How to export business from India with limited funds?

In 2019, India shipped US$322.8 billion worth of goods around the globe, so it’s no surprise that we regularly import from India.
 
Exporting products from India to international markets is a simple process.
The Indian government has launched various bonus and incentive schemes for exporters to encourage them in this business.
 
When exporting from India, a Goods and Services Tax, the GST Exemption applies. 
Created in July 2017, the GST is a taxation system which replaced all indirect taxes levied. This singular tax method now includes excise, sales tax, VAT, entertainment tax, luxury tax, on the transactions of goods and services.
An additional 5% has also been introduced, as an incentive to encourage women to join exporting goods from India.
 
To further protect Indian exporters, the Export Credit Guarantee Corporation of India (ECGC) Policy exists. This policy provides insurance to goods being exported by up to 90% in cases of consignment mishaps.
 
Starting up an export business can be started with low investment costs and is a simple process.
To begin, you will be required to obtain the following:
 
  • Company Registration Details – Whether you are a Private Limited Company or a Sole Proprietor.
  • GST Number and Current Account details.
  • Import Export Code (IEC)
  • Registration Cum Membership Certification (RCMC) will need to be obtained by the Export Promotion Council (EPC).
  • Medium Small Micro Enterprises Registration (MSME).
 
The total cost of these documents will be between 25,000rs-35,000rs.
 
Once you have decided on products to export, a good idea would be to educate yourself on the market and make a decision on the quantities you will be shipping.
Next, you will have to choose how you will transport these goods.
 
There are two ways of transporting goods from India.
 
Air Freight – If you have goods less than 20kg needing transporting, air travel is a much quicker option as transportation will take a few days. Although, The only downside is being more expensive.
 
Sea Freight – This method is ideal for larger volumes of goods, 100kg and over. Delivery is has a longer lead time than air travel, usually taking 35/40 days but is cheaper than air freight.
Shipping containers are available in two sizes, 24ft and 40ft.
FCL (Full container load) is full use of a container.
LCL (Less than a container load) is the option to share a container to get your goods across with another company.

 

Once your product has arrived in the UK, The following paperwork is essential.
Information guidance can be found online at www.gov.com.
 
  1. EORI code  
  2. CCC (Customs commodity code) 
  3. Levy/Duty VAT
  4. Import License
  5. Commercial Invoice: The commercial invoice is an important document and should include: 
The buyer details including VAT code
The importer details
Country of origin
The port of destination
Product details
How the products packaged
  1. Invoice value and currency
  2. Invoice value and currency
  3. Packing List which should include the net and gross weights
  4. You may also require an import license
 
Visit Santra Merchant for more information and how we can assist you in your exporting requirements.
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