The IEC registration is regulated by the provisions of the Foreign Trade (Development and Regulation) Act, 1992 and other rules and regulations. The IEC registration is a one-time registration and is valid for a lifetime, with annual updating as per the norms of the DGFT.

Why IEC Registration is Important

·       It is required for the clearance of shipments through customs

·       It is required for the receipt of foreign currency payments

·       It is mandatory for the export benefits and government schemes

·       It assists in the expansion of business in the international market

This registration is provided by the Director General of Foreign Trade (DGFT). It is a ten-digit number, which certifies that the business can indulge in import and export activities. The applicant needs to register for the IEC code.

However, there is a lifetime validity for this code. Therefore, the applicant will not need to go through the process of renewal of this certification. It will take approximately a month to obtain this code. Any business that does not meet the requirements of the import export code will not be permitted to undertake any process.

Here are the key advantages of Import Export Code:

1. Unlocking the Global Market

The import-export code is the main document for import and export of goods and services from India, is famous for unlocking the global market. At the same time, it expands your horizon on a global platform, unlocking more business opportunities.

2. Avail Input Tax Credit on Export

Not only import, but the IEC code also has immense advantages on the export side. You can properly claim the input credit of taxes that have been paid by you while exporting goods.

3. Life-Time Validity

As already discussed above that the import-export code does not require any sort of renewability as well as any kind of process to follow for maintaining its validity. IRC code is for the rear documents that do not require renewability.

4. Higher business growth

The IE code is the main license you need for importing and exporting. With it, everything runs by the book no shady shortcuts, no grey areas. When your business is set up right, works efficiently, and connects with the global market, you will see real growth.

5. Reduces risks of illegal transportation

Before, importing or exporting from India was kind of a wild west there was not a solid document to track goods and services, so illegal shipments slipped through all the time. Now, with the import-export code in place, those risks have basically disappeared.

6. No Regular Compliance Burden

There is no need to file returns on a regular basis only for IEC registration, thereby cutting down on compliance costs.

7. Builds Business Credibility

IEC registration increases the credibility of the business in the eyes of foreign customers, suppliers, and banks.

1. Proprietorship IEC

This is for people who are running a sole proprietorship. It is directly linked to the PAN of the proprietor. So, everything is in your name. It is a good option for small traders and new businesses that are just starting out.

2. Partnership Firm IEC

In this case, the IEC code is for partnership firms that are registered under the Indian Partnership Act. The code is issued in the name of the firm, not the partners. You will need the PAN of the firm and the partnership deed to apply.

3. LLP (Limited Liability Partnership) IEC

If you have an LLP that is registered under the LLP Act, then this IEC code is for you. It is directly linked to the PAN of the LLP. Medium-scale trading businesses usually opt for this code.

4. Private Limited Company IEC

For companies that are registered under the Companies Act, the IEC code is issued in the name of the company. You will need the PAN of the company and all the documents required for incorporation.

5. Public Limited Company IEC

This is for public companies that engage in international business. You have to be registered as a public limited company to apply for an IEC.

6. Trust / Society / NGO IEC

Trusts, societies, or NGOs that export or import, such as those that trade handicrafts or deal with charity shipments, can also obtain an IEC.

Step by Step Procedure for Import Export Code Registration

1. Access the DGFT website

2. Click on “Apply for IEC” from the dashboard and log in with proper credentials.

3. Click on “Start Fresh Application” or “Proceed with Existing Application” if draft is already saved.

4. Enter the General Information (Mandatory fields are marked with “*”):

·       Select type of firm and enter firm name.

·       Enter PAN, name as per PAN, and DOB/DOI (real-time verification).

·       Select desired business activities.

·       Answer questions related to SEZ/EOU/EHTP/STP/BTP.

·       Enter CIN (if applicable) – will be auto-populated from MCA.

·       Enter GSTIN (if applicable).

·       Enter mobile number and email ID (OTP verification required).

·       Enter firm address and PIN (DGFT office will be automatically mapped).

·       Upload address proof (and NOC if required).

·       Enter branch details and GSTIN, if any.

5. Fill up Proprietor/Partner/Director/Karta/Trustee particulars:

·       DIN (auto-filled for companies).

·       PAN, name, and DOB (verified from PAN database).

·       Fill up personal and contact information.

·       Check if the director is a foreign national, if applicable.

6. Fill up Bank Account particulars:

·       Account number, holder name, IFSC, bank, and branch.

·       Upload cancelled cheque or bank certificate.

·       Account holder name should be same as the firm name.

7. Fill up other particulars:

Choose reason and export sector preferences for IEC application.

8. Accept the Declaration and fill up the place.

9. Check the Application Summary and sign with Digital Signature or Aadhaar.

10. Move on to payment:

·       Pay ₹500 through Bharatkosh.

·       Download payment receipt after successful payment.

·       If payment fails, wait for status update up to 1 hour.

11. After Submission:

·       IEC Certificate will be mailed to the registered email.

·       Also download from Manage IEC → Print Certificate.

·       IEC details will be shared with CBIC, and status can be checked from My IEC.

1. Documents You will Need (For Everyone)

·       PAN Card

·       Aadhaar Card

·       Recent passport-sized photo

·       Your email and mobile number – these will be used for OTPs

2. Proof of your business address (choose one):

·       Electricity or water bill

·       Rent agreement

·       Sale deed or lease deed

3. Bank Documents

·       A cancelled cheque from your current account

·       A bank certificate (in DGFT’s format)

·       A recent bank statement with your account details

4. Extra Documents (Depending on Your Business Type)

·       Your PAN and Aadhaar

5. If you own a Partnership Firm:

·       Partnership deed

·       Firm’s PAN

5. If you own an LLP:

·       LLP incorporation certificate

·       LLP agreement

6. If you own a Company:

·       Certificate of Incorporation

·       Memorandum and Articles of Association

·       Board resolution for the IEC application

Registration of Import Export Code (IEC) is the first and most important step for any business that aims to venture into the international market. An IEC code is issued by the Directorate General of Foreign Trade (DGFT) and is a legal requirement for carrying out import and export operations in the country.

At Tax Esquire CA Firm, we recognize that entering into international trade requires documentation, compliance, and timely processing. Our team of experts will ensure that the IEC registration process is hassle-free, accurate, and processed quickly so that businesses can concentrate on expansion rather than paperwork.

Tax Esquire CA Firm, with its expertise, transparency, and support, will enable entrepreneurs, startups, and existing businesses to enter the international market with confidence.

IEC registration is more than just a legal requirement; it is the key to unlocking success in international business, and Tax Esquire CA Firm is your partner in this endeavor.