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Import Export Code Registration in India

What is IEC certificate?

As the name suggests, an import-export code certificate is a 10 digit code issued by the Directorate General of Foreign Trade for identifying all the businesses which try to expand globally. Over the past few years, many companies have created their impacts worldwide and within the country. The growing spurge of startups and the need for businesses seeking international recognition have created a need for a majority of companies to reach out to the government and obtain this license.

Why Do Companies Need IEC Code?

All the companies which wish to expand their business beyond the borders need an IEC code. Also, the individuals or companies that have started their import-export Partnerships/ LLPs/ Proprietorships/ Trusts/ HUF/ Societies need an IEC code for doing so. Needless to say, importers cannot bring in goods and send payments without an IEC code outside the country, and exporters cannot avail of the various schemes offered by the government of India and receive payments without an IEC code.

List of Import and export enterprises

Here is a list of all the major importers and exporters of the country:

  • Major Importers include Mineral fuels including Oils, Gems, and precious metals, electrical machinery and equipment, plastics, iron and steel, medical equipment, and inorganic chemicals.
  • Major Exporters include gems and precious metals, machinery and computers, organic chemicals, electrical machinery and equipment, iron and steel, cotton, clothing, and accessories.

How to Register for an IEC Code?

IEC code registration is not a very hefty task and just involves a few simple steps. Given below is a guide to the step by step procedure to make the process easier and understandable:

  • Visit our website FilingLounge and click on the Licenses tab.
  • Among the various drop-down options click on the Import Export Code Registration option.
  • You will be redirected to the page where the form for IEC registration is available and on the right-hand side of the page, the instructions for filling up the form are provided.
  • You will up the form and the submit and you will receive a call from our executives for further processing.

What are the benefits of an IEC Code Certificate?

  • Reaching Out Beyond Borders- The growth of import-export companies levels up the demand and supply process thereby increasing the outcome of the potential yield. Import Export code helps people in navigating through these gateways and creates better opportunities.
  • Avail Benefits of Various Schemes- The DGFT gives lots of benefits to the importers and exporters if they get their companies registered for the IEC code.
  • Validity of the IEC code- Once registered, the IEC code is valid for a lifetime and no renewal is required for any kind of transactions thereafter.
  • One Code Works For All- If the traders have registered their firms once and wish to open another business; they don’t need to get another IEC code for that. One IEC code is linked to the person’s PAN card and therefore works for as many businesses as they like.
  • Tax Return Filing Is Not Required- All the companies registered with the IEC code don’t need to file tax returns for all the export transactions.

How Can I Surrender My IEC Code?

Quite often it happens that people need to wind up their businesses or close a particular unit of their companies or maybe the IEC holder has to sell his business to others. At these times, they need to surrender their IEC certificates to the concerned authorities. Given below is the step by step procedure to revoke the IEC code:

  • Visit our website FilingLounge.
  • Select the Featured Services option and from the displayed list click on the Enquiry option.
  • A form will be opened wherein you need to enter your name, mobile number and an email id in the respective sections.
  • Submit the form and our executives will call you shortly.
  • You can also mail your queries to our team at care@filinglounge.com and you will receive a reply assisted with a call within 2-3 working days.

Conclusion

This initiative of the government of India has proved beneficial to many budding entrepreneurs whose eyes are set on expanding their business on the global front. Our website FilingLounge provides a solution for all your queries related to the IEC code Registration.

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)

For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

Import Export Code FAQ's

What is an Import Export Code (IEC)?

An Import Export Code (IEC) is a unique 10-digit code issued by the Directorate General of Foreign Trade in India. It is mandatory for businesses or individuals who want to import or export goods and services from India.

Who needs an IEC?

Any business or individual involved in importing or exporting goods and services from India must obtain an IEC. This includes manufacturers, traders, and service providers.

Is IEC registration mandatory?

Yes, IEC registration is mandatory for all entities engaged in the import and export of goods and services in India. Without an IEC, customs clearance, remittances, and shipping cannot proceed.

What documents are required for IEC registration?

The typical documents required include:

  • PAN Card of the applicant (individual/company)
  • Identity proof (Aadhar Card, Passport, or Voter ID) for individual applicants.
  • Proof of business premises address.
  • Bank certificate or a canceled cheque.
  • Digital photograph of the applicant.

Can IEC be used for multiple branches?

Yes, a single IEC can be used for all the branches or divisions of a business entity across India. There is no need for separate IECs for different locations

How long does it take to get an IEC?

The IEC registration process is generally completed within 2 to 3 working days after the submission of the application and required documents

What are the benefits of having an IEC?

Having an IEC allows businesses to legally import and export goods and services, avail benefits and subsidies provided by the government, and expand their operations internationally.

What happens if there are errors in the IEC application?

If there are errors in the IEC application, the application may be rejected, or you may be asked to rectify the errors. It's important to ensure all details are accurate and complete before submission.

How can I update my IEC details?

To update the IEC details, you need to log in to the official website and submit the necessary modifications. This includes changes in address, business type, bank details, etc.

What are the consequences of not having an IEC?

Without an IEC, you cannot import or export goods and services from India, and you may face legal and financial penalties if you attempt to do so.

Can a single person hold multiple IECs?

No, an individual or entity can hold only one IEC. Multiple IECs are not allowed for a single entity

Can I cancel my IEC registration?

Yes, you can cancel your IEC registration if your business ceases to engage in import or export activities. You need to apply for cancellation through the official website, providing reasons and necessary documents for the closure.

Is it necessary to renew the IEC code?

No, the IEC code does not require renewal. Once issued, it remains valid for a lifetime, unless there are changes in business details that require modification or if the business is closed.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.