How To Furniture Export From India?

Table of Contents:

1. Export Furniture From India

2. Furniture Export From India

Key Takeaways

FAQs On Export Furniture From India

1. Export Furniture From India

Export business plays a major role in improving the country’s economy, production level, salaries, wages, the standard of living, and also creates job opportunities. Presently, the furniture export-import business is one of the most developed sectors as compared to others.

The wood furniture business contributes to almost 60% of the total furniture export business of India. In India, statues or intricate designs of various art pieces are the most popular export products. The export business holds the highest rank when it comes to making India’s priority list of businesses concerning foreign trade and economic policies.

Things to keep in mind to start an import-export business in India

Anyone can start a furniture export business. However, a beginner is required to do a lot of documentation work and compliances for operating a furniture export business in India. Note that the documentation work needs to be completed before the shipment of the first consignment.

2. Furniture Export From India

Here is the to-do list to start a furniture export business

• Decide on the export business name
• Registration of business entity
• PAN card submission
• Opening of a bank account
• Get the following things in hand: import-export code, registration codes assigned by the Office of Foreign Trade under the supervision of the Ministry of Commerce, and registration certificate issued by the Export Promotion Council

If your furniture company is registered in India, there is no need to provide PAN details to start the furniture import-export business. You can do the registration with your existing company and complete all the necessary procedures.

1- Must have a PAN card in the business name in case you are a beginner

To start a furniture export business, one must have a PAN card for business. If you are running a business in partnership, make sure your partner has a valid identity and address proof. Without a PAN card, you cannot start a furniture export business in India.

2- Open a current account to start a furniture import-export business

The bank account used by entities for their export business is known as the current account. All the new exporters and importers are required to open a current account in the registered name; it is required for making transactions with vendors and customers. The documents required for opening a current account are directly related to the size of the business. It varies from one business entity to another.

3- Choose the furniture product you are willing to export wisely

Choosing the right furniture product wisely is key to running a successful furniture import–export business plan. Research the export market thoroughly to choose the correct furniture product for exporting. As of now, the wood furniture business is one of the best export business ideas. There are various factors to consider for starting a furniture export business, including international market regulations and all the latest export trends.

4- Understand the importance of registration cum membership certificate

India has established many promotion councils to make exporting products and services easier. If you are planning to export furniture from India, it is a must to register with these councils for better expansion of your business. The registration cum membership certificate is valid across India.

5- Never forget to keep your finances in order

It does not matter how you are formulating your furniture export business. To run a successful furniture export business, always keep the financial projections in the right direction. Understand the financial requirements before starting the export business. Consider both the short- and long-term financial needs of your furniture export business.

6- Selecting the right market to start a furniture export business in India

The success of the furniture export business solely depends on the market where you intend to export in India. While choosing the market, consider factors such as product demand, trade barriers, political environment, and profitability. It will help you select the right market to start a furniture export business. You need to identify the countries where you export your products on your own terms and conditions.

7- Identify the business opportunities as a furniture exporter

The export and import of goods and services play a major role in boosting the country’s economy. You cannot expand your furniture export business without interacting with other furniture exporters and importers in all parts of the world. The following are the ways to identify business opportunities:

• Online marketplaces: It is one of the best and successful ways of conducting furniture exports. There are many popular marketplaces available online that make it easier for exporters to enlist their furniture products as a vendor and stay connected with customers all over the globe. It is a good platform and builds a strong bridge between the exporter and consumers who are sitting kilometres away.
• Be clear about your potential clients: Ensure that the furniture product you are exporting is high in demand and is considered a necessity by your target audience. If you are exporting a product that is low in demand, it would be very difficult to attract customers.

Key Takeaways

Documentation is the most important factor to consider when planning to start a furniture export venture in India. The second most important factor to consider is the policies and procedures that vary from country to country. You can gather all the required data from the export promotion council, which will help you run a successful furniture export business.

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Also read:

1) The Indian Import-Export Scene
2) How Can I Start Spice Export Business In India?
3) How Can You Start An Import Business In India?
4) Types of Direct & Indirect Taxes in India
5) OkCredit: All you need to know about OkCredit & how it works.

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FAQs On Export Furniture From India

Q. How does the export of products and services take place?

Ans. The following are the primary steps in the export process:

• Establish an organisation
• Open a business account
• Make the company’s PAN card
• Get importer–exporter code IEC number
• Apply for registration cum membership certificate
• Select the market where you want to export your products
• Follow the custom procedures of the country where you are willing to export products or services
• Take care of legal considerations and transport logistics
• Start marketing
• Approach the right audience
• Export your products or services

Q. How to set up a furniture business?

Ans. To start the furniture business, you must contact the trade development officer of foreign embassies as they have business leads. Get the quote from the exporter; negotiate on the price of various furniture items that you are willing to purchase.

Q. How profitable is a furniture export business in India?

Ans. The success of a business solely depends on the incentives and procedures before you estimate the export business profits. Apart from considering direct cost or higher capital utilisation, also check the impact of the total cost. The export will be an addition to the total sales.

Q. Which furniture items are high in demand in the export business?

Ans. The demand for furniture items is based on the needs of the customer. Only after discussing with the potential customers, can you find out which furniture product’s demand is high in the export world. As per market research, the demand for traditional furniture items such as handicraft or art pieces is high among foreign buyers.

Q. How does a small furniture manufacturer manage the export formalities?

Ans. Documentation is the only way to manage the export formalities. For the help of exporters, many export promotion councils have been set up. The Chamber of Commerce has many export guidance cells mainly for start-ups. You can consult them and learn to manage all the export formalities.

Q. How to export a wood furniture product?

Ans. One has to get a No Objection Certificate (NOC) from the Plant Quarantine department for dealing with products such as wood charcoal items, export of wood, and articles. Apart from the NOC, phytosanitary certification is required for exporting wood articles, wood products, and wood charcoal under Chapter 44 of the HS code (HTS code).05-J.