The Private Security Agencies -Guidelines under PSARA Act 2005

Private Security agencies
Neha Saxena
| Updated: Nov 30, 2018 | Category: PSARA

A private security agency services (PSA) includes armed and unarmed security guards. They provide expertise services to their clients. PSA (Private security agencies) provides patrol services, bodyguard, guard dog, parking security in their services.In this article we will detail you about private security agencies guidelines under PASARA Act 2005

Private Security Agencies In India

Private security agencies provides services to companies, guesthouses, hotels, private bungalows etc. The private security agencies in India helps in providing security services. In addition the private security agencies also provide the training, maintain the information of such guards, hire and fire the guards and manage the salary-related compliances too.

However PSARA (Private Security Agencies Regulation Act) 2005 regulates all the actions of such private security agency. Let us understand all the guidelines under the PASARA for private security agencies.

Prime objectives of PSARA Act:

  • It aims to administer the functioning of Private Security Agencies so that they operate within a legal framework and are accountable to a regulatory mechanism.
  • Similarly it works to address the concern about the way of functioning of these agencies are operating. To ensure due care for verifying the antecedents of the personnel employed as private security guards and supervisors is done.
  • Above all the object is to regulate these agencies so that they don’t intrude upon the duties of the police, use weapons in an illegal manner, indulge in criminal activities and wear uniforms resembling with those of the police.

Browse through our articles on services provided at Swarit Advisors, and just let us know if we can help you with your company registration or tax filing or trademark registration.

Why do we need private Security Agencies?

  1. To ensure the safety of the premises and people:

    Above all due to increasing crimes in the workplace, fear of crime is high. PSA (Private security agencies) come to the rescue in this concern.

  2. To safeguard internal security : Whilst “Public Order” and “Police” are State subjects, the Central Government is responsible for “internal security”. Hence, with an aim to regulate the functioning of private security agencies, the Private Security Agencies (Regulation) Act, 2005 is introduced by the government of India.

  3. To avail skilled officers’ services: The PSA is excellent in providing training. Selection of every officer is done only after checking the specific skills of that person. Proper training for each site and client is a must.

  4. To provide a safe environment for employees: Employees working for the company are of prime importance, their safety is the company’s responsibility. Hiring a PSA (Private security agency

    ) will solve the problem to a very high extent.

  5. More accountability:

    In case of any unfortunate happening local police will take time to reach and react. Whereas a private security firm will be able to respond to a situation on an immediate basis. The officers are trained to face counter-fight any kind of circumstance. The asset or property will be secured with some set of people.

  6. Trained professionals: 

    PSA make sure that its officer’s uniform is proper. In addition to train them to behave professionally,  public relations is also taught. Apart from this, they pose comprehensive communication skills. The officers  also know about First Aid Attendants.

  7. In protecting against threatening:

    In certain cases where a person may receive any threat, may hire private guards. Similarly, if a person is a high-profile individual who feels unsafe may also hire PSA.

  8. To ensure the Living place safety: 

    PSA (Private security agencies) provides services for Apartments, Clubs, casinos private security. The reason is they are primary targets of theft and attack.

  9. Active surveillance all the time: 

    Private securities have advance security cameras. For instance it protects your company day and night. It keeps workplace safe form the workplace violence. Security cameras, security guards, and security training on the work site are all part of the equation.

  10. On spot action: 

    In case of any unfortunate happening in the workplace, one needs to inform the police. However, the arrival of the police will take some time. Till the time police arrive the security officer can take charge of it.

  11. Third party Liability: 

    PSA allows the Company to avail its services without having the direct responsibility of the security officers. The payroll, PF return, bank account opening of such employees is maintaine by the PSA (Private security agencies).

  12. More effective: 

    They have regular contact with the company and know about the company know how. In case the company wants to change in the security personnel or upgrade someone it can be done easily. The company just need to give a call to PSA (Private security agencies) and it will be taken care by them.

Well now due to increasing awareness about the effectiveness of private security measures, the private security industry has shown a tremendous growth in the last few years.

Salient features of PSARA Act

  • MHA (Ministry of Home Affairs) administers this act.
  • The act regulates the issue of a license to Private Security Agencies.
  • Until or unless the person holds a license issued under this Act, no person shall carry on the business of private security agency.
  • Private Security Agencies Model Rules, 2006 is introduced by the Central Government.
  • States have framed their own rules in terms of Section 25 of the Act.

Various guidelines under the PSARA Act for private security agencies

1. Appointment of controlling authority

  • The State Government shall designate an officer, not below the rank of a Joint Secretary in the Home Department of the State or an equivalent officer to be the Controlling Authority, by notification.
  • For the efficient discharge of functions by the Controlling Authority, the State Govt. may provide it such other officers and staff as that Govt. considers essential.

2. Eligibility for License

  • The eligibility for License under PSARA[1] is basically in the form of required disqualification criteria, lets us understand this in detail.

3.PSAs not to engage or provide security guards without a license

Under this Act, PSA (Private Security Agency) business should only start by a person who holds a license provided that:

  • The person carrying on the business of PSA may continue to do so for a period of one year from the date of commencement of this Act, instantly before the commencement of this Act. And, the second case is when he has made an application for such license within the said period of one year, till the disposal of such application provided”
  • No PSA (Private security agencies) shall provide private security abroad without permission from the Controlling Authority, which shall consult the Central Govt.

4. Use of uniform

  • Uniforms of the selected private security guards must not match with those of the police and should be such that it doesn’t hamper the performance of the guard. In particular, the uniform should neither be too tight or loose to obstruct movement or bending of limbs.

5. Security training

  • The detailed training syllabus required for training must be framed by the Controlling Authority. The training should last for a minimum period of hundred hours of classroom instruction and 60 hours of field training, expanded over at least twenty working days. However, the ex-servicemen and former police personnel will be required to attend training for a minimum of 40 hours of classroom instructions and 16 hours of field training expanded over at least seven working days.

Checklist for PSA :

  • Registration under provident fund
  • GST registration
  • Registration of establishment under shops & Establishment
  • Employees State Insurance registration
  • Contractual Labor Act registration
  • PAN in the name of the PSA

Documents required for registration under PASARA:

  • Character certificate for the employees.
  • Proof of Ownership proof of the main place of business
  • Identity card for all employees
  • PAN
  • Complete details for armed licenses
  • Uniform
  • Logo for the security agency
  • Various affidavit as per PSARA Act
  • Security training assurance via affidavit
  • Along with above documents, a duly filled application for granting a license under PSARA is to be submitted to the Controlling Authority of the region. One also needs to pay the license fee for it. Or you can contact Swarit Advisors, and we will take care of everything.

Registration fees for obtaining a license:

  • Registration fees for obtaining a private security agency license are as follows:
  • 5000 for PSA (Private security agencies) operating in one district
  • 10000 for PSA (Private security agencies) operating in one to five districts
  • 25000 for PSA(Private security agencies) operating in the entire state
Individuals not eligible for a license:

According to guidelines under the PSARA Act, 2005, no person can get a license if he/she:

  • Conviction of an offense relating to the promotion, formation or management of a company;
  • Is convicted by a competent court for an offense; the prescribed punishment for the same is imprisonment of not less than two years;
  • Relates to any organization or association which is banned under any law;
  • Dismissed or terminated from Govt. service on grounds of misconduct or moral turpitude.

Is Private security agency legal entity?

A private security agency is definitely a legal entity. In certain states, it is required to obtain an additional license too. Training and testing are also conducted by some state before they grant you a “guard card,”

What is the cost to hire PSA (Private security agencies)?

The price shall vary from PSA (Private security agencies) to other agency; however, it depends on certain few other things too. Usual price is corporate rates, but depending on the company size, risk involved, remoteness of the site, post compliances, location the price may enhance. In addition to that, it also depends on a number of hours one wants to avail the services.

Apart from this, the type of event, level of security, threat is also important aspects.

Is private security agency having superseding effect over the police?

No. In cases where any crime is reported, it must be reported to the Police immediately. No PSA (Private security agencies) can stop the police from entering into the crime place. In addition to that, Police has all legal rights pertaining to the prime place. However one must know that the private security officers have no jurisdiction to make an arrest.

Procedure for Renewal of License under PASRA Act for PSA:

The application for renewal of a license requires following:

  1. To controlling authority not less than 45 days prior to the expiry date of the period of validity thereof, in such form as may be prescribed and along with requisite fee and other documents required under sections 6,7 and 11 of this Act.
  2. When the authority passes an order on the application for renewal of the license within thirty days from the date of receipt of application complete in all respects.
  3. On receipt of an application under sub-section (1), the Controlling Authority may renew or refuse the license after making such inquiries as he considers necessary and by order in writing:
  4. However no order of refusal is made except after providing the applicant with a reasonable opportunity of being heard.

Conditions for the commencement of operation and engagement of supervisors:

Every private security agency must commence its activities within the time period of six months of obtaining the license and must impart prescribed training and skills to its private security guards or supervisors.

Any PSA (Private security agencies) already carrying on the business before the commencement of this Act shall have to ascertain the required training within a period of one year from the date of the commencement of the Act.

Eligibility to become a private security guard:

The person eligible for being a private security guard must fulfill the following criteria:

  1. The person must be a citizen of India;
  2. The applicant should have completed eighteen years but should be under the age of sixty-five years;
  3. The person would be eligible only when he satisfies the agency about his character and antecedents;
  4. Should have completed the prescribed security training;
  5. Must fulfil prescribed physical standards.
  6. A person convicted by a competent court or dismissed or terminated on grounds of misconduct or moral depravity while serving in any armed forces of the Union, State Police Organizations, Central or State Govt. or in any private security agency cannot be employed as a private security agency guard.

Cancellation and suspension of license:

The Controlling Authority may cancel or seize the license on one or more grounds, namely when the license holder has;

  1. Obtained the license through misinterpretation or suppression of material facts;
  2. Used false documents or photographs;
  3. Violated the provisions of PSARA Act or the rules made there under or any of the conditions of the license;
  4. Been impersonating or permitting or aiding or abetting anybody to impersonate as a public servant;
  5. Violation of  the provisions of PSARA Act pursuant to schedule  by the Central Govt or by notification in the Official Gazette;
  6. Done any act which poses a threat to national security, or did not provide assistance to the police or other authority in the discharge of its duties or acted in a manner prejudicial to national security or public order or law and order.

Well, to hire a PSA (Private security agent), we will help you in providing the end to end service. You can go for company registration to establish PSA. Swarit advisors will take care of your entire license, registrations under PASARA act.


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