Overview for PSARA License

Due to economic growth, innovation & industrial development, there has been tremendous growth in the number of private corporations signalling the desire among people to start their own businesses. However, there have been equally rising cases of security breaches & notorious crimes in the major cities, fuelling the need for a strong security maintenance system for businesses.

Irrespective of the key operations of the business either private corporations to banks, hospitals, malls to showrooms, there is an immense requirement for adequate protection to prevent notorious elements from disturbing the peace and well-being of society including businesses. The private security sector in India holds the global record for its size and has experienced remarkable expansion over recent years.

Its influence extends beyond the corporate realm, extending into real estate complexes, establishing itself as a top-ranking field requiring private security staff. Presently, a multitude of private security firms have emerged to address the security requisites of both individuals and enterprises. Consequently, anyone aspiring to initiate a private security agency to supply security personnel must secure a license for operations under the Private Security Agencies Regulation Act, 2005, more commonly known as the PSARA License.

What is a Private Security Agency?

Private security agencies are commercial enterprises established to provide security solutions to diverse industries, encompassing sectors like banking, information technology, finance, and manufacturing, among others. The enactment of the Act was driven by the aim to establish directives for the training of security staff and to uphold a uniform standard of professionalism within the realm of security services.

The enactment of the Private Security Agencies (Regulation) Act, 2005 serves the purpose of overseeing the functioning of private security firms, ensuring their compliance within a lawful structure. This act holds significant importance in India for the regulation of such entities. Additionally, there are corresponding directives, known as the Private Security Agencies Central Model Rules, 2006, that offer guidance for the practical implementation of the act.

In each state, a designated officer, holding a position not lower than that of a Joint Secretary, assumes the role of the controlling authority responsible for overseeing private security agencies. Not only does it facilitate the provision of security services but also presents the opportunity to train prospective individuals for careers centered around security roles.

Requirements for obtaining PSARA License

Any entity, regardless of whether it's an individual or a business, possesses the eligibility to request the PSARA License. The suggestive list of eligible applicants includes:
 

Agile Regulatory Checklist Private Limited Company
 

Agile Regulatory Checklist Limited Liability Partnership (LLP)
 

Agile Regulatory Checklist Partnership Firms
 

Agile Regulatory Checklist  Sole Proprietor Firm 

 

Agile Regulatory Checklist Hindu Undivided Family (HUF)
 

Agile Regulatory Checklist One Person Company (OPC)

Benefits of PSARA License

Allows Legal Permission to Commence Security Services:

Acquiring a PSARA license is essential for any private business entity that intends to initiate its business activities. Consequently, a business entity possessing this license is granted the authority to recruit and engage personnel to address the security requirements of private security establishments.

Increases Business Credibility:

Obtaining a PSARA license is crucial not only for commencing operations as a private security agency but also signifies that the recruited personnel possess sufficient training and expertise in their field. This aspect assists the security agency in fostering consumer confidence, consequently enhancing its overall credibility.

Adherence to Legal Compliance:

A private security agency that possesses a PSARA License is required to undergo registration and meet specific obligations. Failure to accomplish these tasks could result in penalties or even the revocation or temporary suspension of the license. Consequently, such a private security agency demonstrates adherence to legal regulations.

Enhances functional Efficiency:

A private security business entity with a PSARA license gains legal safeguards against unfounded allegations or legal complications.

Pre-Requisites for PSARA

Before commencing business or making an application for a PSARA license, the applicant entity must fulfill the following requisites:

Security Service:

The private security agency must include the term "Security Services" or a similar word connected to the objective of providing "Security services." Additionally, this purpose should be mentioned in the Memorandum of Association (MOA) or established as the primary aim of the business entity.

Requirements for a Director/Principal Officer: 

An individual being considered for appointment as a director of the enterprise should fulfill the subsequent business prerequisites:
 

Agile Regulatory Checklist Must hold Indian citizenship.
 
Agile Regulatory Checklist Must be an adult above the age of 21.
 
Agile Regulatory Checklist It should be a financial solvent.
 

Agile Regulatory Checklist Should not have any prior convictions under legal jurisdictions related to instances of ethical impropriety on moral grounds.

Financial Stability of the Agency:

The private security agency is required to possess a favorable financial status and sufficient capital to sustain its operations. For this, the applicant is required to attach copies of the ITRs of the previous years.

Absence of Prior Criminal Offenses: 

The principal individuals associated with the business establishment, including the business owner, must not have any previous criminal records. This will be confirmed through a police verification process conducted by law enforcement officers.

Holding Specific Requirements:

All directors, as well as the employer, are mandated to undergo compulsory specialized training related to the management of a private security agency. This training should be acquired from an accredited training institute.

Upholding of National Interest:

If an applicant is found to have connections, mergers, or associations with any individual or entity that might be engaged with organizations or persons prohibited within India or pursued under legal mandates to uphold the nation's safety and security, they are disqualified from submitting an application or acquiring a PSARA License.

Documents Required for PSARA License

PSARA Registration being a state-level registration, the PSARA license documents required may vary for each state. Provided below is a general compilation of the documents typically needed for acquiring the PSARA License:

Agile Regulatory Checklist PAN number of the business entity
 
Agile Regulatory Checklist Proof of Identification of the directors/partners or key employees of the business entity
 
Agile Regulatory Checklist Copies of the previous year's Income Tax Returns (ITR)
 
Agile Regulatory Checklist Two passport-sized photographs of promoters of the business alongside their PAN identification numbers
 
Agile Regulatory Checklist Affidavits & undertakings required to be submitted by the entity
 
Agile Regulatory Checklist Copy of the Certificate of Incorporation/Registration of the business entity
 
Agile Regulatory Checklist Duly signed MOU between the entity and the training institute
 
Agile Regulatory Checklist Logo of the concerned Private Security Agency
 
Agile Regulatory Checklist A Valid Copy of Armed License
 
Agile Regulatory Checklist Medical and character certificates of employees of the entity

Registration Process for PSARA

Step 1: Preparation and Compilation of Documentation:

The primary stride in pursuing PSARA registration involves the prospective business entity arranging and organizing all necessary documents required for the registration process. This ensures the timely completion of the application process. It's imperative to note that both the PSARA registration-related documents and the particulars of the business owner or promoter must be presented in a coherent and standardized format to prevent the possibility of application rejection.

Step 2: Establishing an Agreement with a Security Training Institute:

Furthermore, the online PSARA portal features a roster of training institutes specialized in delivering personnel training services. After selecting a suitable institute, the applicant must proceed to establish a Memorandum of Understanding (MOU) between the training institute and the entity itself. This MOU underscores the commitment of the institute to offer training resources to eligible candidates. Additionally, exemptions in training requisites can be extended to ex-servicemen within the agency.

Step 3: Submission of the PSARA Application:

Following the preparation and collation of all requisite documents, the applicant is required to access the State PSARA portal. The subsequent step in the Online PSARA License application process entails the submission of particulars in the PSARA Form-I to the relevant State Authority operating under the Act.


The subsequent Form to be completed is Form II, intended for validation purposes. In tandem, an affidavit must be completed and appended to Form-I for the sake of registration. Once the application and document uploads are finalized, the applicant can formally submit the form through an e-signature on the portal.

Step 4: Police Verification:

Subsequently, the applicant must initiate the process of police verification for the business entity. After completing and submitting Form-I, the applicant is required to request police verification. This step involves the respective officers (directors in the case of a company and partners in the context of a partnership firm or LLP).

Step 5: Issuance of the PSARA License:

Upon the receipt of police verification clearance from the local police station situated within the business operation's vicinity, the authority assesses the application. If all the requirements outlined in Form-IV are met In an appropriate manner, the license may be granted.

Post Compliance of PSARA License

Appointment of Supervisor:

After the license is acquired, the applicant must appoint a supervisor within the business organization as a mandatory requirement. This supervisor is responsible for ensuring consistent compliance with the provisions of the act. Their role encompasses monitoring and supervising the activities of the security agency under their jurisdiction. However, this designated supervisor is obliged to possess a minimum of three years of experience in armed forces employment.

Timeline & Validity of PSARA License:

As the PSARA Act operates at the state level, the duration for obtaining the license varies across states due to differing State authorities. Therefore, once submitted it may take around 30-60 days to obtain the PSARA Licence. On approval, the PSARA License holds validity for up to five years unless expressly revoked or cancelled by the State licensing authority.

Role of Agile Regulatory

Obtaining the PSARA License could be a bit challenging due to the complex process of the documents required and the processes involved. However, with the right amount of guidance and consultation, you could easily acquire a PSARA License within the prescribed time. At Agile Regulatory we are committed to helping budding entrepreneurs by enabling them to acquire business licenses smoothly and carry on their businesses.

FAQ`s

Any individual/partnership/firm/company aiming to engage in the provision of private security services can seek a PSARA license.

Yes, licenses can be acquired for a specific district, multiple districts, or even the entire state.

The license fee varies based on the operational scope of the private security agency. In accordance with the PSARA Act, of 2005, the license fees are as follows-

Location for Operating Business Agency

Amt

Within a single district

Rs. 5000

Within two-five districts

Rs. 10,000

Within the entire state

Rs. 25,000

Yes, licenses can be acquired for a specific district, multiple districts, or even the entire state.

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Working Process

How we work for our valued customers.

Process
1

Raise an Enquiry

Raise an Enquiry to get a call back from one of the expert advisor to discuss the specific compliance related toyour business.
Process
2

Dedicate Manager

Confirm the project, we'll assign you a dedicated manager along with the technical person to take over the project end to end.
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3

Real Time Update

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4

Project Completed

We'll share the issued certificate in online as well as in hard copy along with the login credentials once project is completed.