Starting an import and export business expands your market and revenue, but it's crucial to have a well-thought-out business plan and identify the right products or services.
Depending on the type and scale of the business, launching a small firm in the import and export business in India typically costs between Rs 1,00,000 and Rs 3,00,000. This sum will cover various expenses such as registration fees, legal fees, capital expenditures and other startup costs.
Next, you might be wondering, how do I know if my product is exportable? What criteria might you use to select your export product, then? Here are a few tips:
Once you’ve ticked the above boxes, the next step is to register your company and make note of necessary documents such as the Import Export Code (IEC) and Registration cum Membership Certificate (RCMC), and Export Promotion Council Membership Certificate.
The steps are discussed below.
You’re advised to set up and open a current account with a bank in India authorized to deal in foreign exchange.
Once this is done, you also need to legally form a sole proprietorship/partnership firm/company before your venture can take off.
All export and import business owners need to obtain a PAN from the Income Tax Department.
For exports and imports from India, the IEC code (10-digit code) must be secured in accordance with the Foreign Trade Policy. For service or technology providers, an IEC is only necessary when they benefit from the Foreign Trade Policy or engage with specified services or technology.
To apply for the IEC, submit the application form online, pay the application fee of Rs 500/- via net banking or credit/debit card, and include the necessary documents specified in the application form.
Learn more about obtaining an IEC and the application at Import Export License - IEC Application Guide.
This is acquired from the Export Promotion Council/FIEO/Commodity Boards/Authorities. You can also look for other benefit or concession under FTP 2015-20 for services and guidance.
Generally, everything can be exported without restriction except for certain products on the prohibited or restricted list due to social, health, environmental, wildlife and security concerns such as narcotics, pornographic materials, counterfeit goods and wildlife products, among others.
Pick an international market of your choice once you’ve conducted your research on its size, competition, quality requirements and payment terms.
As an export company, you may also assess markets based on the export incentives that are available. Gather as much information as you can from your network of colleagues, friends, and family or even export promotion agencies and Indian embassies abroad.
Many business owners assume that they can first acquire customers before building their pool of customers/market. However, it’s wiser to secure distributors who will buy your goods and then sell them to others.
You’re also encouraged to take part in trade shows, purchasing exhibits, buyer-seller gatherings, and B2B portals and web surfing, all of which are efficient tools for locating foreign buyers.
Export Promotion Councils (EPCs) — which are government-initiated authorities that serve to promote and support export companies by sharing technical and industrial knowledge — overseas Indian missions and foreign chambers of commerce are also advantageous.
Commerce websites can act as a digital product catalogue. Remember to include product details, price, payment terms, lead times, shipping details and other related information.
Aside from building a website, you can also explore listing your products on B2B marketplaces such as Alibaba. Also remember mobile applications are generally favored so getting listed on an e-commerce app will also be beneficial.
Before placing a confirmed order, your buyer is likely to request product samples. This is expected, although it is crucial that you produce the samples using high-quality raw materials, and ensure that future goods are made using the same quality material once an order has been placed.
As an export business owner, it’s also important to be aware of foreign government policies and processes or a freight forwarder. By acquiring accurate information, you’re assisting your customers in successfully clearing the items through customs.
With the constant competition in the global business trade, product pricing is essential for grabbing consumers' attention and boosting sales.
Prices should be calculated based on the terms of sale including Free on Board (FOB), Cost, Insurance & Freight (CIF) and Cost & Freight (C&F), among others, considering all costs from sampling to realizing export revenues.
Your goal in developing export costing is to sell the most possible amount at the best possible price with the largest possible profit margin. It’s therefore advisable to create an export costing sheet for each export product.
Have a question? call us now
We are open on
Need support? Drop us an email
4th Floor,Office No.465,
Neo Square, Near Amber Cinema,
P. N. Marg, Jamnagar
info@maxsubsidy.com
+91 92270 30600
© 2024 maxsubsidy - All Rights Reserved