How to Start Export Business in India? – Tips for you

Do you want to start a new business…? Then select Export business. Because starting export business is not that much difficult.  Here we are going to see what are things you have to do before starting export business.

Before start Export Business

1. Name and Place

Choose a name and place for the Export Company. Choose an attractive name and logo. Decide what type of export company you are going to run like Sole Proprietorship Concern, Partnership Firm, or Private Limited Company.

2. Current Bank Account

Open a Bank Account for money transaction. If you are going to start a Sole Proprietorship Concern, open a bank account in the name of your Export company.

3. IEC (Importer-Exporter Code)

Get Importer-Exporter Code (IEC) Number. IEC is a  ten digit number. It is compulsory for undertaking Export Business. Click here to apply for IEC Number Online

4. Name registration as an Export

Register your name as a member in the Export Promotion Council.

5. Registration Cum Membership Certificate (RCMC)

Only if you register you as a member in Export Promotion Council, you can get Registration Cum Membership Certificate (RCMC).  If you want to Export clothes and garments, you have become a member of  Textile Committee.

6. Choose how you are going to do Export

Select your export ideas that how you want to do export business

  • You can buy products from the manufacturer and sell them to buyer (importer)
  • Manufacture the products by yourself and export them
  • You can act as an Agent of the seller (exporter) to get commission
  • You can also act as an Agent of the buyer (Importer) to get commission
  • You can do some services to the people who are in other countries.

7. PAN (Permanent Account Number)

Get PAN (Permanent Account Number) Card from the Income Tax Department. You can get one IEC Number for one PAN Card.

8. Choose the product

Select the product that you are going to export.

9. Find your Importers

Select your buyers (Importers). You can get buyers through Export Promotion Councils (EPC), government Agencies & Commodity Boards, your friends and relative who are in foreign countries, International yellow pages, participating in India & International Exhibitions and participate in buyer-seller meets. You can also find your buyers by browsing. Create a website for your export business with payment terms, product ccatalog price, and other important details.

10. Price Fixing

Fix pricing/costing. Price fixing is very important in export business. If you consider below details, you can fix a reasonable price.

  • Manufacturing cost of the products
  • Packing cost
  • Transportation charge to the harbour or airport from the manufacturing place
  • Inspection Agency fees e) Fair of the ship or flight or train or lorry
  • Charge for lifting goods to the ship or flight g) Insurance cost
  • Documentation charges (before export & after export)

11. Send the sample to your Importer

Send your sample product to the foreign buyers which will help you to get more export orders.

12. Select payment mode

Decide about your terms of payments that how the buyer is going to pay money to you.

13. Email ID

Create Email ID for your business correspondence.

14. Social Media

Nowadays you can use social media’s like Whatsapp, FB, Twitter, etc to contact your Importer (buyer). Through this social media, you can send the images of products to the buyer. You can contact by mobile phone also.

See also: GST on Export of goods – India

Qualities you need to start Export Business

  1. When you want to start an export business, you should speak in English. Without knowing English, you can’t do this business successfully. If you don’t know English, you can keep a person who knows English and whom you believe so much. Some people will say that without speaking to the buyer, you can export. But nowadays it is impossible.
  2. You should have a computer knowledge. If you want to go to the foreign country to establish your export business, you need passport and visa. If you take these things, you need to spend more money. You can find your buyer through browsing. So computer knowledge is very important. To operate computer, you need basic English knowledge.
  3. Speaking skill is also important to start export business. You don’t need to speak like a marketing specialist. You should have enough speaking skill to describe your products to the buyer (importer).
  4. To start Export Business you should have a basic investment. Because there is so many documents need for export business. You have to spend so money to get to buy the products. If you don’t have any money in your hand, try to collect the full amount from your buyer to purchase your export goods from the manufacturer.

Strategies to become a perfect exporter

  1. Don’t export the products without getting payment from the Importer (buyer). After getting the product, the buyer may cheat you without giving the payment.
  2. Gain English knowledge to deal with the foreign buyers. Because English is a common language for all countries.
  3. See YouTube tutorials to gain the knowledge to start export business. There are so many options to learn about export business.
  4. Try to avoid doing Export Business through the Agent.
  5. Try to get the products at low cost from the manufacturer or the market. Then only you can earn more profit by exporting.
  6. If you export goods to US, you should talk about payment details in dollars. Because if you say payment details in rupees, he won’t respond. Currency details will differ country to country.
  7. Create a website for your export company. The buyer will see your website before see you. Your website name should be simple and easy to keep in mind. Display your product images with the price on your website.
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