Starting an import-export business in Delhi can give entrepreneurs access to international suppliers, overseas buyers and global markets. However, international trade requires more than setting up a business entity. You need the appropriate Importer Exporter Code (IEC), customs setup, tax registrations where applicable, correct product classification and compliance with product-specific trade regulations.
The exact requirements depend on whether you import, export or do both, as well as the type of products you plan to trade.
If you are planning to start an import-export business in Delhi, understanding the registration and compliance requirements before beginning international transactions can help avoid unnecessary delays and regulatory issues.
At Remind Legal LLP, we assist businesses with registrations, documentation and regulatory compliance required for setting up an import-export business in Delhi.
Planning to start an import-export business in Delhi? Get professional assistance with the applicable registrations and compliance requirements.
Import and export activities are regulated or handled through the frameworks administered by the authorities such as the Directorate General of Foreign Trade (DGFT) and Indian Customs. An IEC is normally mandatory for undertaking the import or export activities, subject to the specified exemptions under the Foreign Trade Policy.
Businesses must also verify the applicable trade policy for their products because certain goods may be prohibited, restricted or subject to additional regulatory conditions. Product-specific requirements can also result in additional licences, permits or certificates.
Proper registration and documentation can help businesses manage customs clearance, international payments, taxation and regulatory requirements more effectively.
Step 1: Choose the Right Business Structure
The first step is to decide how you want to establish your import-export business.
Common structures include: -
Your choice should depend on ownership, liability, investment, taxation and future expansion plans.
If you plan to build a larger trading operation or bring in investors, an LLP or Private Limited Company may be considered based on your requirements.
Step 2: Complete PAN, TAN and Basic Business Registration
Obtain PAN for the proprietor or business entity, as applicable, for the taxation and business-related transactions.
If you establish an LLP or company, complete the applicable incorporation process and obtain the relevant incorporation documents.
TAN, Where Applicable
TAN is not required merely because you operate an import-export business. It applies where the business is required to deduct or collect tax at source (TDS/TCS) under the applicable tax provisions.
Step 3: Open a Current Bank Account
Open a current account in the name of the business.
The account can be used for: -
Choose a bank that provides suitable international banking and foreign-exchange facilities for your business.
Step 4: Obtain Importer Exporter Code (IEC)
The Importer Exporter Code (IEC) is the key trade registration for an import-export business.
DGFT's Foreign Trade Policy states that an IEC is a 10-character alphanumeric code allotted to an entity and is mandatory for undertaking export/import activities, unless specifically exempted. The IEC is issued online by DGFT.
The IEC is generally required for: -
Therefore, obtaining the IEC should be one of the first trade-specific compliance steps before commencing regular import or export activities.
Step 5: Obtain GST Registration, Where Applicable
GST Registration should be obtained where required under the applicable GST provisions.
For an import-export business, GST compliance may involve exports, imports, input tax credit and other taxable transactions. The exact GST requirements depend on the nature and structure of the business.
LUT for Eligible Exporters
Where it is applicable, an exporter making the eligible zero-rated supplies may furnish a Letter of Undertaking (LUT) under the GST framework to export without payment of the IGST, subject to the prescribed conditions.
The GST position should be reviewed according to the actual transaction structure.
Step 6: Complete ICEGATE Registration and AD Code Setup, Where Applicable
ICEGATE is the electronic platform used by Indian Customs for customs-related transactions. The current ICEGATE portal provides registration facilities for importers and exporters.
Depending on the nature of your transactions, customs-related setup may involve: -
AD Code Registration
An Authorised Dealer (AD) Code is associated with the bank handling the exporter's foreign-exchange transactions. Where applicable, the AD Code should be registered through the relevant Customs/ICEGATE process.
Do not treat AD Code as a separate business registration; it is part of the applicable customs/export setup.
Step 7: Check Product Classification and Import-Export Policy
Before entering into an international purchase or sales transaction, identify the correct ITC(HS) classification of the product.
This helps determine: -
DGFT's framework allows restrictions or prohibitions on specified goods and provides for additional documents or product-specific compliances where applicable.
This step is particularly important because not every product can be freely imported or exported without additional compliance.
Step 8: Obtain Product-Specific Approvals, Where Applicable
Additional approvals depend on the product being imported or exported.
For example: -
These should not be treated as universal registrations. The requirements should be checked based on the specific product and its ITC(HS) classification.
Step 9: Obtain RCMC, Where Applicable
A Registration-cum-Membership Certificate (RCMC) may be relevant depending on the exporter's product category or type, the applicable Export Promotion Council or Commodity Board and the specific authorisation or benefits being sought.
It should therefore not be presented as a mandatory registration for every importer-exporter.
Where applicable, the business should obtain the RCMC from the relevant authorised body and maintain it as required.
Step 10: Complete Customs Clearance and Logistics
Imported goods must undergo the applicable customs clearance process before release.
For exports, complete the required export declaration and shipping documentation before the shipment.
Businesses may work with a Customs Broker or logistics provider for customs clearance, freight forwarding and related services. However, the importer/exporter remains responsible for ensuring that the information and documents supplied for the transaction are accurate.
Step 11: Manage Foreign Exchange and International Payments
International payments should be handled or managed through the authorised banking channels and it should be in accordance with the applicable foreign-exchange requirements.
Maintain proper records of: -
A bank experienced in international trade can also help with applicable payment and foreign-exchange procedures.
Step 12: Labour, EPF & ESI Compliance, Where Applicable
These are not import-export-specific registrations, but they may apply when the business employs workers and falls within the relevant statutory coverage.
Depending on the establishment and workforce, this may include: -
The exact applicability should be assessed based on the size and nature of the business.
Step 13: Udyam Registration – Optional
Eligible businesses can consider Udyam Registration under the MSME framework.
It is not required simply to obtain an IEC, but eligible businesses may consider it for the applicable MSME benefits and government schemes.
Step 14: Trademark Registration – Optional
Trademark Registration is optional but can help protect your business name, logo and brand identity.
It can be particularly useful if you plan to sell your own products, develop a private-label brand or expand your business into international markets.
The exact approvals required for an import-export business depend heavily on the goods being traded.
For example, food, pharmaceuticals, medical devices, chemicals, agricultural products and certain consumer products may be subject to additional regulatory requirements.
Therefore, before importing or exporting a product, check its ITC(HS) classification and applicable trade policy to determine whether any licence, NOC, certificate or other approval is required.
This product-specific approach is preferable to assuming that every import-export business requires the same set of licences.
Documents Required
Common documents may include: -
Business Documents
Banking Documents
Import-Export Documents
The exact documents depend on the business structure, products and nature of the import/export transaction.
A properly established import-export business can help you: -
Estimated Timeline
The timeline depends on the business structure, IEC, GST requirements, ICEGATE setup, product-specific approvals and other compliances.
A business dealing in freely importable/exportable products may have a simpler setup, while regulated or restricted products may require additional approvals and take longer.
It is advisable to complete the applicable registrations and compliance checks before beginning regular international trade transactions.
Government Fees
The cost depends on the business structure and the registrations and approvals applicable to your products.
For example, DGFT's IEC application currently carries a government application fee of ₹500.
Additional expenses may include: -
Therefore, there is no single fixed cost for every import-export business.
Starting an import-export business involves more than obtaining an IEC. You may also need GST, customs setup, product-specific approvals, documentation and ongoing tax and trade compliance.
Remind Legal LLP can assist businesses with the registrations and compliance requirements involved in setting up an import-export business in Delhi.
Our Services Include: -
Planning to start an import-export business in Delhi? Contact Remind Legal LLP for assistance with the applicable registrations and trade compliances.