How To Start Export Business in India Step by Step Guide

Are you interested in starting an export business in India? With its growing economy and diverse market opportunities, India has become an attractive destination for entrepreneurs looking to expand their businesses globally. This article will provide you with a comprehensive guide on how to start an export business in India, covering the essential steps, requirements, and tips to ensure your venture’s success.

 

Step 1 : Registration of the company

export business registration

 

How To start export Business in India is the most common question faced by new entrepreneur.  If you want to start a new business in the 21st century, it is very important to register your Export business as a company, as it is easier to gain clients’ trust  as a company instead of working as an individual.  

Picking the right company structure for your Exim business is as important as any other business related activity.  The right  business structure will allow your Enterprise to operate efficiently and meet your required business targets. Let’s try and understand the basic types of companies for startups that can be registered in India

  • One Person Company (OPC)
  • Limited liability partnership (LLP )
  • private limited company
  • public limited company 
  • Partnership
  • sole proprietorship

above are the some options  from which you can choose according to your requirement and budget.

 

Step 2 : Getting registered with GST 

gst registration for starting export business in India

As per section 24 of CGST Act the person who is making interstate supply GST registration is compulsory and export is considered as inter state supply. Registering under the Goods and Services Tax (GST) is essential for export businesses. Obtain a GST registration by submitting the required documents to the Goods and Services Tax Network (GSTN). This registration facilitates tax compliance and enables claiming refunds.

 

Step 3 : Open A Current Account In Bank

bank account for starting export business in India

Open current account with the bank which provide Effective Export Import services,  always select the standard nationalized bank so that there is no delay in crediting foreign exchange,  you can also explore different schemes and benefits given  to import export companies by top Nationalized banks present in India. This account will facilitate international payments, foreign currency conversions, and documentation related to export transactions. Always choose a bank that offers competitive foreign exchange rates and understands the intricacies of export finance.

 

Step 4 :  Obtain import export code (IEC)

If you need to start export or import Business from India you need to obtain an import export code on your company name from Indian Government through  the department of Directorate General Foreign Trade (DGFT). It is mandatory for engaging in export import activities. To obtain the IEC, submit the Online application along with the required documents and Fees to the Regional DGFT  offices.

 

Step 5 : Choose a product for Starting Export Business  

The next step in starting an export business is to find a product or industry you are passionate about and that you think could sell in the international market. Once you find your product, you also need to identify the right market for it. For Reference you can read our guide on Top Product Ideas for Starting a Small Scale Export Business

 

Step 6 : Registration Cum Membership Certificate (RCMC) Registration

India has a number of export Promotion Councils Categorized according to different sectors and the products. Getting membership of these councils by registering as a member with them is known as RCMC (Registration Cum Membership Certificate) registration. Enroll with the relevant Export Promotion Councils (EPCs) based on the products or services you intend to export. EPCs provide industry-specific support, market intelligence, and networking opportunities. Membership with EPCs enhances your export capabilities and connects you with potential buyers.

 

Step 7 : Get Ready With Your Marketing Kit & Website

First impressions are important

We all know how important first impressions are. Letters, brochures, faxes, video-conferences, phone calls and personal meetings all have a substantial impact. Gain a competitive advantage by presenting well.

Email techniques

Effective emails use a combination of words and layouts that convey messages quickly and stand out. Insert product photos, graphics or even video clips that define your product or service. Try to build in quick response formats that make it easier for the recipient to seek more information. Ensure your email techniques are geared to the markets you are targeting. Use other communication techniques as well, in line with local customs. Research your prospect to find out what is likely to catch their attention.

Having a good website

A good website is your corporate brochure and prospects will usually go straight to it to check you out. The website need not be loaded with information, but be cleanly laid out with interesting graphics.

Use customer endorsements wherever possible and photographs to show your products or services being used. Make sure that contact details are easy to use and friendly – preferably a direct email with a photo of the staff member. That encourages customer response rather than an ‘enquiry.com’ address.

A well-constructed and easy-to-navigate website provides great opportunities for exporters. Maintaining an up-to-date website allows you to:

  • Make contact with potential overseas customers without leaving home
  • Reach overseas customers in cost-effective ways
  • Project the impression of a professional organization of substance
  • Convey that your business is ‘modern’ and uses new technology
  • Avoid problems with time differences by having 24-hour contact
  • Introduce and promote new products
  • Demonstrate products using technical data, drawings
  • Sell products direct to customers

 

Step 8 : Find Buyers For Your Products

The next step for your business plan would be to figure out how to find buyers for your export product. There are many Different ways through which you can generate leads for your product such as getting leads through  website, registering on b2b  platforms, participating in Trade Fairs and Exhibitions, trade directories, using government bodies like Export Promotion Councils etc.

 

Step 9 : Complete Formalities Like Registering Export Import Business With Customs And Port

Complete the formalities like registration with the Customs and Ports. You need to register your IEC and Authorized Dealer Code (AD Code) with the port, through which you are exporting. If you are going to export by Sea, you need to register with sea port customs and  if you are going to export by Air, you need to register with airport customs. Familiarize yourself with the necessary documentation, customs valuation, packaging requirements, and logistics involved in exporting goods from India. You can appoint a CHA (Custom House Agent), freight forwarders and shipping agents for smooth export operations and get the job done on behalf of you.

 

Conclusion

Starting an export business in India can be a rewarding venture with the right approach and preparation. By understanding the export business, identifying product opportunities, conducting market research, and complying with legal requirements, you can establish a successful and sustainable export business. Remember to adapt to market dynamics, build strong relationships, and continuously innovate to stay ahead in the competitive global market.

 

FAQs

  1. Q: How long does it take to start an export business in India?

    • A: The timeline can vary depending on the type of business structure and the completion of legal requirements. It typically takes a few weeks to a couple of months to set up an export business in India.

  2. Q: Do I need a physical office or warehouse to start an export business?

    • A: It is not mandatory to have a physical office or warehouse to start an export business in India. However, having a dedicated space for operations can provide logistical advantages.

  3. Q: Are there any export incentives provided by the Indian government?

    • A: Yes, the Indian government offers various export incentives, subsidies, and schemes to promote exports. Exporters can avail themselves of these benefits based on their eligibility and compliance with the relevant regulations.

  4. Q: How can I find overseas buyers for my exported products?

    • A: You can find overseas buyers through online marketplaces, trade directories, industry associations, and participation in trade fairs and exhibitions. Networking and building relationships with international buyers are also essential.

  5. Q: Is it necessary to hire a customs broker for export documentation?

    • A: While it is not mandatory, hiring a customs broker can simplify the export documentation process and ensure compliance with customs regulations. A customs broker can assist you in preparing accurate and complete export documents.