9 Things to Consider Before Starting a Small Export Business in India
Exporting a wide
range of goods and services, India is the 14th largest exporter in
the world. According to a recent report by HSBC, India is set to become one of
the top 5 exporters in the world by the year 2030. As the country has embraced
the concept of ‘Make in India’, exports from India are set to take a speedy course
and will contribute to the GDP of the country.
The government
of India has always been a great supporter of exports, but the pandemic has
opened a new opportunity for aspiring small business owners who wish to start
their ventures in small towns. The widespread use of the internet has also
helped the export and import business to flourish.
If you are
planning to start your own export business in India, you can attend our free Masterclass by Dr. Ajay Sahai,
Director General & CEO, FIEO. You can download the Bada Business Community APP
to attend the class on February 22nd, 2022, Tuesday at 6:00 PM.
Here are nine
things you must know if you are thinking about starting an export business:
1. Select Product
If you have
already thought about the item you want to import-export then it is okay.
Otherwise, some products are prohibited from being exported. So, ensure that
your product is not one among them. India is known for mainly exporting
agricultural products. You can also select a product in your area and export
them by keeping the quality of the product into consideration. It is an
important factor in receiving future orders and reviews from customers.
2. Analyze your Target Market
It is very
important to understand your target audience when thinking about selecting an
export business. Research the market size, quality requirements, competition,
payment terms, etc. when you select an overseas market.
You can also
enquire about a few export benefits available in the market for a few countries
under the Foreign Trade Policy. Export promotion agencies, Indian Missions
abroad, and your acquaintances can prove helpful in recognizing the initial
market, as well as, expanding it.
3. Select Business Name &
Logo
Before you
decide to register and look for buyers for your products, you should select a
name and logo for your business. You need to think about your business`s name
so that you can register it.
4. Registration
Like any
legitimate business run in India, you will need to get registered. It could be
registered as a sole proprietorship, in partnership, private limited company,
or LLP. Hire a lawyer for any legal advice and to help you with the legal
proceedings of registering the business.
5. PAN
Businesses must
obtain PAN (Permanent Account Number) from the Income Tax Department.
6. Bank Account
Open a current account at any commercial bank
that is authorized to deal in Foreign Exchange.
7. Obtain Importer
Exporter Code
(IEC) Number An exporter/importer in India is required to obtain an IEC number
as per Foreign Trade Policy. It is a key business identification number that
can be applied for online at www.dgft.gov.in. After the introduction of GST
(goods and service tax), the IEC number is the same as the PAN of the firm.
8. Obtaining RCMC
RCMC
(Registration Cum Membership Certificate) is a membership certificate issued
for 5 years by Export Promotional Councils (EPCs) or Commodity Boards of India.
It is proof that your business has been registered with the council/board and
is useful when applying for any benefit or concession under Foreign Trade
Policy like duty drawback, duty credit scripts, etc.
9. Get covered through ECGC
Dealing with an
overseas client involves risks from the insolvency of the buyer/country. These
payment risks can be covered by ECGC Limited (Formerly Export Credit Guarantee
Corporation of India Ltd), a company wholly owned by the Government of India
which provides export credit insurance support to Indian exporters under the
Ministry of Commerce.
To get in-depth knowledge and information, attend our Masterclass on the Bada
Business community app for free. Download
the link now: https://tinyurl.com/nhav2kp6
The idea of
managing the business is easier said than done and we completely agree with
you. This is why to help you move forward with your business goals, we at Bada
Business offer courses like Problem
Solving Courses (PSC) & Leadership Funnel Program (LFP Bada Business).
Comments
Post a Comment