The wide range of Indian businesses is involved in the exportation of goods and services. Meanwhile, to expand their business growth, the businesses required government support. The Foreign Trade Policy (FTP) mandates the compulsory registration for those who want to access the government schemes, incentives, and benefits. The process of registration is formalized through the "Registration-cum-Membership Certificate (RCMC)." The functions of the RCMC certificate are not limited to only merchandise exporters, but can be utilized by the service exporters. The IT firm, healthcare providers, and others who provide export-based services are eligible for registration with RCMC. Through this guide, we will explore how the RCMC certificate is beneficial for service exporters, including how the IT, consulting, and other services sectors can obtain it.
Why Service Exporters Need RCMC?
1. Access to Government Incentives
Under the Foreign Trade Policy (FTP), service-based businesses can utilize the benefits. The certificate of RCMC is required to access benefits under the SEIS (Service Exports from India Scheme).
2. Recognition and Credibility
A certificate is crucial to create a positive image as a legitimate service exporter that is authorized by the government. It enhances credibility in international markets.
3. Participation in Trade Events
EPC membership certificates and SEPC-supported trade fairs are the gateway to meeting with potential service provider buyer-sellers. It is a meet-up where only registered members can participate.
4. Policy Support and Representation.
With RCMC, the service exporters can contribute to shaping policy.
Who can register for SEPC- Service Exports from India?
Before 1st April, 2020, the service-based exporters were registered under the "Service Export From India (SEIS)". However, this scheme is not valid now but has been replaced by a new scheme, SEPC. The new scheme, the Service Export Promotion Council (SEPC), was established after 2020 to support service exporters. The following service exporters are eligible to register with SEPC for the RCMC certificate:
- IT and software companies that deal with software development, SaaS, cloud solutions, and fintech services.
- Consulting firms that deal with management consulting, legal advisory, HR consulting, and financial advisory.
- BPOs and KPOs provide the outsourcing services, back-office support, analytics, and knowledge services.
- The education services of EdTech companies, online learning platforms, and training providers.
- Healthcare and Wellness for telemedicine, medical tourism, and wellness centers.
- Creative and Media, which provides services of animation, gaming, content development, and design.
How Service Exporters Can Obtain the RCMC Certificate?
Step 1: Choose the Right Council
"Service Export Promotion Council (SEPC) is for those who are engaged with export services. However, in case the service exporter deals with merchandise exports, they are required to choose the relevant council.
Step 2: Gather Required Documents
The following documents are required to prepare:
* Import Export Code (IEC) issued by DGFT.
* PAN Card of the company/firm.
* Certificate of Incorporation / Partnership Deed.
* GST Registration (if applicable).
* Bank Certificate or Cancelled Cheque.
* Business Activity Documentation or service export invoices
Step 3: RCMC Online Application
Visit the SEPC portal or DGFT and complete the application registration form, attaching the supporting documents.
Step 4: Verification of Documents and Approval
An official of SEPC/DGFT will scan your document to look for accuracy and completeness before approval of your RCMC registration. After approval, you will receive your RCMC certificate.
Benefits for IT, Consulting, and Service Businesses
- IT exporters can leverage the international trade promotion opportunities.
- A certificate makes international contracts smoother for consulting firms.
- A certificate allows startups and SMEs to utilize the government-supported networking platforms.
- For the specific service global service provides, a certificate is the backbone to adhere to the Indian Foreign Trade Policy Compliance (FTP).
Final Discussion | Import Export Code with RCMC
Despite not involving physical goods, the service exporters play a crucial role in growing India's export ecosystem. Obtaining the license of RCMC from the SEPC is crucial for IT, consulting, and other export service providers. SEPC membership is a gateway to unlock government benefits and helps expand global presence and enhance credibility. Fulfill the requirements for registration of RCMC by getting a transparent and valuable consultant from LegalRaasta experts.
