How to Start Export and Import Business in India: Are you thinking about starting an import-export business? But not sure where to begin? Yet, you have seen others doing this business and making over a lakh a month. So you want to start but can not figure out how or where to begin this business? People usually do before starting a business. He wants to see different sources. He also want fo find out if anyone you know is already doing this business. What are people on YouTube saying about this business? You have searched for blogs that share different business ideas. But no idea really actual in your mind, and none of them gave you a clear way for you startup. If you have tried all of that, then I would say you definitely need to read this article. Here, you will get everything you need from starting an import-export business to growing and developing it successfully. Hopefully, you would not have to look anywhere else. So, I hope the informations provided in this article will be useful for you.
What means ‘import business’?
Import business means bringing products from abroad that are in short supply or unavailable in our country. Products that are in huge demand in our country but, are not easily available to people. Yet, you bring those very products from abroad at low cost and make them available here. But, you are charging a high price. That is why import business often brings high profits for businessmen.
Know the Laws You Must Follow to Import Goods
The Country you live in that is, your native country. The rules in your coutnry are different from those in other countries. Take a look at the exact laws of those countries-
IEC Code (Import Export Code)
You need to take this code. We will guide you step by step about the IEC Code. We are discussing everything below where to get it and what documents you will need.
Customs rules must be followed
Suppose this is the product you are importing from another country. You must inform the Indian Customs Department when bringing in that product. They will want to know everything, what product is coming, why it is being imported, where it will go, how much there is and at what price.
Pay all the Duties and Taxes in Full
You must pay all applicable import taxes, GST or any other separate taxes on the products or goods you bring in. Otherwise, you would not be able to bring the prdocuts to your office or home.
Must have a license to import the products
You need to have a licence to import the products. Keep in mind, some goods are banned from being from being imported into India. For example, weapons, certain medicines and some chemicals cannot be imported freely. Do you want to know what is license? In this article, we will cover everything about import business licnese, why you need this, what documents are required and how to get it.
How to Apply Online for an IEC Code?
- First, need to visit the website https://www.dgft.gov.in
- Simply click on the ‘Apply for IEC’ option.
- After that, finish your registration by entering your PAN Card details.
- In the next step, fill out the form with all the details of yourself or your company.
Documents You will Need to Gather
- PAN CARD
- AADHAR CARD/VOTER CARD/PASSPORT ETC.
- BANK ACCOUNT’S COPY, YOU CAN ALSO PROVIDE A CANCELLED CHEQUE.
- YOUR ADDRESS DETAILS WITH ELECTRIC BILL, IF THE PLACE IS RENTED, YOU WILL NEED A COPY OF THE AGREEMENT WITH THE LANLORD.
- APPLICATION FEE
- THEN, YOUR IEC CODE WILL BE SENT TO YOU VIA EMAIL.
Essential Paperwork for Your Import Process
Invoice Bill
All about Packing Lists – A packing list is a document that details what items the supplier from the exporting country is sending, including their names, quantities, sizes, and other relevant information. It is easy to see what items are included in your packing.
Bill of Lading is a legal document. When you purchase goods from a foreign supplier, the Bill of Lading is the document obtained from that country’s authorities. When you load your goods onto the ship, you must show these documents to the shipping company, only then will they load your cargo.
Certificate of Origin is an official document that verifies the product is coming from which country. Just like ‘Made in India’, the certificate will show the name of the country from which you are importing the product.
Require Insurance documents. This way, the insurance will cover any accidents or unforeseen incidents.
Doing import business has become very easy these days. If you present all the documents correctly, you can earn lakhs of rupees every month from this business. Speaking from real experience and you try your best.
What means Export Business?
Export Business is legally sending products from our country to the world.
Want to Start Exporting from Home?
The first step is to register you company. You can even register your company right from home. If you want to know how to register a company from home, we will cover it in the next article.
After that, the home tax from your municipality will come as a commercial tax. Only your home tax will increase a little in this case.
Quick look at what you need to do –
- You will create a company. Get it registered through a CA (Chatter Accountant)
- Open a Bank Account. They will come for an inspection. They might ask why you have not listed it as a commercial property. In response, you can say I am starting a start up business please, help me open an account.
- GST Certificate – Your CA will apply for GST on your behalf. They may also ask why you want to run your business from home. After that, your GST certificate may typically get rejected. But there is no need to worry, if you apply again through your CA, you will get it, even if it takes a little longer. By showing that you municipal tax is now classified as commercial you will be able to get your GST certificate.
- You can even run your office from home. There is no problem at all. In fact, it comes with even more advantages.
What knowledge Require to Start an Export Business?
- It is best to get guidance from someone already running this business.
- Product Selection – First, you need to decide which products you want to export. Honestly, starting an export business has become much easier these days. You can earn a substantial income by doing this.
- The Government is supporting E-Commerce Business – Now, you can easily export even your small products. The process has become so simple that you can start exporting at a low cost.
Low-Budget Products Are Suitable for Export
- Imitation, Jwellery pfoduct.
- Lether, Handicraft, Home Farniture, Home Decoradet product.
How to Find Buyers for This Business?
In the export business, you need to sell your goods or products to buyers from other countries. You need to identify which buyers will purchase your products and do business with you reliably. You need to find buyers who will trust you and would not cheat you. An easy way to find such trustworthy buyers. By following this method, you will easily find buyers for your products.
Best Places to Find Buyers
- You can find buyers like through Linkedin and Instagram.
- If you work in e-commerce, you can find buyers on various websites such as Alibaba.com, Amazon.com and eBay etc.
- Whenever there is an exhibition, you can go there directly and find buyers in person.
- If you want buyers for free, you can even email the Indian Embassy. They have data and lists of various buyers, which they can share with you.
- Can find buyers through B2B websites.
The most important thing to remember is that while you can find buyers for free, you still need to clearly explain why your product is good and how it stands out from the rest. That is the real work. Even if it takes a little longer, you will succeed in this work one day.
How to Convince Your Buyers?
- You need to communicate with buyers with a business mindset.
- To be a more professional
- You sell your products at the right price.
Why Are not Buyers Coming?
The first reason is that after buyers come, exporters often do not know how to explain things properly.
How to Receive Payment from the Buyers?
Once you build a good relationship with the buyer, you can take a 50% advance payment. You can collect the remaining 50% before delivering the goods.
What to Do After Receiving Payment?
- Then, you need to manufacture the goods according to that order.
- You need to purchase from them.
- need to create an invoice bill.
- To file the shipping bill.
- Then, to export, you will need to ship through services like DHL or FedEx. They will handle all the shipping bill fillings, and then your goods will be exported.
How Much Investment For This Business?
- need to set up your company through a CA.
- Need IEC, RCMC, GST certificates. To export food you will need FSSAI licence.
- You will need to make an initial investment of around ₹20,000-₹40,000.
But, if you choose to work in a joint venture, you would not need to make any investment. If you want to know more about joint ventures, let me know in the comments below. Try to cover it in the next article.
Finally, stay persistent and within a year, you will become an importer, exporter and a successful businessman. You can earn between ₹2 lakh to ₹5 lakh per month. So, for those thinking about starting an import-export business, it is time to get started.
You can start with the investment mentioned in this article or work in a joint venture without any investment.
