How to Start Import Export Business in India — Step-by-Step Guide

You can start as a:

Most serious exporters and importers choose a Pvt Ltd for credibility with international buyers and easier access to export finance from banks.

• ▸Sole Proprietor: Simple and quick to start; fine for small scale
• ▸Partnership Firm: If starting with a partner
• ▸Private Limited Company: Best for scale, credibility, and foreign buyer/supplier trust
• ▸LLP: Good for professional service-related trade

The Import Export Code (IEC) is a 10-digit unique code issued by DGFT (Directorate General of Foreign Trade) under the Ministry of Commerce. It is:

How to get IEC:

• ▸Mandatory for every import or export transaction
• ▸Required to clear customs
• ▸Needed for foreign inward remittance (FIRC/BRC) from banks
• ▸Lifetime validity — no renewal needed
• ▸Linked to your PAN number
• ▸Visit DGFT portal (dgft.gov.in)
• ▸Register with your PAN
• ▸Fill the IEC application form
• ▸Pay ₹500 government fee online
• ▸Upload: PAN, Aadhaar/company documents, cancelled cheque
• ▸IEC issued digitally within 1–3 working days

GST registration is mandatory for importers and exporters:

LUT must be filed online on gst.gov.in every financial year before the first export.

• ▸Importers: Pay IGST at the time of customs clearance; claim as ITC
• ▸Exporters: Exports are zero-rated under GST
• ▸Option 1: Export under LUT (Letter of Undertaking) — no IGST paid, claim accumulated ITC refund
• ▸Option 2: Pay IGST on exports and claim full refund from GST portal

Export-import businesses need a current account with:

Best banks for exporters: SBI, HDFC, ICICI, Axis, Bank of Baroda (with dedicated EXIM desks).

• ▸EEFC (Exchange Earner's Foreign Currency) account — retain up to 100% of export earnings in foreign currency
• ▸PCFC (Pre-Shipment Credit in Foreign Currency) — low-interest foreign currency loan for export financing
• ▸ECGC (Export Credit Guarantee Corporation) cover — insurance against buyer payment default

For exporters to access export promotion schemes (MEIS/RoDTEP benefits, advance authorization, EPCG):

• ▸Register with the relevant Export Promotion Council (EPC) for your product/service
• ▸e.g., APEDA (agri products), FIEO (general exports), EEPC (engineering), TEXPROCIL (textiles)
• ▸RCMC is issued free or at nominal cost
• ▸Required to apply for export incentive schemes on DGFT portal

International trade terms (Incoterms 2020) define responsibilities:

FOB and CIF are the most common in India's import-export trade.

• ▸FOB (Free on Board): Seller responsible until goods are on ship; buyer pays freight & insurance
• ▸CIF (Cost, Insurance, Freight): Seller pays freight and insurance to destination port
• ▸DDP (Delivered Duty Paid): Seller responsible for everything including import duties
• ▸EXW (Ex Works): Buyer handles all logistics from seller's premises

• ▸RoDTEP (Remission of Duties and Taxes on Exported Products): Duty refund as % of FOB value
• ▸EPCG (Export Promotion Capital Goods): Import capital goods at 0% duty against export obligation
• ▸Advance Authorization: Import raw materials duty-free against export commitment
• ▸SEZ (Special Economic Zone): Tax-free zone for export-oriented units
• ▸Niryat Mitra / EXIM Portal: DGFT portal for all export/import scheme applications