How to Start an Export Business in India: 2026 Guide

Prerequisites: What You Need Before You Start

Before you apply for an IEC or approach any government portal, make sure you have these basics in place. Without them, your applications will stall.

Checklist

• PAN card. Individual PAN for sole proprietors, or company/LLP PAN for entities. This is your primary identity for all trade registrations.
• Bank account (current account preferred). A current account in the name of your business is strongly recommended. While a savings account technically works for IEC, banks will not issue an AD Code letter against a savings account, and you will need the AD Code for customs filing.
• Udyam registration (for MSMEs). If your business qualifies as a Micro, Small, or Medium Enterprise, register on the Udyam portal . This is free and unlocks higher interest subvention rates (3-5% under the Interest Equalisation Scheme), priority sector lending, and easier access to export credit.
• GST registration. If you do not already have GSTIN, apply at gst.gov.in . This is mandatory for exporting under a Letter of Undertaking (LUT) for zero-rated supply.
• Digital signature certificate (DSC). A Class 2 or Class 3 DSC for the authorised signatory. Required for DGFT applications, ICEGATE registration, and customs filing. Costs INR 500-1,500 from any licensed Certifying Authority.

Step 1: Get Your IEC from DGFT

The Importer Exporter Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT). It is the single most important registration for any exporter. Without it, customs will not accept your shipping bill.

The process is entirely online. Log in to the DGFT portal, fill out the ANF-2A form, upload your documents, pay INR 500, and submit. In most cases, the IEC is issued automatically within 24 hours. DGFT has moved to an Aadhaar-based e-KYC system, so physical verification is rarely required.

Step 2: Get RCMC from an Export Promotion Council

The Registration Cum Membership Certificate (RCMC) is your membership with the relevant Export Promotion Council (EPC) or commodity board. While not always mandatory for the physical act of exporting, you need RCMC to claim most government incentives including RoDTEP, Duty Drawback, and to participate in trade fairs.

Which EPC Should You Join?

India has 26 Export Promotion Councils and commodity boards, each covering specific product categories. Join the one that matches your primary export product:

RCMC fees vary by council, typically ranging from INR 2,000 to INR 25,000 per year. The application is usually online through the respective council's website, and processing takes 3-7 working days. Read our RCMC registration guide for council-specific instructions.

Step 3: Register on ICEGATE

ICEGATE is Indian Customs' electronic gateway. Every shipping bill, bill of entry, and customs document is filed through this portal. You cannot ship goods without an active ICEGATE account linked to your IEC.

Registration is free. Go to icegate.gov.in , click "Register", enter your IEC, PAN, and email, and upload your DSC. Activation takes 1-2 working days. Once active, you (or your customs broker acting on your behalf) can file shipping bills electronically.

Step 4: GST Registration and LUT for Zero-Rated Exports

Exports from India are "zero-rated" under GST. This means you either export without paying GST (by filing a Letter of Undertaking) or pay IGST at the time of export and claim a refund later. The LUT route is strongly preferred. It avoids blocking your working capital.

Filing the LUT

• Log in to the GST portal → Services → User Services → Furnish Letter of Undertaking.
• Select the financial year and submit. No documents need to be uploaded for most exporters.
• The LUT is approved instantly in most cases. It is valid for one financial year. Renew it every April.
• With a valid LUT, your exports will carry zero GST on the invoice and shipping bill.

Step 5: Open an AD Bank Account for Forex

An Authorized Dealer (AD) bank is any commercial bank licensed by the RBI to deal in foreign exchange. Your export proceeds (whether in USD, EUR, GBP, or any other currency) must be received through an AD bank account.

Visit your bank branch with your IEC certificate, company registration documents, and a request letter. The bank will issue you an AD Code (a 14-digit code unique to your branch). This AD Code must be registered at the customs port from where you plan to export. Your customs broker can handle the port registration.

Key things your AD bank provides:

• Foreign currency receipts. The bank converts incoming forex to INR and credits your current account.
• Bank Realisation Certificate (BRC). Proof that export proceeds were received. Required for incentive claims and EDPMS closure.
• Export credit. Pre-shipment (packing credit) and post-shipment credit at concessional rates.
• Forward contracts. Hedge your forex risk by locking in exchange rates for future receivables.

Step 6: Find Your HS Code and Check Restrictions

The Harmonized System (HS) code is a 6-8 digit number that classifies your product for customs purposes. India uses the ITC-HS system, which extends the international 6-digit code to 8 digits. Getting the right HS code is critical because it determines:

• Whether your product is freely exportable, restricted, or prohibited.
• The import duty rate in the destination country.
• Your RoDTEP rate and Duty Drawback rate.
• Whether any export incentive schemes (like Advance Authorisation) apply.

Use our HS code lookup tool to search by product name or description. Cross-check your classification on the DGFT ITC-HS schedule and confirm with your customs broker.

Step 7: Find International Buyers

With all your registrations in place, it is time to find buyers. This is where most new exporters spend the bulk of their effort. Here are the most effective channels in 2026:

B2B Marketplaces

IndiaMART (for incoming enquiries from international buyers), Alibaba.com (the largest global B2B marketplace. Create a "Gold Supplier" account to reach buyers in 100+ countries), TradeIndia , and ExportHub . List your products with detailed specifications, high-quality photos, and competitive pricing. Respond to enquiries within 24 hours. Speed matters on these platforms.

LinkedIn

Search for procurement managers, import companies, and distributors in your target markets. Connect with a brief message about your products and export capabilities. LinkedIn is especially effective for B2B industrial products, chemicals, and engineering goods.

Export Promotion Council Events

Your EPC organises buyer-seller meets, trade delegations, and participation in international trade fairs. These are often subsidised. The government covers 50-75% of stall costs under the Market Access Initiative (MAI) scheme. Check your EPC's event calendar regularly.

Indian Embassies & Trade Commissions

Indian embassies abroad have commercial wings that maintain lists of importers looking for Indian products. Contact the embassy in your target country and ask for their trade enquiry list. They also organise trade events and can introduce you to potential buyers.

Step 8: Get Sample Orders and Negotiate Payment Terms

Your first export will almost certainly be a sample order or a small trial shipment. International buyers want to verify quality, packaging, and delivery reliability before committing to large volumes. Approach this as an investment in the relationship.

Payment Terms for New Exporters

As a first-time exporter with no track record, start with payment terms that protect your cash flow:

• 100% advance TT (telegraphic transfer). The safest option. Ask for full payment before shipment. Many buyers will agree for sample orders.
• 50% advance, 50% against BL copy. A common compromise. You receive half upfront and the remaining half when you share the Bill of Lading.
• Irrevocable Letter of Credit (LC). The bank guarantees payment upon presentation of compliant documents. Preferred for larger orders. Your AD bank will guide you on LC requirements.
• Avoid open credit (DA/DP terms). Do not offer 30/60/90-day credit to new buyers. Wait until you have established trust over 3-4 successful shipments.

Step 9: Arrange Logistics

You need three service providers for your first shipment: a freight forwarder, a customs broker (also called CHA. Custom House Agent), and a shipping line or airline. Many freight forwarders handle all three roles.

For your first shipment, ask your EPC or fellow exporters for recommendations. A good customs broker is worth their weight in gold. They will catch documentation errors before they cause delays at the port.

Step 10: File Shipping Bill, Get LEO, Ship Goods

This is where everything comes together. The shipping process follows a defined sequence:

1. Prepare export documents. Commercial invoice, packing list, Bill of Lading or Airway Bill, Certificate of Origin (if applicable), and any product-specific certificates (phytosanitary, halal, test reports).
2. Customs broker files the Shipping Bill. On ICEGATE, with your IEC, HS code, FOB value, buyer details, and bank details. The system generates a Shipping Bill number.
3. Goods arrive at port/CFS. Your freight forwarder arranges transport of goods to the Container Freight Station (CFS) or directly to the port.
4. Customs examination. May be physical or documentary. First-time exporters are more likely to face physical examination. The customs officer verifies goods against the shipping bill.
5. Let Export Order (LEO). Once customs is satisfied, they issue the LEO. This is the official permission to load goods onto the vessel or aircraft.
6. Goods are loaded and shipped. The shipping line issues the Bill of Lading (or the airline issues the Airway Bill), confirming the goods are on board.

Read our export documentation guide for a detailed checklist of every document you need.

Step 11: Submit Documents to Bank, Collect Payment, Close EDPMS

After shipment, you must submit the export documents to your AD bank within 21 days. The bank sends them to the buyer's bank (for LC/DA/DP terms) or holds them on file (for advance TT). When payment arrives, the bank issues a Bank Realisation Certificate (BRC).

EDPMS Closure

Every shipping bill creates an entry in the RBI's Export Data Processing and Monitoring System (EDPMS). This entry must be "closed" by matching the shipping bill with the bank realisation. Key deadlines:

• 9 months. All export proceeds must be received within 9 months of the shipping bill date.
• 15 months. Deadline for the bank to close the EDPMS entry after payment receipt.
• Caution list. If your EDPMS entries remain open beyond 2 years, the RBI will place your IEC on the EDPMS caution list, blocking new shipments and incentive claims.

Read our detailed EDPMS reporting guide to understand matching, write-offs, and how to stay off the caution list.

Step 12: Claim Export Incentives

India offers several export incentive schemes that can significantly improve your margins. Most new exporters leave money on the table by not claiming what they are entitled to.

RoDTEP (Remission of Duties and Taxes on Exported Products)

Refunds embedded central, state, and local taxes that are not rebated through any other mechanism. Rates range from 0.5-4.3% of FOB value, depending on the HS code. Credits are issued as transferable scrips in your ICEGATE account. You can use them to pay customs duties on imports or sell them on the market.

[Duty Drawback](/resources/duty-drawback)

Refund of customs duties paid on imported raw materials used in manufacturing export products. Claimed at All Industry Rates (AIR) or Brand Rates. Can be claimed simultaneously with RoDTEP. Particularly valuable for manufacturers who import raw materials (chemicals, metals, components) for re-export as finished goods.

Interest Equalisation Scheme

Interest subvention of 2% for manufacturer exporters and 3-5% for MSME manufacturer exporters on pre-shipment and post-shipment rupee export credit. Applied directly by your bank, reducing your effective borrowing cost.

Costs Breakdown: What Does It Actually Cost?

Here is a realistic breakdown of what a first-time exporter will spend to get set up and ship their first consignment:

Realistic Timeline: How Long Does This Take?

If you push through each step without delays, here is a realistic timeline from Day 1 to your first shipment:

The regulatory setup (Steps 1-6) can be completed in under 2 weeks if you have all prerequisite documents ready. The variable is finding buyers (Step 7) and getting your first order (Step 8), which depends entirely on your product, pricing, and network. Some exporters ship within 3 weeks; others take 2-3 months to land their first order.

Frequently Asked Questions

How much does it cost to start an export business in India in 2026?

The minimum upfront cost is approximately INR 5,000-10,000. IEC registration costs INR 500, RCMC fees vary by council (INR 2,000-25,000), and GST registration is free. Your first shipment will additionally require a customs broker (INR 3,000-8,000), freight, and packaging. Overall, a first-time exporter can begin with INR 50,000-1,00,000 in working capital for a small sample shipment.

How long does it take to go from zero to first export shipment?

Realistically, 2-4 weeks from IEC application to your first shipment if you move quickly and already have a buyer. IEC takes 1-3 days, RCMC 3-7 days, ICEGATE activation 1-2 days, and AD bank setup takes 3-5 days. Finding a buyer is the variable. The regulatory setup alone can be completed in under 2 weeks.

Do I need to be a company to export from India, or can I export as a sole proprietor?

You can export as a sole proprietorship, partnership firm, LLP, or private limited company. There is no requirement to incorporate. Many small exporters start as sole proprietors with just a PAN card, current bank account, and IEC. However, a company or LLP structure may give you better credibility with international buyers and banks offering export credit.

Update history

• 2026-08-06 First published.