ISP License: A Complete Guide

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ISP License is the certification issued by the Department of Telecommunication to those who want to setup an Internet Service Providing Centre in India. It’s a license that has been in most demand in recent years due to India’s inclination towards digitization. But how does one get this license? What are the steps involved? How much it would cost you? What are the documents you need to submit? These are the questions we have answered through this article.

The various Categories of ISP License in India

Internet Service Provider centres come in several shapes and sizes. Some provide internet access to the whole country; others provide the same to a small village. Depending on area these services cover and the scope of these services, ISP License online registration can be divided into three categories:

  • Category A of ISP License: A Cat A Internet Service Providing Centre is setup to provide internet connectivity to the whole country. The ISP License agreement for this license is the biggest.
  • Category B ISP License: A Cat B ISP provides internet access to either one state or one of the metropolitan cities. It’s the license that most people seek because of its customer base – cities that have both offices and residences who need high speed internet.
  • Category C ISP License: A category C ISP concentrates its services within one small region. It provides internet access to one small village or town. Simply put, it’s used to provide internet access to one SSA.

Each category comes with its own ISP license requirements. Most are same. However, the fee you’re required to pay each category is drastically different.

How to get Internet Service Provider License?

Let’s answer the question of how to get ISP license in India.

  • Incorporate an internet company: First, you need to become eligible to apply for the ISP license by incorporating your ISP business as an ISP company.
  • File the online application of unified license: There is only one application for ISP license: Unified license for ISP registration. When you’re filling it, you’ll input the details pertaining to your ISP Category. To finalize the submission, you’ll pay the requisite application processing fee. The fee is different for each category:
    • Category A ISP: INR 50,000/-
    • Category B ISP: INR 15,000/-
    • Category C ISP: INR 10,000/-
  • DOT will process the application: This application you’ve filed will be processed by the DOT officials. IF they don’t find any issues with it, they will issue you a letter of intent.
  • Follow the instructions mentioned in the Letter of Intent: Letter of Intent or LOI will make you deposit certain amounts that are part of other ISP license requirements. These are entry fees, performance bank guarantee and financial bank guarantee. They vary depending upon your ISP category as follows:
    • Category A
      • Entry Fee: INR 30 Lakh
      • Performance Bank Guarantee: INR 2 Crores
      • Financial Bank Guarantee: INR 10 lakh
    • Category B
      • Entry Fee: INR 2 Lakh
      • Performance Bank Guarantee: INR 10 Lakh
      • Financial Bank Guarantee: INR 1 Lakh
    • Category C
      • Entry Fee: INR 20 thousand
      • Performance Bank Guarantee: INR 50 thousand
      • Financial Bank Guarantee: INR 10 thousand

In addition to these instructions, you’ll also receive the ISP license agreement format. Read it carefully

  • Sign the ISP License agreement: Upon fulfilling the requirements mentioned in the letter of intent, you’ll sign an ISP license agreement with the Department of Telecommunication. This agreement or ISP license will be valid for a span of 20 years.

Documents needed for ISP license

Following is the list of documents that the applicant – you – need to submit the Department of Telecommunication:

  • Incorporation certificate
  • Memorandum of Association
  • Articles of Association
  • List of directors of the company
  • Shareholding pattern of the company
  • Nature of your ISP described on a stamp paper
  • Net worth certificate
  • Audited Balance sheet

Conclusion

This is the complete guide of getting ISP License in India. If you still have any queries or you’re need of a license, feel free tor each out. Our experts will make sure that the telecommunication department heeds to your requirements and grant you the ISP license in a timely manner.

This is the ISP license: A Complete guide. It provides all the information about ISP license category, the license registration fee and the ISP license document. For more info, reach out to Registrationwala.

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