HOW TO START IMPORT EXPORT BUSINESS IN INDIA
Starting a new export import business can be a daunting task. New entrepreneurs starting import export are likely to have a thousand questions ranging from documents required, to following legal guidelines. Unfortunately, this information is scant and scattered across various sources on the Internet, making it difficult to find. Through this series, Filingpool aims to help budding new exporters to set up their export business.
This step-by-step guide will take you through the various activities needed to get your export business off the ground – from choosing the most effective type of business model, to selecting the right markets and buyers, to setting up your own. For Final documentation and getting ready to ship your first order. Follow these steps, and you should be ready to begin your journey into the world of international business.
Select type of Business Entity
For starting an export import business, one first needs to decide the form your business will take depending on the structure of ownership. Then you need to register your new business and choose a name for your business entity. You can form a Sole Proprietorship firm, a Partnership firm, an LLP, A Private Limited Company or A Public Limited Company.
Open current account
The bank account which is used by business entities is called current account. Your new export import business will need a current account to transact with customers and vendors. The documents required to open a current account vary depending on the type of business entity.
Choose your export product
Selecting the right product is the key to your export import business plan. There are many factors that you need to take into account such as the state of the international markets, regulations, export trends, and more.
You can find more detailed information as well as a rough guide to point you in the right direction in our guide to choosing the right export product.
RCMC Registration
There are many Export Promotion Councils in India which work to promote exports of various product and service verticals. Registration with these councils gives exporters access to events and assistance to expand their business, and is also required to access certain benefits under India’s foreign trade policy. RCMC is necessary to register with them. RCMC is valid all over India And it takes about a week to get registered. For example, if you are an exporter of agricultural or processed food products, you can do a registration with APEDA, which has an online registration facility on its website.
Choosing Export Market
You have to make sure that your export product/service has a right market somewhere in the world. There are some factors that a new exporter has to keep in mind such as demand for the product, trade barriers, profitability, political environment etc. Based on these factors the exporter has to analyze the feasibility and accordingly select his export market.
Finding Buyers For Your Product
After selecting the product and market, the next step in your business plan will be figuring out how to find buyers for your export product. There are several ways through which you can collect leads for your product such as creating a website, registering on buyer-seller platforms, participating in trade fairs and exhibitions, using government bodies such as export promotion councils, etc.
Don’t forget to get your finances in order
No matter how well you prepare your export business plan and how prepared you are for contingencies, your business is unlikely to get off the ground without access to some initial financing. First, you need to get your financial projections right. It is important that you start with an estimate of the financial needs of your business. Then you need to figure out what type of export financing would be best suited for your export business. This can take the form of short-term and long-term financing, depending on the needs of your business. In addition, there are subsidies given by the government which you can use.
We Filingpool will help you in setting up your business such as Online private Company registration, Import Export License Proprietorship Registration, Trademark Registration GST Registration