Import refers to bringing in goods and services in across the international border or territory. Import form the spine of international trade. For initializing in this field having reliable and strong contacts is a must. You need to have an up-to-date information about the market, government policies, duties, custom and market demand.
To start an import business, it is necessary to fulfill certain legal procedures and formalities. The following things will be required if you are planning to start an import business:
- You need to have a rental agreement which is needed by various government authorities as an address proof. In case the premise is your own, it is considered as a proof of address.
- PAN (Personal Account Number) is an income tax ID number issued by Income Tax Department. You need to give the required documents to the income tax authorities. Permanent Account Number should be registered for individual and firm separately.
- A Bank Account in the name of the firm is a must.
- If you collect tax either from employees or customers then a TAN is necessary. TAN is a tax deduction account number. It is issued to individuals who are supposed to subtract tax on payment made by them. To apply for TAN, one can go to the NSDL website and fill and submit the form online.
- VAT registration should be done in case you intend to buy/sell taxable merchandise within a state. VAT registration mens listing the name of the company with government for payment of tax.
- CST registration should be done in case you intend to buy/sell taxable merchandise across different states.
- If you plan to indulge in international trade then you even require to get an IMPORTER EXPORTER CODE of 10 digits. It is very important to facilitate import/ export activities.
Once these formalities are done, you can legally begin your business and enjoy the profit.