Establishing an Organisation

To start the export business, first a sole Proprietary concern/ Partnership firm/ Company has to be set up as per procedure with an attractive name and logo.

Opening a Bank Account

A current account with a Bank authorized to deal in Foreign Exchange should be opened.

Obtaining Permanent Account Number (PAN)

It is necessary for every exporter and importer to obtain a PAN from the Income Tax Department.

Obtaining Importer- Exporter Code (IEC) Number

Application for obtaining IEC Number can either be submitted at the Directorate General of Foreign Trade (DGFT) website or with the regional authority of DGFT.

Registration Cum Membership Certificate (RCMC)

For availing authorization to import/ export or any other benefits under Foreign Trade Policy (FTP), exporters are required to obtain RCMC granted by the concerned Export Promotion Councils.

Selection of Product

All items are freely exportable except a few that appear in the prohibited/ restricted list. Proper selection of the product(s) to be exported may be made after studying the export trends.

Selection of Markets

An overseas market should be selected after a comprehensive study of market size, competition, quality requirements, payment terms and export benefits available.

Finding Buyers

Trade fairs, buyer seller meets, exhibitions, B2B portals are quite effective to find buyers. A multilingual product catalogue would also help.

Sampling

Provide customized samples as per the demands of foreign buyers to get orders. Exports of bonafide trade and technical samples shall be allowed without any limit.

Pricing/Costing

The goal should be to sell maximum quantity at competitive price with maximum profit margin. Preparing an export costing sheet for every export product.

Negotiation with Buyers

After determining the buyer's interest in the product, future prospects and continuity in business, demand for giving reasonable allowance/discount in price may be considered.

Covering Risks through ECGC

Where an overseas buyer is placing order without making advance payment or opening Letter of Credit, it is advisable to procure credit limits from ECGC.