What is IEC Registration?
IEC (Import Export Code) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) that legally authorizes businesses and individuals to import and export goods or services in India.
It is a mandatory requirement for any commercial import or export activity. Without an IEC, goods cannot be cleared by customs, and payments to foreign entities cannot be processed by banks.
Different Types of IEC Registration
The type of IEC registration depends on your business structure:
- Sole Proprietorship: Issued in the name of the individual proprietor.
- Partnership Firm: Issued in the name of the firm.
- Limited Liability Partnership (LLP): For LLPs registered with the MCA.
- Private/Public Limited Company: For corporate entities.
- Trust/Society/HUF: For other entities engaged in trade.
Benefits of IEC Registration
- Global Market Access: Legally trade with international clients.
- Export Incentives: Claim benefits under schemes like MEIS, SEIS, and duty drawbacks.
- No Renewal Required: Once issued, the IEC is valid for a lifetime (subject to annual updating).
- Easy Processing: No compliance burden like filing returns (unless specific to other laws).
- Banking Support: Essential for opening foreign currency accounts and processing international payments.
Documents Required for IEC Registration
To apply for an IEC, you will need digital copies of the following:
- PAN Card: Of the individual, firm, or company.
- Identity Proof: Aadhaar Card, Voter ID, or Passport of the applicant/directors/partners.
- Address Proof: Sale Deed, Rent Agreement, or Utility Bill of the business premises.
- Bank Proof: Cancelled Cheque or Bank Certificate.
- Digital Signature Certificate (DSC): Class 2 or Class 3 DSC for online signing.
- Incorporation Certificate: For Companies, LLPs, and Societies.
How to Apply for IEC Registration?
- Prepare Documents: Gather all necessary documents and a valid DSC.
- Online Application: Visit the DGFT website and create a user profile.
- Fill Form ANF-2A: Complete the application form with business and bank details.
- Upload Documents: Upload scanned copies of the required documents.
- Pay Fee: Pay the government fee of ₹500 online.
- Verification: The DGFT verifies the application.
- Issuance: Upon approval, the IEC certificate is generated digitally.
Fees & Penalties
Government Fee: ₹500 (Non-refundable).
Penalties: Operating without an IEC can lead to seizure of goods, heavy fines (up to 5 times the value of goods), and blacklisting.
Annual Update: It is mandatory to update IEC details on the DGFT portal every year between April and June, even if there are no changes. Failure to do so leads to deactivation.
