What is PSARA License?
PSARA stands for Private Security Agencies Regulation Act. Its a regulatory Act for all the Private Security Agencies (PSA) in India which provides security services, also consisting of security guards training.
The act covers all the significant aspects relating to the private security agencies such as formation, regulation, operation, and disqualification.
Therefore, it is mandatory for all the private security agencies to obtain the PSARA license for carrying out the business.
Eligibility Criteria under PSARA for PSARA License
The PSARA License isnt just issued to anybody who wishes to run a private security agency. There are some specified eligibility criteria that the aspirants must fulfil to obtain the license.Various eligibilities under PSARA, 2005 are as follows:
Eligibility criteria for Companies
According to Private Security Agencies Act, 2005, every company willing to register itself under PSARA must register itself as any of the business entities described below:
- Private Limited Company;
- Limited Liability Partnership;
- One Person Company;
- Sole Proprietorship;
- Partnership Firm;
Eligibility criteria for Principal Officer/Director
For being the principal officer or director of the PSA, one must be:
- The resident of India;
- Financially sound to incur the cost of operations;
- Never sentenced to jail or convicted of any offence related to the formation, promotion, or management of the company;
- Never convicted by a competent court for an offence;
Eligibility for being a private security guard
Anybody who is willing to become a security guard must satisfy the following criteria:
- The person must be an Indian citizen;
- Age of the person should be more than eighteen but less than sixty-five years;
- The person must satisfy the PSA about his antecedents and character;
- Security training;
- Should never have been terminated from Government Service under any circumstances;
- The applicant must satisfy all the prescribed physical standards.
Documents required for obtaining PSARA License
Documents requirement vary from state to state. Some of the common requirements are as follows:
- Certificate of Company Incorporation;
- Signed MOA (Memorandum of Association) with the training institute;
- Documents of security guard;
- Identity proof of all the directors and employees;
- Address proof of the registered office;
- Affidavit obtained under PSARA;
- Logo for the security agency;
- PAN of the promoters;
- Registration obtained from the service tax department;
- Certificate of registration under Shops & Establishment Act;
- ESI Registration
- PF (Provident Fund) Registration;
- Certificate obtained under the Contractual Labour Act;
- Affidavit of security training;
- Armed license;
- Two photographs of promoters;
- Character verification certificate for employees
- ITR copy of every director.
Rules & Regulation under PSARA
As per PSARA guidelines, the Private Security Agencies need to follow some specific compliances as follows:
- All the PSAs must hire and engage supervisors to administer the working of guards who have been appointed in other organizations;
- Security agencies need to provide special training to the security guards with the required skills;
- If theres an ex-defence candidate with three years of experience, then he should be considered first over others;
- The PSAs need to follow every criteria, qualification, and disqualification for the security guard as expressed by the PSARA;
- According to the Act, the security guard must follow the uniform policy as prescribed.
Registration Fees for PSARA License
The fees required for obtaining a PSARA License for private security agencies (PSA) operation at various places are as follows:
- INR 5000 - PSA operating in one district;
- INR 10000 - PSA operating in two districts;
- INR 25000 - PSA operating in the entire state.
Expiry & Renewal of PSARA License
The validity period of PSARA license is for five years from the date of issuance of license, except in the states Uttarakhand and Chhattisgarh. For these two states, PSARA license is valid just for one year.
For the renewal of PSARA license-
- The applicant needs to make an application not less than 90 days prior to the license’ expiry date.
- The application must be filed along with the document as prescribed under sections 6, 7 and 11 of this Act and with the requisite fee.
If the proposed director or officer of the private security agency falls any of the below-described criteria, then it will lead to disqualification:
- The person convicted of an offense associated with any fraud relating to the company, including the insolvent;
- If the person is given the punishment for imprisonment for not less than two years by the competent court;
- Any person has links with organizations which is banned by the law as a result of their activities which could be a threat to national security, etc.;
- If any government organization has terminated or dismissed the person during his service because of his moral turpitude or misconduct;
- In the case, the organization isnt registered in India, or have a proprietor/director/partner from outside India.
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Frequently Asked Questions (FAQs)
Ans: No, the agency can’t operate in other states with a license obtained in a specific state. The license is state-specific, therefore, the agency needs to obtain different license for different state.
Ans: It’s a process of obtaining a No Objection from the office of the Deputy Police Commissioner Office for granting the Licence to operate a Private Security Licence.
The FDI (Foreign Direct Investment) is a PSA is allowed till 49% under the approval route. The Ministry of Home Affairs of the union government administers the FDI’s application. Therefore, the company files the application for PSARA License, it is essential to get the prior approval of the FDI and all pertinent reports such as FC-GPR, duly filed and approved.
No, it’s not a mandatory requirement. Anybody who is willing to start a private security agency can apply for this Licence. However, they would have to follow certain standards set by the state Controlling Authority. For providing training to security guard, the PSA needs to enter into an MOU (Memorandum of Understanding) with the trusted security guard training institute.