How to Start an Export-Import Business in India: Complete Step-by-Step Guide

India is one of the world's fastest-growing export economies, and starting an export-import (EXIM) business here is more accessible than most people assume. However, what looks simple on paper involves a sequence of registrations, banking setups and compliance steps that should be completed before you ship a single carton. This guide walks through the full process, honestly and in practical order.

Why start an EXIM business in India?

India offers several structural advantages for export entrepreneurs:

• A wide manufacturing and agri-export base across rice, textiles, leather, chemicals, engineering goods and handicrafts.
• Government-backed incentives such as RoDTEP, RoSCTL and Advance Authorisation.
• Mature port infrastructure at Mundra, Nhava Sheva, Chennai, Tuticorin and Pipavav.
• English-language documentation, which simplifies global trade.
• A large MSME base that can be onboarded as suppliers.

That said, success depends less on these advantages and more on how well you handle compliance, supplier verification and documentation.

Step 1: Choose a business structure

Most new EXIM businesses in India start as one of:

• **Proprietorship** — simplest, lowest cost, but unlimited liability.
• **LLP** — limited liability with partnership flexibility.
• **Private Limited Company** — preferred by foreign buyers, easier to scale.

For buyers outside India, a Private Limited Company signals seriousness. It also simplifies bank account opening and future fundraising.

Step 2: Obtain PAN and register the company

Apply for a Director PAN (Form 49A) for each director, then incorporate the company through the MCA portal (SPICe+ form). Incorporation typically grants PAN, TAN and EPFO registrations in one filing.

Step 3: Register for GST

GST registration is mandatory for exporters. Even if your turnover is below the threshold, you need GST to:

• Issue tax invoices.
• Claim input tax credit.
• File export-related returns (LUT or bond).
• Obtain a GSTIN tied to your business name.

> Exporters file an LUT (Letter of Undertaking) on the GST portal each year to export without payment of IGST — this is standard for almost all merchant exporters.

Step 4: Obtain the Import Export Code (IEC)

The IEC, issued by DGFT, is the single most important document for an exporter. Without it, you cannot ship or receive goods across Indian borders.

• Apply online at the DGFT portal.
• Fee is INR 500.
• Issued in 1–2 working days.
• Lifetime validity (no renewal).

The IEC must appear on shipping bills, bills of entry and most export correspondence.

Step 5: Open a current account with AD Category-I bank

Choose an Authorised Dealer (Category-I) bank. This bank will:

• Handle forex receipts and payments.
• Issue Foreign Inward Remittance Certificates (FIRC).
• Process BRC (Bank Realisation Certificate) for export incentives.
• Advise Letters of Credit and handle trade finance.

Banks typically require company PAN, GST, IEC, MOA/AOA and board resolution to open the account.

Step 6: Obtain RCMC from the relevant Export Promotion Council

RCMC (Registration-cum-Membership Certificate) is required to access incentive schemes. The council depends on your product:

• **APEDA** — agro and processed food.
• **MPEDA** — marine products.
• **Texprocil / AEPC / SRTEPC** — textiles and apparel.
• **CHEMEXCIL** — chemicals.
• **CAPEXIL** — chemical and allied products.
• **FIEO** — multi-product councils (popular for merchant exporters).

Most merchant exporters register with FIEO to cover multiple categories.

Step 7: Register on DGFT schemes

Based on your product, register for relevant schemes:

• **RoDTEP** — Rebate of Duties and Taxes on Exported Products.
• **RoSCTL** — Rebate of State and Central Levies and Taxes (textiles).
• **Advance Authorisation** — duty-free imports for export production.
• **EPCG** — Export Promotion Capital Goods (machinery at reduced duty).

Each scheme has its own compliance, filing and audit requirements.

Step 8: Set up port and CHA

Identify your preferred port of loading (e.g., Mundra for west-coast agro) and engage a Customs House Agent (CHA). The CHA files shipping bills, manages customs clearance and coordinates with the freight forwarder.

Step 9: Build a supplier network

As a merchant exporter, your core asset is verified supplier relationships. For each supplier:

• Verify IEC, GST, MSME, factory address.
• Request product samples and COA/test reports.
• Negotiate pricing in writing.
• Sign a basic supply agreement.
• Visit the factory (or send a partner) where possible.

Step 10: Structure your first export

For your first shipment:

• Issue a Proforma Invoice (PI) to the buyer.
• Receive advance or LC as agreed.
• Place the purchase order on the supplier.
• Coordinate production, inspection and packing.
• File shipping bill through your CHA.
• Dispatch and share draft documents for buyer review.
• Send final documents through the bank (under LC) or directly (under advance/TT).

Common mistakes new exporters make

• Shipping without confirming payment terms in writing.
• Skipping pre-shipment inspection on first orders.
• Underestimating documentation — wrong HS code, missing COO, mismatched invoice and packing list.
• Not filing the LUT and trying to pay IGST on exports (claiming refund later is painful).
• Quoting prices without checking destination regulations.
• Not registering for the right incentive scheme.

Costs to budget for

• IEC: INR 500.
• GST registration: Nil.
• Company incorporation: INR 6,000–10,000 (government fees) plus professional fees.
• RCMC: INR 5,000–25,000 depending on council.
• Current account: Nil to INR 5,000 opening.
• CHA and forwarder: Per shipment.
• Inspection and lab testing: Per shipment.

A realistic starting budget for a small merchant exporter is INR 50,000–1,00,000 excluding working capital.

FAQ

**Q: Can a proprietorship start exporting?** A: Yes. Proprietorships can obtain IEC, GST and ship under their own name. However, foreign buyers often prefer dealing with Private Limited Companies.

**Q: Is IEC mandatory for service exporters?** A: For pure services, IEC is generally not required. However, if you export goods even occasionally, you need an IEC.

**Q: How long does it take to start exporting from scratch?** A: With focused effort, all registrations can be completed in 2–4 weeks. The first shipment typically takes another 4–8 weeks depending on supplier lead time.

**Q: Do I need an office in a Special Economic Zone (SEZ)?** A: No. SEZ is optional. Most merchant exporters operate from a regular commercial office.

Key Takeaways

• The mandatory stack is: company incorporation → PAN → GST → IEC → current account → RCMC.
• File the LUT annually to export without IGST.
• Register with the right Export Promotion Council for incentives.
• Build a verified supplier network before quoting buyers.
• Document every shipment end-to-end to avoid compliance and clearance issues.

If you are an overseas buyer looking to source from India, Blueroute Exim (based in Surat, Gujarat) coordinates the entire India-side workflow on your behalf — supplier verification, inspection, documentation and shipment — under a single IEC. Send your requirement through the Request-a-Quote page.