Sole proprietorship is the easiest form of firm to create. Sole proprietorship can be formed by anyone and get an IEC code in India. It is a type of Business that has a single owner who pays income tax on the profit earned on Business. Sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost and has no separate identity under the law.���
Import is an international as well as domestic form of business in which exchange of goods and services across the international borders takes place. It is a one the most rapid of Business in International trade. This Trade exists because one group or a country has a supply of some commodity or merchandise that is in demand by another.
Import Export Code (IEC) is a unique code issued by Director General of Foreign Trade, Ministry of Commerce. It is compulsory because without this you will not be entitled to Import and Export Business. It is required for the limited services where it requires specific service or technology.
Process of getting the IEC code in India
Registration of your Proprietorship is a good practice since it is an unregistered form of business, but it has to be registered by seeking the local license. If you are dealing in products i.e. selling goods, then you need registration under VAT. If you are a service provider then you need to be registration under Service tax.
Open a Current Account after getting the proprietorship registration. A Current account can be opened with any bank in India. It is important because cancelled cheque is the mandatory requirement in getting the IEC.
Collection of Mandatory Documents is necessary before you going forward with the IEC application, make sure you have the required documents:
- Copy of PAN card
- Copy of ID proof
- Passport size photograph
- Copy of cancelled cheque
Apply for Digital Signatures after collecting the mandatory documents. Apply for digital signatures certificates. Since the IEC code is completely online, one must secure a digital signature to sign and submit the online Import Export Code (IEC) application.
Apply for IEC Code after collecting all the requisite documents and digital signatures. Apply for IEC code in India. An application should be filed with due care to avoid any chance of being rejected.