National Long Distance is a service that entails voice, data, and other telecommunication facilities over long distances within India. You can only provide said service if you have the approval of Department of Telecommunication, known as the National Long Distance License.
This blog dives into the following aspects of this license:
- The definition of the license.
- The eligibility criteria that you need to meet to obtain the license.
- The standard procedure that you need to follow.
- The documents required.
- And, how you can make the process streamline and obtain the license easily.
What is National Long Distance License?
Providing voice, internet, fax and other telecommunication services over long distances is a facility that can only be provided by those with special permission from the Department of Telecommunication. The permission is known as National Long Distance license and once you obtain it, you become a national long distance operator.
What is the eligibility Criteria to become a National Long Distance Operator?
Following are all the points associated with the eligibility criteria of the National Long Distance Operator License or the NLD License:
- Company Incorporation: Staying integral to its roots, the Department of telecommunication refuses to issue a license to an individual. You need to establish a company before you can obtain the license to become an NLD Operator.
- Prescribed application format: You need to fill a standard application form. If you try to deviate from its prescribed format, the DOT won’t accept your application.
- You can only obtain one NLD License: DOT only allows one license to be held by a single company.
- Entry fee of the NLD License: As an applicant of the NLD License, you’re required to pay a non refundable entry fee of INR 2.5 Crore.
- License fee has to be paid annually: Only opt for the NLD license if in addition to paying the entry fee, you’re financially stable enough to bear the license fee. It has to be paid annually and is 15 percent of the adjusted gross revenue of that year.
What is the procedure to obtain the license?
The procedure to become a facilitator of National Long Distance Service is as follows:
- Gather the required documents: Every document needs to be duly sign and certify by the appropriate authority.
- File the online application of NLD License: Department of Telecommunication runs a portal called SARALSANCHAR. It’s a platform that hosts application filing modules for many licenses including the NLD license. Go to this platform. Register and login and start filling the application form. Upload the required documents and pay the application processing fee to finalize submitting the application.
- Obtain the letter of intent: After the DOT processes and accepts your application, you’ll receive a letter of intent. It will contain the amount of entry fee you need to submit and the date by which you have to do so.
- Follow up with the requirements mentioned in the Letter of Intent and obtain the NLD License.
What are the documents require for the National Long Distance License?
Following are the documents require to become National Long Distance provider.
- Certificate of incorporation of your company
- Memorandum of Association and Articles of Association of your company.
- Business plan
- Funding arrangement details
- Pay order or DD of the application processing fee
- List of directors or promoters of the company
- Equity details of the company certified by a Company Secretary or a Practicing Chartered Accountant
- In case you have access to Foreign deposit, provide a copy of agreement between your company and the foreign investor.
- Copy of Board resolution
How can make the procedure of obtaining the NLD license streamline?
While the process of obtaining the license appears quite straightforward, you know that when it comes to government licenses, the steps are hardly as cut and dry.
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When the DOT starts to process your application form, you might run to many obstacles along the way. They include:
- Errors in the application form
- Delay in the application’s processing due to some unexplained reason.
- Missing documents.
- Sudden changes in your business structure.
To obtain the NLD license, you have to prevent any of those aforementioned issues. You need experts who can:
- File the application on your behalf so that there are no errors in it.
- Expedite the application’s processing so that the DOT gives it answer to you in the shortest possible time.
- Draft your documents so that none of them go missing.
- Help you maintain the infrastructural integrity of your business while you’re filing the application.
It’s those experts that would help you streamline the process of getting the National Long Distance operator license.
Fortunately for you, there are NLD License consultants that are ready to assist you on your behest.
Interested in providing National Long Distance service? Here is everything you need to know about the NLD license, your first step of becoming a National Long Distance Operator.