Milestone 1 – How to Start Export Business in India | CA Devesh Thakur
Milestone 1 · The Foundation

How to Start Export Business
in India

A Complete 12-Step Export Roadmap — legal structure, IEC, market research, ECGC, finance, packaging & incentives.

📅 December 6, 2025 ✍️ CA Devesh Thakur 📍 eTaxSave 🗺️ 12 Steps Covered

📄 Download the complete Milestone 1 guide as PDF

⬇ Download PDF – Milestone 1

12 Steps to Start Exporting from India

Step 01
🏢
Choose the Correct Business Structure

Your business structure affects taxation, liability, compliance burden, banking facilities, and buyer credibility.

Sole Proprietorship

Best for beginners. Easy to start, unlimited liability.

Partnership Firm

Suitable for family businesses. Requires partnership deed.

LLP

Limited liability, fewer compliance obligations.

Pvt. Ltd. Company

Most preferred for serious exporters & corporate clients.

✅ For long-term exports — Private Limited or LLP is highly recommended
Step 02
🏦
Open a Current Account with an AD Bank

Only Authorised Dealer (AD) Banks can handle forex transactions. Mandatory for receiving export proceeds, BRC, and FEMA compliance.

  • PAN of business
  • Business registration proof
  • Address proof
  • GST registration (if applicable)
  • KYC documents of directors/partners
Step 03
🪪
IEC – Importer Exporter Code Registration

IEC is your primary export authorization issued by DGFT. Without IEC, you cannot file shipping bills, clear customs, or claim export incentives.

  • Generated online via DGFT portal
  • PAN-based with lifetime validity
  • Aadhaar-based OTP verification
  • IEC = your identity in international trade
Step 04
🔢
Product Finalization & HS Code Classification

Every export product must be classified under ITC-HS. The HS Code determines export policy, tariff structure, and documentation requirements.

  • Export policy (free / restricted / prohibited)
  • Tariff structure & documentation
  • Buyer country import duty
⚠️ Wrong HS Code = customs rejection + penalties + delay
Step 05
🌐
International Market Research & Buyer Discovery

Research where your product can actually sell. Analyze country demand, price benchmarking, import regulations, and competitor pricing.

  • Export Promotion Councils (EPCs)
  • Trade fairs and exhibitions
  • B2B Portals (Alibaba, IndiaMART, TradeIndia)
  • LinkedIn Export Networking
  • Indian Embassies Trade Cells
Step 06
💰
Export Pricing, Samples & Incoterms 2020

Export pricing includes manufacturing cost, packaging, inland transport, customs, freight, insurance, and banking charges. Incoterms define cost-sharing and risk transfer.

EXWEx Works
FOBFree On Board
CIFCost Ins. Freight
DAPDelivered at Place
DDPDelivered Duty Paid
⚠️ Wrong Incoterm = profit wiped out
Step 07
🛡️
ECGC – Export Credit Risk Protection

ECGC protects exporters from buyer default, political risk, payment delays, and insolvency risk. Every new exporter must take ECGC coverage.

  • Protects working capital
  • Improves bank financing eligibility
  • Covers buyer default & political risk
  • Covers payment delays & insolvency
Step 08
📁
Export Documentation

Documentation is the most sensitive part of international trade. Even a small mismatch can result in payment delay or customs objections.

  • Commercial Invoice
  • Packing List
  • Shipping Bill
  • Bill of Lading / Airway Bill
  • Certificate of Origin
  • Insurance Certificate
  • Inspection Certificate
  • Letter of Credit (if applicable)
Step 09
🚢
Freight Forwarder & CHA

Choose the right logistics partners for a smooth export flow. A Freight Forwarder manages cargo; a CHA handles customs clearance.

  • FF: Cargo booking, freight negotiation, warehouse, tracking
  • CHA: Customs clearance, HS code validation, duty access, paperwork filing
Step 10
💳
Export Finance – Pre & Post Shipment

Export finance improves liquidity and reduces business stress across two key stages of the export lifecycle.

  • Packing Credit (Pre-Shipment): Raw materials, labour, packaging
  • Post-Shipment Finance: Bill discounting, LC negotiation, invoice funding
Step 11
📦
Export Packaging & Labelling Compliance

International packaging must meet moisture resistance, load-bearing capacity, and country-specific import regulations. Labels must comply with destination country norms.

  • Exporter name & consignee name
  • Country of origin
  • HS Code
  • Weight & handling symbols
⚠️ Poor packaging = buyer claims and disputes
Step 12
🎯
Export Promotion Schemes & Incentives

The Indian government supports exporters through multiple schemes to improve international price competitiveness.

  • 27 Export Promotion Councils (EPCs)
  • RCMC Registration
  • MAI – Market Access Initiative
  • Transport & Marketing Assistance
  • E-commerce export benefits up to ₹10 lakh

Key Terms Glossary

Short FormFull Form
IECImporter Exporter Code
DGFTDirectorate General of Foreign Trade
ITC-HSIndian Trade Classification – Harmonised System
CHACustoms House Agent
ECGCExport Credit Guarantee Corporation
FOBFree On Board
CIFCost Insurance Freight
BLBill of Lading
AWBAirway Bill
EPCExport Promotion Council
RCMCRegistration Cum Membership Certificate

Export is not a shortcut business — it is a system-driven process that requires legal compliance, financial discipline, documentation accuracy, and risk management.

This 12-step Export Roadmap gives you a solid legal and practical foundation to confidently start exporting from India.

— CA Devesh Thakur | eTaxSave Export Education Initiative

© 2025 eTaxSave · Content by CA Devesh Thakur · Reproduction or redistribution without prior written permission is prohibited.

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