Import-export business registration is one of the Fortune businesses registered in India to get quick money with the proper coordination of people’s money and work. India is a highly populated country and depends on imports for some products, High investment is the inherent nature of import export business and gives good profitability in one big deal.
5 Advantages of import export business
- Great profitability
- High turnover
- Government support
- Reduced cost of purchase for local sales
- Big market
10 Points to note down for a successful export business
- Get proper details about import restrictions and conditions of the importer country before export
- Ensure the quality of the products supplied is the same as the samples sent
- Get the required credit guarantee from the appropriate authority
- Startups should give special attention to each and everything, a small mistake or error may result in the loss of the entire investment.
- Reliable shipping agents and other external service providers should be opted
- Verify the history and reliability of the importer
- Do not export to countries with which we are having trade-related tensions
- Time is a critical factor, time saved is equal to business growth
- The partnership only with trusted and responsible person as it involves lots of money
- Calculate all costs such as shipping, taxes, interest costs, etc.
5 Tips to improve import business
- Identify direct local market
- Compare the recent cost of imported products and different options available in India before finalizing the quote
- Do not try to gamble by stocking in expectation of a price increase
- Do not pay upfront, operate through credit guarantee schemes
- Validate the track record of the exporter
What is covered in import-export business registration
- Basic business registration – proprietorship, partnership firm, private limited company registration
- GST Registration is mandatory
- Import-export code registration
- Procure the necessary digital signature
- Membership in an export promotion council or autonomous body, for example, export of certain agricultural products, requires APEDA registration
- FSSAI central license food related products
Quality test before exporting
Each country has a set of rules and regulations for imports, so make sure all the tests and quality check is conducted and certified as per the requirement of each country. Agricultural and perishable products need testing before exporting to ensure the right quality is exported.
Imports and exports are the priority sectors that government takes care of with utmost care to promote exports and boost exports proceeds with the launch of different export promotion councils and autonomous bodies. These councils and entities make sure to support exporters with the resources and support required.
- Project Exports Promotion Council of India (PEPC)
- Basic Chemicals, Cosmetics and Dyes Export Promotion Council (Chemexcil)
- Chemicals and Allied Products Export Promotion Council (CAPEXIL)
- Council for Leather Exports
- Sports Goods Export Promotion Council
- Gem and Jewellery Export Promotion Council
- Shellac Export Promotion Council
- Cashew Export Promotion Council of India
- The Plastics Export Promotion Council
- Pharmaceutical Export Promotion Council
- Indian Oil Seeds And Produce Export Promotion Council (IOPEPC)
- Services Export Promotion Council
- Export Promotion Council for EOU & SEZ
7 Important autonomous body
- Commodity Boards
- Coffee Board
- Rubber Board
- Tea board
- Tobacco board
- Spices Board
2. Marine Products Export Development Authority
3. Agricultural and Processed Food Products Export Development Authority, APEDA
Expert advice for import export business
- Success factor: I had come across different kinds of business in the past 10 years and the import-export business seems to be a money-earning business with great potential, a wide market, and ample opportunities. One of the critical factors for success in the import-export business ability to execute required work within the planned time, good teamwork, and support to make it come true.
- Product knowledge and contacts: Start with products in which you have good knowledge about direct sources, make sure you can fix prices for the right quality, and find the quality required for import or export. Close contacts like friends or relatives can team up if each other is present in importing and exporting countries to make documentation, negotiation, and payment collection easy.
- Documentation: very extensive for import and export business, starting from storing and preserving initial correspondence until payment is received, and other payment formalities are completed. Get a hand on all the required documents, and pen down events with dates for further use.
- Exchange rates: Get knowledge about exchange rate fluctuation and how it affects import-export profitability, in a country like India exchange rates are favourable to exporters as exchange rates tend to rise.