Import Export Business In India
Selling goods in the international market is a great opportunity for business growth. It was very difficult to setup and operate an import-export business in India in the past. To make your product/service reach the world was time-consuming and expensive. By the virtue of the internet, import and export are much easier. An import-export business can significantly expand your market by providing opportunities to work with clients from all over the world. However, handling international trade operations is still a great challenge for entrepreneurs.
International trade is another word for import-export business. Such a business deals in exchange of goods, services, technology, etc. across international borders. This article explains about the setup of import-export business.
Document for setting up an international trade business as follows:
- PAN CARD: Pan Card of the owner in case of sole proprietorship, partners in case of partnership registration or LLPs, and company’s PAN card in case of a company is required.
- Bank Account in name of your business firm.
- TAN: Tax deduction Account Number
- CST registration: Central Sales tax registration if goods are being transferred across different states.
- IEC number: Import Export Code
Setting Import-Export Business in India
Deciding the future action plan for the business firm, a proper business plan helps in a smooth working of a business organization. Business planning includes the following steps:
- Selection of products: Decide the type of products you will deal with in your import-export business. Products can be consumable products, fashion products, handicrafts etc. services includes services like social networking, customer care services etc.
- Selection of Customers: Finding the people to sell your goods and services is the most challenging step in the process. Finding customers in the state/country where the firm operates is comparatively easier. But when it comes to international trade, it becomes really tough.
You can find customers by placing calls, sending emails and mailing marketing materials directly to sales and purchasing managers in each company. Remember, you should always follow up on all conversations and agreements.
The next step is to register your firm as a separate entity. You can register the company either as a Sole Proprietorship or Partnership or LLP or as a company depending on the number of owners and investors in the firm.
Now, obtain the Import-Export Code, it is 10 digit number that is issued by DGFT director general of foreign trade or ministry of commerce in India. Import-export business cannot be carried out without IEC.
The documents for taxation are important for a company and needs to be registered for the GST codes and TAN.
- GST stands for Goods and Service Tax, it is rolled down from 1st July 2017.
- TAN is an alphanumeric number that is issued to individuals for tax deductions on the tax payment made by them according to Indian Tax Act, 1961.
- If you want to produce electronics goods, then get registered yourself with the nearest excise department to claim benefits under exporting.
Hire a Customs Clearing Agent
The business firm cannot perform all the functions on its own, therefore a customs clearing agent is hired who is be responsible for keeping a check on payment of taxes and functioning of import-export processes. The agent makes sure that there are no obstacles in the process.
Use your own freight forwarder
A lot of things are required in arranging the international shipping. The seller cannot handle all of it alone. A good freight forwarding service provider should be hired to save time and to reduce the pressure from the seller. Freight forwarding person, or company, acts as an agent that arranges and manages the storage and shipping of goods on behalf of the sellers.
It is also called NVOCC (Non-Vessel Operating Common Carrier). A Freight forwarder just acts as an intermediary between the seller and various transportation services.
Setting up the International trade business may be easy but operating is tough. For a successful import-export business, you need to have a good organizing and managing team to give attention to all the aspects.
Visit HireCA.com Now