The abbreviation for Registration cum Membership Certificate is RCMC. This certificate is issued to the company as a licence to conduct exports and obtain some form of concession under the current foreign trade policy. The Federation of Indian Export Organizations issues the RCMC certificate (FIEO).
The certificate is also issued by the Export Promotion Council of India (EPC). This certificate can also be issued by community boards. One of the primary goals of issuing this type of certificate is to promote the Indian export business. Aside from that, obtaining such a certification would provide credibility when dealing with public transactions.
A certificate of this type is not required by an organisation or institution that has been exempted from the requirement of an export and import licence. This certificate is valid for five years.
An exporter is required to obtain this type of certificate under India’s export promotion policy. The certificate would be issued by the Export Promotion Council in Charge (EPC).
In India, the FIEO is regarded as the export promotion council for obtaining RCMC registration. First, the company or organisation would have to apply to become a member of the FIEO.
|Table of contents|
Membership Types for RCMC Registration under FIEO
Under FIEO, there are two types of membership for RCMC Registration:
- Membership in Ordinary: The name suggests that the membership is only the basic membership. This type of membership would be appropriate for a company that is just starting out in the export and import business.
- Membership as an Associate: The associate membership is for companies that have been in the export and import business for a long time. The fees for associate membership are based on the fee plus a nominal GST rate.
The Advantages of RCMC Registration
- Policy on Foreign Trade: An exporter who chooses to register with the RCMC will be eligible for some of the benefits provided by the country’s foreign trade policy. Aside from that, the exporter would receive various types of updates on foreign trade policy.
- Export Promotional Activities: Export promotion is critical in India. It is critical to promote exports in the country in order to engage in the development of various sectors. Obtaining this registration would directly promote international exports. One of the benefits of obtaining this registration is the ability to secure international expansion policies related to the country’s exports. For example, the government has launched the Atmanirbhar Bharat scheme. The government wants Indians to buy more products made in India under this scheme. Self-sufficiency can be achieved through such schemes. This scheme would also increase the number of Indian exports.
- Using Various Schemes: Through such registration, the exporting firm or company can take advantage of various FIEO schemes. This would not be possible for any unregistered companies or firms.
- Observance of Government: An entity or company that obtains this registration will be in accordance with the government’s rules and bylaws.
- FIEO news and updates: Aside from receiving various types of concessions from the FIEO, updates on India’s foreign trade policy would be provided. Individuals who want to take advantage of the FIEO’s benefits but do not want the RCMC certificate can still register as individual exporters.
Eligibility Criteria for RCMC Registration
When applying to the FIEO for the RCMC certificate, the applicant must meet the following criteria:
- Merchandiser or Exporter (Merchant): First, the applicant must ensure that the business being conducted is one of exports and imports. This is one of the most important prerequisites for starting an export business in India. In addition, the exporter must ensure that they have applied for the Import Export Code (IEC) with the appropriate authority. The DGFT is the IEC authority (Director General of Foreign Trade).
- Main Line of Business Declaration: The main line of business must be declared by the exporter or merchant. For example, if the primary line of business is coffee and tea, the Tea and Coffee Promotion Board must be consulted.
- The FIEO’s Board of Directors has given their approval: The applicant must ensure that the appropriate consent is obtained from the appropriate board or FIEO. If there is no specific board for a particular product, the applicant must apply to the FIEO for approval. The FIEO must grant approval for the same.
How Do I Apply for the RCMC?
To apply for an RCMC certificate, the applicant needs to submit the completed application form ANF 2C to the EPC that corresponds to the export product. If an individual is a tea exporter, for example, he will apply to the Tea Board, whereas if he is a readymade garments exporter, he will apply to the Apparel Export Promotion Council (AEPC). There are two types of exporters: merchants and manufacturers. The applicant must provide proof of the existing manufacturing facility in order to register as a manufacturing exporter.
The form’s information requirements are straightforward:
- The applicant must address their application to the relevant EPC and provide their company’s name, registered address, branch and factory addresses (if any), and phone number.
- They must include their IEC Code and its details, as well as information about their manufacturing unit such as an industrial licence, factory registration, and so on.
- They will also need their export status holder certificate number and their Export House/Trading House/Star Trading House/Super Star Trading House certificate number.
- The applicant must specify the product(s) for which registration is sought, as well as their primary line of business.
- If the applicant wants to find out which EPC/Commodity Board/Authority their product belongs to, they can consult the DGFT’s updated Annexure 2T, which includes a list of EPCs/Boards/Authorities, their contact information, and a list of items that fall under their jurisdiction. There are currently 37 export promotion councils.
However, it’s possible that the product they want to export doesn’t already have an EPC assigned to it. In this scenario, they must apply to FIEO directly. If they have many goods or are unsure about their line of business, FIEO can issue the RCMC under its multi-product group category. However, they must also register with the appropriate EPCs and declare their lines of business.
Documents required for RCM
First and foremost, the applicant must submit the RCMC application form ANF 2C, which must be completely filled out and signed. They must also provide self-certified copies of the following papers in addition to the form:
- The applying export entity is assigned an IEC number.
- PAN Card (Personal Identification Number)
- Articles and Memorandum of Association (for corporations, institutions, private limited companies, and limited liability partnerships), Partnership Deed (for partnership businesses and LLPs), or Trust Deed (in case of Trusts).
- The certificate provided by the Registrar of Companies regarding the change of registered office is required in the case of a company.
- Certificate of GST registration
The FIEO is the primary regulatory body for RCMC registration in India. As a result, the exporter would have to seek membership with the FIEO. The RCMC is the registration provided by the FIEO. Securing this type of registration is required by the country’s foreign trade strategy. If the exporter wants to look into some sort of benefit, this is a must.