Complete Guide to Setting Up an Import and Export Business in India

India’s economy is still growing rapidly despite recent global turmoil. India is the world’s seventh-largest importer and tenth-largest exporter, according to the 2025 study, underscoring its growing significance in international trade. 

What’s even more inspiring is that this growth is not limited to large corporations. Small and medium-sized enterprises that effectively access and serve global markets are primarily responsible for this advancement.

With such strong momentum and structured support in place, this is an opportune time for aspiring entrepreneurs to explore the import and export business in India. However, entering global trade requires proper documentation, compliance with the latest rules and regulations, and a clear understanding of the step-by-step process. In this blog, we will guide you through everything you need to know to confidently start and grow your business.

What is an Import and Export Business?

An import and export business is a company that trades goods or services between countries by buying products from international markets and selling them where demand exists. It enables businesses to expand globally, access new customers, and generate revenue beyond domestic borders.

Why 2026 is a favourable time for import and export businesses?

As global trade grows, it is creating many opportunities for entrepreneurs. With strong government support and high profit potential, 2026 is an ideal time to start an import export business. Let’s understand why:

1. Growing Global Demand for Indian Products

India is often called the “pharmacy of the world” because of its large share of the global pharmaceutical supply. It also has a strong reputation for high-quality textiles. In addition, electronics, petroleum, and refined products are exported in large quantities.

India is also famous for gems and jewellery, as well as agricultural products such as spices, tea, coffee, rice, and many other items in high global demand.

2. Union Budget 2026–27 Export Push

In the recent Union Budget 2026–27, the government announced several measures to strengthen exports. There is a major push for freight corridors, waterways, and logistics improvements to reduce export costs.

The budget also introduced a ₹10,000 crore SME growth fund to improve access to credit and support small businesses. Additionally, an Export Promotion Mission with an allocation of ₹2,250 crore has been announced to enhance India’s export competitiveness and boost MSME exports.

These initiatives make exporting more cost-effective and business-friendly, especially for new entrepreneurs entering the import and export sector.

Legal Requirements to Start an Import and Export Business in India

To broaden your customer base and increase your earnings, you need to take your business to the global market, and that’s where the real journey begins. Many entrepreneurs often get confused about the documents and legal requirements involved.

So, without wasting any time, let’s go through the key compliances you need to complete. Here are the simple steps to follow before starting an import export business in India: 

1. Register your business

The first step is to choose a legal structure that matches your scale of operations. You need to register your business with the Ministry of Corporate Affairs (MCA) of the Government of India. You can choose from a sole proprietorship, a partnership, a private limited company, or an LLP, depending on your business goals. You may need a lawyer or a consultant to help you complete the registration process smoothly.

2. Get All Documents Ready

Before applying for export registration, make sure you have the following documents ready:

• Bank account in the business name
• PAN card of your business
• Valid address proof (utility bill, property tax receipt, etc.)
• Registered mobile number and email address
• Passport-sized photographs of the director or partner
• Partnership deed or Certificate of Incorporation
• Authorization letter on stamp paper (if applicable)

Having these documents ready will make the registration process faster and easier.

3. Apply for GST Registration

GST registration is important for running an import export business smoothly. It allows you to issue proper tax invoices and claim refunds on exports. In most cases, exporters need GST registration to stay compliant with tax laws and claim input tax credit. You can apply for GST online through the official GST portal. Make sure your business details match the documents submitted earlier.

4. Register the AD Code with Customs

The AD Code (Authorized Dealer Code) is a 14-digit code issued by your bank for your business current account. It is required for customs clearance and to receive foreign payments.

You need to register your AD Code on the ICEGATE portal so that export proceeds can be properly linked to your business account. Without AD Code registration, shipping bills cannot be processed.

5. Register for Import Export Code (IEC)

An IEC (Import Export Code) is a mandatory 10-digit business identification number required for anyone importing or exporting goods or services. It is issued by the Directorate General of Foreign Trade (DGFT).

You can apply online by visiting the official DGFT website (https://www.dgft.gov.in/CP/). The documents required for IEC registration are mostly the ones mentioned above.

6. Obtain RCMC (Registration-cum-Membership Certificate)

RCMC is issued by Export Promotion Councils based on the type of product you are exporting. While it is not mandatory for all exporters, it is useful if you want to claim export incentives and government benefits. It also helps you participate in trade fairs, exhibitions, and other promotional activities.

7. FEMA Guidelines and Legal Compliance

In international trade, money moves across countries. To regulate these foreign payments, India follows the Foreign Exchange Management Act (FEMA). If you are starting an import export business, you must follow these rules carefully.

Let’s understand it in simple terms.

For Importers:

• Payments for imports must be made through an authorised bank (your business bank).
• There is a general limit under which individuals can send money abroad without special approval, but amounts above that limit may require RBI permission.
  
• Import payments should be completed within the allowed time period set by the RBI.
  
• You must submit the proper documents, such as an invoice, shipping documents, and a Bill of Entry, to your bank.
• All details must match correctly to avoid compliance problems.

For Exporters

• You must declare the correct value of goods being exported.
  
• Payment must be received through authorised banking channels within the prescribed time.
• Transactions with restricted or sanctioned countries must follow government guidelines.
• All dealings should be genuine and legally permitted.

Following FEMA rules is essential to avoid penalties and ensure smooth import export business opportunities.

How to Successfully Operate and Scale Your Import Export Business in India?

Now that you have gone through all the documents and legal formalities required, remember that the work does not end after registration; it begins there. Once you enter the global market, you will face strong competition from well-established businesses.

So, what can you do to make your brand eye-catching and customer-centric?

The key lies in focusing on operations, logistics, efficiency, and overall customer experience. In international trade, timely delivery, smooth processes, and clear communication matter just as much as the product itself.

Let’s guide you on how to make your business the first choice for your customers:  

• Offer Consistent Product Quality: International buyers expect the same quality every time. Maintain strict quality checks and proper packaging standards.
• Be Transparent in Pricing: Clearly mention product cost, shipping charges, duties, and timelines. Hidden costs can damage trust quickly.
• Deliver on Time: Commit only what you can deliver. Timely shipments create reliability and repeat orders.
• Simplify the Buying Process: Make ordering, payment, and documentation easy for your customers. A smooth process improves satisfaction.
• Focus on Operational Efficiency: Streamline your internal processes, from order processing to shipping and tracking, to avoid delays and confusion.
• Build Long-Term Relationships: Don’t treat buyers as one-time customers. Stay in touch, understand their needs, and offer better deals for repeat business.

Wind Up

The import export business is a gateway to global opportunities. It gives your business the power to reach millions of customers beyond borders.

But success in global trade does not depend only on selling products. It depends on how accurate your delivery timelines are, how consistent your product quality is, and how well you manage customer expectations. These factors build trust, generate repeat sales, improve ROI, and open doors to new markets.

To truly succeed, you need strong market research, reliable suppliers, quality products, smooth operations, and a customer-first approach. When all these elements work together, your import-export business grows. It builds a long-term global presence.