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VNO License | Everything you need to know

By Shreya Durgan

Today licensing is necessary for everyone starting a business. But, you must first complete your Company Registration process before applying for a license. Further, you have to obtain a VNO License for starting an Internet Service Provider Business issued by the telecommunication department.

Now let's learn in detail about the VNO License.

What is a VNO License?

VNO (Virtual Network Operator) buys bandwidth and resell them to internet users virtually. However, this license is for operating on a small scale.

The TRAI (Telecom Regulatory Authority of India) issues the license after evaluating the application.

Three categories of VNO License:

(National Area) Class A – For Pan India operations.
(Telecom Circle/Metro Area) Class B– Issues for 24 primary states or Metro Cities.
(Secondary Switching Area) Class C – A secondary switching area is a government-defined area covering small villages, towns or districts.

Click here to see the list of SSA in India.

You are eligible for VNO License if :

Registered as a Pvt Ltd Company/Public Ltd Company/One Person Company.
Memorandum of Association (MOA) should have the title "Internet Service Provider" discussed.

Documents Required for VNO License

Copy of Company Incorporation
Articles of Association
Memorandum of Association
Equity Details Certificate
Certificate from Company disclosing the status of Foreign holdings
Networth of the Company Certificate
Paid-up Capital Certificate
MHA clearance (in case of foreign nationality of a director)
Power of Attorney by resolution of the Board of Directors
Other Documents (if any)
Processing Fee (Non-Refundable)
Details of the directors
Address proof of the registered office

Government Fee Structure of VNO License

Class A

Entry Fee- Rs.15,00,000/-
Application Processing Fee- Rs.50,000/-

Total Capital Required- Rs. 15,50,000/-

Class B

Entry Fee- Rs.1,00,000/-
Application Processing Fee- Rs.15,000/-

Total Capital Required- Rs. 1,15,000/-

Class C

Entry Fee- Rs.10,000/-
Application Processing Fee- Rs.10,000/-

Total Capital Required- Rs. 20,000/-

Steps to apply for a VNO License offline:

Here are the 9 easy steps directed as per guidelines:

Firstly, check the eligibility- This license is only given to a company.
Secondly, classify yourself under the class mentioned above.
Thirdly, fill the form that you can download from the official website.
Submit the application form with the fee and wait for the reply.
Further, attach the documents required.
Meanwhile, the TRAI will evaluate your application and give you the details.
After receiving the letter of intent, follow further instructions in the letter.
Then, submit the bank guarantees and deliver the guarantee agreement to the DOT.
Finally, you will receive the VNO License after paying the remaining unified license bill.

Timeline

It takes about 3-5 months for the complete process of getting a VNO License.

The telecommunication department issues a "letter of intent" within two months. After that, it takes about 1-3 months to give bank guarantees and extra information asked by the Telecommunication Department.

Validity

A VNO license in India is valid for 10 years, as per the unified license guidelines.

Points to remember when applying for a VNO License

Firstly, anyone who wants to provide internet services to subscribers needs this license.
Moreover, it is issued to those who buy and sell the internet bandwidth to subscribers.
The VNO holders work within a virtual environment to provide internet access and require lesser hardware. However, for an ISP, the hardware necessities are high as the work environment is physical.

In conclusion, if you operate your business without a license, you will have to pay heavy fines or close down your business. Therefore, to be on the safer side, keep a record of all the documents. Most importantly, acquire all the licenses and permits as soon as possible.

For any further information contact our experts at www.starteazy.in