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NLD License

Overview of NLD License

NLD License is the DOT-issu authorization that gives the Licensee the power to provide National Long-Distance Service. It means that the company can provide telecommunication services over a long-distance network. That long-distance network is one that connects many Short Distance Charging Areas (SDCAs). A national long-range provider, also known as NLDO, is a telecom operator who provides NLD service by providing the necessary digital resources to carry long-distance telecom services at the national level.

  • Understanding NLD License and its Significance in the Telecom Industry

The NLD License, issue by the Department of Telecommunications (DOT), is a crucial authorization that empowers the Licensee to offer National Long-Distance Service. Essentially, this means that the company is permitt to provide telecommunication services over a long-distance network. This long-distance network connects various Short Distance Charging Areas (SDCAs).

  • Telecom Services Explain

A National Long Distance Provider, also referr to as an NLDO, is a telecom operator that facilitates NLD Service by providing the necessary digital resources to transmit long-distance telecom services on a national level. The telecom services cover by NLD can encompass voice calls, data transmission, fax services, text messaging, and multimedia video communication.

Key Points to Note about the NLD License

  1. Company Registration: To be eligible for applying for the NLD License, it is mandatory to register your telecom business as a company.
  2. Prescribed Application Format: The license can only be obtain if you submit the application in the prescribed format.
  3. Single License: Multiple NLD licenses are not permitt. As a sole applicant, you can apply for one National Long Distance Service license only.
  4. Validity and Renewal: Once issue, the NLD License remains valid for 20 years. Afterward, it can be renew for an additional 10 years.
  5. Entry Fee: The license requires an entry fee of INR 2.5 Crore, which is non-refundable.
  6. Annual License Fee: Along with the entry fee, an annual license fee must be paid, amounting to 15 percent of the Adjust Gross Revenue.

Eligibility criteria for NLD License in India

  1. Company Registration: Register your telecom business as a company to meet the eligibility requirements for applying for the NLD License.
  2. Prescribed Application Format: Ensure that you submit the license application in the designat format.
  3. Single License: Only one National Long Distance Service license can be appli for by a single applicant.
  4. Validity and Renewal: The NLD License is initially valid for 20 years, with an option to renew it for an additional 10 years.
  5. Entry Fee: An entry fee of INR 2.5 Crore must be paid to obtain the National Long Distance license, which is non-refundable.
  6. Annual License Fee: In addition to the entry fee, an annual license fee equal to 15 percent of the Adjust Gross Revenue is required to be paid.

Points to ponder before filing for NDL License

To apply for an NDL (National Long Distance) License, you must fulfill the following criteria:

  1. The NLD business must be register under the MCA (Ministry of Corporate Affairs) Companies Act, 2013, to apply for the NLD License.
  2. You must file for the application of the prescribed format, otherwise, it risks cancellation.
  3. Multiple applications for an NLD license are not necessary. A single license for National Long Distance Service will provide the necessary authorization.
  4. The validity for the NLD License is 20 years. After the license expiry, you can file for renewal for 10 years.
  5. The entry fee for an NDL license is INR 2.5 Crore. This entry fee is non-refundable.
  6. The entry fee is a one-time payment paid off at the time of license registration. In addition, you have to pay an annual license fee, which is 15% of the adjust gross revenue of the NDL company.

Documents required to obtain an NLD License

  1. Certificate of Incorporation
  2. Memorandum of Association
  3. Articles of Association
  4. Complete Business Plan
  5. Funding arrangement for financing the project
  6. Pay order or Demand draft of the processing fee
  7. List of directors/promoters/partners/shareholders of the company
  8. Equity Details with Certificate of Company Secretary of the company’s statutory auditor
  9. Certifi copy of the agreement between the Indian Company and the foreign partner
  10. Board resolution that authorizes the authoriz signatory

FAQs About NLD License?

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