AD Code Registration: Requirements & Procedure

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AD Code Registration is a requirement for businesses engaged in import-export activities. Without it, companies cannot clear their goods through customs, making it an essential compliance step. Whether you are a private limited company, OPC Registration, Section 8 company, or a subsidiary company, obtaining AD Code Registration on ICEGATE is a mandatory step for seamless foreign trade operations.
This article will provide an in-depth guide on AD Code Registration, including its requirements, procedure, benefits, and its role in business activities. We will also cover related topics like company registration, OPC registration, private limited company registration, Section 8 company registration, subsidiary company registration, GST registration, GST cancellation, and the process of ICEGATE AD Code Registration.

What is AD Code Registration?
AD Code Registration refers to obtaining an Authorized Dealer (AD) Code, a 14-digit numerical code issued by a bank authorized to deal in foreign exchange. The AD Code is linked to a company's Importer-Exporter Code (IEC) and is essential for customs clearance of imported or exported goods in India.
Without an AD Code, exporters and importers cannot receive foreign remittances or process their shipments through customs. Thus, AD Code Registration on ICEGATE is a mandatory step for businesses engaged in international trade.

Why is AD Code Registration Important?
AD Code Registration is important for businesses involved in import-export for the following reasons:
•Customs Clearance: Without an AD Code, shipments cannot be cleared up by the customs department.
•Foreign Exchange Transactions: The AD Code ensures smooth processing of international payments.
•Legal Compliance: It is a regulatory requirement for companies dealing in international trade.
•Linking with ICEGATE Portal: The ICEGATE AD Code Registration enables online customs clearance and documentation.
•GST Compliance: Businesses with an AD Code must also have GST registration for tax compliance.

Who Needs AD Code Registration?
AD Code Registration is required for:
•Private Limited Companies engaged in international trade (Private Limited Company Registration required).
•One Person Companies (OPC) involved in import-export (OPC Registration needed).
•Section 8 Companies dealing with cross-border donations or products (Section 8 Company Registration mandatory).
•Subsidiary Companies import/export goods or services.
•Startups and Enterprises are planning to enter the global market.
Whether you have a subsidiary company or a private limited company, obtaining an AD Code Registration on ICEGATE is a key requirement for hassle-free customs clearance.

Requirements for AD Code Registration
To apply for AD Code Registration, businesses need the following documents:
1. Company Registration Certificate (for Private Limited, OPC, Section 8, or Subsidiary Company).
2. Importer-Exporter Code (IEC) issued by DGFT.
3. GST Registration Certificate (if applicable).
4. Bank Certificate from Authorized Dealer (AD Bank) mentioning the AD Code.
5. Letter of Undertaking (LUT) under GST (for exporters).
6. Business PAN Card.
7. Address Proof (Electricity Bill, Rent Agreement, etc.).

Procedure for AD Code Registration
Step 1: Open a Bank Account in an Authorized Dealer (AD) Bank
•The business must open an account with a bank authorized to deal in foreign exchange (e.g., ICICI Bank, HDFC Bank, SBI, Axis Bank).
•The bank will issue a 14-digit AD Code for the business.
Step 2: Obtain an Import-Export Code (IEC)
•IEC is mandatory for applying for an AD Code.
•Apply for an IEC code from DGFT (Directorate General of Foreign Trade).
Step 3: Apply for AD Code Registration
•Submit an application to the AD Bank along with the required documents.
•The bank will issue a letter certifying the AD Code.
Step 4: Register AD Code on ICEGATE
•ICEGATE (Indian Customs Electronic Gateway) is the customs e-filing portal where businesses must register their AD Code.
•Steps for AD Code Registration on ICEGATE:
1.Visit the ICEGATE website (www.icegate.gov.in).
2.Login with credentials (or create a new account).
3.To the ‘AD Code Registration’ section.
4. Enter the 14-digit AD Code and submit the required documents.
5.Upload the bank certificate and other necessary documents.
6.Submit the application for verification.
Step 5: Verification & Approval
•After submission, customs officials verify the AD Code.
•Once approved, the ICEGATE AD Code Registration is completed, and the business can use it for international transactions.

AD Code Registration on ICEGATE
What is ICEGATE?
ICEGATE (Indian Customs EDI Gateway) is the official online portal for Indian customs, enabling businesses to file shipping documents electronically.
Why Register AD Code on ICEGATE?
•Ensure smooth customs clearance for shipments.
•Enables online tracking of import-export shipments.
•Required to file shipping bills with customs.
•Facilitate GST refunds for exporters.

Procedure for ICEGATE AD Code Registration
•Login to ICEGATE and select the “AD Code Registration” option.
•Enter the 14-digit AD Code and link it to your IEC.
•Submit supporting documents like GST Registration and bank letter.
•Await approval from customs authorities.
Once approved, the ICEGATE AD Code Registration allows businesses to process export-import shipments efficiently.

GST Registration & AD Code
Companies applying for AD Code Registration must also obtain GST registration if they are dealing in taxable goods/services.
•GST Registration is mandatory for exporters claiming tax refunds.
GST Cancellation may be required if a company ceases operations.
Without GST registration, companies may face difficulties in obtaining customs clearance and tax benefits.

Common Mistakes to Avoid in AD Code Registration
•Providing Incorrect Bank Details: Ensure that the bank’s AD Code matches the one submitted for registration.
•Failure to Register on ICEGATE: Without ICEGATE AD Code Registration, customs clearance will be delayed.
•Not Renewing the AD Code Periodically: Some banks may require periodic renewal of the AD Code.
•Ignoring GST Registration: Ensure that the company has GST registration before applying for AD Code.

Conclusion
AD Code Registration is a critical compliance step for businesses engaged in import-export activities. Without an AD Code, companies cannot clear their shipments or receive foreign payments.
Whether you own a private limited company, OPC, section 8 company, or subsidiary company, securing an AD Code Registration on ICEGATE ensures smooth customs clearance and legal compliance. By following the correct AD Code Registration process, linking it with ICEGATE, and ensuring proper GST registration, businesses can expand their global reach efficiently.

FAQs
1. What is AD Code Registration?
Ans. AD Code Registration is a customs clearance requirement for import-export businesses.
2. Is GST Registration required for AD Code?
Ans. Yes, businesses applying for AD Code must have GST registration.
3. How do I register my AD Code on ICEGATE?
Ans. Login to ICEGATE, enter your 14-digit AD Code, submit documents, and wait for approval.
4. Can a Subsidiary Company apply for AD Code?
Ans. Yes, a subsidiary company involved in foreign trade must obtain an AD Code.
5. How long does AD Code Registration take?
Ans. It usually takes 5-7 business days after submitting the application.

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