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For going online, websites like indiamart, eximdesk, alibaba, bizbilla will help. List your products usually for free under those website and you get buyer enquiries. For that, you might have to pay per enquiry or on the basis of a set of enquiries. But before going online, you need to apply for IE code at a minimum.
Basics of exports:
1. To start an export firm:
a. Name the business entity
The firm can be a
Proprietary firm where no registration is required since an individual runs the business.
Partnership firm which involves minimum 2 individuals. This type of firm also does not require a registration with registrar of companies.
Public/ Private company which requires a minimum of 7 members (Public Company) or minimum 2 individuals (Private Company). This entity needs to be registered under Company’s act. Liability of members is limited to the number or percentages of shares they hold.
b. Create a company logo
c. Create a website
Establishing an export business:
Acquire the PAN number from the Department of Income Tax
Register for excise in Central Board of Excise and Customs
Register for sales tax in sales office
Open current account in a scheduled Bank
Apply for IEC in DGFT: Read about obtaining IEC code here. The Directorate General of Foreign Trade (DGFT) with its 4 zonal offices in Mumbai, Delhi, Chennai and Kolkata along with 35 regional offices is the first point of contact once you make your mind to export. Further, the central government derives its statutory powers to frame the foreign policy from the FTDR act. Any changes and updates in this foreign policy are made available for public on DGFT website. The updates are in the form of circular, public notices and notifications. Since taxes, duties and charges can’t be classified as exports, refunds on those taxes, duties and charges are paid after export where in DGFT has a role to play. Any authorizations, invalidation letter, advance authorization, applications for central duty refund/ neutralization/ exemption/ specific schemes require procedure to be facilitated through DGFT.
