» Setting Up An Export Firm

 

A business enterprise is called export firm if it has been allotted

* Import Export Code

* Membership and Registration with export promotion councils

* Registration with Sales Tax/ VAT department.

 

Procedure for setting up an export firm

You should take the following steps to set up an export firm.

1 - Naming of the export firm

 

2 - Form of export firm

Solo Proprietary Firm

In case you want to start export business along either (1) Merchant exporter or (2) manufacturer exporter, you will have a solo proprietary firm. It is oldest and most simple form of business enterprises. no legal formalities are involved in organizing a solo proprietary firm. Where as you enjoy all the profit made from business, you will also be entirely responsible for any loss or debts in cured.

 

Partnership Firm

A partnership firm can be formed herein up to 20 persons can join together for business purpose, you have to decided the terms and condition with your partner/pertners in the form of an agreement called "Partnership Deed". The partnership deed should include among others, the following points

* Amount of capital contribution of each buyer

* Share of profit/loss of each partner

* What happens when a partner leaves or dies.

 

Private Limited Company

If you want to organize a private limited company, you require minimum of 2 persons (maximum of 50 persons). Under the company act, a company has to be compulsorily registered with the registrar of companies of state where the company is proposed to be set up. The most important difference between private limited company and partnership firm and solo proprietary is that the liability of a shareholder is limited to the amount he Owens as share capital.

One advantage of a private limited company ids that it enables other people to subscribe money to the company and to receive pay off in the form of dividend if the company is making profit

 

Public Limited Company

A public limited company can be formed by the minimum of 7 persons with no limit on the maximum number. Thus a public limited company can have wide membership and operates with substantial financial resources. The minimum no of directors is 3 and maximum is 12. A director of company should not hold more than 20 directorship of public limited company. The appointment of a managing director of a public limited company must be approved by the Government.

If you have decided to organize your firm as private limited company or public limited company, you have to take the following steps.

(a) Apply in the prescribed form to the Registrar of company for approval of company name

(b) Once the name of company is approved, then submit the following documents to the Registrar of companies

* Application for registration

* Memorandum of Association

* Articles of Association

* List of proposed director with their name and address

* Written consent of the proposed director to act as such and to take qualification share

* Declaration of an advocate of High Court/Supreme Court, Charted Accountant, Company Secretary/ Director of the company that all the legal requirements regarding registration(also called incorporation) have been duly compiled with

* Notice of registered office address. if registered office address is not decided it can be submitted within 30 days of incorporation

* Copy of letter to Registrar of companies giving approval to the proposed name of your company

* Payment of prescribed fee.

If all the documents are found in order, them registrar of companies will issue you a registration certificate called certificate of incorporation.

 

3- PAN Of Income Tax

You are required to apply to the income tax department for the allotment of PAN in the name of a proposed business firm. PAN number is pre condition for the allotment of import export code.

 

4- Import Export Code (IEC)

For information about Import export code please click on this link Import Export Code