What License is Required to Start Internet Business?

Telecom

What License is Required to Start Internet Business?

Registrationwala

In India, an internet business is a business authorized by the Department of Telecommunications (DoT) to offer internet services to the customers. Only businesses registered under Companies Act are eligible to get authorization from DoT. 

In this article, we shall discuss the necessary licenses and certificates to start an internet business in India.

Why Start an Internet Business in 2025?

In today’s time, the internet has become more important than ever before. In the past, the internet was mostly a tool for communication and accessing information. But now, it has become a fundamental part of daily life of individuals, impacting education, work, healthcare, etc. Therefore, 2025 is the perfect time to start an internet business.

Licenses and Certificates Required to Start Internet Business

The following licenses and certificates are required to start internet business in India:

1. Certificate of Incorporation

First and foremost, you need to register your business under the Companies Act as a private limited company or public limited company. This is a mandatory requirement set forth by the DoT for granting internet license. To register a company, you need to file a company registration application via the official MCA portal of the Ministry of Corporate Affairs. For the application, you must use prescribed form SPICe+. Fill in all the details in the form, and attach all the necessary documents. Once done, you can go ahead and file the application by paying the prescribed application fee.

Once the Registrar of Companies (ROC) receives the application, it’ll verify all the details mentioned in the form as well as the documents you attached. If the application meets all the requirements, ROC will register the company and issue a certificate of incorporation. After this step, you can move ahead to the next step.

Documents Required 

To register a company in India and secure a certificate of incorporation, you require the following documents:

2. Internet License

The internet license is granted by the Department of Telecommunications (DoT). This license is mandatory for providing internet services in India. It is important to note that there are 3 different types of internet licenses in India. 

Class A type of license allows a business to provide internet services across the country. The Class B type of license allows the business license-holder to provide internet services at a state level or in a metro city. Class C license allows the business to provide services in secondary switching areas. 

Depending on your requirements, you must choose the internet license type. After choosing, you can file an application with the Department of Telecommunications. Once DoT issues this license, it remains valid for a period for 20 years. 

Documents Required

While filing the application, you will require the following documents. Make sure you prepare all documents carefully:

3. Shop and Establishment Certificate

To operate a business in India, it is essential to obtain a shop and establishment certificate. Every state/union territory in India has its own version of the Shop and Establishment Act. 

Therefore, you must obtain the shop and establishment certificate in accordance with the Act applicable in your state/union territory. You must secure this certificate within 30 days of commencing your business.

Documents Required

To secure shop and establishment certificate, you will require the following documents while filing an application:

4. GST Registration Certificate

GST registration is a mandatory requirement for businesses whose annual turnover exceeds Rs. 40 lakhs and Rs. 20 lakhs for services. Therefore, if your internet business crosses these threshold limits, it’ll be mandatory to register for GST. 

For registering, the process needs to be completed online via the official GST portal. Once registered, your business will receive a GST Registration Certificate. This certificate contains Goods and Services Tax Identification Number (GSTIN).

Documents Required

To secure a GST registration certificate, you require the following documents:

ISP License in India

Conclusion

To provide internet services in India, you must register a private limited company or a public limited company under the Companies Act 2013. This is a mandatory requirement for securing an internet license from DoT. Individuals and sole proprietorships are not eligible to secure an internet license in India. Apart from registering your company and securing an internet license, you must also secure a shop and establishment certificate and GST registration certificate.

If you need assistance in setting up an internet business, connect with Registrationwala! We’ll help you file an application with DoT for securing ISP license for providing internet services!

Related post

Subscribe to our newsletter