IEC Registration in India - BizCatalyst
Overview
IEC registration is a mandatory requirement for businesses that wish to engage in international trade. With the rapid expansion of online retail and digital platforms, global trading has become more accessible than ever, enabling businesses to reach international markets and generate substantial cross-border revenue. However, importing raw materials, products, or services involves more than domestic transactions and requires adherence to specific legal and regulatory procedures. In India, this requirement is met through IEC (Import Export Code) registration.
If you are planning to expand your business operations from Delhi to global markets, obtaining an IEC registration is a crucial first step. This article offers a comprehensive overview of IEC registration in India, covering its significance, required documents, the registration process, and the time frame involved.
What is IEC Code Registration?
IEC Code registration is a ten-digit identification number required for conducting international trade, and it remains valid for a lifetime. It is an authorization issued to individuals or business entities intending to engage in the import or export of goods as part of their commercial activities. Unless specifically exempted, obtaining IEC registration and quoting the IEC code for import-export transactions is mandatory under the Foreign Trade (Development and Regulation) Act, 1992.
Importance of IEC Registration
The significance of IEC registration in India can be explained through the following key points:
Access to Global Markets:
IEC registration acts as a gateway to international trade, allowing Indian businesses to legally import and export goods and services while expanding their presence in global markets.
Eligibility for Various Benefits:
Businesses holding an IEC can file a Letter of Undertaking (LUT) under GST to export goods or services without paying tax. If tax is paid, the IEC enables exporters to claim refunds, reducing the overall cost of international trade.
Regulation of Illegal Trade:
IEC registration helps prevent unlawful trade practices by ensuring transparency and traceability in import and export transactions. It provides verified trade information, thereby supporting compliant and regulated cross-border commerce.
Simple and Online Registration Process:
A major advantage of IEC registration is the fully online application process, which makes registration quick, straightforward, and easily accessible for applicants.
Eligibility Criteria for IEC Registration in India
Irrespective of the size of the business or its sales turnover, any individual or business entity in India is eligible to apply for an IEC registration if they are engaged in import or export activities. This includes, but is not limited to:
Limited Liability Companies
Partnership firms
Limited Liability Partnerships (LLPs)
Sole proprietorships
Charitable institutions involved in import or export activities
Any entity undertaking international trade is required to obtain an IEC registration code to operate legally.
Documents Required for IEC Code Registration in India
The following documents are required for IEC registration in India:
Self-certified copy of the PAN card of the individual or business entity.
Self-certified identity proof of the individual, authorized partner, trustee, or director, such as a Voter ID, Aadhaar card, or passport.
Bank account details of the individual or business entity, along with a cancelled cheque.
Proof of address of the registered office, which may include a sale deed, rent agreement, or lease agreement, or a utility bill not older than three months.
A cover letter in a sealed envelope addressed for address verification, on which the IEC certificate will be sent via registered post.
A copy of the GST registration certificate, which is mandatory for IEC registration in India.
How to Apply for IEC Code Registration?
Steps to Apply for IEC Registration in India
Step 1: Visit the DGFT Portal
To initiate the IEC registration process, visit the official Director General of Foreign Trade (DGFT) portal. Create a user account by entering basic details such as name, mobile number, address, and user category, and then generate login credentials.
Step 2: Log In and Fill the IEC Application Form
Log in using your credentials and navigate to Services → IEC Profile Management → IEC Registration.
Enter the required details, including:
Name and category of the business
Proof of identity and address of the authorized person
Official email ID and mobile number (OTP will be sent for verification)
After generating and verifying the OTP, provide branch details of the business, including the registered address, as required for import-export purposes.
Step 3: Enter Authorized Officer Details
Proceed to the next section to fill in details of the authorized officer (such as proprietor, director, partner, or trustee). Upload relevant identification and address proof.
Step 4: Upload Supporting Documents
Attach the necessary documents online, such as:
Proof of identity
Proof of registered business address
Cancelled cheque of the business bank account
Step 5: E-Sign and Submit the Application
Review the application carefully to ensure all information is accurate. Submit the form using either a Digital Signature Certificate (Class 2 or Class 3) or Aadhaar-based authentication. Upon submission, an acknowledgement receipt will be generated for tracking purposes.
Step 6: Grant of IEC Registration
The DGFT authority will verify the application and supporting documents. Once approved, the IEC Registration Certificate will be issued online in downloadable format. The certificate contains a unique 10-digit IEC code, which must be quoted for all import and export transactions.
Validity and Renewal of IEC Code Registration
The IEC registration remains valid for the entire lifetime of the business from the date of issuance. However, the applicant is required to update or renew the IEC details annually. Failure to comply with this requirement may adversely affect business operations, while timely renewal ensures continued compliance with foreign trade regulations.
Registration Fee for IEC Registration
The government fee for obtaining an IEC registration code in India is approximately ₹500. In addition, the professional fee for IEC code registration is ₹999, exclusive of GST.
Time Taken to Obtain IEC Registration in India
The IEC registration process in India typically takes 1 to 2 days from the date of application.
Cancellation of IEC Registration in India
However, IEC registration in India may be cancelled on the following grounds:
Violation of the provisions of the Foreign Trade Policy or the Customs Act
Engagement in the import or export of goods or services that are prohibited under trade laws
Providing false or misleading information to customs authorities regarding shipment details
Obtaining IEC registration without undertaking any import or export activities for the registered goods
