These days, many entrepreneurs are starting their own businesses overseas to take advantage of the export opportunities there. Whether you’re interested in shipping goods to Europe or selling your products in America, an export oriented units business will help you do just that and more. Here’s how to get started with setting up an export oriented units business.

What is an Export Oriented Unit?

Export oriented units, or EOUs, are economic zones for small and medium enterprises that export goods from one country to aonther. EOUs must be owned by a single company or a consortium of companies and cannot have a foreign partner. Currently there are over 3,700 EOUs operating in India. There is no minimum capital requirement for setting up an Export Oriented Unit except for labour-intensive industries such as apparel manufacturing and electronic hardware assembly. To set up an Export Oriented Unit, you will need to fill out application forms at your nearest Export Promotion Council (EPC). You will also need land ownership documents (which may include proof of tenancy) and proof of commercial rent where applicable. Once you receive approval for your application, your new EOU can begin operations!

What are the Benefits of Starting Export Oriented Units Business?

There are several benefits in starting your own export oriented unit. You can start an export oriented unit by investing only Rs. 1 lakh in some states. The government offers plenty of tax benefits for EOUs which range from 30% to 90%. Also, there is no restriction on where you manufacture, what kind of products you make or who your customers are. You can even import raw materials into India and sell goods overseas without paying any duties or taxes, which will save you a lot of money over time.

Special benefits for setting up an EOU

There are special benefits given by government of India for setting up of EOUs. Some of them are exemption from various types of taxes and duties, Import Duty Exemption Scheme (IDE), Foreign Exchange Management Act (FEMA), Forex Cash Registers Scheme (FCR), concessions in direct taxes under Income Tax Act, etc. These benefits have been given because by their nature these units should be exporting goods/services at competitive prices to generate foreign exchange earnings.

Global Market Size of Export Oriented Units

The increasing demand for export oriented units can be attributed towards: favorable government policies in emerging markets like China and India, quality infrastructural development in these countries and increase in per capita disposable income in these countries. Some major players are Samsung Electronics Co., Ltd., Tata Steel Limited, Bharat Heavy Electricals Limited (BHEL), Gujarat Alkalies & Chemicals Limited (GACL), etc.

Most products in export oriented unit industry are exported through their respective manufacturing facilities in domestic country.

How Entrepreneur India Can Assist You

We will help you in establishing your manufacturing unit for export oriented units. As one of India’s leading Consultants, we can assist you throughout all steps of setting up your business. In fact, we provide a complete end-to-end solution for investors looking to set up their own EOUs from scratch without actually doing any legwork on their own part. This saves our clients from spending precious time looking into these aspects of starting a business when they could be focusing on ensuring operational efficiency instead.