Almost all the various business verticals has seen an increase in the number of companies operating in that stratum over the course of the last couple of decades. The increasing adoption of technology and transportation facilities coupled with constantly improving communication systems have made a significant rise in the number of companies entering the export import stratum as well. The growing business opportunities has also helped the businesses operating in the industry to thrive. For entrepreneurs that are aiming to start an export business there are certain things that they should understand before starting your business operations. More importantly, the below-mentioned steps will helps you to start an export business India in the proper way.
1. Establishing the Organization: This is the first and most important step of starting your export business. You can start a proprietary or partnership firm and getting all the legal registrations regarding the establishment of the organization is crucial to starting your export business. While establishing the company make sure that you find a catchy title and a recognizable logo that will allow your business to create a niche for yourself in the highly competitive and crowded Indian export business stratum.
2. Creating a Bank Account: The next crucial step to running your export business is opening a bank account. While opening a current account, make sure that you are opening that account in a bank that is authorized to deal with foreign exchanges. So, this will help you to avoid unnecessary transaction issues during your business operations.
Owing to the fact that the export business is prone to payment risk, one business operating in this stratum can take care of these risks through Export Credit Guarantee Corporation (ECGC)
3: Obtaining the PAN or Permanent Account Number: This is also a necessary step in starting your export business and ensure that you get your PAN number from the Income tax department.
4. Obtaining the IEC or Importer Exporter Code: Getting the IEC code is also mandatory to make your export business legal in the country.
5. Getting RCMC/ Registration cum Membership Certificate: This is yet another mandatory procedure that every export business operating in the country should follow and this certificate is needed to prove the legality of your business.
6. Taking care of the Business Operations: After all the legal facets of the business is taken care off, the next step is to make sure that you get your business operations sorted out. For this, you will have to fix the products that you are going to exports, the markets that you are going to export to, identifying and finalizing the buyers of the product, and fixing the pricing of your export services. Each of these business decisions should be given importance owing to the fact that these are crucial to ensuring the success if your company.
7. Taking care of the Risks through ECGC: Owing to the fact that the export business is prone to payment risk, one business operating in this stratum can take care of these risks through Export Credit Guarantee Corporation (ECGC).
So, if you are an entrepreneur that is aiming to start an export business in India, then these steps are crucial for you to ensure that all your business operations are done through the proper channel.