OSP registration refers to the authorization provided in the telecommunication businesses to provide IT-enabled services that utilize telecom resources. For example – Call center in India, BPOs, tele-coaching, tele-hospitals, tele-training, e-commerce, tele-medicines, network operation centers and various other IT enabled services using telecom assets.
Requirement of an OSP license for starting a call center?
For an IT-enabled or an OSP service provider like a KPO, BPO, call center apply or any other, it is not possible to function without using telecom resources. If these resources go on the wrong hands, it can prove extremely dangerous for the nation. That’s the reason; the telecommunication department of India has made it compulsory for the call centers to apply for the OSP license. What do you guys think? Here in this post, we will discuss that, we are going to search and dig deep to find the reason for the requirement of an OSP license in India.
Reasons – why OSP is required for call centers?
Any kind of business you run needs approval from the government officials for running their operations. Thus, the call center is no exception and to use large amounts of telecom assets, companies need approval from the telecommunication departments of India. Why OSP registration is important? It is this approval based on which the companies can run the call centers in the country. The reason why the approval is required for running the call center can be understood in these steps:
1) Management of telecom resources – As we mentioned earlier at the beginning of this page –telecom resources are high-powered and they can prove devastating if fall into wrong hands. By tying up the BPOs and call centers under the OSP license, the government uses it like a legal contract to ensure that no telecom resources are exploited.
2) Systematic compliance – The OSP registration is valid for 20 years. Each year, the annual return of an OSP is deposited to the telecommunication department specifying the activities undertaken and mentioning the current status of the OSP license. After that, there is a need for submitting an annual return for the OSP license renewal within 6 months of the financial year completion.
After you file for the application for the OSP license, you accept to bind to an organized agreement. On a regular basis, you need to fill up these forms and submit them. It consists of your annual returns, income tax returns, and any change to the information that will help inform the government officials about your call center which is good for your business in the long run.
3) Having an OSP license provides a legal standing – Currently, there are thousands of call center in India operating illegally. If you take a look back in November and December 2018, there were several call centers who were caught right-handed by the cybersecurity agencies for running fraudulent operations cheating people of their hard-earned money in the name of tax collection, etc. In case, if you had a call center providing genuine services and had OSP registration, there are chances that no such raids would have been conducted at your working place as an OSP license provides you a legal standing.
4) You become answerable – It makes you answerable which is what makes you doing business praiseworthy. An OSP license makes your call center accountable to government as well as people around you – which forces you to engage in lawful business practices.
5) The lifecycle of your call center gets increased – A call center that is engaged in ethical operations and has an OSP license is eligible to run for almost 20 years. A call center running without the license (even if you call it a call center) can be permanently removed by the government in just a couple of days. Therefore, getting an OSP license for your business is like you are giving 20 years of life span to your call center so your business can run for a complete 20 years while making lucrative profits.
6) OSP registered business is more focused and it let you be meticulous about the operations – There are several processes that you will need to consider during filing for the OSP registration that you won’t think about doing things another time. The business plan, network diagram, a good understanding of work- filing for OSP license in India lets you consider these things – all of these are important elements of a successful business.
Documents required for OSP license filing:
The call centers, BPOs, are the thriving businesses that add on a large portion to the GDP in India. Starting a call center in India has never been so easier. There are certain documents required for the OSP registration:
1) LLP agreement or certificate of incorporation – In order to apply for an OSP registration, you need to be a registered business entity. There are 2 business types that are considered qualified for the license – The private limited company and an LLP. You need a copy of the LLP agreement or a COI signed by a CA or a company secretary.
2) MOA (Memorandum of association) – it is to specify that your company is providing IT enabled services to customers.
3) AOA (an article of association) – It describes the limitations and interests of the company.
4) List of company directors and list of shareholders of the company.
5) Company’s shareholding patter – A shareholding pattern is also required to ascertain how much capital is invested in the company.
6) Network diagram – It specifies how your company is using the telecom assets and it needs to present in the diagram form.
7) You also need to write a note on specifying the type of OSP you need.
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