The simplest form to define one person company for Import/Export is a sole proprietorship. In India, anyone may establish a sole proprietorship and obtain an IEC code. The following is the procedure for acquiring an IEC code in India.
An application for the grant of an IEC number must be made by the applicant’s Registered/Head Office and sent to the nearest Regional Authority of the Directorate General of Foreign Trade, the Registered office in the case of a corporation and the Head office in the case of others, falls in the “Aayaat Niryaat Type – ANF2A” and must be accompanied by the appropriate documents.
What is the use of IEC for Sole Proprietorship?
- For the Expansion of Business- Through IEC one can expand their business or Enterprise globally in an authorized manner.
- Number of Benefits- There are a number of benefits applicable if you apply IEC. For example, import/ export from DGFT, Export Promotion Council, Customs etc on the accordance of their IEC registration.
- No need to fill Returns-You do not have to fill any returns. Once you are allotted with it there is no Use to go on with any type of processes for sustaining validity. Even with export transactions, there isn’t any requirement for filling returns with DGFT.
- Handy Processing – It is very convenient to obtain IEC code from the DGFT within a time period of 10-15 days after submitting the application. Also, there is no need to provide any proof of any export or import for getting IEC code.
- There is no requirement for renewal as IEC is applicable for lifetime of an entity. After you obtain it you can use it with every export and import transactions.
For each PAN number, only one IEC would be given. Any proprietor can only have one IEC number, and if the proprietor has more than one, the IECs must be surrendered to the Regional Office for cancellation.
- Registration for Proprietorship: A sole proprietorship is not a licenced business company, but it must be registered by obtaining a local licence. If you’re selling goods, you’ll need to register for VAT, and if you’re delivering services, you’ll need to register for Service Tax.
- Start a Current Account: Once your proprietorship has been registered, you can open a current account with any Indian bank. This is important since a cancelled check is a condition for obtaining the IEC.
- Gather the Necessary Documents: Before continuing with the IEC application, double-check that you have the following documents:
- A copy of your PAN card
- A copy of your ID proof
- Photo (passport size)
- A copy of the cancelled check
- Register for Digital Signatures: After you’ve collected all of the necessary documentation, you can apply for digital signature certificates. Since the IEC code is entirely online, a digital signature is required to sign and submit the online IEC application.
- Apply for an IEC Code in India: After gathering all of the required documentation and digital signatures, submit an application for an IEC code in India. To stop being declined, the IEC application must be filled out carefully.