The Indian economy is one of the fastest, largest, and most growing economies in the world. With the globalization of business and trade, India is seeing massive growth in the industry of import and export as the India export and import data 2020 suggests. Attracting new entrepreneurs.
New entrepreneurs entering the industry of import and export are likely to have minds full of doubts and questions ranging from the document required and the legal guidelines to follow etc.
If you are someone who wants to step into the business of import-export but has no knowledge of the respective field, then this article is for you. In this article, we will focus on how you can start an import-export business in India.
1. PAN CARD
To start a new import-export business, you need to provide a certain set of documents including your PAN CARD to complete legal formalities related to your import-export business.
In order to register your import-export business, you and your partners must provide a valid & authentic identity and address proof.
For every registered business entity, it is necessary to apply for a PAN CARD with the income tax department.
2. CHOOSE THE BUSINESS ENTITY TYPE
Before you start your import-export business, you need to determine the form of the business entity you want your company to be.
After that, you need to choose a name for your business entity and get it registered accordingly. You can form a Partnership firm, a Sole Proprietorship firm, A Private Limited Company, an LLP, or A Public Limited Company.
3. OPENING A CURRENT ACCOUNT
The bank account used by the business entities to transact that off with the customers, vendors, manufacturers, and customers is called a current account.
Without having a current account business dealing would not be possible.
Hence, having a current account is a must in the business industry.
Documents needed to open a current account can vary depending on the type of business entity.
4. IEC CODE
The IEC ( Import Export Code), is a 10 digit unique registration code issued by the DGFT (Directorate General of Foreign Trade ), under the Ministry of Commerce and Industries.
For anyone looking to start an import-export business is required to have an IEC Code.
5. CHOOSING PRODUCT
The first thing that you need to start an import-export business is a Product. Before you start your import-export business, you need to select the product you want to import and export as choosing the right product is the key to your import-export business.
This is because there are people who want to start their import-export business but are unable to do so just because they don’t have a product.
A product is the most important thing in the business of import and export. You can not start your import-export business without a product.
Now the question arises of how to select a product for your import-export business?
You can use SWOT ( Strength, Weakness, Opportunity, and Threat) analysis to select your product. SWOT analysis will help you understand the strengths and weaknesses of your product.
It will also help you know the potential threat to your product in a market that is full of competitors.
This will help you enhance your marketing strategy to bring out more opportunities for your import-export business.
6. RCMC (Registration Cum Membership Certificate)
Once you have an Import Export Code (IEC), you need to obtain RCMC which can be acquired from the Export Promotion Council. Our country India has plenty of export promotion councils that work and help you promote the export of different services and products.
To avail benefits under the Indian Foreign Trade Policy, it is mandatory to register under the RCMC.
These councils provide assistance and access to events that help you enhance & promote your import-export business. It takes around a week to get the registration done and it is valid all over India.
7. SELECTING THE RIGHT MARKET
Make sure that you are targeting the right market for your import-export business.
To check if the product and service you are importing or exporting are in demand or not, do a market research analysis.
This will help get aware and assist you with the current trend and flow of the market. Even so, there are factors that you should keep in mind such as trade barriers, the demand for the product, political environment, profitability, etc.
The exporter has to analyze the viability and choose a market for his business accordingly based on the factors mentioned above.
8. FINDING THE RIGHT BUYER FOR YOUR PRODUCT
After selecting the right market and product for your import-export business, the next step for you and your business is to find potential buyers.
There are different ways through which you can attract and target potential buyers for your business.
● You can generate leads from your website.
● You can participate in events such as trade fairs and exhibitions.
● You can also use government bodies that promote import-export business such as the Export Promotion Council.
The motive here is to attract and target as many buyers as possible for your business.
9.MANAGINIG YOUR FINANCE
It doesn’t matter how much work you put into your import-export business plan or how well you have formulated it.
For your business to get off the ground, you will need access to some initial financing. You need to figure out which type of financing works best for you.
Depending upon your business needs you can opt for either long-term or short-term financing. Moreover, there are subsidies that you can avail and take advantage of.
GETTING READY
After completing all the steps mentioned above in the article, your newly set up import-export business is ready to perform functional activities like exploring market opportunities, finalizing the shipping partner, and promoting your import-export business in the overseas markets.
CONCLUSION
If you are someone new in the industry of import and export and need guidance or assistance regarding import-export business, you can connect with us at info@eximtradedata.com as we provide digitally analyzed marketing researched import-export data that help you understand the current trend and flow of the market. We also provide in-depth authentic import-export data that help you enhance, attract and target potential markets for your services and products.
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