Starting Exports – Important steps

Words like ‘international’ or ‘overseas’ used in the name of the firm (Example- Vijay International) convey the message that the firm is engaged in the business of import/export.

The firm has to be registered under the country’s prevalent law, such as the Company Act of India. The company would be registered in one of its various forms like proprietorship, partnership, private limited, public limited etc

The Permanent Account Number (PAN) needs to be quoted to open a bank account, to apply for the import export code (IEC) number and to claim tax exemptions and deductions under the Income Tax Act.

The company needs to open an account with a bank dealing in foreign exchange. It makes sense to open an account with a branch which directly undertakes export-import documents and converts foreign exchange.

The exporter need not pay VAT while making purchase for exports. To avail this benefit, the firm has to be registered with the VAT. The exporter needs to give the seller Form-H, along with a copy of the import letter of credit or export order.https://www.vskills.in/lms/topic/basic-requirements/