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An export business is a company that is engaged in selling goods or services to other countries. According to the Press Information Bureau, India's overall exports are estimated at USD 468.27 billion between April and October 2024, representing a 7.28 percent increase.
Export businesses can be very profitable because they can access international markets and increase profit margins. In this blog post, we will explore how to start export business. So, if you’re planning to establish an export business in India, going through this article will be helpful.
To start any business, you need to fulfill certain requirements. Let’s find out the requirements for setting up an export business in India:
DSC full form is Digital Signature Certificate. A DSC means a unique electronic code that authenticates the identity of a user and the integrity of a document. A DSC-signed document is considered as valid as a physically signed document.
To register your company with the Registrar of Companies (RoC), you require the DSC. Additionally, a digital signature certificate is also required to secure Import Export Code from the Directorate General of Foreign Trade (DGFT). Hence, DSC must be obtained in advance before filing an application for company incorporation with RoC, and IEC application with DGFT. To apply for DSC, you can visit the official website of a licensed certifying authority (CA).
To register an export business in India, you must apply for company registration with RoC. For this, you need to prepare and file the Memorandum of Association and Articles of Association, defining the company’s objectives, rules, scope of work, etc.
The company incorporation form must be filed along with MoA and AoA. You can register your company as a private limited company, one person company, etc. depending on your requirements.
Generally, a private limited company is recommended for conducting export business as it offers limited liability protection, transferability and easy access to funding. Additionally, it can help to project a strong brand image to foreign consumers.
Once your company has been registered with RoC, you will receive a certificate of incorporation. After receiving this certificate, you must also apply for a certificate for business commencement. Without this certificate, you cannot initiate business operations.
An Importer Exporter Code is an authorization issued by the DGFT to businesses wanting to export goods from India. An IEC is a unique business identification number that is necessary for any import or export to or from India, unless there’s a specific exemption.
You can apply for IEC by visiting the official website of DGFT and submitting the required documents such as PAN card, aadhaar card, incorporation certificate, cancelled bank cheque, electricity bill and rental agreement.
An IEC is valid for the business’ entire lifespan. However, it must be renewed annually.
GST regulations treat exports of goods or services as interstate supplies. Hence, Section 24 of the CGST Act 2017 mandates all exporters of products to obtain GST registration. However, a company may not need to register for GST if their service’s annual turnover is less than Rs. 20 lakh exemption limit.
If you want to register for GST for export business, get in touch with Registrationwala’s chartered accountants. We’ll make the entire process easy and smooth for you.
To run an export business in India, you require a business bank account with a bank that deals in forex. Make sure the bank offers export-related services like export bill collection, export advances, and letter of credit advising and confirmation.
While choosing the bank under which you want to open a bank account, take into consideration things like foreign exchange rates and hedging options.
If you haven’t yet decided the export business you want to conduct, here are a few options you can choose from:
Basmati Rice Export Business is a great export business option. Long-grain basmati rice is prized for both its subtle flavor and aroma. South Asia, which includes India, Pakistan, and Nepal, is where the basmati rice is generally grown.
Basmati rice is famous for making biryani, pulao, and many other famous dishes. To export basmati rice, you need to obtain APEDA registration.
Agriculture export business can be profitable, especially if you are exporting agricultural food products in a country that does not grow or manufacture them.
Top agricultural products exported from India include non-basmati rice, spices, pulses, fruits and vegetables, pickles, jam, etc. To export any food agricultural product, APEDA registration is required.
Tea export business is another export business idea. Tea is the world’s most consumed beverage after water. Many health benefits are associated with drinking tea. The second largest producer of tea is India. Tea grown in Assam, Darjeeling and Nilgiri are famous all over the world, and largely exported by the country.
To export tea from India, you must secure RCMC Registration from the Tea Board of India. RCMC certificate is issued by the board for bulk tea, packet tea, teabags and instant tea. FSSAI license is also required to export tea from India.
India’s fisheries sector is a major contributor to the country’s forex earnings. A variety of fish is exported by India including frozen fish, ornamental fish, freshwater fish and shrimp.
Running a fish export business can be profitable. Fish is considered a high source of protein, vitamins and minerals. India’s top destinations for fish export are USA, EU, South East Asia, Japan, Middle East and China. By value and volume, in 2021-22, the USA was the largest importer of Indian seafood.
If you want to start a fish export business, you need to obtain an MPEDA license.
Export business can be a profitable venture. Exporters can establish a successful business as long as they ensure right preparation, adherence to legal requirements, and strategic planning. Make sure to obtain essential certifications such as DSC, IEC, GST registration, etc. to ensure smooth business operations.
To obtain IEC code from DGFT, connect with Registrationwala.
Q1. What is the most exported agricultural product from India?
A. Rice is the most exported agricultural product from India.
Q2. Which certificate is required for exporting fish from India?
A. To export fish or any seafood product from India, an MPEDA certificate is required. This certificate is issued by the Marine Products Export Development Authority.
Q3. Is FSSAI license required for exporting basmati rice?
A. For importing or exporting any food product, including basmati rice, FSSAI license is required. Along with this license, IEC issued by DGFT and APEDA license are also required for exporting basmati rice from India.
This post was originally published in 2017 and has been updated on December 17, 2024, to provide you with the most current and accurate information.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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