How to start business - step wise

The first step towards starting your Import/Export business is to decide and register your business entity. Generally there are 5 popular business structures to get yourself registered-

Sole Proprietorship

One Person Company

Partnership Firm

Limited Liability Partnership

Private Limited Company.

Basically, you can go for Solo Proprietorship firm since you are sole owner of the Firm which control on the business. As a Import Export Business you have to require only the tax registration as a firm like CST and IEC Code, i.e. Import Export Code( a unique code generated by the Directorate General Of Foreign Trade( DGFT) to track imports and exports of goods from India) so its can be done in less cost of formation. Even you have to pay just only the Income tax on the Slab basis ad Individually so you can easily save the income tax.

However it is recommended to get your business registered as private limited company in case of export business since it offers the promoters of the business limited liability protection, transfer-ability, easy access to bank loans and many more such benefits. Further, foreign clients prefer dealing with a registered corporate entity in India.

After registering your business, tax registration can be obtained in the name of the business entity. PAN is the first tax registration required for any kind of new business in India. After that you need to open up a bank account- to commence businesses.

Though, goods and services exported from India do not attract VAT or services tax but VAT registration might be required for the business as it might be required in the business to buy goods from the other state and service tax registration might also be required for the billing of domestic clients. So, it is advisable to have your VAT registration done.

Moreover, VAT and CST or Sales Tax or TIN Registration is required for selling the goods in India for the retailers and manufacture. So you need to apply for the VAT Registration from your state government. VAT is a Indirect taxes so its rules and regulations is very state to state. Even in some state there is security concept so its little bit expensive.

Then, you need to appoint an expert customs clearing agent. He will be able to assist you in clearing the batch at the port. Calculating numerous expenses in port is also important, which is the responsibility of an agent. These expenses include handling charge, customs duty, transportation charges and much more.

The next step involves using your own freight forwarder. A freight forwarder or forwarding agent is also known as a NVOCC (non-vessel operating common carrier), is a person or company that manage and organizes point to point shipments for individuals or corporations to import goods from the manufacturer abroad to your location.

Some Tips which is require for Import Export Business in India :-

• Business Current Account have a SWIFT Code.
• Find Reputed Supplier from Alibaba or other Website.
• Raise Purchase Order ( PO) on your Company Name.
• Purchase Order and Invoice amount must be same.
• Hire third parties for the shipping.