Introduction

The digital economy is booming. From mobile apps to SaaS (Software as a Service), India is now home to thousands of tech startups that are making waves globally. But what many tech founders don’t realize is this: If your business earns from international clients, even digitally, you need an Import Export Code (IEC).

Yes, the IEC Code is not just for traditional exporters shipping containers overseas. It’s a must-have for digital entrepreneurs and tech startups who want to scale internationally, receive global payments, or collaborate with foreign partners.

In this article, we’ll explore the importance of the IEC Code for tech startups, how it unlocks growth opportunities, and how easily you can obtain it in 2024.

What is the IEC Code?

IEC stands for Import Export Code, a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India.

It is mandatory for anyone involved in the import or export of goods and services from India, including:

• Tech companies exporting software
  
  

• Freelancers offering IT services
  
  

• App developers
  
  

• Web designers
  
  

• Digital marketers with foreign clients
  
  

• SaaS startups with users abroad

The Misconception: "We’re Digital — We Don’t Need IEC

According to RBI guidelines and FEMA (Foreign Exchange Management Act), any receipt of payment from outside India for services rendered qualifies as “export of services.” Whether you’re selling on a platform like Upwork or offering a SaaS tool to global users, you’re technically exporting.

So to legally receive foreign payments, your startup needs an IEC Code. It also helps in registering your business under RBI-approved channels like PayPal, Stripe, Payoneer, and authorized banks.

Why Tech Startups Need an IEC Code – Explained

Let’s break down the exact reasons why even tech-only startups need to apply for IEC:

Receive Payments from International Clients

Whether you develop mobile apps, design websites, or run a cloud-based platform, if your clients are overseas and paying in foreign currency, banks need your IEC to process the payment and report it under export income.

Sell SaaS Products Globally

If you’re offering a subscription-based software tool, your international users pay you monthly or annually. To set up international payment gateways like:

• Stripe
  
  

• PayPal Business
  
  

• Razorpay International
  
  

• 2Checkout

 Your business needs IEC registration as proof of export compliance.

Register on Global Marketplaces

Many Indian developers, artists, and software companies sell on global digital platforms:

• ThemeForest / Envato
  
  

• Creative Market
  
  

• Codecanyon
  
  

• Amazon Web Services (AWS) Marketplace
  
  

• Google Play Store or Apple App Store (International Sales)

These platforms require IEC or other tax identification numbers for Indian sellers to validate cross-border business operations.

Open International Current Accounts

To operate globally, many startups want to open international current accounts or use foreign currency accounts (like USD accounts) through Indian banks. These banks often ask for:

• IEC Code
  
  

• Export Service Declarations
  
  

• FEMA compliance documents

Without an IEC, you might face compliance issues or risk having payments withheld.

Claim Government Benefits for Exporters

Even if your product is digital, you can access government schemes like:

• SEIS (Service Export from India Scheme)
  
  

• Startup India Benefits
  
  

• Foreign Trade Policy incentives
  
  

• Tax benefits under Section 10AA (for SEZ-based startups)

To apply for any of these, an IEC Code is mandatory.

How to Get an IEC Code for Your Tech Business

Here’s a simplified step-by-step guide:

Visit the IEC Portal – Open the official IEC registration website on your browser.

Fill in the Application Form – Enter your business name, type, PAN number, and other required details carefully.

Submit the Application – Review all the details to ensure accuracy before submitting the form.

Pay the Registration Fee – Make the payment online using net banking, credit/debit card, or UPI.

OTP Verification – Enter the OTP sent to your registered mobile number or email for authentication.

Processing & Approval – The concerned authority will verify your details and process the application.

Receive Your IEC Code – Once approved, the IEC code will be sent to your registered email within 1-2 business days.

Documents Required

• PAN Card of a business or an individual
  
  

• Aadhaar Card (for verification)
  
  

• Business address proof (utility bill, rent agreement)
  
  

• Canceled cheque or bank certificate
  
  

• Mobile number and email ID

The Future: Digital Trade is the New Normal

The global economy is shifting fast toward digitally driven exports, apps, AI tools, design services, e-learning platforms, cloud-based systems, and more.

If you're part of this movement, the IEC Code is your license to play on the global stage.

It doesn’t just help you get paid; it builds trust, opens new markets, and connects your startup to government support and global platforms.

Note:- Now you can easily update and renew the iec code online

Conclusion

In 2024, every Indian tech entrepreneur aiming to grow globally must consider IEC Code as a basic necessity, not an option.

Whether you’re an indie app developer, a small SaaS startup, or a remote team of developers working with international clients, the IEC Code is your passport to the world of global digital trade.

Getting one is simple, fast, and opens doors you didn’t even know existed.