This is a mandatory registration for all business entities in India involved in export and import of products and services. IEC Code is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industries, it is a 10-digit number called the IEC Code that can be issued to a business entity as well as the owner or the proprietor of the business. The underlying importance of the IEC Code registration is that without it neither can import units import any goods nor can exporters export their products outside the country. The best thing about the code is that it has lifetime validity and does not require filing of any returns.
Why IEC Registration?
1. In the absence of the IEC code, exporters and importers cannot carry out export-import functions.
2. In order to send money abroad or receive money from overseas account, the entity must have IEC code.
3. Similarly the code needs to be present on all custom related documents during the import export of goods.
4. It has lifetime validity
5. Business entities having IEC registration are entitled to certain export scheme benefits sponsored by the government, DGFT and Export Promotion councils.
IEC registration process
1. The first step is to fill up the Aayaat Niryaat Form 2A for issue or modification of IEC Code at the regional office of DGFT. The details that need to be furnished by the applicant via this form are:-
a. Name of the applicant
b. Registered office address
c. Telephone numbers
d. Email id and website
e. Full name and designation of the authorised signatory
f. Personal details of the proprietor, partners, directors, kartas and trustees
g. Nature of the business concern – whether a government undertaking or a public or private limited company, proprietorship or partnership or others.
h. Type of Exporter- to choose from merchant or manufacture exporter, service provider, merchant cum manufacturer or others
i. Bank account details of the entity or the individual
j. PAN card details of the entity or the individual
2. The next step is to collate the required documents that have to be filed along with the application form. The copies of the following documents need to be submitted:-
a. PAN Card of the business unit or the individual
b. Photo Identity proof of the individual and the applicant, in case of business entity. Copy of Aadhar card, voter id, passport, ration card etc.
c. Certificate of incorporation or partnership deed of the firm.
d. A cancelled copy of cheque bearing the name of the firm or the applicant and the account number.
e. Address proof of the business is required. Ownership document in case of self-owned property and rental agreement in case of rented property and a copy of latest electricity or water bill along with it.
3. The last step involves paying the requisite IEC Registration fee by demand draft in case of physical submission of forms.
IEC code can be obtained using the online method too. For IEC online registration, the IEC online application form needs to be filed in at the website of DGFT – https://web.archive.org/web/20180130123729/http://dgft.gov.in:80/. The required documents need to be scanned and attached in gif format. The copy of PAN, photograph of the applicant and the bank certificate in specified format from the applicant’s banker need to be scanned and uploaded along with the form. The other forms that need to be uploaded are – the Board of Resolution, memorandum of association or article of association, partnership deed etc.
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