How to Get An ISP Franchise in India

An ISP is a business entity that provides internet services to its customers. In India, to become an ISP, it is mandatory to obtain authorization from the Department of Telecommunications (DoT). The DoT provides this authorization in the form of an ISP license. Without this license, it is not possible for a business to provide internet services in India. 

Instead of starting your own ISP business from scratch, have you ever considered getting a franchise of an existing ISP? If so, then this blog post is for you! 

What is an ISP Franchise?

An ISP Franchise is a business arrangement wherein you partner with an already-established Internet Service Provider (ISP) to offer their services in a specific geographical area. 

When you get an ISP Franchise, you're basically serving as an internet reseller who purchases bulk internet bandwidth from the parent ISP and reselling it to your local customers. To get a franchise of an ISP, you have to enter into an ISP Franchise Agreement with an internet service provider business with a valid ISP license.

Benefits of ISP Franchise

There are many advantages of obtaining a franchise of an internet service provider:

• When you buy a franchise, you don’t have to worry about building brand awareness from scratch. The ISP’s name is already well known. This makes it easier to gain customers without requiring you to invest heavily in marketing.

• Also, you get access to an already tried and tested business model that has already been successful in other locations. This helps to reduce the risks that come with starting a fresh business.

• Most ISPs provide initial training and ongoing technical support to help you manage installations, troubleshoot issues, and handle customer queries efficiently.

• As a franchise partner, you can purchase internet bandwidth in bulk at discounted rates, allowing you to earn a good profit margin while keeping prices competitive for your customers.

• Many ISPs offer centralized marketing campaigns and promotional materials. This saves you time and effort while helping you attract more customers in your area.

• Franchisees often benefit from early access to the latest technology upgrades and tools. They help you stay ahead of competitors and deliver high quality services.

Popular ISP Franchises in India

Here is a list of some of the most popular ISP franchises in India:

Legal Requirements to Obtain an ISP Franchise

To get a franchise of an existing ISP, you need to fulfill certain legal requirements. These requirements are as follows:

Business Registration

First and foremost, you need to get your company registered with the Registrar of Companies (RoC). You must do this online via the official MCA portal by filing the prescribed form along with relevant documents such as Memorandum of Association and Articles of Articles. 

Once you submit the application, RoC will carefully go through it. If it is satisfied with the application, it’ll issue you a certificate of incorporation. This certificate is a legal document that signifies that your company is a legally registered entity. 

Certificate of Commencement of Business

Once you get a certificate of incorporation, you still need to obtain a certificate of commencement of business. Without the business commencement certificate, you cannot start business operations or exercise borrowing powers. 

Like a certificate of incorporation, a certificate of business commencement is also issued by the Registrar of Companies (RoC). Make sure to get this certificate in a timely manner.

ISP Franchise Agreement

To own a franchise of an internet service provider, you need to enter into an ISP franchise agreement. You must carefully read all the terms and conditions of the agreement including fees, royalties, training, and support before entering into a franchise. Only enter into the agreement if you’re satisfied and convinced. 

TRAI and DOT Compliance

Even if you just run a franchise and not the entire company, you must adhere to regulatory guidelines that the Telecom Regulatory of India (TRAI) and Department of Telecommunications (DOT) issue from time to time. 

While the parent ISP holds the primary license, you may still need to maintain customer records, ensure quality of service standards and submit periodic compliance reports among others. Depending on the franchise model and area you want to operate in, you might need to obtain a Class B or C ISP license as well.

GST Registration

Since an internet service provider provides taxable services, it is essential to secure GST registration if the business annual turnover exceeds the threshold limit. This limit is currently Rs 20 lakhs for service providers in most states, and Rs. 10 lakhs in special category states. 

You must register for GST through the official GST portal by providing necessary documents like PAN, business address proof, identity and address proof directors, bank account details and photos. Once you are done, you will receive a Goods and Services Tax Identification Number, abbreviated as GSTIN, and must ensure compliance with monthly/quarterly returns. 

Also, you must maintain proper records and issue invoices that are GST compliant. If you fail to comply with GST requirements, your business will attract penalties and ultimately, your business operations will get disrupted.

Conclusion

ISP franchise is a good business idea for those who do not want to start their own ISP business from scratch and want to benefit from an existing ISP business’ reputation. To open an ISP franchise, you must ensure certain legal requirements such as company registration with RoC, GST registration, ISP license, certificate of business commencement, etc. For assistance in starting an internet franchise, connect with Registrationwala’s ISP consultants. We’ll help you collect all the necessary documents and file an application for an ISP license with the Department of Telecommunications on your behalf!

Frequently Asked Questions (FAQs)

Q1. Do I need GST registration for an ISP business franchise?

A. GST registration is required if your ISP business franchise’s annual turnover exceeds the threshold limit.

Q2. Is it mandatory to obtain a certificate of business commencement to provide internet services as an ISP?

A. Yes, if you have registered a private limited company, then this certificate is mandatory before starting operations.

Q3. Can an individual secure ISP license or is company registration required?

A. An individual cannot secure an ISP license. To secure this license, one must be a company registered under the Companies Act 2013.

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.