Meaning
Permit required for companies providing data processing and online retail hosting ensures that the digital services market remains regulated. The value-added telecommunications service licence is issued by the Ministry of Industry and Information Technology. It covers a wide range of activities including cloud computing and information search services.
The requirement stops applying to companies that only use the internet for their own internal operations without providing services to third parties.
Service Classification
Different categories of the licence apply to different types of business models. A company must identify whether it is providing information services or internet data center services before applying. Each category has its own set of technical and financial requirements.
Capital Structure
Foreign ownership in a company applying for a value-added telecommunications service licence is typically capped at fifty percent. This restriction requires international investors to find a local partner for their digital ventures. Some specific exceptions exist for companies registered in certain pilot free trade zones.
Licence Maintenance
Holders of the permit must undergo an annual inspection to prove that they are still meeting the security and operational standards. Failure to pass this inspection results in the suspension of the licence. This ensures that service providers maintain a high level of data protection.
