Licenses required for starting Export

These are the licenses required to start an export business in India:

· Import Export Code (IEC)

· RCMC

· GST

· FSSAI central level

· AD Code registration

1. IEC: An Importer -Exporter Code (IEC) is a key business identification number which is mandatory for doing export. No person can do export without obtaining an IEC unless specifically exempted. However, if you are exporting services IEC shall be not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.

Following entities can obtain IEC- Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society. IEC is valid for lifetime and it is to be updated annually.

Govt fee for obtaining IEC is Rs. 500.

Documents required for obtaining an IEC by a Company:

· PAN of Company

· GST Certificate

· Bank Account details

· Certificate of Incorporation (COI)

· Sale Deed, rent agreement, lease deed, electricity bill, telephone landline bill, mobile, postpaid bill, MoU, any one as address proof. In case the address proof is not in name of Company, No Objection Certificate (NOC) from owner of premises is also required.

2. RCMC: Registration-Cum Membership Certificate (RCMC) is a certificate that validates an exporter dealing with products registered with an agency / organization that are authorised by the Indian Government. The certificate is issued for five financial years by Export Promotion Councils (EPCs) / Commodity board / Development authority or other competent authority in India. These bodies function as the Registering Authority to issue the RCMC to its user.

An exporter desiring to obtain an RCMC has to declare his mainstream business in the application. This application would be submitted to the related Registering Authority. For example, if you want to export makhana which is a scheduled food product as per Agricultural and Processed Food Products Export Development Authority (APEDA), you will have to get a RCMC from APEDA before starting export. It can also be used to claim benefits, subsidies, rebates. RCMC is Valid for 5 years.

Reg. fee for getting a RCMC from APEDA is 5000 plus taxes. Fee differs depending on the authority issuing RCMC.

Documents required:

· IEC

· GST

· Last two-month bank statement

· Cancelled cheque

· RCMC Reg. form

3. GST: GST is mandatory to start an export business irrespective of the turnover. GST laws treat exports of commodities or services as interstate supplies. Therefore, Section 24 of the CGST Act of 2017 mandates that all exporters of products register for GST. However, if a service exporter's annual turnover is less than the Rs 20 lakh exemption limit, the company isn't needed to register for GST.

Fee for GST can be in the range of Rs. 1000 to Rs. 15000 depending on the type of entity.

4. FSSAI Central license: For starting an export business, FSSAI Central license will be required irrespective of turnover of the business. There will be a Fee of Rs. 7500 Per Annum.

Documents required, if you are a relabellers and repackers:

· Form-B Duly completed and signed

· List of Directors with full address and contact details

· Photo I.D and address proof issued by Government authority of directors

· NOC & Copy of License from manufacturer (mandatory for relabellers and repackers only)

· IEC

· Form IX: Nomination of Persons by a Company alongwith the Board Resolution.

· Supporting documentary proof for Turnover

· Declaration form

There will be a requirement of different set of documents depending on the type of business.

5. AD Code registration: It is a unique 14-digit numeric code which is provided by the bank to exporters where they hold their current account for their import and export business from India. Only the banks that are authorized dealers of foreign currency can grant an AD code. It is required for custom clearance. The AD code is mandatory when filing shipping bills with customs authorities. It allows customs officials to verify the transaction's legitimacy and ensure adherence to export and import regulations. To obtain the code, exporter can visit the bank physically, tell them about the requirement and obtain the code.

There is a one-time fee of Rs. 3000 for obtaining AD Code.