The Term of Export, When the goods and services manufactured in one country and acquired by other economical zone/citizens of another country, is known as an Export.
As you know, each organization or a country is endowed with some specific resources and others would have may lack those. So in order to develop and improve their insufficiency and our overall economy, we export our goods or services to them. I already have written about it in my previous blog, you can check it out here.
The export of goods or services can be anything. This trade can be done through shipping, e-mail, transmitted in private luggage on a plane. Basically, if the product is manufactured domestically and traded in a foreign country, it is known as an export.
Export itself is a very wide concept and a lot of preparations are required by an exporter before starting an export business. In my previous blog, EXPORT, RISKY? – THE TRUTH, I tried to cover some of the doubts people usually have for trade and how market research is an essential tool for any organization. But here I’m going to talk about how you can establish a company to export your product on a global level. No matter wherever you are from, if you have the ability to provide something good to the world, you can get your ass to the top.
The world lacks something that people should aware of, and that’s knowledge. But that’s what Eximine believes in,
“Without knowledge action is useless and knowledge without action is futile.”
So before everything, you need to establish a company, for that It is important to choose your business structure carefully, while registering your enterprise, remember that each business structure has different levels of compliances that need to be met with. But here we are talking about export business, so here are some points that need to be followed if you want a smooth trade.
1). Apply for proprietorship if you are trading alone, or
in LLP case you have to make sure that the people that are partners with you are only limited only to their agreed contribution.
2). IEC Code – This is a license for Importing and
Exporting goods. Through IEC number, Goods are cleared from the
customs authorities. It provides dealer code details along with the
details of the port from which goods are being imported and export. With the help of IEC, it reduces the transport of illegal goods.
3). Business Bank Account – it helps to track the business
transactions, the financial health of the company and thus helps in
decision making. Mixing your personal and company bank can make it harder to do your taxes and maintain your books. You could also open yourself to more legal exposure if you mix business and personal funds.
4). Obtain Pan Card – As a responsible taxpayer, you must
have a permanent account number (Pan Card) which serves as a
reference number for the Income Tax Department to track your
financial transactions. It’s a mandatory process that one has to obtain a pan
card before stepping into it.
5) Select Your product – In order to succeed, you must
develop the ability to select and offer the right products or services to your
customers in a competitive market. More than any other factor, your ability to make this choice will determine your success or failure. Make sure to choose your product carefully, some of the products are prohibited or are on the restricted list. So be careful before choosing any product.
6). RCMC granted by the concerned Export Promotion Councils/
FIEO/Commodity Boards/ Authorities – Certificate issued for 5 years by
Export Promotional Councils or commodity board of India. This certificate is issued as proof that any particular exporter is registered with the council. It will give you the authorization to import or export your product. It includes some of the benefits and concessions on any shipping or importing any goods like duty drawback, duty credit scrips, etc.
7). Finding Potential Buyers/ Suppliers – If you want to
make a mark and grow your business on a different level” which you
obviously do, so you have to make sure that the prospects on which you are
investing your time and money are even the right type of customers OR NOT. Do some research, Here in Eximine Services, we provide thousands of dealers details as well as their contact numbers so that you can reach them out whenever you want. The directory has thousands of numbers in it, which means you just don’t have to roam through your browser into thousands of websites finding your prospect’s contact details. CLICK HERE
8) Covering through ECGC – They offer some credit insurance
covers, to enhance trade and ensure smooth functioning of Indian exporters by minimizing the risks. It provides Export Credit Insurance covers to the banks and other financial institutions for enabling exporters to find better services from them. It helps Indian exporters to recover bad debts. After some of these preparations, you can start your export business.
Although some of the points aren’t covered in this blog, It will help you to
take a step ahead. Export is a wide concept itself and it takes a lot of extra
efforts for extraordinary results in this trade. For more, Check out Our Other blogs so that you’ll get to know more about us as well as other sectors.