IEC REGISTRATION PROCESS IN BANGALORE, KARNATAKA
Undoubtedly, rapid Industrialization linked with globalization has changed the world for better by making the world smaller and accessible for each and every thing. It has also made it easier for the businesses to offer and sell its products and service to customers throughout the world, generate better revenues, and expand their businesses globally and to access better raw materials for manufacture of products through imports and cheaper and better prices, creating a win-win situation for them. However, when businesses in Bangalore, Karnataka do require to either export products/services or import them on a regular basis, they need to obtain an Import Export Code registration online as per the applicable provisions in Bangalore, Karnataka. Any failure to obtain the same can make the person or the concerned business entity subject to prosecution as well as hefty penalties in Bangalore, Karnataka.
The state of Karnataka is among the leading technology hub in India. It is the leader in IT and ITeS sector investments and exports to other parts of world. It is preferred destination for investment industries like automobile, food processing, electronics, textiles and heavy machinery. It is the proven epicenter for research and innovation with more than 400 R&D centers. Karnataka is well connected across India and abroad with its extensive road and rail network along with two international airports. The coastline of Karnataka is more than 300KM with 13 ports including a major port of Mangaluru. The Bengaluru – Mumbai Economic Corridor along with Chennai – Bengaluru Industrial Corridor has pushed the further economic development of state.
Karnataka is among the leading exporter of merchandise in India. It contributes around 5% of total exports of India amounting to about USD 17.4 billion. Karnataka also witnessed a huge inflow of investments form FDI with more than USD 40 billion investments in last 20 odd years. The Pavagada Solar Park with an installed capacity of 2000 MW is the largest solar power generation capacity in the country. The total installed power capacity in the state stands at 28,400 MW.
Not only this, as per the latest report by World Bank, Karnataka ranked 17th out of 36 states in terms of ease of doing business.
So, what is import-export code or IEC? An IEC code registration is the formal permission given by the Directorate of Foreign Trade in Bangalore, Karnataka to any individual person or business entity to undertake and carry on export-import related activities within certain limits either from outside country to Bangalore, Karnataka or from Bangalore, Karnataka to a foreign country in the form of licenses. Activities such as export of goods produced in the country and import of unavailable raw material in the country could be of crucial importance for the economic development of the nation. Therefore, it is necessary that the exports need to be given adequate encouragement and ultimate support to put a curb on illegal transactions. Thus, IEC gives the necessary identification to the individual or business to be identified for the purpose of availing benefits of government incentives and aid for export-import purposes.
What is IEC Registration?
IEC Registration in Bangalore, Karnataka is an online process through which the applicant is provided a unique ten digit identification number which is required to be quoted by every importer and/or exporter for the purpose of undertaking the business of export-import.
The IEC code could be obtained by any individual or business entity undertaking the role of an exporter or importer or both irrespective of the size, annual turnover or the profitability of the business. For obtaining the permission regarding the same, the applicable person or business entity needs to make an application to the Directorate General of Foreign Trade (DGFT). Once obtained, the license shall be valid for lifetime and shall not be required to be renewed.
Who needs to obtain IEC registration in Bangalore, Karnataka?
However, it is generally recommended for every individual or business entity that intends to undertake either export or import of goods or both, to obtain IEC registration. But, it is mandatory for the following persons and business entities to obtain an IEC registration –
- In cases where an importer wishes to get Custom Department clearance for the purpose of clearance of shipments from the Custom.
- In cases where an importer wishes to clear payments for the import of goods or raw materials purchased from a country outside Bangalore, Karnataka.
- In cases where an individual or business entity makes exports of goods through shipments to a foreign country.
- In cases where an individual or business entity making exports of goods wishes to receive sale consideration in his bank account which is not in Bangalore, Karnatakan currency.
When IEC Code is not necessary to be obtained in Bangalore, Karnataka?
It has been expressly notified that any individual or business entity who holds registration under the provisions of the Goods & Services Act 2017 and holds the unique GST Identification number. In such cases, the PAN number of the business entity shall hold good as IEC unique registration number.
Further, the Government of Bangalore, Karnataka or any Departments and Ministries under the Government of Bangalore, Karnataka or any notified charitable institutions by the Government of Bangalore, Karnataka shall be exempted from the requirement of obtaining IEC code for the purpose of export or import of goods.
Documents Required for IEC License in Bangalore, Karnataka
Before the process of the application of the IEC code is initiated formally, it is necessary to ensure the collection and preparation of the following documents-
- PAN card of the concerned individual/business entity.
- Passport sized photograph of all the officers of the company;
- Scanned Copy of Voter ID/Aadhaar Card/ Passport etc.;
- Scanned copy of Rent agreement or Electricity Bill of the business premises;
- Copy of NOC (No-objection Certificate) in case where the business premises have been taken on rent or lease from the owner of the premises.
- Scanned copy of authorization letter, in case the business entity is a partnership firm;
- Cancelled cheque of the bank account of an individual or business entity;
- Scanned copy of partnership deed, where business entity is a partnership firm
- Copy of board resolution, where the business entity is a company;
- Any other documents as required;
Online Process of IEC registration in Bangalore, Karnataka-
Following is the step-by-step process of obtaining IEC registration in Bangalore, Karnataka-
- Go to the online portal of the Directorate General of Foreign Trade and click “Quick Links”, on clicking the same, you will find the option stating ‘Apply for New Import Export Code (IEC)/Modify existing IEC.’
- Create a login id and password for login purposes by providing an authorized mobile number and e-mail for receiving OTP purposes.
- After logging in, the applicant shall be required to submit basic details such as name, address, and city, place of residence, bank details, and preferred activity, PAN details and other details and click “Save Details”.
- Once all information is filled in the form and upload all attachments such as cancelled cheque, address proof, identification proof, NOC from owner of property etc. in pdf format
- After all attachments have been uploaded, the applicant shall be required to submit the requisite fee. Make fee payments and once it is submitted, verify the amount paid as application fee.
- Before final submission, verify the form once by going through the details one by one and finally click “Submit”. The PAN number of the individual or business entity could be used as a reference for checking the status of the application as provided at the time of application.
Advantages of obtaining IEC registration in Bangalore, Karnataka-
Following are the benefits of obtaining IEC registration are as follows-
- Global Recognition- Any individual or business entity holding IEC certification shall have the benefit of global recognition as the goods exported shall be recognized globally. Thus, such business entity allows the brand to be more competitive, build consumer trust and credibility.
- Simplified Process-The process of application of IEC code has been specifically made simple and easy to be suitable for every applicant in Bangalore, Karnataka. The registration process is online without any hassle and could be easily obtained within 10-15 days, without the requirement to submit any physical report of any actual export/import undertaken by the applicant.
- Lifetime Validity- IEC Code comes with the benefit of life-time validity in Bangalore, Karnataka, which means that once registration is obtained, the applicant is free from the requirement of renewal process or any unnecessary fee in Bangalore, Karnataka. And the same registration number is applicable for all the branches of the all the business units of the business entity.
- Benefits & Subsidies-Export of the goods produced/manufactured in Bangalore, Karnataka brings foreign reserves in the country. Therefore, for the purpose of encouraging production of quality goods and their export outside Bangalore, Karnataka, the Government of Bangalore, Karnataka offers various benefits and subsidies to individuals and/or business entities such as tax benefits, rebates, subsidies etc. That could only be only received by a person holding a valid IEC.
- Lesser Compliances- Another greatest advantages of holding a valid IEC includes much lesser legal fillings or compliance procedure which is mandatory in case of other licenses. Thus, an individual or business entity holding an IEC and undertaking any import and/or export work is not required to submit any periodical returns or any unnecessary fees or renewal fees of the license from time to time.
- Legal Credibility- For every individual or business entity applicable to obtain registration in Bangalore, Karnataka, the IEC code brings consumer trust and legal credibility in the relevant market. As, failure to obtain registration on time , may make such individual or business entity, subject to intense scrutiny, prosecution and further, subject to payment of hefty penalty.
- Elimination of Illegal Cross-border Transactions- There have been instances in past in Bangalore, Karnataka where goods have been taken for export-import purposes illegally across borders. However, with IEC code, it becomes easier for the Government authorities as well as the administration to keep a check on every transaction subject to either export or import.
Therefore, it is important for each and every individual intending to expand his business globally by undertaking export-import related activities. The process of registration has been made easier and online for easier completion of the process and compliance of the applicable procedures. While applying and obtaining IEC code, can make the individual or business entity a beneficiary of several Government schemes, failure to obtain the same can have hefty fines and penalties in Bangalore, Karnataka. However, it is always advisable to take assistance from any reliable sources which hold years of professional knowledge in undertaking the same and start your journey today!