Overview of ISP License
ISP license registration An ISP license, also known as an Internet Service Provider License, is an official authorization issued by the government. It enables a company or organization to provide internet services to clients. This encompasses granting internet access through different technologies, such as broadband, Wi-Fi, satellite, or mobile networks
Types of ISP Licenses
Full ISP License: This grants permission to offer the full range of internet services, including data transmission, internet access, hosting, and value-added services like email and VoIP.
Limited ISP License: This may restrict the types of services you can offer. For example, a limited license might only allow you to provide internet access, but not hosting or other value-added services.
Wireless ISP License: This is required for providing internet services using wireless technologies like mobile networks, satellite, or microwave links.
Value-Added Service Provider (VASP) License: This focuses solely on value-added services like email, web hosting, or content delivery networks, often without providing direct internet access.
Based on geographic coverage:
National License: Allows you to operate throughout the country.
Regional License: Grants permission to operate in a specific region, state, or city.
Local License: This may be limited to a single city or municipality.
Benefits of ISP License:
There are a number of benefits to getting an ISP license from the Department of Telecommunications. We have noted down the most important ones. Taxlegit makes sure that you enjoy these benefits once you acquire an ISP license.
- Limited Investment: Compared to earlier days, getting an ISP license involved paying hefty fees for bandwidth and other important facilities. It also had just one option: getting an ISP franchise from a major company in the telecommunications industry. However, now getting an ISP license means a limited investment based on the type of license you are willing to take. Hence, anybody can now acquire an ISP license and start an Internet connection business.
- Conduct Business as Per Your Own Planning: Once you are an Internet Service Provider (ISP), you have the freedom to conduct business on your own terms, which means you can buy an Internet connection from a number of different providers and distribute it in your area accordingly, build your own brand and pricing schemes suiting the area that you are operating in, and use your own techniques and equipment to build a business.
- Can you operate a B2B model? This is an era of business on the Internet, and a lot of businesses depend on Internet connectivity. Hence, as an ISP license holder, you can easily start a B2B model wherein you can provide bandwidth to all types and ranges of businesses in your area.
Online ISP License:
Obtaining an ISP license can be done online, however, it’s a process that requires fulfilling certain criteria and filling out forms and documents, which can be a cumbersome process. Thus, Taxlegit takes away this trouble from you by applying for an ISP license on your behalf. From advising on the category of ISP license to document collection and application, our team of experts handles the whole process.
Process of ISP License Registration
You are requested to follow the mentioned process step by step for ISP License Registration:
1) Carry out the documents:
Gather and organize all the important papers and information you need for your ISP license application, like business plans, financial records, company papers, details about your network, and security plans.
2) Following the Rules:
Make sure you're following all the laws and regulations set by the government or other groups that oversee ISPs in your area. This might mean getting approvals or permissions from the right people.
3) Sharing technical details:
Provide clear information about how your ISP works, like how your network is set up, how much data it can handle, and what equipment you're using.
4) Financial Stability:
Show that your ISP business is financially stable and secure by giving predictions about money, sharing financial statements, and proving that you've invested enough money to keep your business going.
5) Security Measures:
Explain how you're keeping user info safe, stopping online attacks, and making sure the internet services your ISP provides are private and reliable.
6)Submission of the Application:
Fill out the form for an ISP license and submit it to the right authority in your area, along with all the needed papers.
Documents Required for ISP License in India:
Following are the documents required to obtain an ISP license.
- Certificate of Incorporation of Business.
- Memorandum of Association & Articles of Association of the Company.
- Category of license to be obtained.
- Power of attorney to an authorized person for signing from the Board of Directors of the company.
- Details of the directors, promoters, and shareholders of the company.
- A certificate of total equity confirms that you are financially capable of handling your business.
- In the case of FDI, a Foreign Equity Approval Certificate from the Government of India.
- Registered Office Address & Address Proof.
ISP license costs
The cost of ISP license registration in India can vary depending on the type of license you apply for and other factors. Here's a breakdown of the fees involved:Non-Refundable Fees
Application Processing Fee: All licence types require a non-refundable processing fee of INR 15,000. This fee must be paid at the time of submitting your application through a bank challan or online payment.
Performance Bank Guarantee: Once your licence is approved, you need to submit a performance bank guarantee equivalent to six months of the licence fee. This amount acts as security for fulfilling your licence obligations and will be refunded upon licence expiry or cancellation if you comply with all regulations.
Refundable Fees
Entry Fee: The entry fee varies depending on the licence type you apply for:
Class A ISP Licence: INR 30 Lakhs
Class B ISP Licence: INR 2 Lakhs
Class C ISP License: Not applicable, no entry fee for this category.
Additional Costs
Security Audits: Depending on the licence type and government requirements, you may need to bear the cost of security audits conducted by appointed agencies.
Legal and Consultant Fees: Consider the potential fees for seeking professional guidance from lawyers or telecom consultants who can assist you with the application process and ensure compliance with regulations.
Total Cost
Summing up the above, the total cost of ISP licence registration in India can range from INR 46,500 (for a Class C licence) to INR 31.5 lakhs (for a Class A licence) or even higher, depending on potential audit fees and professional assistance costs.
Procedure for ISP License:
Acquiring an ISP license in India can be complex, but knowing the specific procedure helps ensure a smooth journey. Here's a detailed breakdown of the steps involved:
1. Choose your license type
India offers various ISP licenses, each with different permissions and limitations. Choose the one that best aligns with your business goals:
Class A ISP License: Allows pan-India operations for data transmission, internet access, and value-added services like VoIP.
Class B ISP License: Authorizes regional internet access services within a state or Union Territory.
Class C ISP License: Permits internet access services within a specific district or city.
Other licenses: Specific licenses for wireless ISPs, satellite communication providers, and MVNOs are also available.
2. Prepare your application
Gather the necessary documents, including:
Company registration documents: Certificate of Incorporation, Memorandum of Association, Articles of Association, PAN card, and TAN (Tax Deduction and Collection Account Number).
Technical specifications: network infrastructure details, bandwidth capacity, security policies, and the technical expertise of personnel.
Financial documents: audited financials for the past three years, business plan with financial projections; bank statements.
Other documents: security clearances, compliance certificates, and legal agreements with third-party service providers (if applicable).
3. Application Process
Apply online: Submit your application on the Department of Telecommunications (DoT) e-licensing portal: https://dot.gov.in/isplicense.
Pay application fee: Deposit the non-refundable processing fee of INR 15,000 through a bank challan or online payment.
Physical submission: Send hard copies of your application and supporting documents to the DoT headquarters in New Delhi.
Taxlegit Guide for ISP License:
Taxlegit, it's likely a service or platform related to tax compliance or legal matters, Taxlegit provides guidance and service for ISP license registration to you.
Taxlegit assists with tax compliance for businesses.
Getting an ISP license involves more than just taxes.
Taxelgit helps you to apply for licenses from regulatory bodies.
Requirements include having the right infrastructure, technology, security, and financial stability.
Taxlegit may help with taxes, but for an ISP license, you need to follow many more rules and regulations.
