Is registering for OPC important to apply for an IEC in India?

IEC or Import Export Code can be defined to be a 10-digit number allocated by the Directorate General of Foreign Trade (DGFT). The entrepreneur when opting for one person company registration can also opt for import export code online application. 

The foreign trade act of 1992 states the importance of the IEC and has mandated the need for IEC while conducting foreign business. Hence, to ensure improved reach and to smoothen the process, DGFT has introduced Import Export Code online registration process. 

IEC and OPC Registration 

Applying for an import export code online does not require the entrepreneur to register for any specific company type. It can be allocated to any individual, company, proprietorship, or firm.  Also, the registration process involves a mandatory PAN as a single document to apply for the code. 

Along with such key exemptions have also been defined by DGFT to IEC registration. Such include:

• Transactions are done by State/Central ministries/departments 
• Any import or export done for personal purposes, and does not have any business motive. 
• Any business/person carrying out trade with Nepal/Myanmar/Bhutan through Indo-Myanmar border areas of consignment value less than INR 25000/-

However, any import and export activities involving the trade of special chemicals, technologies, or materials are not part of this exemption.

Hence, opting for one person company registration is not important for getting IEC. But  getting OPC registration has certain other benefits. Among such benefits most common is the establishment of a separate legal identity. Such helps the entrepreneur to establish a global brand name and to improve credibility among its stakeholders. Also incorporating an OPC ensures limiting the liability of the director/entrepreneur. 

Accordingly, it can be justified that OPC registration allows the entrepreneur to act out in a formal manner while dealing in the global market. Further, the export and import activities can be conducted in the name of the business entity. 

Final Words 

It can be concluded that one person company registration is not important for getting import export code online. But having a company registration can provide you with other trade benefits in the global market. We at Laudable Legal Solutions have a team of legal experts or professionals who can guide you through the individual process of One person company registration and getting an Import Export Code online.