BPO business in India

  • September 08, 2016
  • Dushyant Sharma
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Before knowing the process to establish the BPO business let's first educate us about BPO. BPO stands for Business Process Outsourcing which is considered to be one of the fastest growing industries in India. Why BPO business is growing so fast in India is the relevant question. The answer is due to some of the factors which favour the Indian such as economy of scale, cost advantage, utilization improvement and many more.

The key word in BPO business is Outsourcing which is the old aged management concept of having specialisation. In simple terms, outsourcing of a particular process of the business which is just incidental to the main business is the basic premise. This business is simply based on the concept of specialisation. Colloquially, we can say if you are managing your whole business but you feel that there are few areas where you are lacking some skills then you get those things done by someone else who is an expert in that particular fields. In this way, you can focus on your core skills very well and can easily deviate your attention from the trivial issues. I hope by now you understand the concept on the basis of which the whole industry of BPO has been built.

Services offered by BPO in India:

  1. Customer support services: This covers services like call center which resolve consumers queries.
  2. Technical Support services: This covers services like product installation, after-sale services, problem resolution for computer software, hardware, peripherals and internet infrastructure.
  3. Telemarketing services: Contact the potential customers, and creating the customer interest in the services or product.
  4. Book keeping and accounting services: This includes managing customers ledger accounts, receivables, accounts payable, financial statements, bank reconciliation statement.
  5. Online research: Internet search, product research, market research, surveys, web research etc.

Legal framework:

Form of business entity

BPO is basically a plan and set up that plan you have to give a shape to your business you must give a certain form to your plan. It simply means that you should decide which form of business entity you want to set up because you can start your business as a sole proprietorship, partnership firm, LLP, private limited company etc. Each of these entities has its own advantages and disadvantages. So, be careful while choosing any of these entities. But still as per the general opinion of the people, most of the business structure is built as a private limited company. A Private limited company is very easy to manage as compared to the other type of business forms. The most important feature is the limited liability of the owners of the business and transferability or selling of business at much higher prices.

OSP registration

OSP stands for other service providers. Basically, whatever be the service which just have been discussed are required to obtain the OSP registration. OSP registration has been granted by the department of telecommunication by filing a requisite application along with necessary documents. The followings are documents which are required to obtain the OSP registration:

  1. Certificate of Incorporation (COI)
  2. Memorandum of Association and Articles of Association
  3. Board Resolution or POA(Power of attorney)
  4. A brief summary on the nature of business
  5. The present shareholding pattern of the company.

GST Registration

Since BPO is the services oriented industry, therefore, we cannot forget the GST in India. Service tax registration is mandatory in case the value of the taxable service provided exceeds Rs. 9 lakh. Besides obtaining registration under the GST laws, there are some other compliances are also required such as depositing of GST and filing return on half yearly basis.

These are some of the most relevant laws which are applicable to the BPO type business. There are plethora of laws which can be applicable to the business namely labours laws and shop and establishment registration etc.


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Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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