November 2025

Step 1: Preparation and Business Planning

The foundation of any successful business lies in its planning.

• Market Research: Decide what product you will export and to which country. Understand the market demand, competition, and government regulations.

  • Example: Do you have access to high-quality spices or handicrafts in your region that are in demand in Gulf countries?

• Business Structure: Determine the legal structure of your company (e.g., Proprietorship, Partnership, or Private Limited).

• Company Name and PAN: Finalize your company name and obtain the mandatory PAN (Permanent Account Number).

Step 2: Essential Registrations and Licenses

To start an export business, certain legal and mandatory documents are required:

1. Obtaining the IEC (Import Export Code)

The IEC is the most crucial license for any import or export business. It is issued by the DGFT (Directorate General of Foreign Trade).

• Why It’s Essential: Without an IEC, you cannot legally ship or receive goods through customs.

• How to Obtain It: Apply online through the official DGFT website.

2. Bank Account

• Open a Current Account that is specifically designated for export-import transactions.

3. RCMC (Registration-cum-Membership Certificate)

• The RCMC is obtained from an Export Promotion Council (EPC). It qualifies you for export incentive schemes and benefits provided by the government.

Step 3: Product and Buyer Identification

Identifying the right product and the right buyer is key to success.

• Product Selection: Choose products where you have local knowledge and which have strong international demand (e.g., textiles, pharmaceuticals, agricultural produce).

• Finding International Buyers:

  • Trade Fairs: Participate in international trade shows and exhibitions.

  • B2B Portals: Utilize online B2B portals like Alibaba and TradeIndia.

  • Embassies/Consulates: Contact foreign embassies and trade commissions.

Step 4: Shipping and Documentation

Once you receive an order, managing shipping and documents becomes paramount.

• Freight Forwarder: Hire a reliable freight forwarder who will efficiently assist you with customs clearance and shipping logistics.

Step 5: Payment and Risk Management

• Payment Terms: Use secure payment methods like L/C (Letter of Credit) or D/P (Documents Against Payment).

• ECGC (Export Credit Guarantee Corporation): Secure insurance from ECGC to cover the risk of non-payment by the buyer.

Conclusion

Starting an export business is a challenging yet highly rewarding journey. With the right planning, mandatory legal compliance, and guidance from a partner like Globax Solutions, you are well-positioned for success.