How to start the import export business of clothes in India?

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One of the main requirements to start import export business of clothes or any other exim business is that you need to get an Import-Export Code. Apart from this, businesses also need to follow some important steps. The stepwise process to start import export business of clothes in India is discussed in this article.

Stepwise Process to Start the Import Export Business of Clothes

Step 1. Company Registration

Your business turns from a dream into reality by establishing its legal entity. Company Registration means registering your business under a specific jurisdiction and getting it a separate legal existence. In India, you can get company registration done in various forms as per your eligibility criteria and business plans.  You can learn all about the different types of company registration in India at: Explore the 7 Types of Company Registration in India

Step2. Get the  Necessary Licences

Just like every other business, you also need necessary licences and registrations for your import export business of clothes in India. The most important ones are as follows”

  • IEC Code Registration: IEC Code is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India. It is mandatory for any business entity importing or exporting goods. You can consider it similar to a passport for your business.
  • AD Code Registration: AD Code Registration is a 7-digit number issued by your bank, identifying you as an authorised dealer for foreign currency transactions.
  • PAN Card: PAN Card is a unique identifier for income tax purposes, required for various financial activities. Your company will require its own ITR Filing and PAN Card.
  • Textile Export Promotion Council License: TEPC License provides benefits and support specifically for businesses exporting textiles. Becoming a member of Textile RCMC can be valuable for you to gain benefits from the government.

Step 3. Identify Buyers For Your Products

You also must keep conducting market research to understand your target audience and tailor your cloth items to address their specific challenges. You need to answer the major questions such as Who are they?  What are their needs, wants, and pain points? Furthermore, you must know how to target them. It can be through online marketing, offline stores, or anything else. Expert guidance can be beneficial to understand the market before jumping into it.

Step 4. Establish Your Financial Projections

Creating financial projections, even at a basic level, is essential.  This roadmap will help you estimate your revenue, expenses, and potential profits.  It’ll guide your initial investments and future growth strategies.  Also, if you are looking for investments from outside sources, you must also have a pitch deck ready.

You can learn more about it at: Investor Pitch Deck: Overview, Benefits, Documents

Step 5. Hire an eCommerce Shipping Company

It is important for the import export business of clothes in India to have a reliable shipping partner. They will help you target the customer across India. Hence, the more people you target the more you will be able to sell. Furthermore, factors you must consider while finding a reliable shipping partner includes shipping rates, speed, and customer service.  You must also remember a seamless delivery experience can turn one-time buyers into loyal customers.

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Step 6. Contact a Customs Clearing Officer

A customs clearing officer can be your invaluable guide through the entire import export business.  They’ll ensure your shipments comply with customs requirements, saving you time and potential headaches at the border.

Also Read:

Major Import and Export Ports in India

If you want any other guidance relating to the import export business of clothes in Indiaplease feel free to talk to our business advisors at 8881-069-069.

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