How To Start A Business By Importing Goods From China

In recent years, the Indian e-commerce landscape has grown at a rapid pace. As a result, a range of online vendors and makers have begun delivering goods from China. Importing from China appears to be an affordable choice for Indian enterprises because China includes a large pool of manufacturers of diverse commodities. However, there is a variety of legal ramifications and requirements that enterprises must meet when importing items from China.

Legal Implications For Importing Goods From China 

The first step in knowing the importing procedure is to grasp the legal implications and documentation needed for importing. this can help entrepreneurs omit unnecessary delays within the importing process. allow us to walk you thru different licenses and documentation that are mandatory for shipping products from China.

Registration Of A Business

You must first register your company in India through proper registration before shipping or exporting to China. Any company that does EXIM business needs to be registered with the MCA. The following are the current business structures offered to the new company.

  •  Sole Proprietorship Firm 
  •  Partnership Firm
  •  Limited Liability Partnership (LLC)
  •  Private Ltd. Company 
  •  One-Person Company

Business registration necessitates the completion of numerous forms and the preparation of legal papers. As a result, most business owners entrust their registration requirements to reputable service providers. Small mistakes made when filling out forms or uploading documents might cause additional delays and headaches. As a result, it’s a good idea to contact a reputable legal firm to handle such paperwork.

Registration For Taxes 

After you’ve completed the registration requirements, the next step is to register under Income Tax  Department. This allows you to pay your required taxes and file your return in a timely manner. on a yearly basis in a timely manner Eligible entities, according to Indian law must register for GST by filling out an application on the GST portal. You will receive a TIN after it is completed, which will allow you to pay taxes on imported items. Certain states require you to put down a security deposit to ensure that the business will run as planned.

Import Export Code Registration Is Required

Following your GST registration, you must apply for an IEC code through the Director-General of Foreign Trade’s official website. Importing goods from China or any other country requires this code cum license. To obtain such a code, your company must first open a current account with a recognized bank.

The whole procedure for obtaining an Import-Export code is now available online. As a result, each of your active directors will require a DSC or Digital Signature Certificate. The DGFT issues a ten-digit code to entities that allow them to do EXIM activity. 

To Apply For IEC Registration, You’ll Need To Gather The Following Documents: 

  • Company PAN Card
  • Identity of the company  as well as address evidence for all partners/directors
  • Bank statement
  • Banker certificate demonstrating the applicant’s trustworthiness.

China’s Top Products To Ship

Any company’s success hinges on its ability to choose the proper items. As a result, choose products that are in great demand and have the most competition.

  • The following are some of the most popular items to export from China:
  • Textiles and apparel parts for automobiles
  • Components for smartphones
  • Electronics
  • Products for the pharmaceutical industry 
  • Smart televisions
  • Heavy equipment
  • Plastics and organic fertilizer
  • Products for the general public

Shipping Goods From China: A Few Points To Remember 

  • To maximize overall efficacy, always plan for delays and adjust your timetable accordingly. The aim is to minimize any inherent or unforeseen delays.
  • Choose a reputable freight forwarder with a track record in the shipping industry. To get a better return on investment, don’t go for the cheapest option. Choose a service provider who can guarantee smooth operations at a low cost.
  • To avoid delays and mishaps, keep a close eye on your shipment and make the necessary preparations for its arrival well in advance.

Importing Products From China: Typical Documents Are Required

To stay in compliance, businesses doing business with Exim must have a number of documentation in place. To handle paperwork, most companies choose to collaborate with legal firms and third-party accounting firms.

Importing From China: A Step-By-Step Guide

Connecting with reputable shipping firms like AliExpress is the most viable option to send goods from China. Here’s how to ship items from China using an electronic form of transportation. 

  • First, conduct a rigorous study to find demandable products.
  • After you’ve chosen an appropriate product category, research the market to find reputable manufacturers and suppliers. To find suitable suppliers, you can use Alibaba KKTDC and Made-in-China. 
  • Next, contact the provider and negotiate a price, quantity, and shipping schedule with them.
  • Because you’ll be spending a lot of money on importing, start with a few samples rather than a large order. Because you’ll be spending a lot of money on importing, start by obtaining a few samples rather than a large quantity to ensure product quality. These samples will allow you to estimate delivery time, customs requirements, and potential delays.
  • Once you’ve chosen a supplier, familiarize yourself with current laws and regulations to ensure you have the proper documentation on hand. Additionally, use the DGFT portal to verify the authenticity of any importable products you plan to ship from China. Knowing the list of prohibited things will keep you safe from harsh penalties levied by customs and other government agencies.
  • Then, to manage your shipments, contact a freight forwarder or a non-vessel operating common carrier (NVOCC). Remember to work with customs agents to manage the legal documentation associated with the importing of products.
  • Get a precise estimate on the landing cost of the goods once you have a list of products and providers. While you’re at it, make sure to factor in shipping costs and customs duties. Identify different suppliers or carriers who offer reasonable services if your landed cost exceeds your estimated expenses.