Can IEC Be Transferred After Business Restructuring?
Understanding IEC in Business Transitions
If your business is undergoing restructuring—whether due to a merger, acquisition, name change, or ownership transfer—you might be wondering, “Can my Import Export Code (IEC) be transferred?” Since the IEC is a unique business identification number for import-export activities in India, handling it correctly post-restructuring is crucial to avoid legal and operational disruptions.
In this blog, we’ll break down the impact of business restructuring on IEC, how you can update or modify your IEC, and what businesses need to do to stay compliant.
What Happens to IEC After Business Restructuring?
IEC is issued to a specific business entity and is linked to its Permanent Account Number (PAN). Unlike other business registrations, the IEC is non-transferable, meaning you cannot directly transfer it from one entity to another. However, depending on the nature of the restructuring, you may need to update, modify, or reapply for an IEC.
Here’s how different types of business restructuring affect IEC:
1. Business Name or Address Change
If your business is changing its name or registered address, you don’t need to apply for a new IEC. Instead, you can update your existing IEC by submitting the necessary documents through the DGFT (Directorate General of Foreign Trade) portal.
Steps to Modify IEC for Name/Address Change:
✔ Log in to the DGFT Portal (https://www.dgft.gov.in)
✔ Select IEC Modification Request
✔ Upload supporting documents (e.g., GST certificate, updated PAN, address proof)
✔ Submit and track your request online
2. Business Ownership Transfer (Proprietorship to Partnership or Company)
If a sole proprietorship converts into a partnership firm or a private limited company, the IEC cannot be transferred. The new entity must apply for a fresh IEC, as IECs are tied to the PAN of the original applicant.
✅ The old IEC can be surrendered via the DGFT portal.
✅ The new business entity should apply for a new IEC with its own PAN.
3. Mergers and Acquisitions
In the case of mergers and acquisitions, the IEC of the absorbed or merged entity becomes invalid since it was linked to the original business’s PAN. The acquiring or merged entity must obtain a fresh IEC for international trade transactions.
✅ The merged entity should first surrender the IEC of the dissolved business.
✅ A new IEC should be obtained under the acquiring company’s name and PAN.
4. Conversion from Partnership to Private Limited Company
When a partnership firm transitions into a private limited company, a new PAN is issued to the company. Since IEC is PAN-based, the existing IEC becomes invalid, and the new entity must apply for a fresh IEC.
✅ The old IEC should be canceled.
✅ A fresh IEC application should be submitted under the new PAN.
What Happens If You Don’t Update or Apply for a New IEC?
Failing to update or apply for a new IEC post-restructuring can lead to:
🚨 Legal complications: Incorrect IEC details can cause issues with customs clearance.
🚨 Blocked international transactions: Banks may refuse payments for exports or imports under an outdated IEC.
🚨 Loss of government incentives: Export benefits under schemes like MEIS or RoDTEP may be forfeited.
To keep your business compliant, ensure that your IEC information is updated or reissued as per the restructuring changes.
How The Tax Compliance Can Help
Navigating IEC modifications or reapplications can be complex, but The Tax Compliance makes it easy for you. Our team assists with:
✅ IEC updates for name, address, and contact changes
✅ New IEC registration for restructured businesses
✅ Surrendering old IECs and ensuring smooth compliance
✅ End-to-end documentation and DGFT submissions
📞 Need Expert Help? Call us at (+91) 74-192-77-192
📧 Mail Us: thetaxcompliance@gmail.com
🌐 Visit Us: thetaxcompliance.com
