Due to its simplicity, ease of formation, low cost, and lack of a separate legal personality, the sole proprietorship is a common business structure. Anyone in India can start a sole proprietorship and get an IEC code. From the Directorate General of Foreign Trade, one can receive the IEC code. It is a constant 10-digit number that can be used for any international transaction. As the IEC is necessary for purchasing or selling goods outside of the country, you must register for IEC code registration as a sole proprietor. In this article, we will provide elaborated information about how to get an IEC code for proprietorship firm in India and the importance of IEC for a sole proprietorship firm.
Process to Get an Import Export Code (IEC) for Proprietorship Firm:
The process that should be followed while applying for an import-export code for a proprietorship firm in India is:
- Check for eligibility: Make sure your proprietorship firm fulfils the standards to get an IEC. Any person or company engaged in import or export operations, including sole proprietorship businesses, is authorised for submitting an application.
- Prepare the necessary documents: Prepare every piece of documentation required for submitting an IEC application.
- Completing the application: Provide precise and current details on the IEC application form. Enter information as prompted, such as the proprietorship firm’s name, address, contact information, and other relevant details.
- Submitting documents and paying the application fees: All required documents should be scanned and uploaded following the website’s standards. Depending on the document, it may be necessary to self-attest or have a notary public certify it. Furthermore, you must pay the IEC’s required application fee.
- Application to be submitted: After you have uploaded the necessary documents and completed the application form, carefully examine it. Make sure that the data is correct and sufficient. Confirm everything before submitting the application.
- Attain an IEC certificate: If your application is accepted, you can access the online portal or your email to download the IEC certificate. Your distinct 10-digit IEC code for a proprietorship firm in India will be listed on the certificate, and this number can be utilised for import-export operations.
Documents Required for IEC Code:
- A copy of the proprietor’s PAN card.
- A copy of the proprietor’s passport, Aadhaar card, or voter ID.
- A copy of the bank certificate of the current account of the firm, or a cancelled cheque.
- A copy of the tenancy agreement or sale deed or utility bill for the property.
Privileges of IEC Registration for Proprietorship Firm in India:
There are many benefits to having an import-export code (IEC) for proprietorship firm in India. They are as follows
Expanding a business:
You can develop your firm by leaps and bounds by registering for Import Export Code, which will assist you in reaching out to a broader worldwide market and expanding your business.
Any proprietor of a proprietorship firm engaged in import or export activity in India is required to get the IEC code. Having the IEC code ensures that you obey the law and keeps you out of conflict with the law as a whole.
No filing of returns:
By signing up for the import-export code, you will be exempt from filing any returns. After getting the code, there won’t be any steps you need to take to ensure that its validity is retained. You won’t need to file your returns with the DGFT, not even for export transactions.
No need to renew:
Once the import-export code is obtained, it is valid for the whole firm’s lifetime. Therefore, those who own this code need not worry about renewing it.
Faster means of obtaining finance:
Whenever granting financial support or services to firms engaged in international trade, banks, and financial institutions frequently need an IEC code. It is faster to get working capital, loans, or credit facilities if you have an IEC code.
Businesses that sign up for the Import Export Code may also benefit from additional perks provided by customs, the Export Promotion Council, and the Director General of Foreign Trade.
To get an IEC code for a proprietorship firm in India is not only legally required, but also an intelligent strategic decision that expands the scope of your business options, builds its credibility, and positions it for success on the international market. Accept the power of an IEC code and set out on a path to development and wealth in the area of global trade. At Taxxinn, we help you apply IEC code for your proprietorship firm in India by handling all the legal and professional requirements. Our professional services are affordable, ensuring that your journey is smooth and effortless.