Initially one has to select a name for his/her Company whether it is

1. Proprietor concern -- Single owner/Proprietor
2. Partnership concern - Two or more partners in a firm
3. Limited Company - Two categories viz., private Limited company or Public Limited company

Private limited company is owned privately by a small group of people such as a family. They are not allowed to offer shares (in the company) to the general public and can operate through just one director.

Public limited company is owned by public share holders and they are allowed to offer shares of the Company in the market.

Opening a Bank account:

Next step for Import is Opening a Bank account. Open a Current account in the name of the Company from a reputed Bank

Current Account can be Opened By:

• Any resident Indians who are 18 or above in age
• Individuals/Sole Proprietorships/Partnerships/Associations/Private and public companies/Societies/Trusts/HUFs, etc.
• Clubs, Societies,Trusts and Others like Govt. and semi Govt. bodies, local authorities etc.

Bank requires minimum deposit of Rs.10,000 to Rs.50,000 for opening a current account and it varies from Bank to Bank Generally, nationalised banks require less Minimum Deposit.

Documents Required for Opening a Current Account

Following documents are required in case of individuals

• Two passport size photographs
• Proof of residence i.e. Passport/driving license/Ration card/voters identity card
• Introduction of the person from an existing account holder.
• PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961

Different set of documents are required as per bank's norms, if the account is opened by partnership firms, private and public limited companies, HUFs / societies, trusts etc.

Registration to get IE Code Number:

Prior to 1997, it was necessary for every first time Importer to obtain IEC number from Reserve Bank of India (RBI) before engaging in any kind of Import operations. But now this job is being done by DGFT.

Any bonafide person/ company starting a venture for International trade must Register the Company with the Director of Foreign Trade under the Ministry of Foreign Trade to obtain an I.E.Code Number(Importer's Importer's Code number) by which one can Import materials to other countries and import materials from other countries to India. Without I.E. code one could not Import or import.

DGFT providew Importer an unique Import Import Code Number. IEC Number is a ten digits code required for the purpose of expor as well as import. No Importer is allowed to Import his good abroad without IEC number. However, if the goods are Imported to Nepal, or to Myanmar through Indo-Myanmar boarder or to China through Gunji, Namgaya, Shipkila or Nathula ports then it is not necessary to obtain IEC number, provided the CIF value of a single consignment does not exceed Indian amount of Rs. 25, 000 /-.

Some of the DGFT offices addresses are given below:

1. Joint Director General of Foreign Trade, Shastri Bhavan Annexe, IVth Floor, Chennai - 600 006. Ph.044-28283408.
2. Joint Director General of Foreign Trade, 1544, India Life Building (Annexe) Ist Floor, Trichy Road, Coimbatore - 641 018. Ph. 0422-2300947.
3. Joint Director General of Foreign Trade, Plot no: 117, 1st Main Road, K.K.Nagar, Madurai 625 020. Ph: 0452-2586485.

Web Site: http://zjdgft.tn.nic.in
Registration Fees Rs.250/. by DD

What are the benefits of IEC?

On the basis of IEC, companies can obtain various benefits on their Imports/imports from DGFT, Customs, Import Promotion Council etc.

What are the documents needed for an IEC application Documents are listed below :

1. Bank Receipt /Demand Draft details evidencing payment of application fee of Rs. 250/-. DD should be in favour of JDGFT,
2. Certificate from the Banker of the applicant firm in the format given in Appendix 18A (Part B).
3. Self certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities(both sides).
4. Two copies of passport size photographs of the applicant. Photograph on the bankers certificate should be attested by the banker of the applicant.
5. Self addressed envelope duly stamped for Rs.30/-.
6. These documents may be kept securely in a file cover.

No fee is chargeable for modification in IE Code, if informed within 90 days of such changes. After 90 days, a fee of Rs. 1000/- is charged. Rs.200/- payable in the form of Demand Draft for issuance of duplicate IE code number

Permanent Account Number (PAN)

PAN is mandatory. Photocopy of PAN card has to be submitted alongwith the application. If PAN card is not issued to the applicant then a copy of PAN allotment letter from Income Tax Deptt will also be accepted.

Next step is to join as a Member in Import Promotion Councils listed below and utilise the services of the councils according to the material Import to be Imported.

Registered under the Indian Company Act, Import Promotion Councils are non-profit organisations for the promotion of various goods Imported from India in international market. The councils are in close contact with the Ministry of Commerce and Industry, Government of India. The councils act as a platform for interaction between the Importing community and the government.

Hence, every Importer orimporter has to obtain a registration cum membership certificate from the EPC. An application for registration should be accompanied by a self certified copy of the IEC number. Membership fee should be paid in the form of cheque or draft after confirming the amount from the concerned EPC. The certificate is valid for five years ending 31st March of the licensing year, from 1st April of the licensing year in which it was issued and shall be valid for five years.

List of Councils with addresses listed below and select the council according to the material to be Imported

Identify your Importer:

Identify your Importer from the importer's list available with the respective Councils and Write letter with sample of buyer's choice to the selected buyer.

The buyer may require for product sample before placing a confirmed order.Hence, it is essential that the samples are made from good quality raw materials and after getting an order, the same quality to be maintained.

To avoid the risk in sending a costly product sample for Import,extra care should be taken and further while sending a sample, secrecy is an important factor,especially risk of copying the original product is there during Import.

An Importer should also know the Government policy and procedures for Import of samples,before Importing a product sample. Always advised to send samples by air mail to avoid undue delay in sending a product sample to the buyer.By cheaper mode it can also be sent through Indian post channels.

“sample not for sale” marked samples are allowed freely for Import without any limit.

Sample products which are restricted for Import as specified in the ITC (HS) Code,can be Imported by giving an application to the office of Director General of Foreign Trade.

Import of samples to be sent by post parcel or air freight is further divided into following 3 categories, and under each category an Importer is required to fulfill certain formalities which are mentioned below :

• Samples of value up to Rs.10, 000- It is necessary for the Importer to file a simple declaration that the sample does not involve foreign exchange and its value is less than Rs. 10,000.
• Samples of value less than Rs. 25,000- It is necessary for the Importer to obtain a value certificate from the authorised dealer in foreign exchange (i.e. your bank). For this purpose, an Importer should submit a commercial invoice certifying thereon that the parcel does not involve foreign exchange and the aggregate value of the samples Imported by you does not exceed Rs. 25,000 in the current calendar year.
• Samples of value more than Rs. 25,000- It becomes necessary for the Importer to obtain GR/PP waiver from the Reserve Bank of India

Import Samples against Payment

A sample against which an overseas buyer agrees to make payment is Imported in the same manner as the normal goods are Imported. Sample can also be carried personally by you while travelling abroad provided these are otherwise permissible or cleared for Import .In case of precious jewellery or stone the necessary information should be declared to the custom authorities while leaving the country and obtain necessary endorsement on Import certificate issued by the Jewelry Appraiser of the Customs.

Import of Garment Samples

As per the special provision made for the Import of garment samples, only those Importers are allowed to send samples that are registered with the Apparel Import Promotion Council (AEPC). Similarly, for Import of wool it is necessary for the Importer to have registration with the Woolen Import Promotion Council.

Import of Software

All kinds electronic and computer software product samples can be Imported abroad, if the Importer dealing with these products is registered with the Electronics and Computer Software Import Promotion Council (ESC)