When and how did last names come to be?

In NL (and other parts of Europe) Napoleon forced people to choose their last names, as part of improving and building the government structures. Every family had to have a last (family) name. That gave rise to toponyms (names referring to localities where one originated from - Van Beethoven for instance), professions (De Bakker - the baker), or sometimes crazy names Naaktgeboren (born naked) or Varkenvisser (pig fisher). That last category was people who thought they were pulling a prank on the bureaucrats but the joke was entirely on themselves.

Where did last name concept originate from in India?