LEGAL REQUIREMENTS FOR GETTING IEC CODE

Legal Requirements for Getting IEC Code

Legal Requirements for Getting IEC Code

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If you are planning to start an import or export business in India, one of the first and most important documents you will need is the IEC Code, also known as the Import Export Code. It is a mandatory registration issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India.

Let’s understand in detail what an IEC Registration is, why it’s important, and what are the legal requirements to get it.

What is the IEC Code?


IEC stands for Import Export Code. It is a 10-digit unique number provided by the DGFT. This number is needed by any person or business who wants to start importing or exporting goods and services from India to other countries or vice versa.

Without an IEC, no import or export business can legally happen in India, except for certain special cases where the DGFT has exempted it.

Why is the IEC Code Important?


IEC is necessary because:

  • It acts as an identity number for your import and export business

  • It is required while clearing shipments from customs.

  • It is asked by banks when making or receiving international payments.

  • It helps in availing government benefits, schemes, and incentives for exporters.


Who Needs an IEC Code?


IEC is required by:

  1. Individuals starting an import-export business.

  2. Proprietorship firms.

  3. Partnership firms.

  4. Private Limited Companies.

  5. Public Limited Companies.

  6. Limited Liability Partnerships (LLP).

  7. Societies, Trusts, or other government and non-government organizations involved in international trade.


If you are importing or exporting for personal use and not for business, you don’t need an IEC.

Legal Requirements to Get IEC Code


To obtain an IEC code in India, there are certain legal formalities and requirements set by the government. Let’s go through them one by one:

Valid PAN Card


The PAN (Permanent Account Number) issued by the Income Tax Department of India is compulsory for:

  • Proprietor (for a proprietorship)

  • Firm (for a partnership or company)


The IEC number is generated based on the applicant’s PAN number.

Business Identity Proof


You need to submit documents proving the legal identity of your business. These include:

For Proprietorship:



  • PAN card of the individual

  • Aadhaar card

  • Business address proof


For Partnership:



  • PAN card of the firm

  • Partnership deed

  • Address proof


For Company:



  • PAN card of the company

  • Certificate of incorporation

  • Memorandum of Association (MOA) & Articles of Association (AOA)

  • Address proof


How to Apply for IEC Code — Step-by-Step Process


Now that you know the legal requirements, here’s how to apply for the IEC code:

  1. Visit the IEC Portal – Open the official IEC registration website on your browser.

  2. Fill in the Application Form – Enter your business name, type, PAN number, and other required details carefully.

  3. Submit the Application – Review all the details to ensure accuracy before submitting the form.

  4. Pay the Registration Fee – Make the payment online using net banking, credit/debit card, or UPI.

  5. OTP Verification – Enter the OTP sent to your registered mobile number or email for authentication.

  6. Processing & Approval – The concerned authority will verify your details and process the application.

  7. Receive Your IEC Code – Once approved, the IEC code will be sent to your registered email within 1-2 business days.


Renewal and Validity of IEC Code


Earlier, the IEC code was valid for a lifetime. But now, as per DGFT rules:

  • IEC must be updated every year (even if there are no changes).

  • Failing to update may deactivate your IEC.

  • Reactivation is possible by updating the required details on the DGFT portal.


Government Notifications and Rules to Follow


While applying and using an IEC, you must follow:

  1. Foreign Trade (Development & Regulation) Act, 1992

  2. Foreign Trade Policy issued by DGFT from time to time

  3. Customs Act, 1962

  4. GST compliance if your business is GST-registered

  5. Rules regarding banned or restricted goods


Benefits of Having an IEC Code



  1. Legal permission to import/export.

  2. Easy international payment processing.

  3. Avail export incentives and schemes like MEIS, RoDTEP, etc.

  4. Smooth customs clearance.

  5. Expand your business in international markets.

  6. Build credibility for your business globally.


Common Mistakes to Avoid



  1. Submitting wrong or incomplete documents.

  2. Entering incorrect business or bank details.

  3. Using personal accounts for business transactions.

  4. Forgetting to update IEC annually.

  5. Not complying with foreign trade rules.


Note:  Update IEC code in easy steps with Our Portal

Conclusion


Getting an IEC code is a legal necessity for starting an import-export business in India. It is a simple and affordable process when done with proper documentation. The government has made the process fully online and easy for new entrepreneurs.

By fulfilling legal requirements like a valid PAN, business proof, bank details, and address proof, you can quickly obtain your IEC code and begin trading globally. Always stay updated with DGFT notifications, foreign trade policies, and export-import regulations to run your business smoothly and legally.

If you plan to grow your business through international trade, this small step of getting an IEC will open up big opportunities for you.

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