Importer Exporter Code (IEC) is a unique 10-digit code issued by the Director General of Foreign Trade (DGFT), Ministry of Commerce, Government of India. To carry on import or export in India, IEC is mandatory.
An incorporated business means a business entity registered and incorporated under any Law. In India, ‘Limited Company’ and ‘Limited Liability Partnership’ are the incorporated business forms. Limited Companies are classified as One Person Co..
A proprietorship cannot be converted directly into a limited company. The only solution is to incorporate a new company with a specific object clause, listing the particulars for a takeover of the existing proprietorship business.
A company registered under the Companies Act has to maintain certain prescribed registers and records. Non-compliance of record-keeping invites penal action against the company and its directors.