India's economy is among the fastest-growing in the world, and commerce with other countries is essential to its growth. Getting an import-export license is the first need if you want to launch a firm that deals with importing or exporting items across international borders. This blog will provide you with a thorough overview of the steps, necessary paperwork, and expenses associated with obtaining an import-export license in India.
What is an Import Export License (IEC)?
The Import
Export License, also known as the Import Export Code, is a 10-digit registration number issued by
the Directorate General of Foreign
Trade, Ministry of Commerce and Industry, Government of India. It is a
key business identification number required for the import or export of goods
and services from India.
Without an IEC, you cannot legally import or export
anything from India. It is valid for a lifetime and doesn’t require renewal,
which makes it one of the most hassle-free government registrations.
Who Needs an Import Export License?
Whether
you're a:
- Manufacturer looking to
export your products,
- Trader wanting to source raw
materials from abroad,
- E-commerce business selling
internationally,
- Amazon or Flipkart seller
looking to go global,
you’ll
need an IEC registration to legally operate across international
markets.
Even
freelancers offering digital services internationally (in some cases) may
require IEC if the payment crosses through foreign bank channels.
Key Benefits of Getting an Import Export License
- Global Market Access: IEC opens doors to
international markets, allowing you to expand your business beyond
national borders.
- Easy Registration: The registration process
is online, simple, and quick.
- No Renewals Required: IEC is valid for a
lifetime unless cancelled or surrendered.
- Government Incentives: Once you have an IEC, you
can avail export promotion schemes like MEIS, SEIS, RoDTEP, etc.
- Legal Compliance: It ensures your business
complies with all DGFT and Customs requirements.
Documents Required for Import Export License in
India
The
following documents are required for IEC application:
For Individuals or Proprietors:
- PAN Card of the individual
- Aadhaar card / passport /
voter ID
- Passport-size photograph
- Cancelled cheque of personal
bank account
- Address proof (electricity
bill, rental agreement)
For Companies/LLPs/Partnership Firms:
- PAN Card of the entity
- Certificate of Incorporation
- Partnership Deed (for
partnerships)
- Director’s or partner’s
identity and address proof
- Cancelled cheque of business
account
- Company’s address proof
Ensure
all details are consistent across documents to avoid rejection.
How to Apply for Import Export License Online
(Step-by-Step)
Here’s
the step-by-step process to apply for an IEC online:
Step 1: Visit the DGFT Website
- Go to https://www.dgft.gov.in
- Create a login with your
business PAN and contact details.
Step 2: Fill Out the IEC Application Form (ANF 2A)
- Navigate to “Apply for IEC”
- Fill in details like
applicant name, PAN, business details, address, bank details, etc.
Step 3: Upload Required Documents
- Upload scanned copies of the
PAN, photo, identity/address proof, and bank certificate.
Step 4: Pay the Government Fees
- Government application fee: INR
500 (as per DGFT portal)
Step 5: Submit and Verification
- Submit the application and
wait for verification.
- After successful validation,
IEC will be issued and downloadable from your DGFT profile.
Most
applicants receive their IEC within 1–3 working days of submission.
Import Export License Fees in India (2025 Update)
Here is a
breakdown of the potential fees involved:
|
Component |
Cost
(INR) |
|
DGFT
Government Fee |
₹500 |
|
DSC (if
required) |
₹1,000
– ₹1,500 |
|
Professional
Consultancy (optional) |
₹1,000
– ₹3,000 |
|
PAN and
Other Document Fees (if not available) |
Variable |
So,
overall, the total cost for obtaining IEC could range from ₹500 to
₹5,000, depending on whether you apply yourself or through a legal
consultant.
Do You Need a Digital Signature for IEC?
As per
recent DGFT updates, a Class 2 Digital Signature Certificate (DSC) is
not mandatory for individual proprietors but is recommended for companies
and LLPs to digitally sign the application.
Things to Know After Getting an IEC
- IEC Update Requirements: Any change in address,
ownership, or contact info must be updated within 30 days on the DGFT
portal.
- Linking with PAN and GST: Your IEC is now
automatically linked to your PAN. No separate renewal or update is needed
unless your PAN details change.
- Export/Import Reporting: Once you start
importing/exporting, you’ll need to file your shipping bills, bills of
entry, and GST filings accordingly.
Common Mistakes to Avoid
- Mismatched information
between PAN and application
- Uploading incorrect or
blurry documents
- Applying with a personal
bank account for business entities
- Ignoring post-registration compliance
like GST or bank AD code registration
Is There Any Penalty for Not Having an IEC?
Yes.
Importing or exporting without an IEC is illegal under Indian law and may
result in:
- Seizure of goods by customs
- Heavy fines and penalties
- Loss of shipment
- Ban from international
trading
Thus,
it's highly recommended to complete your IEC registration before starting any import-export
activity.
FAQs on Import Export License
Q1. How long is the IEC valid?
IEC is
valid for a lifetime, unless voluntarily surrendered or cancelled by
DGFT.
Q2. Can I have more than one IEC?
No, only one
IEC per PAN is allowed.
Q3. Can an IEC be cancelled or modified?
Yes, you
can request modification or cancellation by logging into the DGFT portal.
Q4. Is GST mandatory for IEC?
While not mandatory for IEC application, GST is required for most import/export businesses to avail tax benefits and avoid compliance issues.
Conclusion
Getting an Import Export License (IEC) is your
gateway to entering the global trade ecosystem. The process is straightforward,
and with minimal fees, it’s accessible to startups, individuals, and
enterprises alike. With just a few documents and a one-time cost, you can
unlock new growth opportunities and establish your business on a global
platform.
If you want expert guidance, professional
consultants like Legal Metrology
India offer end-to-end IEC registration support, ensuring error-free
filing, quick processing, and compliance with all legal norms.
Ready to
take your business global? Start by applying for your IEC today!
For any assistance, feel free to contact our expert team or visit LegalMetrologyIndia.com.
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