How to Register for an Import Export License

Introduction

In today’s interconnected world, international trade has become a cornerstone for economic growth. For businesses planning to import or export goods and services from India, obtaining an Import Export License is crucial. This license is formally known as the Import Export Code (IEC), a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT), which authorizes entities to engage in international business.

In this comprehensive guide, we will explore everything you need to know about the import export license registration process. From step-by-step instructions to the required documents and common registration issues, we’ve got you covered. Additionally, we’ll highlight the significant benefits of having an IEC and why it’s essential for businesses to go global.

What is an Import Export License (IEC Code)?

An Import Export License is an essential registration for businesses involved in import-export activities. Known as the IEC Code, it is issued by the DGFT, Ministry of Commerce, and Government of India. This code is a critical document for clearing goods through customs, opening foreign exchange accounts, and enjoying government incentives for exporters.

Key Features of IEC Code:

• Required for Customs Clearance: An IEC code is necessary for businesses to clear goods through Indian customs during import and export.
• Lifetime Validity: Once issued, the IEC Code remains valid for a lifetime and does not need renewal.
• Foreign Transaction Benefits: It is mandatory for opening a foreign bank account for import/export transactions.
• Global Market Access: Allows businesses to expand beyond local boundaries and access foreign markets.

Who Needs an IEC and Why?

Several types of entities require an Import Export License for smooth international trade operations. These include:

1. Proprietorship Firms: Sole entrepreneurs who engage in imports/exports need an IEC to ensure seamless transactions.
2. Partnership Firms & LLPs: Partnerships involved in global trade are also required to obtain an IEC Code.
3. Private Limited and Public Limited Companies: Companies dealing in imports and exports must be registered with DGFT for an IEC code.
4. HUF (Hindu Undivided Families): Even HUFs involved in international trade are required to obtain this license.
5. Trusts and Societies: Entities such as trusts, societies, and government bodies also require the IEC Code for international dealings.

Why is IEC Registration Necessary?

• Legal Compliance: It is mandatory to comply with India’s Foreign Trade Policy.
• Access to Export Benefits: With an IEC, businesses can avail of export promotion schemes, tax rebates, and other government incentives.
• Business Credibility: Holding an IEC enhances the credibility of a business in global markets, allowing easy access to foreign buyers and suppliers.

Documents Required for Import Export License Registration

The import export license registration requires the submission of various documents, which vary depending on the business structure. Here’s a breakdown of the necessary documents for each category:

For Individuals and Sole Proprietorship Firms:

1. PAN Card of the Applicant: It is mandatory for individuals to provide a PAN card.
2. Aadhaar Card/Passport: One of these documents serves as identity proof.
3. Bank Certificate/Cancelled Cheque: A cheque with business details must be submitted for verification.
4. Business Address Proof: It can be an electricity bill, rent agreement, or sale deed.
5. Digital Signature Certificate (DSC): If applicable.

For Partnership Firms & LLPs:

1. PAN Card of the Firm and Partners: Required to verify the firm and partner’s identity.
2. Partnership Deed/LLP Agreement: The respective agreements need to be submitted.
3. Bank Certificate/Cancelled Cheque and Business Address Proof are also mandatory.

For Companies (Private Limited & Public Limited):

1. Certificate of Incorporation: Proof of registration with the Registrar of Companies.
2. MOA (Memorandum of Association) & AOA (Articles of Association): Required for private and public companies.
3. Company PAN Card and Director PAN Cards: For identification purposes.
4. Board Resolution for IEC Registration: A board resolution from the company’s management.
5. Bank Certificate/Cancelled Cheque and Business Address Proof.

Step-by-Step Process to Apply for an Import Export License

Here’s a simplified guide to help you through the import export code process:

Step 1: Visit the DGFT Website

The first step is to go to the official DGFT website (https://www.dgft.gov.in) and access the IEC registration portal.

Step 2: Register on the Portal

• Click on “Apply for IEC.”
• Create a new user account by providing a valid email ID and mobile number for communication.

Step 3: Fill the IEC Application (ANF 2A Form)

• Provide personal or business details in the application form.
• Enter your PAN details and upload the necessary documents, including identity proof and business details.
• Provide your bank details and upload a canceled cheque.

Step 4: Pay the IEC Registration Fees

• The government charges a nominal fee of ₹500 for IEC registration.
• Payment can be made online through Net Banking, Debit Card, or Credit Card.

Step 5: Submit the Application and Download the IEC Certificate

• Before submission, review all the details to avoid mistakes.
• Once approved, you will be able to download the IEC certificate from the portal.

How to Track IEC Application Status Online

After applying for the Import Export License, tracking the status of your application is easy:

1. Visit the DGFT IEC Tracking Portal.
2. Enter your PAN number and application reference number.
3. Click on “Track Status” to monitor the progress.

If There Are Delays:

• Ensure that all documents are correctly uploaded.
• Confirm that you’ve made the required payments.

Common Issues in Import Export License Registration and Solutions

Despite the simplicity of the process, businesses may face some issues during the import export license registration process. Below are common mistakes and their solutions:

1. Incorrect Details in the Application
   
   • Always cross-check that your PAN, name, and business details match your official records.
   • Upload clear scanned copies of all documents.
2. Payment Failures During Registration
   
   • Use a stable internet connection to prevent transaction failures.
   • Ensure your bank account balance and online payment settings are in order.
3. IEC Not Issued After Payment
   
   • If your IEC is not issued within 10-15 days, contact DGFT customer support for resolution.

Benefits of Holding an IEC Code for International Trade

Having an Import Export License opens numerous doors for businesses, providing several benefits:

1. Global Market Expansion: You can easily access international markets and grow your business globally.
2. No Renewal Required: The IEC Code is valid for life, making it a one-time registration.
3. Government Benefits: You become eligible for several subsidies, export incentives, and duty exemptions.
4. Simplified Banking Transactions: An IEC is required for foreign exchange transactions, making international banking more straightforward.
5. Enhanced Business Credibility: Holding an IEC gives your business a competitive edge in international markets.

Conclusion

Obtaining an Import Export License (IEC Code) is a critical step for businesses that want to engage in international trade. The registration process is straightforward and involves minimal documentation. After obtaining the IEC Code, businesses can enjoy a lifetime of hassle-free global trade, government incentives, and simplified banking.

Moreover, registering for an IEC Code boosts a company’s credibility and opens up vast opportunities in foreign markets. However, businesses must avoid common registration mistakes to ensure a smooth process. For those facing difficulties or unfamiliar with the import export code process, professional assistance can help streamline the registration.

At RegisterKaro, we specialize in guiding businesses through the entire import export license registration process, ensuring quick and error-free registration. Our expert team handles all aspects of the registration, allowing you to focus on growing your business.

Contact us today for seamless IEC registration.
Email: support@registerkaro.in
Call: +918447746183

Frequently Asked Questions (FAQs)

1. Is an IEC Code mandatory for all importers and exporters?
Yes, any individual or business involved in international trade must obtain an IEC.

2. How long does it take to get an IEC Code?
The IEC is usually issued within 5-10 working days after application submission.

3. Can I apply for an IEC Code online?
Yes, the IEC registration process is completely online via the DGFT portal.

4. Is there a renewal process for IEC registration?
No, IEC is valid for a lifetime and does not require renewal.

5. Can I modify my IEC details later?
Yes, you can update business details through the DGFT website.

6. Can a partnership firm apply for an IEC Code?
Yes, partnership firms engaged in international trade need an IEC Code.

7. What is the fee for IEC registration?
The fee is ₹500 for applying for an IEC.

8. How can I track my IEC application status?
You can track the status online via the DGFT website by entering your PAN and reference number.

9. Is an IEC needed for services, or just goods?
An IEC Code is required for both goods and services involved in international trade.

10. What happens if I don’t have an IEC Code?
Without an IEC Code, businesses cannot clear customs or avail of export benefits.