If you're considering launching a new call center business or looking to integrate call center services into your existing offerings, this article can provide you with valuable insights into the registration process and essential details associated with setting up a call centre in India.
Overview
In the pre-1999 era, the telemarketing and teleservices industry in India operated without mandatory registration or regulatory oversight, leading to a lack of control and an environment conducive to fraudulent activities. Recognizing the need to address this issue, the Telecommunication Department of the Ministry of Communication introduced the concept of “Other Service Providers” (OSPs) to categorize companies offering various telecom-related services, including e-commerce, telecommunication, teleshopping, and more.
The implementation of the New Telecom Policy (NTP) in 1999 marked a crucial turning point, making OSP registration mandatory for entities providing call center services in India. This article explores the evolution of regulations and the significance of registering a call center under the Department of Telecommunications (DOT) OSP framework. We delve into the requirements, guidelines, and role of OSP licensing, focusing on its necessity for businesses planning to establish call centers, Business Process Outsourcing (BPO), or Knowledge Process Outsourcing (KPO) units.
Additionally, we discuss the business infrastructure associated with BPOs and the OSP registration, shedding light on the essential components of this regulatory framework.
OSP Registration’s Applicability to Launch a Call Center
The necessity of OSP registration for initiating a call center lies in the requirement for businesses utilizing telecom resources to promote IT-enabled services. As per the guidelines set by the telecom department, entities are mandated to secure an OSP license if they intend to acquire telecom resources exclusively from registered telephone operators. These terms and conditions explicitly prohibit businesses from delivering switched telephone services.
The telecom resources encompass various components, including but not limited to Integrated Services Digital Network (ISDN), Public Switched Telecom Network, Public Land Mobile Network, and the bandwidth of telecom services offered by licensed telecom service providers. Compliance with these regulations is crucial for businesses aiming to establish a call center and underscores the importance of obtaining an OSP license in adherence to telecom department directives.
Prerequisites for Registering an OSP
For OSP registration, an organization, entity, or service provider is required to be incorporated as a private limited company. The initial step in OSP registration involves the creation of a private limited business, a process that is being expedited by the Ministry of Corporate Affairs (MCA) for faster application processing. The MCA is actively promoting the use of SPICe+ to streamline this procedure.
Secondly, to initiate the OSP registration process, a business is obligated to complete the OSP registration application form accurately. The correct format for this form can be obtained from the Department of Telecommunication’s OSP registration page.
Additionally, businesses are required to submit specific documents along with the duly filled forms to facilitate a smooth and efficient registration process.
Documents Required for Registering an OSP
The following documents are required for OSP Registration in addition to the application for OSP in the valid format,
- Certificate of Private Limited Company Incorporation
- Articles of Association (AoA) and the Memorandum of Association (MoA)
- Board Resolution or Power of Attorney
- Name of Business and Proposed Activities
- The Directors’ List
- Present shareholding
Also, it is required that a Company Secretary, Director of the Company, Statutory Auditor, or Public Notary must stamp and certify the aforementioned documents.
Compliances with OSP registration
Once a business has obtained OSP registration, it is imperative to consistently adhere to the regulations set forth by the Department of Telecommunication (DOT) to ensure smooth day-to-day operations.
The validity period for the Other Service Provider license is typically 20 years unless otherwise specified. To maintain compliance, registered OSPs are obligated to submit an annual return, detailing the ongoing operations of the firm. This annual report must be submitted six months before the conclusion of the fiscal year to facilitate the renewal of the OSP license.
In addition to the submission of annual returns, OSPs must persist in adhering to the regulations stipulated by the Department of Telecommunication. To know more about the most recent terms and conditions outlined by the DOT, request a meeting with the experts at Vakilsearch right away!
How Many Types of Dot Osp Licenses Are There?
There are several types of DOT OSP licenses, each catering to specific operational scopes:
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International License
The international DOT OSP license is necessary for entities providing telecom-related services across international borders. It is a prerequisite for those engaged in offering services on a global scale.
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Domestic Licenses
Organizations exclusively providing services within national borders are required to apply for a domestic DOT OSP license. This license is tailored for businesses focusing on operations within the country.
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Domestic and International Licenses
If a business is involved in offering services both domestically and internationally, it must obtain a DOT OSP license that covers both operational domains. In such cases, a bank guarantee is also mandatory, particularly when providing both domestic and international telecom services from a single location.
Validity Period
– The registration license for DOT OSP has a maximum lifespan of 20 years. However, if a corporation shares infrastructure between its domestic and international registrations, the validity is set at 3 years initially, with the option for a subsequent 3-year extension.
Conclusion
In conclusion, it’s crucial to recognize that each DOT OSP license is unique and location-specific. When obtaining a license, it’s important to understand that it pertains to a specific geographical location. However, if you plan to expand and operate from an additional site, you have the option to submit a separate application for a second license after the first one has been granted.
For comprehensive information and expert assistance with the DOT OSP registration process, consider Vakilsearch. Our experts provide end-to-end support, guiding you through the registration process and ensuring ongoing compliance. With our assistance, you can navigate the intricacies of DOT OSP licensing and thrive in the telecom sector.
