🛰️ 1. Introduction: Rise of Drone-as-a-Service (DaaS)

India’s drone industry is expected to reach ₹50,000 crore by 2030, largely driven by Drone-as-a-Service (DaaS) companies that provide aerial data collection, surveillance, agricultural monitoring, mapping, logistics, and more.

As lucrative as this sector is, it’s also heavily regulated. If you're planning to register a DaaS company in India, navigating the DGCA, MoCA, Import Policy, and taxation framework is essential.

⚖️ 2. Regulatory Bodies Governing Drones in India

Authority	Role
DGCA (Directorate General of Civil Aviation)	Main regulator for drone registration, pilot licenses, and UIN
MoCA (Ministry of Civil Aviation)	Policy formulation and oversight of the Drone Rules
WPC (Wireless Planning and Coordination Wing)	Frequency allocation for communication devices
MEA/Customs	Governs import-export of drones
GST Council	Taxation and input credit regulation for DaaS services

✈️ 3. Types of Drones & Use Cases in DaaS

🏢 4. Legal Entity Incorporation

To begin any commercial activity, you need to register a legal entity:

✅ Choose from:

• Private Limited Company (recommended)

• LLP

• *Proprietorship (less preferred for drones)

Required Documents:

• PAN Card, Aadhaar, Address Proof of Directors

• Registered Office Proof

• Digital Signature (DSC)

• MOA & AOA

🔁 5. Flowchart: Drone-as-a-Service Company Registration Process

mermaid
Copy
Edit

graph TD
A[Choose Legal Structure] --> B[Register with MCA as Pvt Ltd/LLP]
B --> C[Apply for PAN, TAN, GST]
C --> D[Register Drone with DGCA UIN]
D --> E[Apply for RPTO or UAS Operator Permit]
E --> F[Get Drone Pilot Trained & Certified]
F --> G[Import License/WPC Clearance if Required]
G --> H[Data Privacy & Geo-fencing Setup]
H --> I[Insurance and Contracts Setup]
I --> J[Start Commercial Operations]

a) UIN (Unique Identification Number)

Every drone (except nano) must be registered on the Digital Sky platform to obtain a UIN.

b) Operator Permit

To operate drones commercially, you need:

• UAOP – Unmanned Aircraft Operator Permit (for micro/small drones)

• RPTO – If providing pilot training

c) Compliance Checklist

Compliance	Required?	Platform
Drone UIN	✅ Yes	Digital Sky Platform
Operator Permit (UAOP)	✅ Yes	DGCA
Remote Pilot Certification	✅ Yes	RPTO Certified Center
NPNT (No Permission No Takeoff)	✅ Mandatory	Drone Firmware

🏫 7. RPAS Operator Compliance

If your company wants to conduct drone training or large-scale aerial surveys:

• Apply to DGCA as a Remote Pilot Training Organization (RPTO)

• Appoint DGCA-certified instructors

• Maintain training infrastructure: simulators, classrooms

• Maintain RPTO approval renewal annually

🚚 8. Import & Equipment Compliance

If you're importing drone hardware:

a) DGFT License

• Get import authorization from Directorate General of Foreign Trade

b) WPC Approval

• Wireless components like GPS, transceivers need frequency approval

c) BIS Standards

• Certain components may fall under BIS certification

💰 9. GST & Taxation for Drone Services

✅ GST Registration

• DaaS services are covered under SAC Code 9983 (Other professional services) at 18% GST

📄 Input Tax Credit:

• Available on purchase of drone equipment

• Maintain proper invoices and payment trail

📚 Accounting Tips:

• Maintain separate ledgers for drone asset depreciation

• Track OPEX vs CAPEX for drone maintenance

👷‍♂️ 10. Employment & Pilot Licensing

a) Hire Certified Drone Pilots

All pilots must:

• Be trained by DGCA-approved RPTO

• Hold valid Remote Pilot Certificates

b) Labour Laws

• Maintain ESI, EPF if employees > 10

• Issue appointment letters and sign NDAs

🛡️ 11. IP and Data Privacy Laws

a) Intellectual Property

• File patents for unique drone designs or algorithms

• Trademark your brand name and logo

b) Data Laws

• Comply with India’s Digital Personal Data Protection Act (DPDP), 2023

• Setup encrypted storage and access control systems

🛡️ 12. Insurance & Liability

a) Drone Insurance (Mandatory)

Covers:

• Accidental damage

• Third-party liabilities

• Payload insurance

b) Employee Insurance

• Group health and accident cover for drone pilots

🚀 13. Startup India & DPIIT Recognition

To avail government support:

• Register with Startup India

• Obtain DPIIT Recognition for benefits like:

  • Income Tax exemption for 3 years

  • Fund-of-Fund access

  • Easier patent filing process

🌍 14. Environmental & Airspace Compliance

a) Geo-Fencing

• Ensure NPNT compliance

• Use geo-fencing tech to prevent flying into red zones

b) Environmental Norms

• Avoid flying near forests, wildlife sanctuaries without MoEFCC permissions

• Avoid night flying and flying over people

🤔 15. FAQs

Q1: Is drone registration required for a small drone?

Yes, unless it’s under 250 grams (nano category), UIN is mandatory.

Q2: Do I need a license to fly the drone?

Yes. For commercial use, the drone pilot must be certified by a DGCA-approved RPTO.

Q3: Can a drone company import drones from China?

Yes, but only with DGFT authorization and WPC approvals.

Q4: Are DaaS services covered under GST?

Yes, drone services attract 18% GST under SAC code 9983.

Q5: Can my startup get government benefits?

Yes, after DPIIT recognition under the Startup India scheme.

🧾 16. Conclusion

The drone ecosystem in India is regulated but evolving rapidly. A Drone-as-a-Service (DaaS) company needs to ensure compliance with aviation laws, import regulations, GST, employment rules, and data protection. With proper guidance and licensing, your DaaS business can take off legally and profitably.

CA Intern at TAXAJ

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