6 Important Steps To Start Import Export Business In India
Are you looking forward to starting an import export business in India? Are you confused about the steps leading to the success of major export businesses? Are you willing to learn the rules of the export import business game and eventually make it big in the world of trading?
Export business can help you earn great profits provided you set it up in an organized and proper manner. While there are many steps leading to a successful export venture, let us first have a look at what is import export business is and why is it a very profitable idea in India.
What is the import export business in India?
Trading of goods and services across geographical borders i.e., bringing goods into the country from abroad or sending the goods abroad from our country is what majorly accounts for an import export business. In addition to the above, there are a set of laws and policies framed by the government of each country that needs to be abided by.
Now let us understand the reasons why the export business in India gets you huge returns.
First of all, India produces many unique items which are in high demand globally. The Indian gems and jewelry, fruits and vegetables, Indian snacks, and high-quality fabrics are very popular across the world. Owing to immigration and rise in multiculturalism, these products are in great demand.
Secondly, knowing that export business plays a major role in the growth of the Indian economy, the Indian government has launched various incentive schemes for export businesses and traders. This leads to ease of business and high returns which eventually motivate exporters to others to improve and build upon their export businesses.
Lastly, the high quality of our products and inexpensive labor, and additional costs adds to the benefits of exporting from India.
Before diving into the details of starting an export business without investment, let us first have a look at which export businesses are goods in India and which products are export from India.
- Fruits and vegetables
- Mineral fuels
- Spices and condiments
- Indian snacks, pickles and other packaged food
The above-listed products are in high demand and you can decide to export any of these after doing thorough research and gaining an understanding of the market.
Now let us understand the steps involved in setting up an export business without any investment.
Every business needs a minimum amount of investment and so does export business too. You need to pay the fees for the registration of your business and setting up the business flow. But this can be as low as you want it to be. You can also save up on buying a lot of stuff for your business by keeping it entirely online or just buying the essentials for your day-to-day operations. You can also benefit from one of the government schemes designed for exporters. Moreover, if you are not manufacturing a product and exporting someone else’s produce then it can also add up to your savings. Exporters can also get various loans at low-interest rates. They can also strike up a post-payment deal with a supplier or a pre-payment deal with a buyer to keep the business flow going. You can also apply for seed funds or startup capital by pitching your ideas to potential investors and/ or organizations.
Let us now understand the important steps in setting up a new export business in India.
How to do export business in India?
- Decide upon the name and logo for your company. Ensure that the name of your company contains the term “Exports” in it. Moreover, the name you decide is going to be your identity for several years to follow. Hence make sure that it is appropriate, easy to read and remember, and relevant. The logo should be such that it can be easily remembered and yet unique.
- The next step is to register your export business. For this, you need to open and set up a business bank account in a bank that deals in foreign exchange since you will be dealing with buyers overseas. Most major banks like HDFC, ICICI, Axis as well as SBI deal in forex and you can approach any of these.
- Next, with PAN Card as your proof you need to apply for your 10-digit IEC or Import Export Code.
- The last thing you need to do for the setup is to apply for a Registration-cum-Membership certificate (RCMC) via Export Promotion Council (EPC). This is your official permission to export outside India and hence it is of great importance.
- You need to then do your research about the markets you are aiming to sell in, the buyers and the suppliers you wish to obtain your products from in your country. You also need to decide upon a price for your product. For this you need to consider the costs you have incurred as well as the profit margin you are aiming.
- You finally need to package and ship your product. For this there are many packaging and shipping dealers. You can research and find the best one that suits your requirements. You can also network and get involved in multiple groups of exporters, packagers, shippers via online mediums, meet-ups and in-person connections by visiting multiple markets and industries relevant to your export products. This can help you in numerous ways and help you ease out the time and energy to find your resources and different services.
While setting up an import export business is less costly than setting up an export business, it has a different set of rules and regulations. Above all, planning your budget and then planning your import export business accordingly can take you a long way. This is how the top players of the export businesses like Reliance, TATA Steel, Sun Pharma Industries, Bajaj Private Limited and Arvind Mills began their journey towards success. If you wish to be in the same league than you have to be all that to work smart and know every minute detail about the world of import export business. Putting up an entire export business together with all its licenses, policies and incentives can seem overwhelming and complicated at times. This is where a good coach or mentor can help you.
We, at Impexperts, pride ourselves at providing end-to-end services to help set up an export business. Since we have 38+ years of experience in this domain and one of the biggest networks for import-export services, we can add important lessons and enrich you with the same. We have verified international buyers and are connected with the top agencies and government as well. This helps you ease out your business setup and helps you reduce on unnecessary costs as well. If you think we can be of help to you, we would love to discuss your export business and take it forward from there. You can contact us here! Till then, we wish you Happy Learning and Happy Growing!