Import-Export business is the exchange of goods, services, capital goods across the border of the country, which provides the expanded market to one nation. It plays a vital role in the development of the country. Selling of the goods in another country is known as Export, buying goods from other countries is known as Import. Import-Export business creates a job & boost economic growth in the country and make the goods competitive in the global market. Seeing the growth of Import-export businesses more and more entrepreneurs and start-ups are coming into this. The import-Export business system is a complex type of business in which sales, distribution of goods, delivery of the Goods/Services from one country to another country are handled by different-different entities. In this post, we will be explaining how you can enter the Global Market.
Set up the Import-Export Business:
Registering the business and taking care of all the required documents such as Pan Card for the business, current account for the company, Import-Export Code (IEC), or the license for the registered firm is important for the setting up the Import-Export business in a country.
It is mandatory to have the Pan Card to get the Import-Export License from the Income Tax Department and getting the IEC is most important to start the business. It can be obtained from the DGFT which stands for Directorate General Of Foreign Trade (DGFT). Applicant needs to submit the Photograph, Pan Card, canceled cheque of the current account of the company.
Taking the Membership of RCMC:
RCMC stands for registration cum membership certificate which can be obtained from the export promotion council (EPC). In India, there are almost 26 EPCs. Getting the IEC and registering with EPC to be the member takes 7 to 10 working days. An applicant needs to arrange the IEC of the firm, company Pan Card and other documents such as GST registration certificate, company incorporation documents, etc. RCMC is an important document to avail the benefits under Government schemes such as the MEIS Scheme which offer the incentive of 2% to 7% on the FOB value of exports for the exporters of the goods, introduced by the Indian Government in Foreign Trade Policy 2015-20.
Opportunities available Online:
There are many websites on the online market place which allows the exporters to sell their goods in the International Market and act as a platform to establish the connection between the seller and buyer.
Setting up the Responsive Website:
Without having an optimized website you can not exist into this business, which is the first impression that can bring potential customers. It is as important as registering the business and getting all the necessary documents. It should contain all the contact information, valuable content for the goods and services an Import-Export company is offering. There are Potential clients whose collaboration depends on the website we have.
Be Active Online and explore the opportunities available online:
Online Presence is crucial to find partners to work with, be the member of forums online portals which offer the information and guidance, suggestions for the import-export business on a regular basis. The Import-Export business is in constant change if you want to be with this you have to involved with this and need to upgrade the business as per the demand of the International Market.
Take the Benefits of Government to Promote exports:
To promote the export business Government of India is offering the incentives to the exporters under various schemes such as MEIS/SEIS/RoDTEP Scheme /RoSCTL/PLI Scheme/Advance Authorisation Scheme which provide the incentives on the eligible exports. There are various initiatives the government started to make the import-export process attractive for the Importers and exporters from offering the Licenses to save the custom duties on the import of raw materials and capital goods to manufacture the export products and benefits on the eligible exports.
Objectives to provide the incentive on the exports:
- To generate employment in the country
- To make the goods competitive in the global market
- To boost the economic growth of the country