Is your business ready to export? An export readiness checklist for Indian SMEs

Why use a checklist before you export?

Most export problems are set-up problems that show up months later: a GST refund refused because there was no Letter of Undertaking, an export entry still open at the bank because nobody filed the EDF, a payment held because the invoice and the remittance tell different stories. Each fix is easy at the start and tedious afterwards. This checklist is a map of the whole set-up, with a link to the detailed guide for each step.

1. Which registrations do you need?

• PAN and a business form. A proprietorship works; an LLP or company helps with larger clients. Banks will ask for proof of business under RBI’s KYC Master Direction.
• GST registration, compulsory once aggregate turnover passes ₹20 lakh (₹10 lakh in some States), export turnover included. Voluntary registration is what unlocks zero-rating with refunds. GST registration for exporters.
• A Letter of Undertaking (LUT) under rule 96A of the CGST Rules, so you can export services without paying IGST. File it for each financial year before you invoice. GST on export of services.
• IEC, needed for goods, and for services only if you want benefits under the Foreign Trade Policy (para 2.05 of chapter 2). Udyam, free and paperless, useful for MSME credit and schemes (benefits). IEC and Udyam for service exporters.
• Scheme registrations if you plan to use them: an RCMC from your Export Promotion Council for any Foreign Trade Policy benefit. Government support for MSME exporters.

2. Can your bank or provider receive the money?

• KYC done in advance. Have PAN, proof of address, business proof and, for a company, the owners’ details ready. KYC documents for exporters and FATCA, CRS and PEP declarations.
• A way for clients to pay locally. Decide between a bank wire, a receiving account or an EEFC account. How to receive international payments in India and EEFC vs a receiving account.
• Know the costs. Wire fees, SHA/OUR/BEN and the FX spread. What wires really cost and how banks set your rate.
• Know the codes. Your payer may need a SWIFT/BIC, IBAN or routing number. IBAN, SWIFT, ABA or IFSC.

3. Is the client checked and the contract signed?

• Check the client exists, who signs and who pays, and screen it against sanctions lists. Overseas client onboarding checklist and OFAC, EU and UK sanctions.
• Sign a contract with scope, acceptance, IP, liability, governing law and payment terms. What a services contract should say.
• Choose payment terms and currency deliberately: advance, milestones or net terms; USD, INR or the client’s currency. Payment terms and invoice currency.
• Agree how bank details are confirmed, to stop payment-diversion fraud. Avoiding payment fraud.

4. Does your invoice work for the client and the bank?

A GST-registered exporter issues a tax invoice with the client’s country, the SAC, the currency and the LUT endorsement. Add the purpose of payment so the remittance carries the right RBI purpose code. How to write an export invoice for services, which purpose code to use and whether you need an e-invoice.

5. Are your FEMA duties planned?

Under RBI’s 2026 export regulations, in force since 1 October 2026, a services exporter files an Export Declaration Form within 30 days from the end of the month the invoice was raised, and realises the full value within nine months of the invoice date, or twelve months if invoiced in rupees. Proceeds unrealised more than a year past the due date restrict future exports to full advance or a letter of credit.

• EDF for export of services and the realisation period.
• Short, late or third-party payments and advance payments.
• FIRA, FIRC and e-BRC, the proof that the money arrived, and FEMA 1999 in plain words.

6. Is the tax side clear?

Read them in this order: place of supply, GST refunds, input tax credit, old vs new regime, ITR form, foreign tax credit and advance tax. If you buy foreign software or ads, also read GST on imported services.

7. Will your records hold up?

Keep every invoice, contract, FIRA, payment advice, EDF, credit note and LUT, linked to each other. Under section 36 of the CGST Act, GST records are kept until 72 months after the due date of the annual return for the year. What records to keep, and for how long. Once volumes grow, automate the matching and the reminders: accounts receivable automation and automated reconciliation. When you are ready to grow beyond the first few clients, see scaling exports.