India’s businesses are more global than ever in 2026. From SaaS startups selling subscriptions overseas to freelancers billing foreign clients and manufacturers shipping products abroad, the opportunity to earn in foreign currency has never been wider. But before you tap into international markets, there is one non-negotiable starting point.
An Export Import License, formally called the Importer-Exporter Code (IEC), is a mandatory 10-digit alpha numeric code issued by the Directorate General of Foreign Trade (DGFT). Without an IEC, you cannot clear customs, ship goods outside India, or legally receive export payments into your bank account. In simple terms, no IEC means no exports.
The good news is that getting an Export Import License is no longer complex. The IEC application process is now fully online, paperless, and can be completed from home. Read on this guide to understand the documents, cost, and steps involved—clearly and practically.
Key takeaways
- An IEC is the first and mandatory compliance step for any Indian business earning or spending foreign currency through trade or services.
- The IEC application process is fully online and paperless, and the IEC is usually issued instantly or within a short time once PAN and bank details are successfully validated.
- Annual IEC updates between April and June are compulsory, even if there are no changes; missing this can lead to deactivation.
- Proper export compliance helps avoid banking delays, payment holds, and disruptions in customs or foreign remittance processing.
What Is an Export Import License?
An Export Import License, commonly referred to as IEC, is a unique 10-digit alphanumeric code issued by the DGFT. It acts as your business’s official identity for cross-border trade.
Although most people call it a “license”, the IEC is essentially a registration code, not a permission document. Once issued, the IEC is valid for a lifetime. However, DGFT now requires an annual update or confirmation to keep the code active and compliant.
Is It a License or a Code?
This is where most confusion arises. For regular trading activities, you only need the IEC code. There is no separate approval or licence involved for most businesses. A true “export licence” applies only when you deal in restricted items, such as defence equipment, nuclear material, or certain chemicals listed under India’s restricted trade schedule. If you export common goods like garments, electronics, handicrafts, or provide IT services, the IEC code alone is sufficient.
Types of Export Import Licenses
DGFT issues different authorisations based on what you trade and why:
- IEC Code (General): For routine import and export of non-restricted goods and services.
- Restricted Goods License: Required when exporting or importing items that need specific government clearance.
- EPCG License: Allows duty-free import of capital machinery under the Export Promotion Capital Goods scheme.
- Advance Authorisation: Permits duty-free import of raw materials or inputs used to manufacture export goods.
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Who Needs an Import Export License?
Any Indian business that deals across borders needs an Import Export License, regardless of size or sector. Whether you run a proprietorship, partnership firm, Limited Liability Partnership (LLP), or private limited company, the rule is simple: if your business activity involves foreign trade, an IEC becomes essential.
You must apply for an IEC if you do any of the following:
- File and process shipments through Indian Customs for import or export.
- Send money abroad through authorised banks for trade-related payments.
- Receive foreign currency into your Indian bank account against exports.
Is IEC Mandatory for Service Exporters?
Yes, in most practical cases. If you are a freelancer, software agency, consultant, or SaaS exporter, you need an IEC when you want to claim benefits under India’s Foreign Trade Policy. Banks may also ask for your IEC before crediting foreign remittances and issuing a Foreign Inward Remittance Certificate (FIRC).
While some pure service exports may technically proceed without IEC, relying on this creates avoidable banking friction. Having an IEC ensures smoother collections, cleaner compliance, and fewer follow-ups with your bank.
Who Is Exempt from IEC?
The following categories are generally exempt:
- Personal imports or exports not linked to trade or manufacturing.
- Central or State Government ministries and departments.
- Registered charitable institutions, in notified cases.
A common misconception is that GST registration replaces IEC. It does not. GST and IEC serve different purposes, and your PAN still needs to be registered on the DGFT portal for export compliance.
Documents Required for IEC Registration
IEC registration is straightforward if your paperwork is ready. All documents must be scanned clearly and uploaded online in PDF or JPEG format on the DGFT portal. The document list changes slightly based on your business structure, but the purpose stays the same—verify your identity, address, and bank account.
Document Comparison by Business Type
| Document Category | Proprietorship | Company / LLP |
| PAN | Proprietor’s PAN | Entity PAN |
| Identity Proof | Proprietor | Director / Designated Partner |
| Business Proof | Individual ownership | Incorporation / Partnership documents |
| Address Proof | Business address | Registered office |
| Bank Proof | Individual account | Entity account |
For Proprietorship Firms
- Digital photograph of the proprietor.
- PAN card copy of the proprietor.
- Identity proof: Aadhaar Card, Voter ID, or Passport.
- Business address proof: Sale deed, rent agreement, or utility bill.
- Bank proof: Cancelled cheque with pre-printed name or a bank certificate.
For Companies and LLPs
- PAN card copy of the company or LLP.
- Identity proof of one Managing Director or Designated Partner.
- Certificate of Incorporation or Partnership Deed.
- Registered office address proof (rent agreement or NOC plus utility bill).
- Bank proof: Cancelled cheque with entity name or a bank certificate.
Pro Tip: Ensure the name and address match exactly across PAN, bank records, and incorporation documents. Even minor mismatches can delay IEC approval.
Pre-Requisite: The Digital Signature (DSC) Rule
Before you begin the IEC application, you must clear one technical requirement. The DGFT portal accepts applications only after digital authentication, which replaces physical signatures entirely.
In recent years, DGFT has simplified this requirement. The rule now depends on your business structure. While companies and LLPs still need a Digital Signature Certificate (DSC), individual proprietors can complete the process using Aadhaar-based authentication. This change has significantly reduced cost and effort for small exporters and freelancers.
Do I Need a Class 3 DSC?
- Yes. Private Limited Companies, Public Companies, Partnerships, and LLPs must have a valid Class 3 DSC.
- The DSC works like your online signature and is used to digitally sign the IEC application on the DGFT portal.
- The DSC must be issued in the name of the authorised signatory, such as a Director or Partner.
Can Proprietors Use Aadhaar Instead?
- Yes, as part of India’s ease-of-doing-business reforms, individual proprietors can sign the IEC application using Aadhaar e-Sign, which works through OTP verification.
- To use this facility, your Aadhaar must be linked to an active mobile number, as the OTP is sent there for authentication.
How to Apply for Export Import License Online?
The IEC application on the Directorate General of Foreign Trade portal follows a few clear steps. The whole process is digital, and once you submit a complete application with correct details, you usually get your IEC almost immediately.
Step 1: Register on the DGFT Portal
- Visit dgft.gov.in and click on Login then Register.
- Select Importer/Exporter as the user type.
- Enter basic details such as name, email ID, mobile number, and PIN code.
- Verify both email and mobile using OTP.
- Set your password and activate the account.
Step 2: Start Fresh Application
- Log in to the DGFT portal.
- From the dashboard, click Apply for IEC.
- Choose Start Fresh Application.
- The online IEC application form opens for completion.
Step 3: Fill Form ANF 2A and Upload Documents
- Enter general details such as firm type, name, PAN, and date of incorporation.
- Fill registered address details and upload address proof.
- Add branch details, if applicable.
- Enter details of proprietor, partner, or directors.
- Provide bank account details and upload a cancelled cheque or bank certificate.
Step 4: Pay Fees and Submit
- Review the application summary carefully.
- Accept the declaration.
- Sign the application using Aadhaar e-Sign or DSC.
- Pay the IEC application fee of ₹500 through the Bharatkosh payment gateway.
Step 5: Download IEC Certificate
- After successful submission and payment, the IEC is generated.
- The certificate is sent to your registered email ID.
- You can also download it after login the DGFT Website and using the “Print Certificate” feature in “Manage IEC”.
Once issued, the IEC is transmitted electronically to Customs and linked to your PAN for all future import-export transactions.
Import Export License Fees and Costs
The cost of getting an Import Export License is modest and predictable. The government charges are fixed and transparent. Any variation usually comes from optional services, such as hiring a professional (like CA) or purchasing a digital signature. Knowing this upfront helps you budget correctly and avoid surprises.
In some cases, you may face a small bank-related cost. If a cancelled cheque is not available, your bank can issue a bank certificate for a nominal administrative charge, which does not materially increase the overall cost of obtaining an IEC.
IEC Cost Breakdown
| Cost Component | Amount |
| Government IEC Application Fee | ₹500 |
| IEC Modification Fee | ₹200 |
| DSC Cost (if applicable) | ₹1,500 – ₹2,000 (Varies by Vendor) |
| Professional Fees | ₹1,000 to ₹3,000 (Varies by Consultant) |
| Bank charges | Nominal fee |
Did You Know?
Annual IEC validation is completely free as long as you do not change any details. You only pay a fee when you update or modify your IEC information.
Beyond the License: Getting Ready to Trade
Getting your IEC only opens the door. It does not, by itself, allow you to ship goods or receive export payments. To actually move products and money across borders, you must complete a few post-IEC registrations that connect your business with Customs, banks, and payment systems.
Register AD Code with Bank
- The Authorised Dealer (AD) Code is a unique code issued by your bank.
- Customs uses this code to link your export shipment with the bank account where export proceeds will be received.
- You must register your IEC and AD Code at the specific port (airport/seaport/Inland Container Depot) from where you plan to export.
- Without AD Code registration, shipping bills cannot be generated on the customs system.
Register on ICEGATE
- ICEGATE is the national online portal of Indian Customs.
- You must register your IEC on ICEGATE to file Shipping Bills for exports or Bills of Entry for imports.
- It also helps you monitor duty payments, refunds, and compliance actions in one place.
Setting Up International Payments
- Receiving foreign currency efficiently is as important as shipping goods. You need a reliable payment setup that ensures money reaches India on time and in compliance with RBI rules.
- Banks and payment aggregators offer exporter-specific solutions to receive foreign currency and issue FIRC.
- Digital collection platforms are often faster and more transparent than traditional wire transfers.
Mandatory Compliance: The Annual Update Rule
This is a non-negotiable compliance requirement that every IEC holder must take seriously.
- The Directorate General of Foreign Trade has made annual IEC updates mandatory through a formal notification in February 2021.
- Every IEC holder must log in to the DGFT portal and confirm or update their details between 1 April and 30 June each financial year.
- This applies to all businesses—exporters, importers, service providers, freelancers, and companies of every size.
- Failure to complete the annual update leads to automatic deactivation of the IEC, which can block shipments and delay foreign payments.
- Even if there are no changes to the business information, the details must still be confirmed electronically on the DGFT portal.
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- Receive export proceeds directly into your Indian bank account in line with RBI and FEMA guidelines.
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- Reduce delays caused by correspondent banks and manual follow-ups.
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Conclusion
Getting an Export Import License in India is no longer a complex or expensive exercise. The entire process is online, paperless, and can be completed from home. With a government fee of just ₹500 and lifetime validity, the IEC removes the first barrier to entering global trade.
However, real readiness begins after approval—registering your AD Code with the bank and activating your IEC on ICEGATE are essential to avoid shipment blocks and payment delays. Apply early, complete the post-IEC steps on time, and you place your business in a strong position to access international customers, smoother payments, and export-linked government benefits.
FAQs
Q1. Is an IEC mandatory for service exporters like freelancers?
Yes. Service exporters need an IEC to claim benefits under India’s Foreign Trade Policy. Banks also often ask for an IEC before crediting foreign inward remittances and issuing an FIRC.
Q2. What is the official government fee for an IEC application?
The government charges ₹500 for a new IEC. Changes to existing details usually cost ₹200, while the annual validation is free if no updates are required.
Q3. Do I need a Digital Signature Certificate (DSC) to apply?
Companies and LLPs must apply using a Class 3 DSC in the name of the authorised signatory. Sole proprietors can use Aadhaar e-Sign (OTP-based) and avoid buying a DSC.
Q4. Is the Import Export Code valid for a lifetime?
Yes. The IEC is valid for the lifetime of the entity. However, you must confirm or update details every year to keep it active.
Q5. Who is exempt from obtaining an IEC?
Government departments, notified charitable institutions, and individuals importing or exporting goods for personal use (not for trade or manufacture) are exempt.
Q6. What are the immediate steps after obtaining an IEC?
You must register your AD Code with your bank and activate your IEC on ICEGATE to file shipping bills and track customs clearance.
Q7. Is GST registration mandatory for an IEC application?
No. GST registration is not mandatory. The DGFT application allows applicants to select “I don’t have GSTIN” if they are legally exempt from GST.