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Things to remember before getting the ISP License in India

An ISP License is a major requirement when it comes to starting an ISP in India. And, it is also the most sought after. However, there are many entrepreneurs who, in the throes of overexcitement, start the process of obtaining this authorization without taking care of certain things first. What are they? In this article, you shall know about the factors that you must keep in mind before applying for the ISP License in India.

Providing internet services have taken precedence in India ever since we have started to enhance our telecommunication sector. As a result, many technical aficionados are coming out of the woodwork to provide internet services. They understand that the recent rise of the telecom sector has opened doors to earn more profits.

However, their excitement for moolah is outweighing their understanding. Consequently, we now witness many failing to obtain the ISP License in India.

To help those enthusiastic entrepreneurs here is a list of things you must know before getting ready to bear the ISP License cost in India.

ISP License can only be issued to a Company

The Department of Telecommunication only seeks participants that have the organization to provide telecommunication services in India. Therefore, it has barred individuals from applying for the certificate to become Internet Service Providers.

The DOT seeks business entities to issue the license. Therefore, before you go to the SARALSANCHAR Portal and fail at the first step, start a company.

There is no minimum capital requirement for the license.

DOT now seeks to promote the telecommunication sector. And that means allowing even those with minimum capital to apply for the telecom authorization. For that reason, it has removed any minimum capital requirement.

However, it doesn’t mean that one does not need the meet a certain financial criterion.

DOT has reduced the Bank Guarantee requirements by 80%

Earlier, the bank guarantee requirements – that made the bulk of the ISP license cost – were high. They were so enormous that many capable service providers could not obtain the license because they lacked the financial strength to meet them. However, recently, DOT, in a bid to involve more telecom service providers in India, reduced the bank guarantee requirements by 80%. Read More: VNO License

You will need to pay an annual license fee as an ISP.

To continue to provide your services, you will need to pay the annual license fee to the Department of Telecommunication. The license fee is calculated as 8% of the Applicable Gross revenue that you earn (ApGR). Applicable Gross Revenue refers to the money you have earned through core internet services.

Not paying the license fee will prompt DOT to flag your company. Thus, take care of these requirements when you finally establish your ISP.


Getting the ISP license is now easy. And, the ISP license is cheaper. However, you must take note of the above when applying for this certification. If you don’t, the Department of Telecom won’t let you stay in business for long.

For further information, contact our telecom consultants. Read More: DPL License

Are you planning to start an ISP in India? Before you do, take care of these aspects when you apply for the ISP license. Understanding them will help you go far.

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