For businesses involved in exporting goods, obtaining an AD Code Registration is a crucial step. The Authorized Dealer (AD) Code is a 14-digit number issued by a bank and registered on the ICEGATE portal, enabling exporters to receive foreign currency payments and comply with customs regulations. Without an AD code, businesses cannot generate Shipping Bills, a mandatory document for export clearance.
This guide will walk you through the AD Code Registration process, its importance for first-time exporters, and how it relates to company registration, private limited company registration, GST registration, OPC registration, Section 8 company, and subsidiary company.
What is AD Code Registration?
AD Code (Authorized Dealer Code) Registration is a process where exporters obtain a unique 14-digit code from their bank (Authorized Dealer) and register it on the ICEGATE portal. It is essential for businesses engaged in international trade as it facilitates seamless foreign exchange transactions and customs clearance.
Importance of AD Code Registration for Exporters
-Mandatory for Export Clearance – Required for generating Shipping Bills at Indian ports.
-Enables Foreign Currency Transactions – Allows receipt of export payments in foreign currencies.
-Compliance with RBI and Customs Regulations – Ensures smooth export operations.
-Avoids Penalties and Delays – Prevents unnecessary fines and shipment delays.
Who Needs AD Code Registration?
The following businesses require AD Code Registration:
-Private Limited Companies – Engaged in international trade.
-Section 8 Companies – Exporting goods for charitable purposes.
-OPC (One Person Company) Registration – Small exporters or startups.
-Subsidiary Companies – Expanding operations globally.
Any entity involved in exporting goods must obtain an AD Code for hassle-free transactions.
Step-by-Step Process for AD Code Registration
Step 1: Open a Current Account with an Authorized Dealer (Bank)
-Select a bank authorized by the Reserve Bank of India (RBI) for foreign exchange transactions.
-Open a current account in the company’s name.
Step 2: Apply for AD Code from the Bank
Submit an application to the bank for AD Code issuance.
Provide necessary documents, such as:
-Company Incorporation Certificate
-GST Registration Certificate
-Import Export Code (IEC)
-Bank Account Details
Step 3: Obtain AD Code Letter from the Bank
Once the bank verifies the documents, they will issue an AD Code Letter containing the 14-digit AD Code.
Step 4: AD Code Registration on ICEGATE
-Visit the ICEGATE portal (www.icegate.gov.in).
-Log in or register a new account.
-To AD Code Registration and enter the 14-digit AD Code issued by the bank.
-Upload supporting documents and submit the request.
-Upon successful verification, the AD Code will be linked to the shipping port where the business intends to export goods.
Step 5: Confirmation and Port Registration
-Once approved, the exporter can start filing Shipping Bills for export clearance.
-If exporting from multiple ports, repeat the registration process for each port.
Other Essential Registrations for Exporters
1. Company Registration
Before applying for AD Code Registration, businesses must complete company registration with the Ministry of Corporate Affairs (MCA). Options include:
-Private Limited Company Registration – Ideal for growing businesses.
-Section 8 Company – For NGOs or charitable organizations.
-OPC Registration – Suitable for solo entrepreneurs.
-Subsidiary Company Registration – For businesses expanding internationally.
2. GST Registration
GST registration is mandatory for businesses with an annual turnover exceeding ₹20 lakh. Exporters can also apply for a Letter of Undertaking (LUT) under GST to claim zero-rated exports.
3. GST Cancellation (If needed)
If an exporter stops operations, they must apply for GST cancellation to avoid penalties and compliance issues.
Documents Required for AD Code Registration
To apply for an AD Code, the following documents are required:
1. Company Incorporation Certificate (Private Limited, Section 8, OPC, or Subsidiary Company)
2. GST Registration Certificate
3. Import Export Code (IEC) issued by DGFT
4. Bank Statement or Cancelled Cheque
5. PAN Card of the Business
6. Proof of Registered Office Address
7. Authorization Letter (if applicable)
Benefits of AD Code Registration
1. Enables Seamless Export Transactions – Avoids delays in shipment clearance.
2. Required for Multiple Ports – Can be registered for multiple ports as needed.
3. Legal Compliance – Ensures compliance with RBI, Customs, and ICEGATE.
4. Smooth Banking Transactions – Facilitates quick and transparent foreign currency payments.
5. Prevents Unnecessary Penalties – Ensures adherence to export laws.
Conclusion
For first-time exporters, obtaining AD Code Registration is a crucial step to ensure smooth export transactions and compliance with customs regulations. By the AD Code Registration on ICEGATE, businesses can facilitate foreign currency payments, generate shipping bills, and streamline export operations.
Whether you are a private limited company, OPC Registration, Section 8 company, or a subsidiary company, following the correct process for AD Code Registration ensures compliance and operational efficiency.
