5 Step guide to start an ISP in India

Do you want to provide internet services in India? Here is a 5 step guide to start an ISP in India. Follow them to the tee if you wish to become an ISP. If you think you're at a disadvantage at any point, reach out to Registrationwala.

5 Step guide to start an ISP in India

An ISP - Internet Service Provider - is a business that is currently serving as the foundation of a digital India. Thus, many with the right financial background and knowledge are aspiring to become an ISP. If you seek the same, read this five step guide so that none of your efforts are in vain.

Step 1: Start a Company

Any good business needs a good foundation - a business infrastructure. An internet service provider, as ubiquitous as it is now - is still quite nuanced. And thus, you need to start a private limited company to setup the foundation of your ISP. The process of starting a company is as follows:

  • Make a decision regarding the name of your company
  • Get the approval for that name
  • Obtain the DSC of the directors
  • Draft the Memorandum of Association that says that providing internet services is the primary objective of your company.
  • Highlight the rules and regulations of your internet services company in the Articles of Association.
  • File the online application of Company Registration
  • After due assessment, you'll obtain the Certificate of Incorporation - proof that you have finally started your company.

Step 2: Gather the required documents to file the application for ISP License

To obtain the ISP license - the permission to finally start your ISP business - you need the approval from the Department of Telecommunication. In this step, you'll know how to answer the first part of the question of how to obtain ISP License in India - which is associated with gathering the right documents:

  • Certificate of Incorporation of your company
  • Memorandum of Association
  • Articles of Association
  • List of directors in your company
  • List of shareholders in your company
  • Audited Net Worth Certificate of your company
  • Description of your nature of business
  • Receipt of the ISP License fee.

Step 3: File the online application of Unified (ISP) License

Saralsanchar is the current portal the hosts the application for Unified (ISP) License. Go to the portal and begin filling the application form. You'd notice that some of the details are too nuanced for a laymen to understand. On encountering such sections of the application, reach out to an ISP license consultant to help you out.

Step 4: Get the Letter of Intent

After receiving your application, the DOT would put its officials at work to assess it thoroughly. If some issues are encountered during the analysis, you'd get the notification. Stay in touch with your consultant during this time to deal with any such issues. Once the application is accepted, you'll get the Letter of Intent.

Once the Letter of Intent is issued, you'd have a certain amount of time within which you'd need to deposit the following:

  • Performance Bank Guarantee
  • Financial bank guarantee
  • Entry

Each of the above would vary depending upon the category of ISP you have chosen to start. Fulfil these requirements and you'd reach the final step of starting your own ISP.

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Step 5: Sign the ISP License agreement and start your ISP

After fulfilling the requirements mentioned in the letter of Intent, you'll receive a signed agreement from the Department of Telecommunication. It's called the unified license agreement of the ISP and it entails the following:

  1. The general conditions on which you're issued the license,
  2. The security conditions that you have to abide by as an ISP,
  3. The annual compliances requirements that as an ISP you're required to fulfil,
  4. Declarations corresponding to your duties as an Internet Service Provider.

Sign the ISP license agreement. Once you do, you have one month to get in touch with a TSP whose bandwidth you'll resell to your subscribers. Sign an agreement with said TSP and submit the details to the Department of Telecommunication. You'll then receive the notification to commence your business.