The business world has become quite competitive and to start one isn’t a cup piece of cake for everybody. Various registrations and licenses are required to operate a single business depending on several criteria. One of such license or registration required for import and export business is IEC code registration or license. 

In this blog, we will discuss various aspects related to IEC code registration. They are as follows:

• What is IEC code Registration?
• In what situations, is an IEC required?
• Advantages of IEC code registration
• Checklist for IEC code registration

What is IEC code registration?

IEC stands for Import Export Code and IEC code registration is the process of registering a business with IEC dealing in import and export of goods.

In case, the import or export is related to services or latest technologies then it's mandatory to obtain IEC registration. Import Export Code is, basically, a unique 10-digit number issued to any individual or company by the Director General of Foreign Trade (DGFT), part of the Ministry of Commerce and Industry so that the person can carry his/her import and export business in India evenly.

Moreover, an IEC code is valid for lifetime.

In what situations, is an IEC required?

Given below are the following situations where an IEC is required:

• When an importer of goods has to clear his shipments from the customs, then the customs authorities need the IEC code.
• Banks need it when an importer sends money abroad through banks.
• It is needed by the customs pots when the exporter has to send his shipments.
• When the exporter receives money in foreign currency directly into his/her bank account, then the bank asks for IEC code or license.

Advantages of IEC code registration

There are various advantages of obtaining an IEC code registration which will definitely give you reasons to get your import and export business to register with the same. Some of the advantages are as follows:

Business Expansion

With IEC code registration, it's easy to take your products or services to the global market and expand your business.

Avail several benefits of import and export

Companies with IE code can avail several benefits of import or export from the DGFT, Customs, Export Promotion Council, etc.

No need of filing returns

It is one of the greatest advantages of IEC registration. It doesn't require the filing of returns. Once IE code is allotted, there's no requirement of following any processes for sustaining its validity. Even for export transactions, you don't require to file any returns with DGFT.

Processing is easy and simple

It's quite simple to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There's no requirement for the proof of any export or import to acquire IEC code.

Renewal not needed

Since IEC code is effective for the lifetime of an entity, therefore, there's no need for renewal. Once obtained, the applicant can use it against all export and import transactions.

Checklist for IEC code registration

• PAN card of individual in case of proprietorship and PAN card of the company in case of the entity;
• DSC i.e., Digital Signature Certificate of every director, CA, CS, shareholder, and subscriber;
• Scanned passport size photograph;
• A cancelled cheque of a current bank account for bank account details;
• MSME registration, if any
• Address proof of the registered office;
• Incorporation documents such as MoA and AoA;
• Certificate of Incorporation

It’s clear from the above discussion that IEC code registration is quintessential for those dealing in import and export businesses. If you have any query regarding the same, you can contact the team of Enterslice where you will get the best solutions to your problem.

Source url - http://www.enterslice.gomilio.com/en/blog/checklist-for-iec-code-registration-26