Who can apply for an Import Export Code?
Import Export Code is the license required to import or export, products or services from the country of India. In short, it is required to do the business of importing and exporting, of products and services in the country of India.
Now, as we discussed earlier, it is required for businesses to carry out their role of importing and exporting for the country of India. Hence, as per the law, it is required only for businesses.
Let us understand what types of entities are classified as businesses in India. Now, anybody importing or exporting a product or service for his personal use is not going to be classified under the entities doing business. Hence, they are exempted from the rule of requiring an import export code for importing or exporting their products or services from the country of India. Examples for this are individuals, hospitals, co-operative institutions, etc., importing or exporting goods and services for their personal use. Hence, if you are importing or exporting any product or service for personal use in or outside the country of India, you need not possess an import export code.
However, if you are doing the same for commercial purposes, you need to get a business entity registered first, and then apply for the import export code. The main criteria for getting the import export code is to possess a current account from any bank in the country. Now, to obtain a current account, you have to provide documents proving that you are a business entity to the banks. Only then will they issue you a current account. Hence, the DGFT has put the cancelled cheque of the current account as an important document proving the existence of the business entity. It also requires the business entity on whose name the IEC shall be issued, to be printed on the cancelled cheque with the signature of the authorized signatory.
Thus, the entities who can obtain an import export code after having a current account are individuals, proprietorship and partnership firms, companies registered with the registrar of companies under the companies act, government organizations, registered society/trust and Hindu undivided families businesses.
Kindly get in touch with SunBrio to know about the documents required for each type of business entity in order to obtain the import export code in India. You can visit our website www.sunbrio.com and get to know more about the service.