Most importantly as the laws and rules are improvised regularly, now you also need an online gaming license India for operating your gaming business legally.
With this in mind, how to start a gaming company is an easy six-step process, but the part to focus on is the license required for it.
Also, you may require special licenses/permits following the state law of the gaming company location.
But, before applying for a license, you must first go for company registration and get your business registered legally.
List of License required for the Gaming Company
- Gaming Machine Technical (software) Operating License
- License Agreement for video games
- A merchant account
- Dedicated server
- Gambling license (if necessary)
With this in mind, to obtain a license to play online games, you must apply to the respective Manager and submit the required and applicable fees.
Validity of a License for Online Gaming in India
The Government’s online skill game license is valid in all states of India except those that explicitly prohibit the activity of online games. It has a validity of only five years.
Fees
For instance, the fees structure is different for every state where gaming is allowed.
For example, here we will talk about Nagaland and Sikkim.
Nagaland
The fee structure for obtaining a license to play skill games in Nagaland is as follows.
- Application fees:
INR 50,000. (It is non-refundable.)
- Annual license fees:
INR 1,000,000(per annum) for the first three years and INR 2,000,000 (per annum) for the next two years.
- Royalty:
0.5% of the total sales of the licensed company (after deducting service tax).
In fact, foreigners or foreign companies cannot apply for an online gambling license issued by the Government of Nagaland.
However, only companies with a majority stake and business judgment in India can apply.
Additionally, the license for online skill games issued by the Nagaland Lottery Administrator is valid for five years. After that, it can be renewed five years after the date of issue of this license.
Sikkim
- Application fee of 500 Indian Rupees.
- Upon receipt of the application, the State Government can execute certain inquiries.
- After completion, issue a provisional license with a validity period of twelve days after receiving a fee of Rs 100,000.
- The State Government may issue a regular license to the licensee. Only, if the licensee sets up the required equipment according to the provisional license and pays a fee of 1,00,00,000 rupees.
- Validity; five years
EIN
The Employer Identification Number (EIN) is a federal tax identification number issued by the IRS that identifies a company as a separate tax authority.
Although technically not a license, EIN guarantees that the company collects payroll tax and is compliant with regulations.
Moreover, you will need your EIN to hire employees, register as an LLC or company, or open a commercial bank account. To submit your EIN, please visit the IRS website.
Business operation license
In addition a business license allows a company to operate in a city, country, or state. Moreover, virtually all online businesses require a version of this license to operate legally.
However, the terms and conditions of these licenses and how they are registered vary from location to location.
Therefore, contact your local city office or visit the Secretary of State’s website to find and apply for the appropriate license.
Usually, the requirements for obtaining these licenses are simple and you have to pay a small fee. Therefore, find out if you need to renew your business operating license from an expert.
However, operating your business with an expired license can result in fees and fines.
After thet obtain a gaming license for the targeted jurisdiction
In short, when choosing a jurisdiction, one must take into account the following:
- Reputation
- Licensing requirements
- Duration of the application process
- Costs and taxes
Also, if you don’t want to bother buying a gaming license yourself and want to save money, you can also become a licensee of a gaming software provider.
Why do you need a license?
- Makes sure the game is a skill game.
- Makes sure the operator is not into gambling activities.
- Skill games are allowed in all states of India except the states that prohibit betting
- Allow those games that can access on web platforms and mobile phones
- Allows to show reliability, the chances of income are high
FAQ:
What fees do I have to pay to obtain an Online Gaming License India under the Online Skills Games Act?
Firstly, licensee must pay 0.5% of total sales achieved game tax/license fee minus service tax, bonuses, cashback, payment gateway fees, etc.
What is the validity of the online gaming license India?
In addition, the license is valid for five years from the date the license issue.
Can I Apply the same process for Mumbai?
Similarly, the same process can be applied anywhere in India. Most importantly, if you have more to know you can go through company registration in Mumbai
To conclude, as more and more people live in the four walls, the online gaming business is booming and, more and more players are entering the market.
Also, providing different types of skill games in compliance with applicable law makes the gaming sector one of the highest-selling providers. Therefore, online Gaming License India has become a must.
Above all in the online gaming business, out-of-the-box handheld devices have become commonplace. Further, as more and more people become interested in them, new horizons for games may open up.
