You must understand how to apply for an import-export license in India if you want to start selling goods overseas. The definition of an import-export license, who needs one, how to apply for one, its benefits, the required documentation, and information on the government portal are all clearly and simply explained on this page.
What Is Import and Export License in India?
An Import Export License, also called an Import Export Code (IEC), is a ten-digit identifying number issued by the Directorate General of Foreign Trade (DGFT)..
Any person or organization that imports goods into India or exports goods and services outside of India must have this license. Without an IEC, foreign payments, international trade, and customs clearance are all forbidden.
Who Needs an Import Export License?
You need an import export license if you are:
- An individual trader
- A sole proprietor
- A partnership firm
- A LLP or Private Limited Company
- A manufacturer or service exporter
- An online seller exporting products internationally
- Organizations that only participate in exports are exempt from the IEC requirement.
Government Portal for Import Export License
In India, import-export licenses are granted electronically via the DGFT portal.
Official Government Portal:
DGFT (Directorate General of Foreign Trade)
The entire process is digital, paperless, and Aadhaar-based.
Documents Required to Apply for Import Export License
Before applying, keep the following documents ready:
1. PAN card of individual or business
2. Aadhaar card (linked with mobile number)
3. Passport-size photograph
4. Cancelled cheque or bank certificate
5. Address proof of business (electricity bill, rent agreement, etc.)
6. Active bank account details
All documents must be clear and valid.
How to Apply for an Import-Export License in India: Complete Process
The Directorate General of Foreign Trade (DGFT) must issue an Import Export Code (IEC) in order to register imports and exports in India. The step-by-step procedure is described in simple terms below:
Step 1: Prepare Required Documents
Keep these documents ready:
- PAN card of individual or business
- Aadhaar card (linked with mobile number)
- Passport-size photograph
- Cancelled cheque or bank certificate
- Address proof of business
Step 2: Register on DGFT Portal
On the official DGFT site, signup with your mobile number, email address, and PAN.
Step 3: Fill IEC Application Form
After logging in, choose Apply for IEC. Correctly type the company's address, owner/director data, and bank account information.
Step 4: Upload Documents
It is required that the required documents have been scanned and placed in the specified format.
Step 5: Pay Government Fee
The IEC application fee can be paid through a debit or credit card, net banking, or UPI.
Step 6: Submit Application
After reviewing all the information, submit the form. IECs are typically issued in one to two business days.
Step 7: Receive IEC Certificate
The Import Export Code (IEC) is emailed to your registered email address after approval..
Key Points to Remember
IEC has lifetime validity
No annual return or renewal required
Mandatory for import/export of goods or services
Benefits of Import Export License in India
1. Legal Entry into International Trade
According to IEC, businesses can lawfully import and export goods and services.
2. Access to Global Markets
You can expand your business globally and sell goods anywhere in the world with an IEC.
3. Government Export Benefits
IEC holders can claim:
Export incentives
Duty drawback benefits
GST refunds
MEIS and other export schemes
4. No Annual Compliance
Once issued, IEC does not require yearly renewal or return filing.
5. Lifetime Validity
IEC is valid for life, with a few small updates in the event that corporate data changes.
Is Import Export License Mandatory?
Yes, an import export license is mandatory if:
1. You import goods into India
2. You export goods or services outside India
3. You receive foreign payments for exports
4. People who import or export items for their own personal use are exempt, yet.
Mistakes to Avoid While Applying for IEC
- Entering incorrect PAN or Aadhaar details
- Uploading unclear documents
- Using inactive bank accounts
- Not updating IEC after business changes
- Avoiding these errors helps in quick approval.
Conclusion
Understanding how to apply for an import export license in India is the first step in conducting business internationally. For both people and organizations, the online DGFT process is simple, quick, and reasonably priced. An import-export license opens doors to global expansion and government support for exports with its lifetime validity and many advantages.