IEC Registration

IEC Registration

Any sort of business that carries out the process of import and exports would require a business transaction number. This number is known as the import export code (IEC). The Import Export Code is a 10 digit identifying number which has to be quoted by the business throughout every transaction of import and export. Every individual or corporation necessitates acquiring an IEC Certification. The process of obtaining the Import Export Code Certification is simple and can be obtained in 1 day.

IEC Registration – Overview

The Indian markets were accessible to international investment after liberalization in 1991. Businesses in India were also permitted to make investments abroad in addition to these options. Businesses in India were allowed to conduct the import and export procedure in addition to getting funding.

By adopting the Import Export Code Certification, the Indian government, ministry of commerce, and director general of foreign trade (DGFT) made things simpler for businesses. Any firm can take advantage of the incentives offered by the Indian government by registering under this system. In addition, by adhering to the guidelines for IEC certification, prospects might be diversified.

The IEC certification must be obtained prior to traveling internationally. Seeking out this type of registration comes with a variety of benefits.

Definition of IEC

The acronym IEC stands for Import Export Code. This accreditation is necessary for every organization or business to expand its options. This accreditation is necessary for any individual, partnership, or company to conduct import and export business in India.

The Director General of Foreign Trade is responsible for issuing this certification (DGFT). It is a ten-digit number that serves as evidence that the company is authorized to import and export goods. The candidate must sign up for the IEC code. However, this code has a lifetime validity. Therefore, the candidate would not need to go through the certification renewal process. Normally, it would take a month to secure this code. Any company that does not adhere to the import export code’s requirements will not be permitted to conduct any operations.

Regulatory Body

The Director General of Foreign Trade is the primary regulating agency or authority for IEC registration (DGFT). The Ministry of Commerce, the Government of India, and the DGFT are the IEC’s primary regulatory bodies. Any IEC registration requires an independent application to the DGFT. Through the DGFT website, this system can be used online.

Who need IEC?

Ownership Company

A person handling the import and export procedure would need to have the IEC certification.

Partnership Firm

If a partnership is importing and exporting goods, they would also need to obtain this accreditation.

Limited Liability Company

Any limited liability partnership created in accordance with the LLP Act of 2008 is required to obtain this certification in order to conduct business outside of India.

Limited Liability Company

If a company is shipping goods outside of India, whether it was founded under the Companies Act of 2013 or an earlier company statute, it would also need this certification.

Trust

Any type of organization involved in carrying out the beneficiary’s activities must also abide by the requirement of acquiring the Import Export Code.

Undivided Hindu Family

This type of certification is also necessary for Hindu Undivided Families if the members are Karta and Sole in order to conduct imports and exports.

Society

To conduct imports into India and exports outside of India, any society constituted under the Co-operative society or the societies registration act must have this license.

When Is Registration For An Import Export Code Required?

Following situations necessitate IEC registration:

• For the purpose of clearing the importer’s shipments with customs officials. Banks need this code when sending money abroad through approved banks.
• International shipments exported
• The bank need this code when the exporter receives inward remittance.
• This code is necessary for food licensing and FSSAI registration.
• This code is needed in order to register with APEDA.
• Any type of subsidy that the exporter receives will require this code.

Characteristics of IEC

Essential Requirement

The IEC registration is a requirement for all commercial enterprises. The company is not allowed to engage in any export or import-related activity without this registration.

**Legal Declaration and Proof **

The IEC certification serves as a legal declaration and proof that the company has complied with the DGFT criteria. Activities related to import and export can be completed without any problems thanks to this certification.

Validity for All Time

Only one registration is necessary for this certification type. It operates under the tenet that a corporate entity is always registered once it is registered. As a result, the applicant wouldn’t have to wait longer for their certificate of registration to renew.

IEC Registration is necessary to adhere to the legislation.

Businesses use this type of registration since it is required. Once a corporate user registers with this system, there is limited compliance aside from this.

Necessary for international bank transfers

Anytime a company transfers money internationally, they must use the import export code.

Registration Process

The applicant for registering the IEC must take into account the following actions:

Application Preparation

On the DGFT website, the application process for the IEC code is completed online. The applicant must go online to the application procedure website in order to begin the application process. The applicant will need to click IEC profile management under the services tab on the DGFT website (https://www.dgft.gov.in/CP/). The applicant would receive a unique ID and password through this method that could be used for correspondence. At this stage, login details would need to be provided. An OTP (One Time Password) will be produced once personal information has been added. All personal information necessary for identification must be provided when supplying information. Information relevant to the applicant’s business must be submitted if they are registering a business. Even the registered email id needs to be provided with the aforementioned.

Taking care of the Application

The applicant must verify that all information on the online application is accurate before submitting it. The applicant would also have to agree to a statement that the data he submitted was accurate and true. The next step was for the applicant to submit the form online. Either the Aadhaar OTP method or the Digital Signature Certificate Method can be used to accomplish this. There are Class 2 and Class 3 tokens for entities using the digital signature certificate technique. The candidate is responsible for making sure the DSC-related driver is functioning properly.

Remitting IEC fees

Following completion of the aforementioned steps for Import Export Code, payment must be completed via the portal. The registration process for the IEC requires a payment of ₹500. The applicant will be sent to another website called BharatKosh after the payment has been received.

Application

The application status can then be tracked and checked online following this procedure. Typically, the applicant would receive the IEC certificate in 24-48 hours.

Sole Proprietorship

• (3*3) Digital Photos of the Applicant
• PAN details of proprietor
• Unique Identification, Voter ID, Passport and Driving License of the applicant
• If the business is owned, then respective sale deed must be provided
• Copy of Lease Agreement, if the premises is let out

Partnership

• Nine Digital Photos of the Applicant
• Partnership Deed Copy
• PAN Card
• Unique Identification, Voter ID, Passport and Driving License of the applicant
• If the business is owned, then respective sale deed must be provided
• Copy of Lease Agreement, if the premises is lent out
• Bank Certificate in the form of ANF 2A

Limited Liability Partnership (LLP) and Private Company

• (3*3) Digital Photos of the Applicant
• PAN Card Copy
• Unique Identification, Voter ID, Passport and Driving License of the applicant
• If the business is owned, then respective sale deed must be provided
• Copy of Lease Agreement, if the premises is lent out
• Bank Certificate in the form of ANF 2A

Trust

• Certificate of Registration of the Trust

• Copy of the Trust Deed

• (3*3) Digital Photos of the Applicant (Managing Trustee)

• PAN Card Copy

• Unique Identification, Voter ID, Passport and Driving License of the applicant

• If the business is owned, then respective sale deed must be provided

• Copy of Lease Agreement, if the premises is lent out

• Bank Certificate in the form of ANF 2A

Hindu Undivided Family (HUF)

• (3*3) Digital Photos of the Applicant i.e the Karta of the HUF
• PAN Card of the Karta
• Unique Identification, Voter ID, Passport and Driving License of the applicant (Karta)
• If the business is owned, then respective sale deed must be provided
• Copy of Lease Agreement, if the premises is lent out
• Bank Certificate in the form of ANF 2A