Fast-moving consumer goods (FMCG), are also called consumer packaged goods (CPG), are sold quickly and relatively low. Few examples of FMCG are packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

In recent times, the foreign market is witnessing a notable demand for FMCG products and thus it is recommended for every Indian FMCG business owner to incorporate an FMCG Export business by registering the required licenses. 

The characteristics of FMCG Products 

• From the Consumer's Perspective
  • Frequent purchases
  • Low engagement in selection of products
  • Short shelf life
  • low price
  • Rapid consumption
     
• From the Marketer/Supplier's perspective
  • High volumes
  • Low contribution margins
  • Extensive distribution
  • High inventory turnover

How to Begin an FMCG Export Business

Indian business personnel willing to step a foot forward in the foreign market with an FMCG Export business is mandated to register for a few licenses. The particular operation is overviewed by the Ministry of Corporate Affairs (MCA) of the Indian Govt.

The required Licenses are namely:

• IEC Code: Import Export Code is a ten-digit unique code number, and the License is issued by the Director-General of Foreign Trade(DGFT). For capital goods, the License is valid for 24 months and for raw materials for 18 months. 
   
• GST Registration: As per the GST Act, every Indian business entity and personnel is mandated to register the entity in the GST taxation system while operating a business operation.
   
• Company Registration: The business entities are needed to register the company in the MCA registrar while incorporating or running a business on Indian soil.
   
• APEDA License: For any FMCG produced from the agricultural fields, registering an APEDA license is legally mandated as per the APEDA Act of the Indian Govt.
   
• Trademark Registration: To carry out a successful business in the foreign marketplace, a business entity is needed to protect its intellectual properties like Logo, Slogan, Color combinations with a Trademark Registration. 
   

Few points to Know why is IEC required for exporting FMCG products?
 

• Customs authorities need it to clear shipments during imports.

• The Bank needs to transfer the money when imports are made.

• Similarly, during the export shipments, the IEC is a must.

• During the time of receiving the money in another country's currency, as per the exporter, the IEC code must directly transfer the funds to his/her account.

Benefits of IEC Registration

1. Expansion of Business
2. Availing Several Benefits
3. No Filling of returns
4. Easy Processing
5. No need for renewal

How to get IEC Hassle-Free

If you plan to enhance your FMCG business from India to other countries, it is mandatory to own an Import Export Code.

Trust the market leaders regarding the Import Export Code and register your entity easily online in a matter of minutes with our team of qualified experts and more than 1,20,000 satisfied consumers from every corner of India.

Apart from earning your unique Import Export Code, the country's business solution platform Online Legal India™ will help get your company registered under the Indian Govt and enroll your entity in the GST Taxation system.