How to Get IEC Code Registration | Step-by-Step Guide
How to Get IEC Code Registration | Step-by-Step Guide
For any business in India aspiring to look beyond domestic borders and engage in the lucrative world of international trade, the IEC Code Registration is the absolute first, mandatory step. The Import-Exporter Code (IEC) is essentially a 10-digit alphanumeric identification number issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India. It serves as the official business identity that permits a firm to legally engage in both import and export activities.
No person or entity can ship goods out of India or receive goods from abroad for commercial purposes without an active IEC Code. While certain minor exemptions exist (such as imports/exports for personal use and not connected with trade, manufacture, or agriculture), for any bonafide business, the IEC Code acts as the 'virtual passport' required for customs clearance, international financial transactions, and accessing government trade benefits.
The requirement for IEC Code Registration applies universally to all types of entities—whether you are a sole proprietor operating from home, a partnership firm, a Limited Liability Partnership (LLP), a Private Limited Company, a Public Limited Company, a Trust, a Society, or a Hindu Undivided Family (HUF). Since the introduction of the Goods and Services Tax (GST), the IEC number issued by the DGFT is often the same as the Permanent Account Number (PAN) of the firm, but it is still separately issued based on an application to the DGFT.
Obtaining the IEC Code Registration is not merely a formality; it is a strategic move that immediately opens the business to a world of global opportunity and legal compliance.
Mandatory Customs Clearance: The IEC Code is checked and verified by Indian Customs authorities (ICEGATE) before any consignment of goods, whether imported or exported, is permitted to cross the country's borders. Without it, goods cannot be cleared, leading to severe delays and penalties.
Access to Government Benefits: Only businesses with an active IEC are eligible to claim various export promotion schemes and incentives offered by the DGFT and the Government of India. These may include duty exemptions, tax benefits, and schemes like the Merchandise Exports from India Scheme (MEIS - now replaced), Service Exports from India Scheme (SEIS - now replaced), and benefits under schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP).
Foreign Currency Transactions: Banks require a valid IEC Code to process foreign currency payments related to import and export transactions, ensuring that the financial activities comply with FEMA (Foreign Exchange Management Act) regulations.
Global Credibility: Having an official IEC Code enhances the business's credibility in the international arena, fostering trust with foreign suppliers, buyers, and financial partners.
Lifetime Validity: One of the most significant benefits is that the IEC Code, once issued, is valid for the lifetime of the business. There are no renewal fees or expiry dates, provided the mandatory annual update is filed.
The application process for IEC Code Registration is entirely online, managed through the official portal of the Directorate General of Foreign Trade (DGFT) – dgft.gov.in. The process is designed to be quick, often resulting in immediate issuance upon successful submission and fee payment.
Step 1: User Registration on DGFT Portal
The applicant must first register on the DGFT website as an "Importer/Exporter." This requires providing a valid email ID and mobile number for OTP verification, which establishes the user profile.
Step 2: Login and Initiate Application
After successful registration and logging in, the user must navigate to the 'Services' section and select 'IEC' and then 'Apply for IEC.'
Step 3: Filling the Online Application Form (ANF-2A)
The application form requires accurate entry of crucial business and personal details.
General Information: Select the nature of the firm (Proprietorship, Company, LLP, etc.), enter the firm's name, PAN details, and address. Since the IEC is PAN-based, the PAN card details are fundamental.
Partner/Director/Karta Details: Mandatory details of all Proprietors, Partners, Directors, or the Karta (for HUF) must be provided. For companies, Director details are often fetched from the Ministry of Corporate Affairs (MCA) database using the Corporate Identification Number (CIN).
Bank Account Details: Valid bank account details in the name of the firm must be provided. The bank details will be validated through the Public Financial Management System (PFMS).
Step 4: Document Upload
Although the process is digitized and requires minimal documents, these must be uploaded clearly. The required documents vary slightly based on the firm's legal constitution:
Document Category
Proprietorship
Partnership/LLP/Company
Identity Proof
PAN Card of the Proprietor
PAN Card of the Entity
Bank Proof
Cancelled Cheque bearing the applicant's name/Bank Certificate
Cancelled Cheque bearing the firm's name/Bank Certificate
Address Proof
Sale Deed/Rent Agreement/Utility Bill (in the name of the applicant/firm)
Sale Deed/Rent Agreement/Utility Bill (in the name of the firm)
Constitution Proof
N/A
Partnership Deed/Certificate of Incorporation
Applicant Photo
Digital Photograph of the Proprietor
Digital Photograph of the Signatory Director/Partner
Step 5: Payment and Issuance
The applicant must pay the non-refundable government application fee, which is ₹500, through the online payment gateway. Upon successful submission, payment, and initial verification, the IEC Code Registration is often issued immediately. The IEC Certificate, containing the 10-digit code and a unique QR code for verification, can be downloaded and printed directly from the DGFT dashboard.
While the IEC has lifetime validity and does not require periodic renewal payments, a significant regulatory change mandates an annual electronic update of the IEC details. This is crucial for keeping the code active and avoiding deactivation.
Requirement: Every IEC holder must update and confirm their IEC details electronically on the DGFT portal, even if no changes have occurred.
Timeline: This update must be completed between April and June every year.
Fee: The annual update is currently free of government charge if completed within the designated window (April to June).
Consequence of Non-Compliance: Failure to update the IEC annually will result in the deactivation of the IEC by the DGFT. A deactivated IEC cannot be used for any import or export transaction, immediately disrupting the business's international trade operations. To reactivate a suspended IEC, the FBO must submit a modification request (which may incur a fee of ₹500 if done after the mandatory period).
Although GST registration is not mandatory for obtaining an IEC Code Registration (businesses dealing in exempted goods or services can still apply), providing the GSTIN is highly recommended. The GSTIN is linked to the IEC for smoother customs clearance and for availing GST-related export benefits, such as claiming IGST refunds.
Furthermore, a valid Digital Signature Certificate (DSC) or Aadhaar-based OTP is required for secure authentication when submitting the application and for the mandatory annual updation of the IEC profile.
In conclusion, for any Indian business with a vision for global expansion, the IEC Code Registration is the indispensable first step. Its digital, simplified process and lifetime validity make it one of the most streamlined forms of regulatory compliance, offering the legal foundation necessary to engage successfully in cross-border commerce.