How can I start a Security Services Company in Delhi?
Dashmeet Kaur | Updated: Dec 24, 2019 | Category: PSARA
Since predators and criminals have taken over our society, it is indispensable to have superheroes in the form of security guards. Although India has enough police force, the Government emphasizes the need for Private Security Agencies. Thereby releases Private Security Agency (Regulation) Act, 2005, to regulate the functions of security Services Company.
It enables such companies to work within a legal framework. Thus any person who wants to commence a security business must obtain a PSARA license first. This blog will clarify all your doubts regarding PSARA and help you start a security agency.
What is PSARA License?
Private Security Agencies Regulation Act abbreviated as PSARA is a regulatory body that monitors the operations of Private Security Agencies (PSA) in India. The primary step to open a security services company is to procure PSARA license as it covers all the significant aspects from formation to disqualification. Hence PSARA safeguards the interest of the Security Agencies which provide services like training to security guards.
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Compliance for Security Services Company under PSARA
There are several rules and regulations that a Private Security Agency(PSA) has to compel. Let’s have a look at the PSARA guidelines:
- Firstly, a security agency must hire supervisors to administer the duties of appointed guards.
- Further, all PSA’s must provide a special training session to the security guards to seize the required skills.
- Also, a Security Services Company needs to give first preference to an ex-defence candidate with three years of experience over others.
- Every PSA must follow the criteria, qualification, and disqualification for the security guard as prescribed by PSARA Act.
Perks of PSARA License
Every person who seeks to establish his own security services company must possess a PSARA license. Such companies can yield many benefits from PSARA like:
- Empowers the security company- after registration, a company acquires an official authority to train security guards and empower the business. It automatically boosts the productivity of private security agencies to hire more supervisors and escalate the training sessions.
- Increases credibility- customers always rely upon a certified company. Thus if your security company obtains a PSARA license, it will likely to grow your customer base. It will also renew your company’s image in the market.
- Legal support- Once a personal security agency applies for PSARA, it needs to wait for six months to take the course of action. After that, the company can begin the recruitment process, training, and placement activities.
- Facilitates smooth functioning of the security agency- some rights like sue or being sued is only applicable to a Private Security Agency who has a PSARA license. So it underpins the agency to provide private security to other organizations and carry various functions with ease.
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What is the Process to obtain PSARA License?
A Security Services Company should follow this procedure to acquire the PSARA license:
Gather Important Documents: The first step for a PSARA applicant is to collect all the necessary documents such as GST, Pan Card, PF, TAN Number, ITR of every director, ESI, etc.
Enter a Memorandum of Understanding with Training Institute: Now you have to affix a signed MOU with a reputed training institute. It ensures proper training of the company’s guards and supervisors.
File application for Verification of Police: Further, you have to file an application for police verification in Form –I. If the applicant is a company or firm, then it requires filling a separate verification Form for every partner & directors.
Obtain NOC: After Police authorities finish the verification, you have to procure a No Objection Certificate from them. It ultimately depends upon concerned Police authorities to either grant you the NOC receipt or you may also have to face rejection.
Wait for the Issue of PSARA License: The entire process of verification and issue of PSARA license might take about 60 days from the date of filing the PSARA application. Therefore you just have to wait for the specified period.
Here is the common list of documents that every Security Services Company must attach along with the PSARA application:
- The Certificate of Company Incorporation
- Identity proof of all the employees and directors
- Address proof of your registered office
- Signed MOA (Memorandum of Association) with a renowned training institute
- Documents of security guard
- The Logo of your security agency
- ESI Registration and PF (Provident Fund) Registration
- Two photographs of promoters
- Character verification certificate of all the employees
- Certificate of registration under Shops & Establishment Act
- A copy of ITR copy of all the directors
- PAN Card of the promoters
- Registration obtained from the service tax department
- Certificate under the Contractual Labour Act;
- Affidavit of the security training
- Armed license
- Lastly, an affidavit obtained under PSARA
Renewal and Expiry of PSARA License
As per the Private Security Agency (Regulation) Act, 2005, PSARA License is valid for five years from the date of registration in the majority of states in India. However, in Chhattisgarh and Uttarakhand, the permit is only valid for one year. Besides for renewal of PSARA license, you have a time period of 90 days before the date of expiry.
New online Portal for Private Security Agency Licensing
The Union Home Ministry launches a single-window system to issue PSARA license to PSAs. In order to streamline the entire procedure of licensing, the Government has taken this action. These will be the peculiar features which define the new online portal:
- Single window system for applying to any UT or state
- Payment Gateways for licensing fees
- Integrated with Interoperable Criminal Justice System
- Geo Tagging of office
The online portal will be extremely beneficial for all the aspirants of Security Services Company. The leverages of PSARA portal are easier tracking of application status, speedy disposal of the applications, transparency in the system, the ability to raise e-queries and to get a response in return, direct monitoring by the authorities, and cost-effectiveness. Thus, this portal will revolutionize the tiresome procedure and bring convenience for both the applicant and authorities.
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