For businesses engaged in export-import activities, obtaining an AD Code (Authorized Dealer Code) is a crucial step. The AD Code Registration is required for customs clearance of goods and enables businesses to receive foreign payments directly into their bank accounts.

In this detailed guide, we will cover everything about AD Code Registration, including the process, eligibility, benefits, and how to register it on ICEGATE (Indian Customs EDI Gateway). We will also explore related topics such as company registration, private limited company registration, section 8 company registration, OPC registration, GST registration, GST cancellation, and subsidiary company.

What is AD Code Registration?

AD Code (Authorized Dealer Code) is a 14-digit unique number issued by banks authorized by the Reserve Bank of India (RBI). It is linked to the exporter’s Import Export Code (IEC) and is mandatory for processing shipping bills at Indian ports.

Why is AD Code Registration Important?

-Customs Clearance: Required to file shipping bills with the Indian Customs Department.

-Foreign Payments: Ensures smooth transfer of export proceeds into the exporter’s bank account.

-ICEGATE Integration: Enables online tracking and compliance with customs regulations.

Who Needs AD Code Registration?

Businesses engaged in export-import trade require AD Code Registration, including:

-Private Limited Companies

-One Person Companies (OPC)

-Section 8 Companies (Non-profit entities engaged in export services)

-Subsidiary Companies of foreign firms operating in India

-Sole Proprietorships and Partnerships

AD Code Registration Process – Step-by-Step Guide

Step 1: Obtain an Import Export Code (IEC)

Before applying for AD Code Registration, businesses must first acquire an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT).

Step 2: Apply for AD Code from the Bank

-Select an Authorized Dealer Bank (a bank authorized by RBI to deal in foreign exchange).

-Submit an application requesting an AD Code along with business details.

-The bank will issue a 14-digit AD Code linked to your IEC.

Step 3: AD Code Registration on ICEGATE

-Visit the ICEGATE (Indian Customs EDI Gateway) portal.

-Log in or register as a new user.

-Go to the AD Code Registration section and enter the 14-digit AD Code issued by your bank.

-Upload supporting documents like IEC, bank certificate, and GST registration certificate.

-Submit the application and wait for customs approval.

Step 4: Verification & Approval

-The customs department verifies the details and links the AD Code with your IEC.

-Upon approval, you can use it for export shipments and financial transactions.

Documents Required for AD Code Registration

To register for an AD Code, the following documents are needed:

1. Import Export Code (IEC) Certificate

2. Bank Certificate/Letter containing the issued AD Code

3. GST Registration Certificate (if applicable)

4. Company Registration Documents (such as MOA & AOA for Private Limited Companies)

5. Business PAN Card

6. Address Proof of Business Premises

AD Code Registration on ICEGATE – Key Steps

What is ICEGATE?

ICEGATE (Indian Customs Electronic Gateway) is the official online portal of Indian Customs that facilitates electronic filing and tracking of import/export documents.

How to Register AD Code on ICEGATE?

1. Visit ICEGATE.

2. Sign up as a new user and provide IEC, GSTIN, and business details.

3. To the AD Code Registration section.

4. Enter the 14-digit AD Code provided by your bank.

5. Upload the necessary support documents.

6. Submit the application for verification.

ICEGATE AD Code Registration Status

-After submission, check the registration status on the ICEGATE portal.

-Once approved, the AD Code will be linked with your IEC and shipping bill processing will be enabled.

AD Code Registration for Different Business Entities

Private Limited Company Registration & AD Code

-Private Limited Companies engaged in export business must obtain an AD Code before starting international trade.

-They must also complete GST Registration for tax compliance.

OPC Registration & AD Code

-One Person Company (OPCs) can also apply for AD Code Registration if they are involved in exports.

-The same registration process applies as for other entities.

Section 8 Company Registration & AD Code

-Section 8 Company (non-profits) that deal with international projects must register an AD Code to receive foreign grants or donations.

Subsidiary Company & AD Code Registration

-Foreign companies setting up subsidiaries in India must register for an AD Code to conduct import/export operations.

GST and AD Code Registration

Is GST Registration Required for AD Code?

-Yes, GST Registration is required if the business has a turnover exceeding ₹40 lakh (₹20 lakh for services).

-GST registration helps in claiming Input Tax Credit (ITC) on exports.

GST Cancellation & AD Code

-If a business cancels its GST Registration, it must update the information with the ICEGATE portal.

-Without an active GST registration, businesses may face delays in customs clearance.

Benefits of AD Code Registration

-Mandatory for Exporters: Without an AD Code, businesses cannot ship goods overseas.

-Seamless Foreign Transactions: Ensures easy processing of international payments.

-Customs Compliance: Enables hassle-free shipping bill filing.

-Multiple Ports Usage: A business can register the same AD Code at different ports.

Conclusion

AD Code Registration is an essential requirement for Indian businesses engaged in export activities. It facilitates customs clearance, enables foreign transactions, and ensures compliance with regulatory frameworks. ICEGATE AD Code Registration simplifies trade documentation and helps avoid unnecessary delays in shipment processing.

For expert assistance in company registration, private limited company registration, OPC registration, section 8 company registration, GST registration, GST cancellation, and subsidiary company formation, consulting a professional is recommended.

FAQs on AD Code Registration

1. What is the validity of an AD Code?

Ans. An AD Code does not expire, but businesses must update it in case of bank or business changes.

2. How long does AD Code Registration take?

Ans. The process usually takes 3-5 working days, depending on bank and ICEGATE verification.

3. Can I register multiple AD Codes?

Ans. Yes, businesses can register different AD Codes for different ports.

4. Is AD Code required for import businesses?

Ans. No, AD Code Registration is only mandatory for exporters.

5. How to check AD Code Registration status on ICEGATE?

Ans. Log in to ICEGATE, go to the AD Code section, and check the application status.

6. What happens if AD Code Registration is not completed?

Ans. Without an AD Code, businesses cannot process shipping bills, leading to export restrictions.