November 2025

Phase 1: The Foundational Steps (Legal & Strategic)

The first phase is about establishing your legal identity and defining your market strategy.

Step 1: Establish Your Business Entity

Before anything else, decide on your legal structure. This affects liability, tax, and future growth potential.

• Options: Sole Proprietorship, Partnership, LLP (Limited Liability Partnership), or Private Limited Company.

• Action: Secure a Business PAN Card in the name of your chosen entity.

Step 2: Open a Foreign Exchange Current Account

You must open a current bank account with a bank authorized by the RBI (Reserve Bank of India) to deal in foreign currency. This account is essential for receiving export proceeds and making import payments.

Step 3: Obtain the Mandatory IEC Code (Your Global Passport)

The Importer Exporter Code (IEC) is the most crucial document. Issued by the DGFT (Directorate General of Foreign Trade), this 10-digit code is mandatory for conducting any import or export from India.

• Globax Solution: We simplify the fully online, PAN-based IEC application process, ensuring error-free submission and the fastest possible issuance of your code.

Step 4: Register with GST and Customs

• GST Registration: Mandatory for most goods and services involved in EXIM, although exports are generally zero-rated. A GSTIN is required for filing the Shipping Bill and claiming tax refunds.

• Customs Registration: Obtain the AD (Authorised Dealer) Code from your bank and register it with the Customs system (ICEGATE) at every port where you plan to operate. This is mandatory for customs clearance.

Phase 2: Strategic Execution (Product & Market)

Once legally established, you must finalize the core of your business.

Step 5: Product Selection and Market Research

Choose a product that has high demand, good profit margins, and where India has a competitive advantage.

• Action: Research your product’s ITC-HS Code and check if it is restricted or freely exportable.

• Market Analysis: Use global trade data to identify target countries based on their import demand, competition, and the Incoterms® they prefer.

Step 6: Obtain RCMC (Registration-cum-Membership Certificate)

The RCMC is obtained from the relevant Export Promotion Council (EPC) or Commodity Board (e.g., APEDA for food, EEPC for engineering goods).

• Why it’s Crucial: The RCMC is required to avail various benefits and incentives under the Foreign Trade Policy (FTP), such as the RoDTEP scheme.

Step 7: Identify Reliable Suppliers and Buyers

Your entire business relies on trustworthy partners.

• Sourcing (Import/Export): Find reliable manufacturers/suppliers in India or globally who can guarantee consistent quality, timely delivery, and ethical practices.

• Buyer Acquisition: Utilize strategies like B2B portals (Alibaba, TradeIndia), participate in Trade Fairs, and leverage the directories provided by your EPC and Indian Embassies abroad.

Phase 3: Risk Management and Logistics

The final steps involve safeguarding your finances and mastering the physical movement of goods.

Step 8: Master Logistics and Incoterms

• Freight Forwarder: Partner with a reliable Freight Forwarder who handles customs clearance and manages the logistics chain (sea, air, or land).

• Incoterms®: Define the terms of your sales contract (e.g., FOB, CIF). This legally clarifies who is responsible for the cost and risk at every point in the journey.

Step 9: Secure Payment Terms and Risk Cover

Minimize your financial exposure, especially with new buyers.

• Preferred Methods: Insist on a Confirmed, Irrevocable Letter of Credit (L/C) for initial large orders or Advance Payment.

• Risk Mitigation: Get credit insurance from the Export Credit Guarantee Corporation (ECGC) against non-payment by the foreign buyer.

 The Globax Solutions Advantage: Your Essential Partner

The journey from a business idea to a fully compliant global enterprise is fraught with documentation challenges. Globax Solutions acts as your outsourced compliance department and strategic advisor.

• End-to-End Registration: We manage your IEC, RCMC, and AD Code registration, ensuring you start legally and quickly.

• Documentation Mastery: We train your team on creating error-free export documents (Shipping Bill, Commercial Invoice, Certificate of Origin) required by Customs and the Buyer’s bank.

• Strategic Advisory: We help you select the most profitable product and advise on the safest Incoterms® and payment methods for your specific trade.