How to Start Cashew Export Business from India?

Business

How to Start Cashew Export Business from India?

Registrationwala

India is one of the largest cashew exporters in the world. It exports kernels and small amounts of cashew nut shell liquid to many countries across the world. Its major markets are Japan, United States and the Netherlands. In this blog post, we shall discuss how to start cashew export business from India.

Why Start a Cashew Export Business from India?

There is a major demand for Indian cashews all over the world. Therefore, starting a cashew export business from India can be a good idea. India is among the top producers and exporters of cashew nuts. People around the world like Indian cashews for their good quality and taste. 

India already has numerous processing units and easy access to foreign markets. Many countries like the U.S., UAE and Japan purchase cashews from India in large quantities. This means there are substantial opportunities to grow a cashew export business from the country. 

Also, the Indian government gives good support and benefits to exporters. This makes it even easier to start this kind of business. Due to all these reasons, many entrepreneurs feel convinced to establish a cashew export business.

Requirements for Cashew Export from India

To export cashew from India, you require the following licenses, registrations and certificates:

Business Registration Certificate

Securing a company registration certificate is one of the most important requirements if you want to establish a cashew export company under the Companies Act 2013. To secure this certificate, you must file a company registration application with the Registrar of Companies (RoC) via the official MCA portal. This application needs to be filed using the prescribed form known as SPICe+ form. This single form covers name reservation, DIN allotment for up to three directors, PAN, TAN and more.

Along with the application, you’ll be required to submit certain company incorporation documents like the Memorandum of Association and Articles of Association. It is not necessary that you need to open a ‘company’ under the Companies Act 2013 for a cashew export business. 

You can opt for other business structures like Sole Proprietorship, a Partnership Firm or a Limited Liability Partnership instead. Each model has its own advantages and disadvantages, different compliance requirements, etc. If you want to know which structure would be best, you can consult with a business registration expert for professional guidance.

IEC Registration

IEC full form is Import Export Code. This code contains a total of 10 digits and is issued by the Directorate General of Foreign Trade (DGFT). To conduct any import or export business activities, it is essential to secure IEC registration. For securing this registration, the process needs to be completed online via the official DGFT portal.

Once the applicant is IEC-registered, they do not need to renew their registration. This is because the Import Export Code remains valid for life once it is issued. However, it is essential to update the IEC details annually between April and June to maintain active status. 

GST Registration

GST registration is an essential registration requirement for businesses engaged in export or import activities. Generally, businesses conducting operations within India are required to register under GST only if their annual turnover exceeds the prescribed threshold limit. 

However, in the case of export or import businesses, registration under GST is mandatory regardless of the annual turnover. The reason for this is that such businesses are treated as interstate suppliers.

The process to register under GST must be completed online via official GST portal. After successful registration, the applicant receives a unique Goods and Services Tax Identification Number (abbreviated as: GSTIN), which serves as the primary tax identification number for all transactions pertaining to GST. The GST registered person can then file GST returns, claim input tax credit and undertake export/import activities legally.

FSSAI License

FSSAI License is an essential license for all businesses that are engaged in food import or export activities. This license is issued by the Food Safety and Standards Authority of India under the FSS Act 2006. There are different types of FSSAI license. The exact FSSAI license that an importer or exporters need to obtain is the FSSAI Central License.

To apply for this license, an application needs to be filed with the FSSAI using Form B. By securing the FSSAI license, importers and exporters ensure compliance with the food safety and quality standards set forth by the Government of India. Additionally, the license helps to maintain India’s reputation in the international food market.

APEDA Registration

APEDA registration is granted by the Agricultural and Processed Food Products Export Development Authority. This registration is mandatory for cashew export businesses from India. 

This is because cashews are among the scheduled products covered under the APEDA Act. Without APEDA registration, exporting cashews from India is illegal, and the business would be unable to access related government support and benefits. 

Conclusion

To start a cashew export business from India, you require certain licenses, registrations and certificates. These include business registration certificate, IEC registration, GST registration, APEDA registration and FSSAI license. Additional approvals may be required depending on the business location and exact activities conducted by the business. Need assistance in obtaining APEDA registration? Connect with our expert consultants at Registrationwala.

Frequently Asked Questions (FAQs)

Q1. Is APEDA registration required to export cashews from India?

A. Yes, APEDA registration is required to export cashews from India. This is because cashews are a scheduled agricultural product under the APEDA Act.

Q2. Do cashew exporters require GST registration?

A. Yes, cashew exporters require GST registration regardless of their annual business turnover.

Q3. Is FSSAI license required to export cashews from India?

A. Yes, since cashews are a food product, it is essential to obtain FSSAI license to be able to export them from India. The specific FSSAI license to be obtained is the FSSAI central license.

Q4. Which form needs to be filed with FSSAI for securing FSSAI Central License?

A. Form B needs to be duly filled and then filed with the FSSAI for securing the FSSAI Central License.

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