How to obtain Importer Exporter Code for Individuals?

1. How to obtain Importer – Exporter Code for Individuals?

2. A sole proprietorship firm is the easiest way to set up business in India. It is the business form with lower and least compliance capital requirements. It is simple to establish and run as it is wholly controlled by a single owner. Apart from spreading operational wings in various States, trading and services with parties across globe requires Importer – Exporter Code. Obtaining IEC Code Registration is simple and precise for any business. Here, we are discussing on how to obtain the IEC for an individual or say a proprietorship firm.

3. Meaning and need of IEC: IEC is termed as an Importer and Exporter Code. It is the license required for international business. Before commencing any commercial transaction of import to or export from India, the concerned business must obtain this registration as to undertake the transaction, one will require stating the code allotted for this purpose. The same applied in case of a sole proprietorship business. When the import or export activity relates to only personal use and not any commercial transaction, the code is not required. The requirement arises, when the transaction relates to commercial or business purpose.

4. Can a proprietorship firm register itself under IEC? A business being proprietorship firm is surely eligible to make IE Code Application for dealing with other countries i.e. import or export. The individual being an applicant will require providing his details and pertaining to business. Here are the steps listed to obtain IEC registration for proprietorship firms. Steps to obtain IEC: Set up & registration of the firm: The sole proprietorship business is not an entity registered under specific Act but can enroll for the registration. Where the establishment of the firm is easiest, it is in favour to register the firm under the law applicable, such as GST or the Shop & Establishment Registration.

5. Open a Current Account: After getting the proprietorship registration, one shall open the bank account with preferred bank in India before proceeding for the registration. This is important because bank details and cancelled cheque is the mandatory to register under IEC. Collect the documents: Alike any other registration application, this application shall also accompany the registration application. All the documents are submitted online in the manner prescribed. Below listed is the mandatory list of the documents to be furnished by the applicant.

6. Proof of identity of proprietor: The proprietor shall provide the PAN Card as mandatory document as the code is associated with it. A sole proprietorship firm does not hold spate PAN Card, thus the owner’s card will be used as business PAN card. Address proof of proprietor: As address proof, the applicant shall provide Passport or Voter’s ID card or Driving Licence or Aadhar card of the Proprietor. Digital Photograph: The applicant’s photograph is also submitted with the application. Therefore the copy of passport size photograph in JPEG format is required.

7. Bank details: As the current account for the business is opened, the applicant must provide the bank details in the application to be filed, whereas the cancelled cheque shall be attached with the application. Apply for Digital Signature: After collecting the requisite documents, application for digital signature certificate of the proprietor is made. The application for registration is made online, which mandatorily requires the DSC to file and submit it with the Department.

8. Making an application: Upon obtaining the Digital Signature and the other documents, the online application shall be made in following manner. The application accompanying the prescribed documents shall be made to allot and grant the IE Code. Review of application by officer: The competent officer will review and verify the application and the documents submitted. In case the application and documents are found to the satisfaction of the officer, he may grant the registration by issuing the Certificate having the IE code allotted. If the application or the documents are found incomplete, the office may ask the proprietor to further clarify the facts or to furnish additional documents.

9. Conclusion Import Export Code Registration for an individual or a sole proprietorship firm is simple and easy when assisted by the competent professional. The IE Code application, which is PAN based Registration where the registration for the sole proprietorship will be based on the PAN Card of the individual as prescribed. The proprietor will required to obtain only one registration for all his businesses as PAN Card of the individual will only be associated with the code. The code allotted is valid for lifetime unless it is withdrawn or surrendered by the allottee, hence does not require any renewal. Further a favourable part is there is no compliance or filing requirement after the code is granted. Rather the applicant may require a separate registration under GST and file online LUT for export purpose.