In today’s competitive global marketplace, businesses in Kerala—whether they are micro, small and medium enterprises (MSMEs), traders, or startups—are increasingly exploring international opportunities. One of the fundamental legal requirements to engage in export or import activities is the Import Export Code (IEC). Issued by the Directorate General of Foreign Trade (DGFT), IEC is a ten-digit identification number that acts as a license to operate cross-border trade legally in India.
In this detailed blog, we will explore the applicability of IEC for MSMEs, traders, and startups operating from Kerala, its benefits, legal implications, and how to obtain it through trusted consultants like Our Tax Partner.
What is the Import Export Code (IEC)?
The Import Export Code is a mandatory registration for businesses engaged in importing goods into India or exporting goods from India. It is issued by the DGFT under the Foreign Trade (Development & Regulation) Act, 1992. The IEC is a prerequisite for customs clearance, foreign remittance receipts, and availing export incentives from the government.
Is IEC Mandatory for Businesses in Kerala?
Yes, the IEC is mandatory for any business entity in Kerala—be it a sole proprietorship, partnership firm, company, or LLP—that intends to carry out import or export operations. Without an IEC, it is not legally permissible to engage in cross-border trade, nor can such businesses claim duty benefits or process bank transactions for overseas business.
Applicability of IEC for MSMEs in Kerala
MSMEs in Kerala form the backbone of the state’s economy, especially in sectors like coir, handlooms, spices, seafood, ayurveda, and handicrafts. Many of these businesses are now looking beyond domestic markets to sell their products globally.
For MSMEs, obtaining an IEC opens the door to:
- Expanding into international markets
- Claiming duty drawback and other export benefits
- Building global brand identity
- Enhancing credibility with overseas buyers
MSMEs registered under UDYAM can easily apply for IEC online and start exporting with proper legal backing.
Applicability of IEC for Traders in Kerala
Traders involved in importing or exporting goods—whether raw materials, agricultural products, machinery, electronics, textiles, or processed foods—must register for an IEC. In Kerala, import-export traders often deal with:
- Spices and condiments
- Marine products
- Rubber and coir
- Timber and wood items
- Gems, jewelry, and ayurvedic products
Even if the trading is done online or through ecommerce platforms like Amazon or Flipkart, the IEC is mandatory for international sales.
Applicability of IEC for Startups in Kerala
Kerala’s startup ecosystem is booming with innovations in tech, fintech, agritech, and e-commerce. Many startups are building digital platforms and SAAS products for global clientele. If the startup earns revenue from outside India through product sales or services, an IEC is required—even if the business is service-based.
Startups in the fields of export consulting, tech solutions, digital marketing, or e-learning that serve foreign clients must register for an IEC if they’re receiving foreign remittances into India.
When IEC is Not Required
IEC is not required when:
- Import/export is carried out for personal use and not for commercial purposes
- Goods are being transferred between branches of the same company
- Activities are exempt under certain government schemes or categories
However, these are limited scenarios and most commercial import/export operations require a valid IEC.
How to Apply for IEC in Kerala
Obtaining an IEC is a straightforward online process. Here are the key steps:
- Register on the DGFT portal: https://www.dgft.gov.in/
- Fill in the IEC application form online
- Upload necessary documents (PAN card, Aadhaar, business address proof, bank certificate or canceled cheque)
- Pay the prescribed fee (currently ₹500)
- Digitally sign the application with DSC or Aadhaar e-sign
After submission, IEC is generally issued within 1-3 working days.
Documents Required for IEC Registration
- PAN Card of the applicant or business entity
- Address proof (electricity bill, rent agreement, etc.)
- Bank account details and certificate or canceled cheque
- Digital Signature Certificate (for companies/LLPs)
- Aadhaar or passport for e-sign verification
Why Choose Our Tax Partner for IEC Services in Kerala?
At Our Tax Partner, we provide professional support to MSMEs, traders, and startups for obtaining and managing IECs seamlessly. Our services include:
- Complete IEC registration support
- Documentation and error-free application filing
- Digital signature services
- Modification or updating of IEC data
- Ongoing compliance support
We serve businesses across Kerala including Kochi, Trivandrum, Calicut, Kollam, and Palakkad.
Visit our IEC services page here: www.ourtaxpartner.com/registration-service/import-export-code/
Conclusion
Whether you are a traditional MSME in Kerala, a local trader eyeing international markets, or a modern-day startup with global ambitions, an Import Export Code is your legal gateway to trade across borders. Obtaining IEC not only ensures regulatory compliance but also empowers your business to grow beyond domestic limitations.
Need expert help? Let Our Tax Partner take care of your IEC registration process so you can focus on growing your international business.
