How to open an export import company in India?
If you are having knowledge about any product and services and looking for the international market and explore it by opening an export-import company then this information will be useful and hope it will provide you with valuable information what you are looking for before starting your company to understand and have the knowledge about the various procedure and necessary formalities required for doing import-export business from India.
All the necessary formalities and procedures required for setting up an Export-Import company are provided by the Government of India on regular basis and if there are any new changes or update the same are provided accordingly by the government. The purpose of this blog is to provide you with the maximum information about how to set up an import-export company. You can visit the necessary government organization in your city and understand the process in more detail.
Below are the required Registration and documentation procedures in India for an Import-export company.
Registration of the firm
Once you had finalized the name of your firm you need to register the same to obtain the import-export license (IEC) and the type of firm which can obtain (IEC) is as follows: “Proprietorship. Partnership, LLP, Limited Company, Trust, HUF, and Society.
Registered address by Rental agreement or own property
You need to finalize the name of your company and after doing the same you need to have a place that will be used as your registered office address for your company which can be either a rental place or your owned property. The property document can be the rental agreement if it is rented property or your own property document which will be in your name such as Light Bill, Sale Deed of the property
The rental agreement should be prepared with utmost accuracy so that all the information is filed properly to avoid any issue after the submission of the document.
If your property is owned and your firm is registered as a proprietor firm you don’t need to give any rental agreement and ownership document such as sale deed and light bill are sufficient but if your firm is registered as Partnership, LLP, Limited Company, Trust, HUF, and Society you need to provide proper registered rental agreement copy with stamp duty and necessary government charges paid while preparing the same.
PAN – Permanent Account Number
PAN is the short form name and its complete meaning is Permanent Account Number. A PAN number is a combination of alpha-numerical ten-digit number that is issued by the income tax department to all the taxpayers, and it has a character of unique identity with each individual. A PAN number is generally used by the government official income tax authorities to have vigilance on the financial activities of any individual, as PAN is very crucial to all forms of payments. A PAN number is allotted through a laminated card, which is called a PAN card. A PAN card contains information like PAN number, Name, DOB, and address.
Nowadays all the financial transactions are linked with the PAN number issued by the Government. However, there is a separate PAN number for individuals and for companies registered with the Income-tax department.
PAN number is a very important document via starting your export company and many times we find it difficult to understand whether we should obtain PAN number in the name of company or Individual.
Below are the importance and requirement of PAN number depending on the type of company
SOLE PROPRIETOR FIRM
If you are starting your company as a Sole proprietor then the PAN number issued in your name is sufficient as you are an individual owner and sole proprietor of the firm.
PARTNERSHIP FIRM
If you are planning to start a company with a partner and registering your company as a Partnership company then you are required to obtain a separate PAN CARD in the name of the Company. However, each partner in the company is required to provide the details of the individual PAN number issued to them by the INCOME TAX department while applying for the company PAN Number.
PUBLIC LIMITED / PRIVATE LIMITED
While registering a company as a Public limited or Private limited you are required to apply for a separate PAN number in the name of the company along with the PAN number information of each director of the company to the income tax department.
This is all the documents that you need to arrange along with this there are other documents which information you can easily get by visiting the DGFT website or by taking services of a company who will help you in obtaining IEC code for doing import and export business