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OSP Registration in India
As per the New Telecom Policy (NTP) 1999, service providers in India involved in providing services like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call center, network operation center and other IT Enabled Services, using telecom resources are termed as “Other Service Providers” (OSP). These Other Service Providers or OSP’s are required to obtain a OSP Registration from the Department of Telecommunication (DOT). In this article, we look at the process and procedure for obtaining OSP Registration in India.
As per the Terms and Conditions formulated by the Telecom Commission in February 2000, OSP’s can take telecom resources from authorized Telecom Service Providers only and should not provide switched telephony. Further, the Department of Telecommunication must register OSPs using telecom resources for providing an array of services like call center, tele-banking and other IT enabled services. Therefore, the Department of Telecommunication (DOT) now registers OSPs in India and has registered over 2500 cases since inception.
OSP Registration Applicability
Service providers in India involved in providing services like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call center, network operation center and other IT Enabled Services, using telecom resources are required to obtain OSP Registration. Telecom Resources are telecom facilities used by an OSP including, but not limited to Public Switched Telecom Network, Public Land Mobile Network, Integrated Services Digital Network (ISDN) and /or the telecom bandwidth provided by authorized telecom service provider.
OSP Registration Requirement
To obtain a OSP Registration in India, it is mandatory for the entity to be a Private Limited Company. Therefore, Entrepreneurs having plans for starting a call center or BPO or e-commerce or other IT Enabled Services must incorporate a Private Limited Company. The following are the documents necessary for OSP Registration in addition to the application in the prescribed format:
- Certificate of Incorporation of Private Limited Company
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Board of Resolution or Power of Attorney authorizing the authorized signatory
- Name of Business and Activities Proposed
- List of Directors
- Present Shareholding
The above documents must be certified with seal by a Company Secretary or Director of the Company or Statutory Auditor or Public Notary.
OSP Registration Compliance
Once a OSP Registration is approved, the license is valid for a period of 20 years – unless otherwise expressly mentioned. To maintain compliance, each of the OSPs are required to submit an “Annual Return” to the DOT mentioning the activities undertaken and the present status of the OSP. The annual return for OSP License renewal must be submitted with 6 months of completion of financial year.
In addition to the above, OSPs must maintain compliance with the Terms and Conditions prescribed by the Department of Telecommunication for OSPs. The detailed terms and conditions for OSP Registration and OSP Operation to be maintained can be
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OPC Registration FAQ,s
How many people are required to start a Partnership firm?
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
What are the requirements to be a Partner in a Partnership firm?
The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
What are the documents required to start a Partnership firm?
PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.
What is the capital required to start a Partnership firm?
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
Who will register a Partnership firm?
Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.
What are the advantages of a Registered Partnership firm?
Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. Also, only a Registered Partnership firm can claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is advisable for Partnership firms to get itself registered sooner or later.
How to open a bank account for a Partnership firm?
To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.
Will my Partnership firm have a separate legal identity?
No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Will my Partnership firm have a Certificate or Registration?
If the Partnership firm is registered, the Partnership deed will be registered and a Registration Certificate will be issued by the Registrar of Firms.
How to register the name of a Partnership firm?
Partnership firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Partnership firm.
How can I transfer my Partnership firm?
There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.
Can other people invest in a Partnership firm?
Indian Nationals and Indian Residents are allowed to invest in a Partnership firm without any approval. Usually those who invest in the Partnership firm become a Partner of the firm and in the absence of any agreement to the contrary, all partners will have a right to participate in the activities of the business.
What are the annual compliance requirements for a Partnership?
Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.
Is audit required for a Partnership firm?
It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.