Here are the main steps to establish your export business:

1. Choose a Name for Your Export Firm:

Select a name that is simple, short, and attractive. It’s often helpful to include words like: Global, Overseas, International, Exports, Trading, etc.

2. Decide the Form of Business Organisation:

You can organize your export firm in any of these forms:

✦ Sole Proprietorship

• Suitable if you want to start on your own as a merchant exporter or manufacturer exporter.
• It is the simplest and oldest form of business, with no specific legal formalities for formation.
• You enjoy all profits but are also personally liable for all losses and debts.

✦ Partnership Firm

• Can be formed by up to 20 persons.
• Requires a Partnership Deed, mentioning:

– Capital contribution by each partner

– Profit/loss sharing ratio

– Procedures if a partner exits or dies

✦ Private Limited Company

• Requires minimum 2 members (maximum 200, as per Companies Act 2013).
• Must be registered with the Registrar of Companies (ROC).
• Liability is limited to the unpaid amount on shares held by shareholders.
• Easier to raise funds by offering shares to investors, who earn through dividends.

✦ Private Limited Company

• Requires minimum 7 members with no maximum limit.
• Can raise capital from the public and has broader ownership.
• Requires minimum 3 directors, and managing director appointments may need regulatory approvals.
• Suitable if planning for large-scale operations.