1. Why KYC is Mandatory
SparrowHost is committed to maintaining a safe, legal, and trustworthy cloud infrastructure platform. Know Your Customer (KYC) verification is mandatory for all customers as part of our compliance obligations and to protect the security and integrity of our services.
KYC verification allows us to:
- Comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations
- Prevent fraudulent account creation and misuse of our infrastructure
- Satisfy obligations under the Information Technology Act, 2000 and the Prevention of Money Laundering Act (PMLA), 2002
- Enable legal recourse in the event of illegal activity originating from our platform
- Maintain the integrity of our services for all legitimate customers
Cloud infrastructure services can be misused for cybercrime, spam, and other illegal activities. KYC is a critical line of defense that helps ensure our services are used only for lawful purposes.
2. Who Must Complete KYC
KYC verification is required for:
- All individual customers residing in India before using any paid service
- All business/entity customers (companies, LLPs, partnerships, sole proprietorships) before activating services
- International customers using services involving dedicated servers, colocation, or high-bandwidth plans
- Existing customers not yet KYC-verified who are upgrading to higher-tier plans
Trial or free-tier services may be available without KYC, subject to strict usage limits. Any upgrade to paid services will require completed KYC verification.
3. Required Documents
3.1 Individual Customers (Indian Residents)
Submit any one of the following as Proof of Identity:
- Aadhaar Card (front and back)
- PAN Card
- Passport (bio-data page)
- Voter ID Card
- Driving Licence
3.2 Individual Customers (International)
- Passport (bio-data page) — mandatory
- Government-issued photo ID from country of residence
3.3 Business / Entity Customers
All of the following are required:
- Certificate of Incorporation or business registration document
- GST Registration Certificate (for Indian businesses)
- PAN Card of the entity
- KYC of the authorized signatory (as per individual requirements above)
- Board resolution or authorization letter naming the account administrator
3.4 Document Requirements
- All documents must be clear, legible, and unexpired
- Accepted formats: JPG, PNG, or PDF (max 5 MB per file)
- Scanned copies or clear photographs are accepted
- Documents must be in English or accompanied by a certified English translation
4. Verification Process
The KYC verification process works as follows:
- Submission: Upload required documents via the KYC section in your account dashboard or the secure upload link sent to your registered email.
- Review: Our compliance team reviews your submission within 1–2 business days.
- Verification: Documents are verified for authenticity and consistency with account information.
- Confirmation: You will receive an email confirmation once KYC is approved. Your account will then be fully activated.
- Rejection: If documents are unclear, inconsistent, or insufficient, we will notify you with specific reasons and request re-submission.
During the review period, existing services will continue uninterrupted. New service purchases may be placed on hold pending KYC approval.
5. KYC Data Protection
We take the security of your KYC documents extremely seriously:
- All KYC documents are transmitted over TLS 1.2+ encrypted connections
- Documents are stored in encrypted form with AES-256 encryption at rest
- Access is restricted to authorized compliance personnel only, on a strict need-to-know basis
- KYC data is never shared with third parties except as required by law or with explicit regulatory mandate
- Documents are retained for 5 years after account closure as required by AML regulations, then securely and permanently deleted
- All access to KYC data is logged and audited
For more details on how we handle your personal data, please see our Privacy Policy.
6. Regulatory Compliance
Our KYC program is designed to comply with the following regulations:
- Prevention of Money Laundering Act (PMLA), 2002 — India
- Information Technology Act, 2000 and associated rules — India
- Foreign Exchange Management Act (FEMA), 1999 — for international transactions
- Digital Personal Data Protection Act (DPDPA), 2023 — India
- FATF Recommendations — international AML/CTF standards
We may be required to report suspicious activity to the Financial Intelligence Unit – India (FIU-IND) or other relevant authorities. We are legally obligated to cooperate with lawful requests from government agencies.
7. Consequences of Non-Compliance
Failure to complete KYC verification within the required timeframe will result in:
- Temporary suspension of new service provisioning
- Service suspension if KYC is not completed within 30 days of request
- Account termination if KYC remains incomplete after 60 days, with data deletion per our retention policy
Providing false, forged, or misleading KYC documents constitutes a serious violation of our Terms & Conditions and may result in:
- Immediate permanent account termination without refund
- Reporting to law enforcement authorities
- Legal action under applicable Indian law
8. Updating KYC Information
You are responsible for keeping your KYC information current. You must re-submit KYC documentation if:
- Your previously submitted documents expire
- Your name, address, or identity details change
- We request updated documentation due to regulatory requirements
- The authorized signatory for a business account changes
Periodic KYC reviews may be conducted as required by regulation. We will notify you in advance when re-verification is needed.
9. Contact
For questions about the KYC process or your verification status:
- Email: kyc@sparrowhost.net
- Support: support@sparrowhost.net
Our compliance team responds to KYC queries within 1 business day.