Can One IEC Code Be Used for Multiple Business Branches?

In global business circumstances, the Import Export Code (IEC) is a crucial requirement for businesses engaged in international trade. Many businesses operate from multiple locations and wonder whether a single IEC code can be used for multiple branches or if they need separate registrations for each location. This article explores the usage of an IEC Registration for different branches, how to update it, and its implications for businesses expanding globally.

What is IEC Registration?

IEC (Import Export Code) Registration is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce, Government of India. It is a mandatory requirement for any business or individual engaging in international trade, whether importing goods or exporting them.

Key Features of IEC Registration:

• It is a one-time registration and does not require renewal.

• It is valid for a lifetime unless voluntarily surrendered or canceled by the DGFT.

• IEC is required for customs clearance and financial transactions involving foreign trade.

• It applies to individuals, partnerships, LLPs, private limited companies, and government undertakings engaged in import-export activities.

Can One IEC Code Be Used for Multiple Business Branches?

Yes, a single IEC Code can be used for multiple business branches of the same entity. The DGFT issues IEC based on the Permanent Account Number (PAN) of the entity, meaning all branches operating under the same PAN are covered under a single IEC registration.

How IEC Works for Multiple Branches:

1. Single Entity, Multiple Locations: If a business operates from multiple locations but under the same legal entity (same PAN), a single IEC Code Registration is sufficient.

2. Mentioning Branch Addresses: While applying for IEC, businesses can include multiple branch addresses in their application.

3. Customs Clearance: Any branch or unit of the company can use the IEC to clear imports and exports.

4. Bank Transactions: Foreign trade-related bank transactions from any branch are covered under the same IEC.

Situations Where Separate IEC Codes Are Required

Though a single IEC code covers multiple branches under the same business entity, there are certain cases where separate IECs may be required:

1. Different Business Entities: If a company has separate legal entities with different PAN numbers, each entity must obtain its own IEC.

Example: A parent company and its subsidiary must have different IECs if they have separate legal PANs.

2. Different Business Structures: A sole proprietorship and a private limited company owned by the same person need separate IEC registrations since they have different legal identities.

3. Merger or Acquisition: If a company merges with another, a fresh IEC application may be required depending on the business structure and legal implications.

Process of IEC Code Registration for Multiple Branches

Since a single IEC covers all business branches, businesses must ensure that all locations are properly recorded in their IEC registration.

Steps for IEC Code Registration:

1. Visit the DGFT Portal: Go to the official DGFT website (www.dgft.gov.in).

2. Register/Login: Create a login ID or use an existing account.

3. Fill the IEC Application Form (ANF 2A):

• Provide business details such as PAN, business name, and address.

• Include all branch locations under the same registration.

4. Required Documents:

• PAN card of the entity

• Aadhaar/Passport/Voter ID of the owner/directors

• Address proof of the registered office and branches

• Bank certificate or cancelled cheque

5. Payment of Fees: Pay the required fee online.

6. Verification and Issuance: Once verified, the IEC is issued digitally within 1-2 working days.

Updating IEC for Additional Branches

If a business expands and opens new branches, it must update the IEC registration with DGFT.

Steps for IEC Update:

• Log in to the DGFT portal and select the ‘Modify IEC’ option.

• Update business details, including the new branch address.

• Upload supporting documents (address proof, lease agreement, etc.).

• Submit the modification request and pay the applicable fee.

• DGFT will verify the details and update the IEC.

Benefits of Using One IEC for Multiple Branches

Using a single IEC for multiple branches has several advantages:

1. Simplified Compliance: Businesses do not need to apply for multiple IEC registrations, reducing paperwork and compliance burdens.

2. Cost-Effective: A single IEC Code registration covers all locations, avoiding unnecessary fees for separate IECs.

3. Centralized Trade Management: Businesses can streamline import-export operations across all branches using a single registration.

4. Avoids Legal Complexities: A single IEC ensures consistency in customs documentation and trade compliance.

Common Misconceptions About IEC for Multiple Branches

Myth 1: Each branch needs a separate IEC.

Fact: As long as all branches operate under the same PAN, one IEC is sufficient.

Myth 2: IEC needs to be renewed regularly.

Fact: IEC is a one-time registration valid for a lifetime unless surrendered.

Myth 3: IEC can be transferred to another entity.

Fact: IEC is non-transferable. If ownership changes, a new IEC is required.

CSR-1 Registration and IEC Code

For businesses engaged in Corporate Social Responsibility (CSR) activities, IEC registration may be required for receiving foreign contributions.

CSR-1 Registration & IEC:

• CSR-1 Registration is mandatory for companies receiving CSR funds from foreign entities.

• IEC may be needed if the CSR fund involves international financial transactions.

• Organizations like NGOs, LLPs, and startups receiving foreign grants should consider IEC registration.

Startup India Registration and IEC Code

Startups registered under Startup India Registration may need an IEC if they plan to engage in international trade. Benefits include:

• Easier global market access

• Government support for export promotion

• Simplified compliance under DGFT policies

IEC Code and LLP Registration

Limited Liability Partnerships (LLPs) involved in import-export businesses must obtain an IEC. LLP Registration is a prerequisite before applying for an IEC Code Registration.

Steps for LLP IEC Registration:

• Register the LLP with the Ministry of Corporate Affairs (MCA).

• Obtain a PAN card for the LLP.

• Apply for IEC through the DGFT portal.

• Submit required documents and pay the registration fee.

Government e-Marketplace (GeM) and IEC Code

The Government e-Marketplace (GeM) facilitates government procurement from businesses. Companies engaged in international trade must have IEC for:

• Exporting goods/services to government entities.

• Participating in global tenders through GeM.

Conclusion

A single IEC code can be used for multiple business branches as long as they operate under the same legal entity and PAN. Businesses must ensure their IEC registration includes all branch details and update it when required. This simplifies compliance, reduces costs, and ensures smooth international trade operations. Whether you run a startup, an LLP, or an NGO, obtaining an IEC Code Registration is a crucial step for expanding your business globally.