\n\n\n<p>Before finalizing products and their market, make sure that don&#8217;t\nexist under the list of prohibited items outlined by DGFT in the purview of\nForeign Trade Policy. Also, do take the parameters like prevailing export\ntrends, competition, and market size into account during the product selection\nprocess. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Identify\nPotential Buyers<\/h3>\n\n\n\n<p>Identify potential foreign customers via buyer-seller meet, trade\nfairs, and B2B portals. Seeking assistance from the Indian Chamber of Commerce\n(ICC) &amp; Indian Mission Abroad are other productive ways of identifying key\ncustomers in foreign markets. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Offer Product\nSamples To Prospective Customers<\/h3>\n\n\n\n<p>Provide the customer with product samples in accordance with the\nrequested shipment size. This is the viable approach for securing a purchase\norder. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ask for LOC,\ni.e. Letter of Credit: <\/h3>\n\n\n\n<p>Prompt the buyer to facilitate the letter of credit if the buyer fails\nto send the same along with an order. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Avail ECGC\nScheme <\/h3>\n\n\n\n<p>After securing the purchase order from the prospective buyer, the\nexporter must approach Export Guarantee Corporation to get approval on the\nimporter with the amount of limit. After receiving the request, ECGC, with its\navailable network and contacts, determine the creditworthiness of the importer\nand estimates a figure of creditworthiness and prompt the max limit of the sum\nthat can be dispatched at any instance. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fix the Exchange\nRate with the Importer<\/h3>\n\n\n\n<p>Fluctuating exchange rates can be detrimental to EXIM business if\nnot set accordingly before the trade. Make sure to conduct trade at the\nmutually agreed rate. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Address\nForeign Exchange Formalities<\/h3>\n\n\n\n<p>In the purview of the <strong>Foreign Exchange Regulation Act<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Foreign_Exchange_Management_Act\"><strong>[1]<\/strong><\/a><\/sup> (aka FERA), all Indian exporters are mandated to submit a declaration in the prescribed form before actual transactions come to life. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conduct order\nexecution<\/h3>\n\n\n\n<p>Prepare the shipment in accordance with the purchase order and norms\ncited under FTP. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hire a custom\nagent for customs clearance<\/h3>\n\n\n\n<p>Hire an authorized customs agent to avail shipping bills and\nrequired clearance from the customs department. The functions performed by\ncustom agents include: <\/p>\n\n\n\n<ul><li>Obtainment of Shipping Bill<\/li><li>Paying dues related to shipment <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Provide Bill of Lading to the Shipping Company <\/h3>\n\n\n\n<p>A Bill of lading is a mandatory document facilitated by the exporter\nto the shipping company. It usually encloses the detail of the shipment and\nquantity requested by the importer. A bill of lading (BOL) also acts as a\nshipment receipt when the exporter dispatches the shipment at a predetermined\ndestination. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Shipment\nAdvice to the Importer<\/h3>\n\n\n\n<p>Shipment Advice is a prior notification released by the exporter for\nthe buyer before the arrival of the shipment at the destination. It typically\nincludes details of shipment. After the completion of the export procedures at\nthe loading port by the exporter, the cargo is handed over to the shipping\ncompany. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Present\nMandatory documents to the Bank<\/h3>\n\n\n\n<p>The mandatory shipping documents to be provided by the exporter include:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"996\" height=\"499\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Technical-Standard-Certificate.png\" alt=\"Mandatory documents to the Bank\" class=\"wp-image-35940\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Technical-Standard-Certificate.png 996w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Technical-Standard-Certificate-300x150.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Technical-Standard-Certificate-768x385.png 768w\" sizes=\"(max-width: 996px) 100vw, 996px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">The\nRealization of Export Proceeds<\/h3>\n\n\n\n<p>The Indian exporter needs to deal with banking protocols after\nfacilitating the bill of exchange.<\/p>\n\n\n\n<p>So these are the legal implications that one has to address to start export business from India. Before we wrapped up this write-up, let have a glance over some important tips:<\/p>\n\n\n\n<ul><li>Do not forget to insured your\nshipment from certified marine insurer. <\/li><li>After securing the purchase\norder, visit ECGC to avail credit risk insurance. This will help you mitigate\nthe possibility of payment default. <\/li><li>Rely on predetermined exchange\nrate (agreed by both the parties) to avoid future dispute. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion <\/h2>\n\n\n\n<p>Catering to the aforementioned legal implications is mandatory to start export business in India.&nbsp;Export business is promising and adheres to tons of potential. But to explore that potential to the fullest, one has to comply with the aforementioned requisites without any compromise. If you seek some further clarification on the licensing part, then prompt us without thinking twice.<\/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\/exporting-food-items-to-the-usa-secure-iec-eic-fda-registration\/\">Exporting food items to the USA? Secure IEC, EIC, &amp; FDA Registration\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In India, the Make in India initiative introduced by the NDA-led government has witnessed positive changes in exports &amp; imports. In Financial Year 2017-18, the export valuation of India was increased by 9.98%. The overall valuation of commodities exported in FY 2016-17 was $ 275,852 million, while in 2017-18, the export escalated to 303,376 million. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":35960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1973],"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":4083,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35938"}],"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=35938"}],"version-history":[{"count":22,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35938\/revisions"}],"predecessor-version":[{"id":39392,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35938\/revisions\/39392"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/35960"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=35938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=35938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=35938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}