Provision of Satellite Service in India

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One of the access choices is putting in an Indian Satellite System (“ISS”) using the foreign satellite tv for pc operator for imparting satellite-based total offerings on a business basis in India and be eligible for all of the preferential treatment accorded to such structures in provider provisioning in India. To establish an ISS, the foreign satellite tv for pc operators and domestic Indian business enterprise, as the case can be, (“Satellite Company”) could need to acquire numerous approvals and registrations with the Indian regulatory government.

Incorporation of the Indian Company

To set up an ISS, a Satellite Company must incorporate a company (“Newco”) underneath Indian laws. Under the Companies Act, 1956 of India, an organization confined by stocks can be included as a personal enterprise or a public employer. Under tax and different statutes and rules, private and public corporations are dealt with similarly. Therefore, Satellite Company might also bear in mind incorporating Newco as a personal agency.

Registration with CAISS

In the 12 months 1997-1998, the Government of India (“GoI”) introduced the Satellite Communication Policy Framework (“SatCom Policy”) and formulated the norms, tips, and techniques for registration of Indian satellite systems via private Indian groups and allowed constrained use of overseas satellites (i.E., uplink from India) in unique situations furnished the satellites had been coordinated with the INSAT satellites. Under the SatCom Policy, the GoI legal Indian Space Research Organization (“ISRO”) to set up a Committee for Authorizing the established order and operation of Indian Satellite Systems (“CAISS”), with its Secretariat at the Satellite Communication Programs Office at ISRO Headquarters at Bangalore.

Satellite

For the functions of registration with CAISS, Newco might want to post a detailed mission thought to CAISS declaring info of its undertaking together with the aims, objectives, and history of Newco consisting of its equity structure; the satellite proposed to be launched or leased, spacecraft description, production and establish the information of the satellite, skills of all payloads and machine, network description and characteristics, orbit spectrum requirements, spacecraft release automobile; facts and location of satellite tv for pc launches proposed by way of Newco, and so forth.

The Satellite Coordination Programme Office, which serves because the Secretariat of CAISS, critiques and examines the utility in light of the SatCom Policy, norms, pointers, and processes approved via the GoI. The Secretariat will, after that, put up the utility for CAISS’ attention. In phrases of DoS’s Internal Rules for the approval technique, the applicant corporation needs to provide its orbit-spectrum necessities with trade alternatives indicating priority. The applicant’s business enterprise needs to have an orbital slot before applying CAISS.

Once CAISS grants its acclaim for working the satellite device, Newco will want to coordinate with Wireless Planning & Coordination Wing to initiate inter-gadget coordination and problem authorization to perform the satellite tv for pc according to the ITU Radio Regulations. The GoI may also authorize Newco to immediately coordinate with different satellite tv for pc structures operators on technical components. The ISS implementation fame might remain monitored by using CAISS.

Foreign Investment Approval

GoI’s overseas direct investment (“FDI”) policy in Indian agencies, either by way of putting in place of wholly-owned subsidiaries or joint ventures, is regulated with the aid of the Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Transfer or Issue of Security via someone resident outdoor India) Regulations, 2000 (“FDI Regulations”). In phrases of the FDI Regulations, FDI is authorized on an automated foundation in nearly all sectors besides wherein the notion (i) requires a business license; or (ii) falls out of doors notified sectoral policy/caps or beneath sectors in which FDI isn’t always authorized; etc.

Proposals that do not now fulfill the parameters prescribed for automatic approval require prior approval from the Foreign Investment Promotion Board (“FIPB”), an equipped body functioning under the Department of Economic Affairs, Ministry of Finance, to remember and advocate FDI. The FIPB consists of individuals from the Department of Economic Affairs, Department for Industrial Policy & Promotion, Department of Commerce, and Ministry of External Affairs.

In phrases of the FDI Regulations, an Indian enterprise can acquire foreign equity funding to seventy-four percent to set up and operate Indian satellite tv for pc systems challenge to obtaining earlier FIPB approval. Once FIBP approval is obtained, the Indian employer can at once receive finances through banks legal to deal in foreign exchange and problem shares to overseas investor situation to filing prescribed reviews with the Reserve Bank of India (“RBI”) within 30 days from receipt of the share attention quantity and the issue of stocks to the foreign investors.

Satellite Company will want to post an in-depth utility with the FIPB to acquire its foreign funding acclaim. The utility would like to be supported through documents which include the brochures and profiles of Satellite Company or its associates, marketing strategy/task file, memorandum and affiliation of articles of Newco (if Newco has already been included), and so on.

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