SEPC License Registration for Service Exporters in India

A SEPC license, or Services Export Promotion Council (SEPC) registration, is a certification that enables Indian service exporters to register and access various benefits and incentives under India's Foreign Trade Policy.

It serves as a crucial entry point for businesses to export services and engage with international markets.

Why a Business Might Need an SEPC License and Its Role in India’s Foreign Trade Policy

The Services Export Promotion Council (SEPC) plays a vital role in supporting and promoting India’s service exports. Obtaining an SEPC license can significantly benefit businesses aiming to expand globally in the service sector.

• Facilitates and Promotes Service Exports: SEPC's primary objective is to boost the export of services from India by helping businesses tap into international markets through policy support, trade events, and promotional assistance.
• Access to Government Incentives: SEPC-registered businesses can avail benefits under various schemes such as the Service Exports from India Scheme (SEIS) and other incentives outlined in the Foreign Trade Policy. The Council also guides businesses in understanding and utilizing these schemes effectively.
• Marketing and Global Visibility Support: SEPC offers promotional aid, including support for advertising and branding activities, to help Indian service providers increase their global outreach and recognition.
• Networking and Trade Opportunities: Registration with SEPC opens doors to participate in international trade fairs, exhibitions, buyer-seller meets, and industry delegations. These platforms help businesses connect with potential clients, partners, and foreign governments.
• Policy Advocacy and Government Liaison: SEPC acts as a crucial bridge between the government and the service industry. It conveys industry concerns, recommends policy reforms, and ensures that the interests of exporters are represented in trade policy formulation.
• Access to Market Intelligence: Members gain valuable insights into global markets, trends, sector-specific challenges, and opportunities through SEPC’s research and trade data services.
• Credibility and International Recognition: Being registered with SEPC enhances a business’s credibility in the international market, positioning it as a recognized and reliable service provider from India.
• Visa Facilitation for Exporters: SEPC members may benefit from streamlined visa processes, easing international business travel and cross-border collaboration.
• Expert Guidance and Process Support: From documentation to compliance, SEPC offers technical and procedural support to simplify the export journey for service providers.
• Capacity Building and Competitiveness Enhancement: SEPC works on improving India’s global competitiveness in services by supporting training, skill development, and sector-specific export readiness programs.
• Representation on Global Platforms: SEPC actively represents Indian service sectors at international forums, ensuring India's capabilities and innovations are showcased on a global stage.

What is an RCMC Certificate?

The Registration Cum Membership Certificate (RCMC) is essentially the license issued by the Service Export Promotion Council (SEPC) in India. It plays a crucial role in India's Foreign Trade Policy by facilitating and promoting the export of services.

The RCMC, obtained through SEPC, acts as a bridge between the service industry and the government. It provides guidance, support, and grants access to various benefits and schemes specifically designed for service exporters.

Why the RCMC Certificate is Needed and Its Link to SEPC?

The RCMC (Registration-Cum-Membership Certificate) is an essential document for Indian exporters, as it proves their membership with an authorized Export Promotion Council (EPC) and is required to avail benefits under the Foreign Trade Policy.

• Mandatory for Exporters: Exporters need an RCMC to apply for export incentives, schemes like SEIS (Service Exports from India Scheme), and to comply with DGFT regulations.
• Proof of Recognition: It acts as proof that the government officially recognizes the exporter and is part of an industry-specific council.
• Issued by SEPC for Service Exporters: For businesses exporting services, the RCMC is issued by the Services Export Promotion Council (SEPC), which is the designated EPC for the service sector.
• Required for Policy Benefits: Without an RCMC from SEPC, service exporters may not be eligible for key benefits like duty credits, tax exemptions, or government financial support.
• One-Time Registration for 5 Years: Once issued, the RCMC remains valid for five years and but membership fees must be renewed annually to keep it active.

The Services Export Promotion Council (SEPC) registration, which includes the Registration Cum Membership Certificate (RCMC), is vital for Indian service exporters. It has access to various advantages and programs for businesses looking to export services.

1. Government Incentives

Registration with SEPC is a prerequisite for accessing a range of government schemes and incentives, such as the Service Exports from India Scheme (SEIS). The SEPC, established by the Ministry of Commerce and Industry, serves as a bridge between the Indian government and service exporters, facilitating trade and providing valuable policy input.

2. Global Market Access and Credibility

SEPC registration enables exporters to tap into global markets and participate in international trade fairs and exhibitions, thereby expanding their reach and business opportunities. This registration also enhances a business's credibility in the international marketplace, fostering trust with potential global partners.

3. Buyer-Seller Meets and Trade Fairs

SEPC actively creates business opportunities for both new and established service exporters by connecting them with potential buyers and partners. It helps exporters access global markets by organizing promotional events, exhibitions, and facilitating participation in international trade shows. Additionally, SEPC provides valuable trade intelligence, market research, and information on global trade trends to help exporters make informed decisions.

4. Policy Support and Visa Facilitation for Business Travel

SEPC plays a significant role in shaping trade policies and providing feedback to the government, ensuring that the needs of service exporters are addressed. Furthermore, SEPC members may be eligible for streamlined visa processing for international business trips, thereby simplifying global travel for commercial purposes.

The Services Export Promotion Council (SEPC) helps service exporters get recognized by the government and access export-related benefits. To register with SEPC, certain eligibility rules must be followed.

Who is Eligible?

Businesses must be involved in exporting services to qualify for SEPC registration.

• Your business should be engaged in exporting services that are covered under SEPC, such as IT, education, healthcare, tourism, media, consulting, etc.

Minimum Export Turnover

Exporters must meet the minimum earning requirement in foreign exchange from services.

• Companies (Pvt. Ltd., Public Ltd., LLPs, Institutions, etc.): Must have earned at least Rs. 12,45,000 from service exports in the last financial year.
• Proprietorships or Partnership Firms: Must have earned at least Rs. 8,30,000 from service exports.

For New Exporters or Startups

New businesses without export earnings may still register, but benefits depend on future exports.

• Startups or new exporters can apply for membership even with no previous turnover.
• However, benefits like SEIS incentives will only apply after actual exports are made and a minimum turnover is achieved.

RCMC Validity and Export Year

To get benefits, your export activity must match the RCMC's active period.

• The RCMC must be valid during the same financial year in which exports are made.
• RCMC issued by SEPC is valid for 5 years starting from April 1st of the year it is granted.

These are a list of documents required for SEPC RCMC registration:

For Businesses

• Digital Signature Certificate: It is a mandatory electronic signature used for secure online transactions and document submission on the SEPC portal, ensuring the authenticity and integrity of your application.
• MoA & AoA in the Case of a Company:

• • Memorandum of Association (MoA): This fundamental legal document defines the company's constitution, its main objectives, and the scope of its operations. SEPC must understand the nature of your service export business.
  • Articles of Association (AoA): It outlines the internal rules and regulations governing the company's management and operations. Both MoA and AoA are required to establish the legal framework of your company for SEPC registration.

• 2-photographs of Authorized Signatory: Passport-sized photographs of the individual who is legally authorized to sign and submit the SEPC RCMC application on behalf of the company or proprietorship.
• Certificate of Incorporation: This is a legal document issued by the Registrar of Companies, serving as official proof that your company has been legally registered and exists as a corporate entity, which is essential for SEPC to verify your business's legal status.
• Cancelled Cheque by Authorized Signatory: A canceled cheque from the bank account associated with the authorized signatory or the business, used by SEPC for bank verification purposes to confirm financial details.
• Certificate of Business Registration in Case of Proprietor & Partnership Firm: For proprietorships or partnership firms, this refers to documents like a GST Registration Certificate or Udyam Registration Certificate, which legally establish the existence and registration of the business for SEPC purposes.
• Self-attested Address Proof such as (Aadhar Card/ Voter ID) of Authorized Person: A self-attested copy of a government-issued identification document (like an Aadhaar Card or Voter ID) of the authorized signatory, which serves as proof of their residential address for SEPC records.

For the Registered Office

• Rent agreement proof: If your business operates from rented premises, a copy of the rent agreement is required to confirm the legal address of your registered office for SEPC records.
• Copy of GST registration: The Goods and Services Tax (GST) registration certificate is needed as it also serves as a crucial document verifying the registered address of your business for SEPC compliance.
• Ownership proof of the registered office, duly notarized on ₹10 stamp paper/Noc from the owner of the property: If your business owns the premises, a notarized copy of the property ownership document is required. If the premises are used with the owner's consent, a No Objection Certificate (NOC) from the property owner, duly notarized on a ₹10 stamp paper, is necessary to confirm the legal use of the registered office address for SEPC.

To register with the Services Export Promotion Council (SEPC) and get an RCMC (Registration-Cum-Membership Certificate), exporters must apply online through the DGFT (Directorate General of Foreign Trade) Common Digital Platform for e-RCMC, not directly on the SEPC website.

You can access the DGFT portal here: dgft.gov.in

1. Register on the DGFT Portal

Start by creating your Importer/Exporter profile on DGFT’s website.

• Visit dgft.gov.in
• Click on “Register” to create an account using your business PAN, mobile number, and email.
• Once registered, log in and go to “Link IEC” to connect your Import Export Code (IEC) with your profile.

2. Apply for e-RCMC (SEPC Membership)

Once your IEC is linked, you can apply for SEPC membership online.

• Go to the e-RCMC section on the DGFT dashboard.
• Choose SEPC as the Export Promotion Council (EPC).
• Fill in your company’s details such as nature of services, contact person, and business type (e.g., Proprietorship, Partnership, Pvt. Ltd., etc.).

3. Upload Required Documents

Prepare scanned copies of the documents and upload them to the portal.

Commonly required documents include:

• Digital Signature Certificate (DSC)
• GST Registration Certificate
• PAN Card of the Business
• IEC Certificate
• Company Incorporation Documents (like Partnership Deed, MOA/AOA, etc.)
• Cancelled Cheque/Bank Details

You can check the full list of required documents on the SEPC official site or the DGFT portal under SEPC e-RCMC.

4. Fee Payment

The cost of obtaining a Registration-Cum-Membership Certificate (RCMC) from SEPC depends on the type of business entity and includes:

• A one-time admission fee
• The annual membership fee for the first year
• Applicable GST (18%) on both components

5. Application Review and Certificate Issuance

• After submission, SEPC and DGFT will review your application and verify the documents and payment.
• Once approved, your RCMC will be issued digitally.
• The certificate is valid for 5 years from the date of issue.

• While the RCMC remains valid for 5 years, SEPC membership itself is valid for one financial year (April 1st to March 31st).
• Therefore, annual renewal of the membership is required to maintain active status.

Annual Membership Renewal Fees:

Note: The renewal fee includes only the annual membership charge for subsequent years. The one-time admission fee is paid only during initial registration.

Documents needed for renewal

• Valid RCMC issued by SEPC.
• Import export code certificate issued by DGFT.
• Duly CA-certified details of foreign exchange earnings of the last 3 years.

To continue enjoying the benefits of SEPC membership, exporters must renew their membership annually, even though the RCMC remains valid for five years.

SEPC Membership Renewal Process

SEPC offers a simple online renewal through its official website. Follow these steps:

1. Visit the SEPC Official Portal: Go to servicesepc.org
2. Log in to Member Dashboard: Use your registered Membership Number and Password to log in to the SEPC Member Section.
3. Go to the 'Membership Renewal' Section: Follow the on-screen instructions and ensure your profile is updated, if required.
4. Upload Required Documents (see below)
5. Make the Online Payment: Pay the applicable renewal fee securely through the online payment gateway.

Documents Required for Renewal

SEPC may request the following documents during the renewal process:

• Membership Renewal Application Form (if applicable on the portal)
• CA-Certified Export Turnover Statement for the previous financial year
  (Required especially if your eligibility or fee structure depends on turnover slabs in other councils. SEPC may ask for it based on past filings.)
• Valid LOA/LOP Copy (if applicable)
• PAN Card of the organization
• Self-Declaration Letter affirming continued export activity and compliance