How can you establish a prosperous import export company in India?

Selling products or raw materials in the global market is actually a great prospect for business growth. There was a period when it was really difficult for people to set up and run Import Export company in India. Making your service or product famous in the world was a long and expensive process. But thanks to the virtue of the Internet, importing and exporting has been stress-free. India’s export-import business significantly expands the market for its products by offering many opportunities to work with clients across borders.

After so many years, running the world trade business is still the biggest challenge for entrepreneurs. Global trade is the other word for import and export business. This type of business dealings in exchange for services, products, technology, etc., throughout the world.

Today’s article explains how you can set up your import export business in India. First, we look at the documents required to establish a global trading business:

 IES number: Import and export code

 CST Registration: Central registration of sales tax if the products move between several states.

 TAN: Tax deduction account number

 Bank account in the name of your company

 PAN card

Steps to Start Import Export Business in India

• Business planning

Your main step should be to decide the future plan for the business. The right business plan helps in the smooth running of the business. Proper planning includes some steps which have been given below:

1. Product Selection – First of all, you need to choose the type of products that you will be trading in the India import-export business. Products can be related to fashion, crafts, consumables, and many more.

2. Customer Selection: Next, you need to find people to sell your products to. Finding clients in any state or country where the company operates is much easier. But it becomes difficult when it comes to global trade.

• Registry

One’s next step should be to register your business as a single entity. You can simply register the business as an LLP, partnership, sole proprietorship, or business, depending on the investment and number of business owners.

• Get IEC

Then, obtain the import and export code (IEC) which has ten-digit numbers issued by the DGFT (general directorate of foreign trade). India import and export business cannot be accepted without IEC.

• Other crucial documents

Listed here are some other documents one needs for the business such as tax documents. These documents have mentioned below:

1. VAT Code: It is based on the value added tax collected by the seller from customers for the 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 that is issued to people to make tax deductions based on the tax payment they make.

• Addition to a Customs Clearing Agent

Any one company cannot operate all the functions involved in running the import and export business. Therefore, it is necessary to hire a customs broker who will be in charge of supervising the payment of taxes and the operation of import procedures. That person has to make sure that there are no problems in the import-export process.

• Use your own freight forwarder

A lot happens when arranging for global shipping. Any salesperson cannot handle all of these things alone. It is necessary to have an excellent freight forwarding service provider to lessen the pressure on the seller and save time. Any freight forwarding company or person functions as an agent that manages the shipment and storage of products on behalf of the sellers. A freight forwarder functions as an intermediary between the seller and various transportation services.

To run a successful import export business in India, you have to pay attention to all its aspects and also have a pronounced head to shape different things.