Handmade Jewellery & Crafts – Export License, GST & Trademark Registration

The intricate beauty of Indian handmade jewellery and crafts has captivated a global audience. Platforms like Etsy, Instagram, and international B2B portals have opened up unprecedented opportunities for talented artisans to showcase their creations to the world. However, for many small creators, the journey from a local workshop to the international market can seem daunting, filled with confusing legal and financial hurdles. If you’re planning to take your business global, the first step is securing a handmade jewellery export license. This guide is designed to be your step-by-step manual, demystifying the entire process. We will cover the three essential pillars to transform your local craft into a global brand: securing the necessary export licenses, understanding GST compliance for exports, and protecting your unique brand with trademark registration.

Step 1: Building the Foundation – Essential Business Registrations

Before you can apply for any export-specific licenses, you need to establish a solid legal foundation for your business. This initial step ensures that your operations are compliant from day one and provides the credibility needed to deal with international buyers and government agencies. Setting up the right structure is crucial for future growth, liability protection, and tax planning.

Choose the Right Business Structure

The legal structure you choose for your business will impact everything from your personal liability to your tax obligations and the amount of paperwork you need to handle. Choosing the Right Legal Structure for Your Business is a critical early decision. For small businesses and artisans, three structures are most common:

• Sole Proprietorship: This is the simplest and most common business structure for individual artisans. It’s easy to set up with minimal compliance, as the business is not legally separate from the owner. This is an ideal starting point for individuals who are just beginning their entrepreneurial journey and want to test the waters with low setup costs.
• Limited Liability Partnership (LLP): An LLP offers a perfect balance for businesses with two or more partners. It provides the key advantage of limited liability, meaning your personal assets are protected from business debts, while maintaining simpler compliance requirements and more operational flexibility compared to a private limited company.
• Private Limited Company: This structure offers the highest level of credibility, scalability, and legal protection. It is a separate legal entity, which makes it easier to raise funds and attract serious international buyers. However, it comes with higher setup costs and more stringent annual compliance requirements, making it suitable for businesses with a clear growth and expansion plan.

For most artisans starting their export journey, a Sole Proprietorship or LLP is the most practical and cost-effective choice.

Obtain Your Importer-Exporter Code (IEC)

The Importer-Exporter Code (IEC) is the single most important registration for exporting handmade jewellery from India. It is a mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT) and is essentially your primary business identity for all import and export transactions. Without an IEC, you cannot clear your goods through customs or send money abroad for imports or receive money from foreign buyers for your exports. It is linked to your PAN and is valid for the lifetime of your business, with no need for renewal.

Actionable Tip: You can apply for your IEC online directly through the official DGFT website. The key documents you will need are your PAN Card, details of your business bank account, and proof of address for your business premises.

Register with the Export Promotion Council for Handicrafts (EPCH)

Export Promotion Councils (EPCs) are government-recognized bodies that work to promote and support Indian exporters in specific product categories. For artisans and creators in the handmade goods sector, registering with the Export Promotion Council for Handicrafts (EPCH) is highly recommended. Upon registration, you will receive a Registration-cum-Membership Certificate (RCMC). This certificate is not only a mark of credibility but is also mandatory for claiming various benefits under India’s Foreign Trade Policy, such as duty drawbacks and participation in government-sponsored international trade fairs. Membership with EPCH provides access to market insights, buyer-seller meets, and valuable resources to grow your export business.

Step 2: Demystifying the Handmade Jewellery Export License Process

When people talk about a handmade jewellery export license, they are primarily referring to the Importer-Exporter Code (IEC). Obtaining this code is a streamlined, online process designed to be quick and efficient. This section breaks down the exact steps and documentation required, ensuring you can navigate the application with confidence and avoid common pitfalls that could delay your export plans.

The Online Handmade Jewellery Licensing Process in India

The DGFT has made the application process for an IEC completely digital, eliminating the need for physical visits to government offices. The handmade jewellery licensing process in India is straightforward and can be completed in a few simple steps. Here’s a clear breakdown of what you need to do on the DGFT portal:

1. Visit the DGFT Website: Go to the official DGFT website and navigate to the ‘Services’ tab.
2. Register as a New User: Create a user profile by providing your basic details like name, email, and mobile number. An OTP will be sent for verification.
3. Link Your PAN: Once registered, you must link your business PAN to your DGFT account. The IEC is issued based on your PAN.
4. Fill the Online Application Form: The application form is known as ANF 2A. You need to fill in details about your business entity, directors/proprietor, and bank account information accurately.
5. Upload Required Documents: Scan and upload clear copies of all the necessary documents in the prescribed digital format.
6. Pay the Requisite Fee: The government application fee for a new IEC is ₹500, which can be paid online via net banking, credit/debit card, or UPI.
7. Submit and Receive e-IEC: After successful payment and submission, the DGFT system will verify your details. If everything is in order, your e-IEC will be generated almost instantly and sent to your registered email address.

Key Documents for Crafts Business Export Requirements in India

Having all your documents ready before you start the application process can save a lot of time and effort. Here is a scannable checklist of the essential crafts business export requirements in India for your IEC application:

• Identity and Address Proof:
  • Digital Photograph (passport size) of the proprietor, partner, or director.
  • Copy of the applicant’s PAN Card.
  • Copy of Aadhaar Card, Voter ID, or Passport of the applicant.
• Business Proof:
  • Proof of business establishment, such as a Partnership Deed for LLPs, Certificate of Incorporation for companies, or a simple business registration certificate for proprietorships.
  • Proof of address for the business premises, which can be a Rent Agreement, Sale Deed, or the latest Electricity/Telephone Bill.
• Bank Proof:
  • A cancelled cheque bearing the pre-printed name of the business entity or the individual’s name (for proprietorships).
  • Alternatively, a Bank Certificate in the prescribed format (ANF 2A-I) can be used.

Step 3: Navigating GST Compliance for Your Export Business

Understanding the tax implications of exporting is crucial for maintaining profitability and ensuring legal compliance. The Goods and Services Tax (GST) regime in India has specific provisions for exporters that are designed to make Indian goods more competitive in the global market. Getting this right from the start can prevent future complications and help you manage your cash flow effectively.

Is GST Registration Mandatory for Exports?

This is one of the most common questions from new exporters, and the answer is a clear and simple yes. Under Indian law, GST registration is mandatory for any business involved in the inter-state supply of goods. Our Ultimate Guide to GST Registration for Small Businesses covers this topic in depth. Since exporting goods to another country is considered an inter-state supply, you must have a GST registration, regardless of your annual turnover. You cannot ship your goods or claim any export-related benefits without a valid GST Identification Number (GSTIN).

The good news is that exports are treated as “zero-rated supplies” under the GST Act. This means that while GST is applicable, the final rate of tax on your exported goods is zero. This policy ensures that Indian goods and services are exported without any embedded domestic taxes, making them cheaper and more competitive in international markets.

Understanding Your Options: LUT vs. IGST Refund

As a zero-rated supplier, you have two primary options for managing GST compliance when you export. Choosing the right one depends on your business’s working capital situation.

Feature	Export Under a Letter of Undertaking (LUT)	Export with Payment of IGST (Refund Route)
GST Payment	No IGST paid on export supplies.	IGST is paid upfront on export supplies.
Process	File Form GST RFD-11 online on the GST portal to obtain the LUT for a financial year.	Pay the applicable IGST when making the export sale. The shipping bill is treated as the refund application.
Capital Impact	No working capital is blocked. This is the biggest advantage for small businesses.	Working capital is blocked until the refund is processed and credited to your bank account.
Refund Claim	You can claim a refund of unutilized Input Tax Credit (ITC) on inputs used for making the export goods.	You claim a refund of the full IGST amount paid on the final exported product.
Best For	Highly recommended for small businesses, startups, and artisans to maintain healthy cash flow.	Suitable for established businesses with sufficient working capital that can afford to wait for refunds.

Actionable Tip: For most small-scale artisans, the LUT method is the most practical and efficient option. You can file your LUT electronically through the official GST Portal at the beginning of each financial year.

Step 4: Protecting Your Brand with Handmade Crafts Trademark Registration in India

As you build your business and your unique designs start gaining recognition, protecting your brand becomes paramount. Your brand name, logo, and tagline are valuable assets that distinguish you from competitors. A trademark provides the legal protection needed to secure these assets, both in India and internationally, building trust and long-term value for your creative enterprise.

Why Your Unique Brand Name and Logo Deserve Protection

A trademark is more than just a name or a logo; it’s the identity of your craft and a promise of quality to your customers. For a handmade crafts business looking to expand globally, handmade crafts trademark registration in India offers several critical benefits:

• Establishes Legal Ownership: It gives you the exclusive legal right to use your brand name and logo for the goods you sell.
• Prevents Misuse by Competitors: It legally stops others from using a confusingly similar name or logo, protecting your brand’s reputation and preventing customer confusion. You should Secure Your Brand’s Future Trademark Your Brand – Registration, Benefits & The Cost of Neglect to avoid these issues.
• Builds Trust and Recognition: A registered trademark (using the ® symbol) signals professionalism and authenticity to international buyers, enhancing your brand’s credibility.
• Creates a Valuable Business Asset: A strong, protected brand can be licensed, franchised, or sold, becoming a significant financial asset for your business over time.

The Trademark Registration Process in Brief

The process of registering a trademark in India is managed by the Controller General of Patents, Designs and Trade Marks. While it can be a lengthy process, the protection it offers is invaluable. Here are the high-level steps involved:

1. Trademark Search: Before filing, it is crucial to conduct a thorough search of the trademark database to ensure your desired name or logo is unique and not already registered by someone else in your category.
2. Application Filing: The application is filed in the appropriate class. For instance, jewellery typically falls under Class 14, while certain other handicrafts might fall under Class 20 or other relevant classes.
3. Examination & Publication: The Trademark Registry examines the application for any discrepancies. If it passes examination, the mark is published in the Trade Marks Journal for a period of four months to allow for any third-party opposition.
4. Registration: If no one opposes your application during the publication period, the registry issues a registration certificate. The trademark is then valid for 10 years and can be renewed indefinitely.

Actionable Tip: Protection for your brand begins from the date you file the application. You can start using the ™ symbol next to your brand name immediately after filing. For a seamless and legally sound process, it’s advisable to file through an expert. You can find more information on the official IP India portal.

Conclusion

Taking your handmade creations to a global audience is an exciting and achievable dream. By breaking down the process into manageable steps, the legal and financial complexities become far less intimidating. To summarize, the path to exporting successfully involves establishing a proper business structure, securing your primary handmade jewellery export license (the IEC), efficiently managing your GST compliance through the LUT method, and finally, protecting your unique identity with a trademark. Following these steps diligently will not only ensure your business is fully compliant but will also build a strong, credible foundation for sustainable international success.

The legal paperwork shouldn’t hold your creativity back. The experts at TaxRobo are here to manage the entire process for you – from IEC and GST registration to trademark filing. Contact us today for a free consultation and let us handle the complexities while you focus on your craft!

Frequently Asked Questions (FAQs)

1. What is the total cost to get a crafts export license in India?

The direct government fee for an IEC application is a fixed ₹500. However, the total cost for getting export-ready can include professional fees for consultation and filing, the cost of a Digital Signature Certificate (DSC), and membership fees for bodies like the EPCH. At TaxRobo, we offer comprehensive packages that cover all these registrations at an affordable price point.

2. Can I export my handmade jewellery without a GST number?

No. As per Indian GST law, GST registration is mandatory for exporting any goods from India, regardless of your annual turnover. This is because exporting is considered an inter-state supply. Obtaining a GSTIN is a prerequisite for generating shipping bills and classifying your supply as a zero-rated export to avail of tax benefits.

3. How long does the handmade crafts trademark registration in India take?

The complete trademark registration process, from filing to receiving the final certificate, can take anywhere from 8 to 18 months, provided there are no objections from the registry or oppositions from third parties. However, the crucial point is that your legal protection starts from the very date of application, and you can begin using the ™ symbol immediately to deter potential infringers.

4. Do I need any other special license for exporting handmade jewellery from India?

For most common forms of handmade jewellery made from metal, beads, fabric, or clay, the IEC and an RCMC from the EPCH are sufficient. However, if your creations use specific regulated materials, additional clearances may be needed. For example, jewellery made with precious metals may require a Hallmark certificate, and products using certain types of wood or animal products (like bone or horn) may need clearances from the wildlife department or other specific agencies. It’s always best to consult with an expert to ensure you have all the necessary permits for your specific products.