Cost Of IEC Registration In India

Cost Of IEC Registration In India – India is one of the fastest-growing economies in the world, and its import-export market is a crucial component of its growth. Whether you are an individual or a business entity involved in import or export activities, you are required to obtain an Import Export Code (IEC) issued by the DGFT. This unique 10-digit code serves as a unique identification number for importers and exporters in India. While obtaining an IEC is mandatory, it is essential to understand the associated cost of IEC registration in India.

Table of Contents

The cost of IEC registration in India can vary depending on several factors and conditions. Understanding the cost of IEC registration is vital for individuals and businesses planning to engage in import or export activities. In this article, we will provide you with detailed information about the cost of IEC registration in India and the factors that affect it. We will also provide you with some helpful tips to reduce the cost of IEC registration. So, if you’re planning to obtain an IEC in India, read on to learn more.

Factors That Affect The Cost Of IEC Registration In India

Several factors can affect the cost of IEC registration in India, based on the type of entity, whether it is a new or existing entity, and the method of registration. Understanding these factors is crucial to determine the cost of IEC registration accurately. Here are some of the factors that affect the cost of IEC registration in India:

Type of Entity: The type of entity that is registering for IEC can impact the cost of IEC registration. The registration fee for a proprietorship firm or an individual is different from that of a private limited company or a partnership firm.
Method of Registration: The method of registration also plays a significant role in determining the cost of IEC registration. Online registration is usually cheaper than offline registration, as it saves time and eliminates the need for physical documentation.
Consultant’s Fees: If you decide to seek the assistance of a consultant for IEC registration, their fees can add to the overall cost of registration. It is advisable to research and compare the fees of different consultants before engaging their services.
DSC Fees: Obtaining a digital signature certificate (DSC) is mandatory for IEC registration, and the fees for the DSC can vary depending on the certifying agency.
Amendments to IEC: If there are any changes to the information provided in the IEC registration application, such as a change in address or the addition of a partner, an amendment fee is applicable.
Late Fees: Late fees are applicable if the IEC registration renewal is not completed within the specified timeline. Late fees can increase the cost of IEC registration significantly.

How Much Is The Cost Of IEC Registration In India?

The following are the different scenarios that can affect the cost of IEC registration in India:

New Entity: If you are registering a new entity for IEC, the cost will be around INR 2,000. This includes the application fee and the digital signature certificate (DSC) fee. You can apply for IEC registration online through the DGFT website or seek the help of a consultant who can assist you in the process.
Existing Entity: If you are an existing entity and wish to obtain an IEC, the cost will be around INR 500. This includes the application fee and the DSC fee. The application can be submitted online as well.
Through a Consultant: If you decide to hire a consultant for IEC registration, the cost will be higher. The consultant’s fees may vary depending on their experience and the scope of their services. However, it is advisable to hire a consultant as they can assist you in the entire process of IEC registration, ensuring that all the documents are in order and the registration is completed smoothly.

It is important to note that the cost of IEC registration may change from time to time, depending on the regulations set by the government. Therefore, it is advisable to check with the DGFT website or consult a professional before applying for IEC registration.

Types Of Entities That Require IEC Registration

In India, all entities involved in import or export activities are required to obtain an Import Export Code (IEC). Here are the types of entities that require IEC registration:

Proprietorship Firms: Proprietorship firms are businesses owned and run by a single person, and they are required to obtain an IEC if they are involved in import or export activities.
Partnership Firms: Partnership firms are businesses owned and run by two or more people, and they are required to obtain an IEC if they are involved in import or export activities.
Limited Liability Partnerships (LLPs): LLPs are a hybrid business structure that combines the features of a partnership and a company. LLPs are required to obtain an IEC if they are involved in import or export activities.
Private Limited Companies: Private Limited Companies are a popular form of business structure in India, and they are required to obtain an IEC if they are involved in import or export activities.
Public Limited Companies: Public Limited Companies are similar to Private Limited Companies but have a higher number of shareholders. They are required to obtain an IEC if they are involved in import or export activities.
One-Person Companies (OPCs): OPCs are a type of Private Limited Company that can be owned and managed by a single person. OPCs are required to obtain an IEC if they are involved in import or export activities.

Take Away

In conclusion, all types of entities involved in import or export activities in India, including Proprietorship Firms, Partnership Firms, LLPs, Private Limited Companies, Public Limited Companies, and OPCs, are required to obtain an IEC. Failure to obtain an IEC can result in penalties and legal consequences, so it is essential to comply with this requirement.