How Much Does IEC Code Registration Cost in India?

For businesses venturing into international trade, obtaining an IEC Code (Import Export Code) is a crucial step. This unique code, issued by the Directorate General of Foreign Trade (DGFT), allows businesses to import or export goods and services. A common question that arises during the process is: “What is the cost of IEC Code Registration in India?” In this article, we’ll break down the registration costs, additional charges, and key details related to Import Export Code Registration.

What is an IEC Code?

The Import Export Code (IEC) is a mandatory 10-digit identification number issued by the DGFT. Without an IEC, businesses cannot import or export goods or services legally. It is valid for a lifetime and does not require renewal, making it a one-time registration process.

Cost of IEC Code Registration in India

The cost of IEC Code Registration in India can be divided into two components:

1. Government Fee for IEC Registration:The DGFT charges a standard fee of INR 500/- for registering an Import Export Code. This is the only mandatory payment for obtaining the IEC.
2. Professional Fees (Optional): Many businesses prefer to hire professionals or agencies to handle their IEC Registration. The service charges for such professional assistance can range between INR 1,000 to INR 5,000, depending on the complexity of the application and additional support services provided.

Additional Costs:

• GST Charges: Professional services for IEC Registration may include an additional GST charge of 18%.
• Document Notarization or Certification: If any documents require notarization or certification, there may be minor costs involved.

Steps to Register for an IEC Code and Their Associated Costs

Here’s a step-by-step breakdown of the IEC Code Registration process and potential costs at each step:

1. Preparation of Documents: Required documents include PAN Card, Aadhaar Card, Bank Certificate, and address proof. The preparation of these documents is usually free unless notarization is required, which may cost INR 100–200 per document.

1. Preparation of Documents: Required documents include PAN Card, Aadhaar Card, Bank Certificate, and address proof. The preparation of these documents is usually free unless notarization is required, which may cost INR 100–200 per document.

2. Filing the IEC Application: The application is submitted through the DGFT online portal. There are no additional costs if you file it yourself, but hiring a professional may add service fees.

3. Government Fee: A fixed amount of INR 500 is paid online via the DGFT portal. Payment methods include Net Banking, Debit/Credit Card, or UPI.

4. Verification and Issue of IEC: Once the application is submitted, the DGFT verifies the details and issues the IEC Code Certificate electronically. There is no extra cost for this.

Cost of IEC Updates or Modifications

An IEC Update may be required for reasons such as a change in business name, address, or contact details. The cost for modifying an IEC is:

1. Government Fee: A nominal fee of INR 200/- is charged for updating or modifying an existing IEC.
2. Professional Fees (Optional): Professionals may charge INR 500–2,000 to assist with updating the IEC.

Common Scenarios for IEC Updates:

• Change in the organization’s name or constitution.
• Change in address or contact details.
• Adding or removing partners or directors.

Is IEC Registration Expensive?

Considering the government fee of INR 500 and the simplicity of the online process, IEC Code Registration is relatively inexpensive. However, businesses often choose professional assistance to ensure accuracy and avoid delays. The overall cost, including professional services, remains affordable compared to other statutory registrations.

Benefits of IEC Code Registration

The cost of IEC Registration is a small investment compared to the benefits it brings. Here’s why obtaining an IEC is worth it:

1. Legal Authorization for International Trade: An IEC is mandatory for businesses looking to engage in importing or exporting goods and services.
2. Global Market Access: It opens up opportunities for businesses to expand their market globally.
3. No Compliance Costs: Once registered, there are no additional compliance or renewal fees.
4. Government Incentives: Businesses with an IEC can avail of various export-related incentives and schemes.
5. Digital Accessibility: The entire process, including updates, is handled online, saving time and reducing costs.

FAQs on IEC Code Registration Costs

1. Is the INR 500 government fee refundable?

Ans. No, the registration fee is non-refundable, even if the application is rejected.

2. Are there recurring costs for IEC?

Ans. No, the IEC is valid for a lifetime, and there are no renewal fees.

3. Do I need to pay GST for the IEC application?

Ans. GST is not applicable to the government fee but may apply to professional services.

4. How much does it cost to update an IEC?

Ans. Updating or modifying an IEC costs INR 200/- as a government fee.

5. Can I register an IEC without professional help?

Ans. Yes, the DGFT portal provides a user-friendly platform for self-registration at no additional cost.

Conclusion

The cost of IEC Code Registration in India is minimal, with a government fee of just INR 500. While professional assistance can add to the overall expense, the ease of online registration and lifetime validity make it a cost-effective solution for businesses entering international trade. Whether you’re starting a new import-export venture or updating an existing IEC, the process is straightforward and budget-friendly.

By investing in IEC Registration, businesses gain access to global markets, government incentives, and a streamlined trading process, ensuring a strong foundation for international success.