How to start an export business in India

Exporting from India is mostly a documentation exercise. The registrations are inexpensive and quick, but they sit in a strict order: each one is a prerequisite for the next, and skipping ahead means waiting.

The order that works

• Register the business and get its PAN, because the import export code is issued against the PAN
• Open a current account with a bank that handles foreign remittances
• Apply for the import export code with the Directorate General of Foreign Trade
• Register for GST, which you will need to claim refunds on exports
• Get the AD code from your bank registered at the port you ship from

The import export code does not expire, but it has to be confirmed on the DGFT portal every year between April and June. Unconfirmed codes are deactivated, and exporters usually find out on the day a consignment is at the port.

Structure matters more than people expect

Overseas buyers run diligence on their suppliers. A private limited company with clean MCA filings clears that check faster than a proprietorship, and it is easier to open a foreign currency account against. If you plan to sell to businesses abroad rather than on consumer marketplaces, incorporate.

Incentives worth checking

Depending on what you export, a Registration Cum Membership Certificate from the relevant export promotion council may unlock scheme benefits. An Udyam registration is free and is a prerequisite for several credit schemes aimed at exporters.

Refunds are where most first year exporters lose money. Zero rated supplies still need correct GST filing to claim the input tax back, and a mismatch between the shipping bill and the return delays the refund by months.