ISP License is the document you need to provide internet services in India. Issued by the Department of Telecommunication, ISP license is not something you can go out and buy. There are steps that one needs to follow to get it issued to them. Thus, through this article, we are going to take you through each and every step that you need to take to start your own ISP.
Understand the requirement for isp license first
What is an ISP license? As the first lines of this article say, it’s the permission to start internet in India. As for why it has been made mandatory, it’s for obvious reasons:
- The government needs to oversee what kind of data is present online
- It’s important to know whether the online data contain something that can harm the nation.
- To promote healthy competition in the market, the government has to issue a license on a non-discriminatory basis.
Heed to reasons and absorb them. Understand their influence before you take one step towards the answer to how to get ISP license in India.
If you’ve absorbed our point, let’s begin.
Step 1: Register an ISP company for ISP License
Register a company with the aid of Chartered Accountant or a Company Secretary. Make the objective of that company to provide internet services for the people. Specify the category of ISP you want to start. It means specifying the scope of your internet services and the coverage area of those services.
- Category A for spreading your services across India
- Category B for providing exclusive internet services to one state or one metropolitan city
- Category C to facilitate a small town or a village with your internet services.
The process of company registration entails the following steps:
- Choose a unique name to give your ISP company.
- Gather the required documents for company incorporation.
- File a RUN application to reserve the unique name of the company.
- Draft a Memorandum of Association that contains the objective of the company.
- Draft anArticles of Association that contains the rules and regulations of the company.
- Submit the online application of company incorporation via SPICE form.
- Get the Company Incorporation certificate.
Step 2: Organize a board meeting to pass ISP License resolution
One of the major requirements for ISP license online registration is to pass a board resolution. The directors and shareholders of your company should agree to your move to obtain the ISP license. It’s only after getting their consent that you can start the application filing process.
Step 3: File the online application of ISP License
Go online to the DOT website and start filing the application for ISP license. We believe it’s now “SARALSANCHAR” that has the system that allows you to file the application. Go there and start filing. Make sure that you understand the agreement format to understand the requirements. Finalize the submission by depositing the application processing fee.
Step 4: Submit a hard copy of the application to the TERM CELL
Download the application form you’ve submitted along with the payment receipt of application processing fee you’ve deposited. Attach them with the following documents:
- Company Incorporation certificate
- MOA and AOA
- List of Director
- List of shareholders
- Net worth certificate
- Audited Balance Sheets
- Document detailing the scope, the coverage area and the nature of your services.
Step 4: Obtain the letter of Intent for ISP License
The department will analyse your application and if it finds the details and documents satisfactory, it will issue you a letter of intent. This letter will entail the details of entry fees, performance bank guarantee and financial bank guarantee you need to deposit within the mentioned due date.
Step 5: Sign the final ISP License agreement
Once you fulfil the requirements mentioned in the LOI, Department of Telecommunication will send you the ISP license agreement after signing it. Sign it. Take a copy and revert it back to the Department of Telecommunication.
You’ll then obtain the ISP License in India.
That was your answer to How to get Internet Service Provider License. If you want more information about the ISP license or just want to confer with us about the process, reach out to our ISP license consultant.