Import & Export

How to Start an Export Business from India: A Beginner's Complete Guide

Legal Chanakya Team
Legal Chanakya Team
Legal Expert
September 14, 2026
10 min read
How to Start an Export Business from India: A Beginner's Complete Guide

India exported goods and services worth over $775 billion in FY2023-24. If you produce, manufacture, or source quality products, exporting from India can multiply your revenue and reach. But the export business has specific legal, regulatory, and documentation requirements that you must get right from the start.

📌 Key Government Bodies for Exporters
  • DGFT — Directorate General of Foreign Trade (export licences, IEC)
  • Customs / CBIC — Customs duty, shipping bill, port clearance
  • Export Promotion Councils (EPCs) — FIEO, APEDA, MPEDA, EEPC etc.
  • RBI — Foreign exchange, FEMA compliance

Step-by-Step: Setting Up Your Export Business

1
Register Your Business Entity
Register as a Private Limited Company, LLP, or Proprietorship. Pvt Ltd is most preferred for exports due to easier bank credit and credibility with foreign buyers.
2
Open a Current Bank Account
Open a current account with a bank that is authorised to handle foreign exchange transactions. Required for receiving export payments.
3
Obtain Import Export Code (IEC)
Apply on the DGFT portal (dgft.gov.in). IEC is the basic identity number for all exporters. Government fee: ₹500. Issued within 1–2 working days.
4
Register with Export Promotion Council (EPC)
Get your RCMC (Registration-cum-Membership Certificate) from the relevant EPC. This unlocks export incentives and scheme benefits under the Foreign Trade Policy.
5
Register for GST
Exports are zero-rated under GST. You can either export with payment of IGST (and claim refund) or export under LUT (Letter of Undertaking) without payment of IGST.
6
Find Buyers and Get Orders
Use platforms like Alibaba, IndiaMART Global, TradeIndia, government buyer-seller meets, trade fairs, and EPC databases. Participate in India Trade Promotion Organisation (ITPO) events.
7
Prepare Export Documentation
Commercial Invoice, Packing List, Bill of Lading/Airway Bill, Certificate of Origin, Shipping Bill, Bank Realisation Certificate (BRC). Accuracy here is critical.
8
Realise Payment and Claim Incentives
Receive payment within the FEMA timeline (generally 9 months). Claim RoDTEP, Duty Drawback, and IGST refund to maximise margins.
💡 File a Letter of Undertaking (LUT) Every Year

Filing a LUT on the GST portal before the start of each financial year allows you to export without paying IGST upfront — saving you significant working capital. This is the most important tax planning step for every exporter. Legal Chanakya handles LUT filing as part of our annual GST compliance package.

Starting an export business requires careful legal setup, the right registrations, and complete documentation. Getting one step wrong can lead to shipment delays, customs issues, or GST refund rejections. Legal Chanakya's EXIM team provides end-to-end export setup support — from IEC to your first successful shipment.

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