All businesses which are involved in the Import and Export of goods mandatorily require Import Export Code / IEC Registration.
Import Export Code is a ten-digit number with constant validity approved by the Directorate General of Foreign Trade below the Ministry of Commerce and Industry, to any bonafide person/ organization for carrying out import/export. Importers are not permitted to begin without this code and exporters can’t take benefit of exports from DGFT, Customs, Export Promotion Council, if they don’t have this code.
MSME Registration
To avail the benefits under the MSME Act from the Central or State Government and the Banking Sector, MSME Registration is needed. MSME stands for micro, small and medium enterprises and any business that comes under any of these three categories. The Micro, Small, and Medium Enterprises (MSME) area has appeared as an extremely active and productive sector of the Indian economy over the last five decades.
Shop Establishment License
The shops and commercial establishments covered under the Act must mandatorily apply for registration under the respective state Act. All establishments and business, including the people working and maintaining a business from home, must obtain a Shop and Establishment Registration Certificate or Shop License (“Certificate”) under the Act.
The proprietors who run a business from home without having any physical store or premises are also required to obtain this Certificate. The proprietors of e-commerce business or online business, or online stores and establishment must register under this Act and obtain the Certificate. Every shop and commercial establishment should register itself under the Act within 30 days of commencement of business.
The Certificate or the Shop License acts as a basic registration/license for the business. This Certificate is produced for obtaining many other business licenses and registrations. It serves as proof of the incorporation of commercial establishment or shops. It is also useful when the proprietor of the business wants to obtain a loan or create a current bank account for the business. Most banks will ask for this Certificate for opening a current bank account.