Exporting is one of the most reliable ways for an Indian business to grow, but the first shipment can feel complicated. The good news is that the process follows the same order every time. Once you know the steps, each one is a manageable task rather than a mystery.
To start an export business in India, set up a business entity with a current bank account, get an Importer Exporter Code (IEC) from DGFT, register for GST and file a Letter of Undertaking (LUT) to export without paying IGST, pick a product and target market, find and verify buyers, agree price and payment terms, ship through a freight forwarder and customs broker, and receive payment through your bank so you can close the export record.
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Step 1: Choose a business structure
You can export as a proprietorship, partnership firm, LLP or private limited company. A proprietorship is the fastest to start, while an LLP or company gives limited liability and tends to look more established to foreign buyers. Whatever you choose, open a current account in the business name with a bank that handles foreign exchange, because export payments arrive through this account.
If you are unsure which structure fits, our comparison of LLP vs private limited company explains the trade-offs.
Step 2: Get your IEC, GST and LUT
- Importer Exporter Code (IEC): a 10-digit code issued by DGFT and linked to your PAN. Customs will not clear an export without it in most cases. See our IEC registration guide.
- GST registration: exports are zero-rated supplies, and you need GST to claim refunds and input tax credit. See GST registration for exporters.
- Letter of Undertaking (LUT): filed online each financial year so you can export without paying IGST first. See the LUT filing guide.
Step 3: Add product-specific registrations
Some products need an extra registration before they can leave the country. Food and agri products often need APEDA registration and FSSAI, spices need the Spices Board, marine products need MPEDA, and engineering goods usually register with EEPC India. Most of these issue a Registration-cum-Membership Certificate (RCMC), which you also need to claim export incentives. Our RCMC guide lists which council fits which product.
Step 4: Pick a product and a market
Start with a product you can supply consistently at a stable quality. Then shortlist two or three countries where demand already exists. Check three things for each market: the import duty your product faces, the documents and standards the buyer country demands, and whether India has a trade agreement with that country that lowers duty. Our country compliance guides, such as exporting to the USA and exporting to the UK, cover these points market by market.
Step 5: Find and verify buyers
Buyers come from trade fairs, export promotion councils, B2B platforms, your own website and referrals. Whatever the source, verify every buyer before you ship: check the company registration, a business email on its own domain, a working phone number and a trade history. Our guide on spotting fake export buyers lists the warning signs. You can also browse live buyer requirements on BuyGenix, where every requirement is reviewed by our team before it is shared.
Step 6: Price the order and send a quotation
Work out your full cost to the point of delivery you are quoting, add your margin, and quote in the buyer's currency or in US dollars. The price must state an Incoterm such as FOB or CIF so both sides know who pays for freight and insurance. Our export pricing guide and the free export price calculator do the maths, and a proforma invoice turns the quote into a formal offer.
Step 7: Agree payment terms
For a first order with a new buyer, ask for an advance payment or a letter of credit. Open account terms carry the most risk and are best kept for buyers you already trust. Our comparison of export payment terms explains each option.
Step 8: Pack, ship and clear customs
Pack for the journey and prepare a commercial invoice and packing list. A freight forwarder books space with the shipping line or airline, and a licensed customs broker files the shipping bill on ICEGATE. Once customs gives the Let Export Order, the goods are loaded and the carrier issues a bill of lading or airway bill. Our customs clearance guide walks through each stage.
Step 9: Get paid and close the export
Send the shipping documents to the buyer or the buyer's bank as your payment terms require. When the money arrives, your bank links it to the shipping bill and the export is closed in the system. Keep every document: you will need them for GST refunds, incentive claims and any later audit.
Step 10: Claim your export benefits
Depending on your product you may be able to claim RoDTEP, duty drawback or a GST refund on inputs. These benefits can add a meaningful amount to your margin. Our guide to RoDTEP, duty drawback and EPCG explains who qualifies.
Frequently asked questions
Can I start an export business without a company?
Yes. A proprietorship can get an IEC and export. Many exporters start as proprietors and convert to an LLP or company later as they grow.
Is IEC enough to start exporting?
IEC is the core requirement, but most exporters also need GST registration, an LUT to export without paying IGST, and sometimes a product-specific registration such as APEDA or FSSAI.
How long does it take to set up?
The basic registrations can usually be completed within a few weeks if your documents are ready. Product-specific registrations and the first buyer search usually take longer.
Do I need my own factory to export?
No. You can work as a merchant exporter and buy from manufacturers. See our guide on merchant and manufacturer exporters for the differences.
Want the registrations done for you?
BuyGenix handles IEC, GST, LUT, MSME and RCMC registrations, so you can focus on finding buyers and shipping your first order.
See registration services →Looking for buyers for your products?
See live requirements from importers and bulk buyers in India and abroad: what they want, how much, and where. Contact them directly with a BuyGenix membership.
