Get Govt. Registered IEC Code For Partnership Firm

The Import Export Code (IEC) is necessary for businesses in India that trade internationally. It is issued by the DGFT under the Ministry of Commerce. A partnership firm needs an IEC to import or export goods legally. Without it, international trade is not allowed. It is a simple registration but very important for global business. In this blog, you will learn how to obtain a government-registered IEC code for a partnership Firm. 

What is an IEC Code?

The Importer-Exporter Code (IEC) is a 10-digit unique business ID required for trading internationally from India. It is mandatory for anyone who wants to import or export goods. Without an IEC, no one can trade across borders unless they have an exemption. For service exports, IEC is usually not needed. However, if a service provider wants benefits under the Foreign Trade Policy, they must get an IEC.

Why is the IEC Code Required for a Partnership Firm?

The Importer-Exporter Code (IEC) is mandatory for businesses in India that want to import or export goods. It acts as a business identification number for international trade. A partnership firm needs to obtain an IEC to trade legally across borders. Without it, importing or exporting is not allowed. It is a simple but important registration for global business.

Here is a detailed description:

• Legal Requirement

According to the DGFT (Directorate General of Foreign Trade), no one can import or export without an IEC unless exempted. This rule applies to all businesses, including partnership firms. An IEC is essential for legal international trade. Without it, a company cannot legally import or export goods to other countries.

• Mandatory for International Trade

An Importer-Exporter Code (IEC) is essential for any business involved in international trade. It is required under the Foreign Trade Act, 1992, which is a legal necessity for importing or exporting goods. Without an IEC, businesses cannot trade across borders. It ensures smooth and lawful international business operations.

• Compliance with Trade Regulations

The IEC grants that businesses follow trade laws and operate legally. It helps prevent illegal trading activities and gives compliance with government regulations. An IEC helps businesses to trade internationally without facing legal issues.

• Customs Clearance     

Customs authorities require an IEC to process imported or exported goods. Without it, shipments cannot be cleared at ports. The IEC ensures that all goods comply with legal and regulatory requirements. It helps to make international trade smooth and hassle-free for businesses.         

• Facilitates International Transactions

Banks need an IEC to process international trade payments. It confirms that transactions are legal and follow trade policies. Without an IEC, businesses may face difficulties in sending or receiving payments for global trade difficult. Having an IEC ensures smooth and hassle-free financial transactions across borders.

• Access to Government Benefits

An IEC helps exporters get benefits from the Indian government, such as duty refunds, subsidies, and export promotion schemes. These benefits reduce business costs and improve profits. Without an IEC, businesses may face issues like international trade becomes more expensive and less competitive.

• Enhances Business Credibility

An IEC shows that a business is legally approved for international trade. It helps gain the trust of foreign buyers and suppliers. With an IEC, businesses appear more reliable and professional in global markets. It helps to build strong trade relationships and expand internationally.

• Helps in Trade Data Collection

The IEC helps the government track and study import-export data. This information is useful for creating better trade policies that support businesses. It also helps improve the country’s overall trade performance. It makes international business smoother and more beneficial for both businesses and the economy.

• Issued by DGFT

The Directorate General of Foreign Trade (DGFT) provides the IEC to businesses for international trade. It is a unique 10-digit number that identifies a business for importing and exporting. It ensures smooth and legal global trade operations.

• Linked with GST

With the introduction of GST, the IEC is now the same as the business’s PAN. However, businesses still need to apply separately to the DGFT to get their IEC for international trade and to meet all legal requirements.

Documents Required for IEC Code Registration

To obtain an IEC code for a Partnership Firm, the following documents must be submitted:

1. Firm Documents                                          

• Partnership Deed: A notarized copy of the partnership agreement.
• PAN Card of the Firm: A copy of the firm's PAN card.
• GST Registration Certificate (if applicable).
• Bank Certificate or Canceled Cheque: A pre-printed cheque or bank certificate on the firm's letterhead.

2. Partner's Documents

• PAN Card of All Partners: Self-attested copies of PAN cards.
• Aadhar Card / Voter ID / Passport / Driving License: Any one of these as address proof.
• Passport-size Photograph: Recent colored photographs of all partners.

3. Business Address Proof

• Electricity Bill / Rent Agreement / Lease Deed: If the office is rented, an NOC (No Objection Certificate) from the landlord is required.
• Property Tax Bill: If the office is owned.

4. DSC (Digital Signature Certificate) & Mobile Number

• A Class 2 or Class 3 Digital Signature for filing the IEC application. (If required)
• Valid mobile number and email ID for OTP verification.

How to Get a Government-Registered IEC Code For Partnership Firm

Here is the Step-by-Step Process to obtain an IEC code for a Partnership Firm:

Step 1: Visit the DGFT Website

You must go to the official DGFT portal and navigate to the IEC section.

Step 2: Register on the DGFT Portal

To register:

• You should click on the 'Login' option and select the 'Register' option to create a new account.?
• Choose the 'Importer/Exporter' option as the user type.
• Provide the required details, including your email ID and mobile number.
• Verify your credentials through the OTPs sent to your email and mobile.?

Step 3: Log in to the Portal

When it gets registered, log in using your credentials to access your account.

Step 4: Apply for IEC

• You should go to 'My Dashboard' and select 'Apply for IEC'.?
• Fill in the application ANF 2A form with accurate details about the partnership firm.?
• Next, you need to upload the required documents.

Step 5: Fee Payment

You must pay the required IEC registration fee online using the payment gateway on the DGFT Portal.

Step 6: Digital Signature

You must verify your application using the firm’s Digital Signature Certificate (DSC). Make sure your DSC is registered on the DGFT portal before continuing with the process.

Step 7: Submission and Acknowledgement

• After completing all the steps, submit your application to finalize the IEC registration process.
• Once you submit the application, you will receive an acknowledgment with a file number. Use this number to track your application status easily on the DGFT portal.

Step 8: IEC Issuance

Once approved, your IEC will be issued. You can download it easily from the DGFT portal. This certificate is valid for a lifetime and does not require renewal unless updated details are needed.

Benefits of Obtaining an IEC Code for a Partnership Firm

Here are the various benefits of obtaining an IEC Code for a Partnership Firm:

1. Mandatory for Import and Export Activities

To import or export goods in India, a business needs an Importer Exporter Code (IEC). Without it, a partnership firm cannot trade internationally. The DGFT enforces this rule. IEC is essential for legal cross-border trade and smooth transactions.

2. Access to Global Markets

An IEC helps partnership firms grow beyond India. It allows them to trade globally and reach new customers. IEC helps businesses to explore new markets and expand their opportunities.

3. Availment of Government Benefits and Schemes

The Indian government supports exporters with benefits like duty refunds, subsidies, and tax exemptions. These incentives come under the Foreign Trade Policy. The DGFT has rules for export benefits. To get these benefits, businesses must have an IEC. Without an IEC, they cannot claim government incentives like duty refunds and subsidies.

4. Lifetime Validity

The IEC is issued for the lifetime of the entity and does not require renewal. It simplifies compliance and reduces administrative burdens.?

5. Simplified Compliance Requirements

Once you receive an IEC, there are no regular filings needed. You only need to update the IEC if your business details change. There are no regular filings. This makes it simple to manage and hassle-free for businesses. The DGFT’s guidelines highlight this simple compliance process.

6. Facilitates International Banking Transactions

Banks need an IEC to process international trade payments. It is required to send and receive money. It helps to open letters of credit, and handles foreign currency transactions. An IEC makes global banking smooth for businesses.

7. Enhances Business Credibility

Having an IEC makes a partnership firm more trustworthy. It shows international clients and suppliers that the business follows Indian trade rules. This builds confidence and strengthens business relationships. This supports business growth worldwide. New markets become accessible which leads to trade opportunities. Strong global connections develop and make international expansion easier.

8. Enables Online Export Opportunities

Businesses with an IEC can sell on global e-commerce platforms. This makes online sales easier and helps reach more customers worldwide. It opens new opportunities for growth and expands the business internationally.

9. Compliance with Legal Requirements

An IEC helps a partnership firm follow Indian trade laws. It ensures legal international business operations. This prevents legal issues and penalties. With an IEC, businesses can trade smoothly without worrying about compliance problems.

Conclusion

Getting an IEC is essential for partnership firms that want to trade internationally. The process is simple and can be done online through the DGFT portal. Businesses need to submit the right documents and follow the correct steps to avoid delays. Once approved, the IEC allows firms to expand globally and reach new markets. It also helps them access government benefits like subsidies and tax exemptions. With an IEC, businesses can legally trade across borders without issues. This makes international transactions smooth and hassle-free. Having an IEC opens new opportunities and supports business growth on a global scale. Throughout this article, you have learned how to get a government-registered IEC Code for a Partnership Firm. If you have any queries about it, contact Online Legal India. They have experts to guide you.