Selling products or commodities in the global marketplace is actually a great prospect for the growth of the business. There was a period when it was really tough for people to set-up and run the firm of Import Export in India. Making your service or product famous in the world was an expensive and long process. But through the virtue of the internet, import export has been made stress-free. The Indian export and import business significantly enlarge the market for your products by offering lots of opportunities to work with customers all across the borders.
After so many years, operating the global trade business is still the biggest challenge for entrepreneurs. The global trade is the other word for import-export business. This kind of business deals in exchange for services, products, technology and so on to all around the world.
Today’s article explains how one can set-up his/her business of Import Export in India. First of all, we look at the documents compulsory for establishing a global trading business:
ï IES number: Import and export code
ï CST registration: Central sales tax registration if products are being moved across diverse states.
ï TAN: Tax deduction account number
ï Bank account on the name of your firm
ï PAN Card
Steps to begin the business of Import Export in India
• Business Planning
Your primary step should be deciding the future plan for the firm. The proper business plan assists in the smooth working of the business. The proper planning includes some steps that have given below:
1. Selection of goods: First of all, you need to choose the kind of goods you’ll deal in the business of export import India. Goods can be related to fashion, handicrafts, consumable and many more.
2. Selection of clients: Next, you have to find people to sell your products. Finding clients in any state or country where the company runs is quite easier. But it becomes difficult when it comes to the global trade.
One’s next step should be registering his/her company as a single entity. You can simply register firm either as an LLP, partnership, sole proprietor or a firm depending on the investment and number of owners in the company.
• Get IEC
Then, obtain import export code (IEC) that has ten digit numbers issued by DGFT (director general of foreign trade). The business of India import export cannot be accepted without IEC.
• Other crucial documents
Here are listed few other documents that one need for the firm like docs for taxation. These docs have mentioned below-
1. VAT code- stands on Value Added Tax collected by the seller from clients for consumption of goods or services.
2. CST- is another tax for selling products from one state to another.
3. TAN- It is an alphanumeric number issued to people for tax deductions on the basis of tax payment made by them.
• Appoint a Custom Clearing Agent
Any firm cannot operate all the functions involved in the functioning of the import and export business. Therefore, it is required to hire a custom clearing agent who will be responsible for inspecting payment of taxes and the functioning of import procedures. That person has to make sure that there are no issues in the process of import-export.
• Use your own cargo forwarder
There are a lot of things happen while arranging global shipping. Any seller cannot handle all of these things alone. Having a great cargo forwarder service provider is required to decrease pressure on the seller as well as save time. Any cargo forwarder company or person works as an agent that manages the shipping and storage of products on the behalf of sellers. A cargo forwarder works as an intermediate among seller and several transportation services.
To run a successful business of Import Export in India, you have to give attention to all its aspects and you also need to have a pronounced head for shaping different things.