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Overview of PSARA License

Nowadays, due to a rapid increase in the number of companies or business establishments, the demand for obtaining personal security has also considerably mounted. Hence, the reason behind the significant rise in the number of PSAs (Private of Security Agencies) across the country is the growing trend of hiring security guards from the private business establishments.

Even though these PSAs assists in meeting the security needs of the private sector. However, there was also a concern regarding the way these agencies work. Thus, the Private Security Agencies Regulation Act, 2005, was passed by the Parliament. PSARA 2005 lays down a set of rules concerning the registration of PSARA License and the proper functioning of private security agencies.

PSARA 2005 (Private Security Agencies Regulation Act) is passed by the government to provide regulations concerning the Private Security Agencies. Moreover, the PSARA also keeps vigilance and check over the Registration of the Private Security Agencies.

What are Private Security Agencies?

Private security agencies are those organizations that provides security services to various companies, banks, ATM’s, and hospitals, etc. These agencies also offer training to the security guards who are hired by these agencies. A Private Security Agency must acquire PSARA License for their operation.

What is PSARA License?

All the regulations concerning the operations of security agencies are governed and administered by the Private Security Agencies Act, 2005. This act is popularly known as PSARAAs per this Act, no person is permitted to commence or carry out the business affairs of the Private Security Agency without obtaining PSARA License. The State controlling authority issues the PSARA License.

The PSARA (Private Security Agencies Regulation Act) was passed in the year 2005. The following listed issue comes under the ambit of PSARA 2005:

  • Formation of Private Security Agencies in India
  • Operation of Private Security Agencies in India
  • Regulation of Private Security Agencies in India
  • Disqualification of private security agencies in India.

The scope of PSARA License is restricted to a single state, i.e., the state in which it was issued. Hence, PSARA does not recognize the concept of a single license with nationwide coverage. The applicants are required to obtain the said License from the State Controlling Authority of the concerned state.

What are the Advantages of PSARA License?

The following listed are the benefits of PSARA License:

  • Empowers the Training Company
  • Attracts more Customers
  • Avoid Denial of the Rights and Services
  • Helps in securing the trust of the Potential Customer
  • Increases Credibility of the Agency
  • Ensures the Smooth and Efficient functioning of the organization

What are the Eligibility Criteria for Applying for PSARA License?

The PSARA License is not issued just to any private security agency. There are various criteria prescribed under the PSARA 2005, to become eligible for obtaining the PSARA License. The following listed are the criteria for applying for PSARA License:

Eligibility Criteria for the Companies

According to the Private Security Agencies Regulation Act, 2005, every entity or company wanting to get itself registered under PSARA is required to register themselves as any of the following listed business structures:

  • Sole Proprietorship
  • Limited Liability Partnership
  • One Person Company
  • Private Limited Company
  • Partnership Firm

Eligibility Criteria for the appointment of Director or Principal Officer

For being appointed as the director or principal officer of a Private Security Agency, one should fulfill the following listed criteria:

  • He or she must be an Indian resident,
  • He or she must have a sound financial standing (needed to submit a copy of the ITR as a proof).
  • The concerned person must not be sentenced for any offense and should have a perfect precursor past.

Eligibility Criteria for being hired as Security Guard

The following listed criteria that must be fulfilled for being appointed as Security Guard in a Private Security Agency:

  • The person must be an Indian citizen.
  • The age limit of the concerned person should be between 18 to 65
  • The person must have obtained proper training.
  • The person must not have been terminated or removed from any government service, under any situation.
  • The concerned person must satisfy all the specified physical standards.
  • The person must assure the agency about his character.

What are the Minimum Requirements for obtaining PSARA License?

Requirements for PSARA License

 

The minimum requirements that must be fulfilled for obtaining PSARA License are as follows:

  • Name and Object of the Applicant: The name of the entity or company must contain the word “security service” or any other related or associated word, which can denote the object. If in case the applicant is a company, then the Memorandum of Association (MOA) must contain ‘Providing of Security Company’as the main object of the company.
  • MOU with Training Institute: The applicant is mandatorily required to enter into an MOU (Memorandum of Understanding) with the organization or institute involved in training security guards. The institute or the organization dealing in the training services must have obtained approval by the state controlling authority. However, in these training programs, special relaxation and flexibility is being provided to the ex-servicemen.
  • National Interest Cause: PSARA license is not issued to that person who is found to be linked or associated with any organization, which had been banned by the Indian Government. If an association or an entity is found to be working against the national interest or engaged in any activity, it is prejudicial to the national security. Then the state controlling authority will not grant PSARA license to such associations.
  • Restriction on Foreign Investment: According to section 6(2) of The Private Security Agencies (Regulation) Act, 2005, a PSARA license will not be granted, if an entity or a company is not registered in India, or is having a proprietorship or a majority of shareholder, Directors, or Partners outside India.

Who are all not Eligible to Obtain PSARA License?

Section 6 of the PSARA Act deals with the provisions concerning the disqualifications of an applicant. The following listed are the disqualifications due to which the applicant is not qualified to obtain licenses:

  • The applicant has been convicted for an offense concerning with the formation, promotion, or the management of a company;
  • A court of competent has convicted the concerned applicant for the offenses whose prescribed punishment is not less than two years;
  • The applicant is having links or connection with an organization or association which is explicitly banned by any law for the activities against the public order or national security;
  • The applicant has been either removed or dismissed from the government service on the grounds of moral turpitude or misconduct:
  • The said company has not been incorporated in India;
  • The Proprietor of the concerned Company is not Indian;
  • An Indian does not hold the majority shareholding of the said company.

What are the grounds of cancellation of PSARA License?

Section 13 of the PSARA 2005 provides the grounds of cancellation of license. The following listed are the grounds on which a PSARA License stands cancelled:

  • A license was acquired by way of Misrepresentation or Suppression of Material Facts;
  • A license was acquired by using false documents or photographs;
  • The License holder has either infringed the provisions of PSARA 2005 or the conditions in which the license was given;
  • The License holder has misused the information acquired during the discharge of the agency’s duties in offering security;
  • The License holder has misrepresented that it is an instrumentality of the Government;
  • The License holder has impersonated, or abetted impersonation of some Government Servant;
  • The concerned Agency has failed miserably to operate post one year of the grant of license;
  • License holder failed miserably to provide services agreed to another person;
  • License Holder has either done, or lent his or her assistance in doing, something which was in contravention of a Court order;
  • That the license holder poses a threat to national security;

When is a Security Guard Disqualified to be Hired?

There have been several repeated instances where the guards employed by the Security Agency:

  • Found guilty of gross negligence;
  • Committed Misappropriation or Breach of Trust of property they were meant to protect;
  • Were found drunk or undisciplined;
  • Found guilty of serious crimes;
  • Had schemed against the property which they were expected to protect.

What are the Documents needed to obtain PSARA License?

Although the documents required, vary from one state to another. However, some of the standard documents needed for obtaining PSARA License is mentioned below:

  • Identity proofs of all the employees and directors
  • Address proof of the agency’s registered
  • A duly affidavit acquired under the Private Security Agencies Regulation Act, 2005
  • Logo of the Private Security Agency
  • PAN Card details of the promoters
  • Two passport-sized photographs of the promoters
  • Details of registration acquired from the Service tax department
  • Certificate granted under the provisions of the Shops and Establishment Act.
  • ESI (Employee State Insurance) Registration
  • PF (Provident Fund) Registration
  • Affidavit of the Security Training
  • Armed License
  • Character Certificate for the employees
  • Copy of the ITR (Income Tax Return) of each director
  • Company’s Certificate of Incorporation
  • Duly signed MOA (Memorandum of association) along with the training institute
  • Details of all the Security Guard appointed

Which Forms come under the PSARA?

The forms that come under the purview of PSARA is explained below:

Form

Description

Form I

Verification of Character and Antecedents of the Applicant

Form II          

Verification of Character and Antecedents of the Security Guard or Supervisor

Form III

Character and Antecedents Certificate

Form IV         

A Training Certificate

Form V          

Application for the New License or the Renewal of License in order to engage in the Business of a Private Security Agency

Form VI

License to engage in the business of the Private Security Agency

Form VII

Form for Filing an Appeal

Form VIII

Register of the Particulars

Form IX         

Photo ID Card for the Private Security Guard and Supervisor

 

What is the Procedure to obtain PSARA License?

Procedure to obtain PSARA License

The steps included in the procedure for obtaining PSARA License is summarised below:

  • Qualifying Documents: The first and foremost step in obtaining a PSARA License is to collect every single important document, such as PAN (Permanent Account Number) Card, TAN (Tax Deduction Account Number), GST (Goods and Service Tax) Registration, PF (Provident Fund) and ESI (Employee State Insurance) Registration, Registration under the Shops and Establishment Act, copy of the ITR (Income Tax Return) of each director or shareholder or partner and so forth.
  • MOU With A Training Institute: The applicant is mandatorily required to enter into an MOU (Memorandum of Understanding) with the organization or institute involved in training security guards. The institute or the organization dealing in the training services must have obtained approval by the state controlling authority. However, in these training programs, special relaxation and flexibility is being provided to the ex-servicemen.
  • Police Verification: The candidate is required to apply for the police verification in Form – I. However, if in case the candidate is an organization, firm, or some other relationship of individual, a separate verification will be requested for each, accomplice or director.
  • Application Filing: The PSARA application is filed before the controlling authority of the PSARA, which is then provided further for verification. After the receipt of the NOC (No Objection Certificate) from the concerned Police specialists, the state controlling authority may either grant or reject it with an explanation.
  • Time for Issue of PSARA: The total time required to complete the process of obtaining the PSARA License is sixty days starting from the date of filing the PSARA application. The process of obtaining the PSARA License varies from state to state.
  • States of PSARA Licence: The PSARA specifies the qualification, disqualification, and the criteria for a security guard. And the applicant must engage supervisors to supervise the work of security guards. A person from the navy, army, or air force with a minimum of three years of experience should be given preference.

What is the Fees Structure of PSARA License?

The following listed are the fee structure applicable for PSARA License:

  • For a Single District: Rs 5000
  • For 5 Districts: Rs 10000
  • For an Entire State: Rs 25000 (Except in Karnataka: Rs 50000)

What are the Guidelines for the Renewal of PSARA License?

The validity of a PSARA License is five years since the issuance of the said license. However, the state of Uttarakhand and Chhattisgarh issues license for one year. PSARA License is required to be renewed after its expiry. The following steps that needs to be followed for the renewal of PSARA License:

  • The applicant must apply for the renewal of his PSARA license not less than ninety days before the license expiry date.
  • The application form must be submitted together with the documents as prescribed under Sections 6, 7, and 11 of the PSARA with the prescribed fees.

What are the Compliances as per PSARA?

Under the PSARA regulations, the private security agencies are needed to follow certain prescribed compliances. The following listed are the compliances that are to be complied with:

  • A Private Security Agencies must hire supervisors for supervising the working of the guards appointed in the organization.
  • These security agencies are obligated to train the security guards hired in their firm.
  • PSAs are mandatorily required to give priority to the ex-defense candidates who are holding at least three years of experience.
  • The PSAs are required to follow every qualification, criteria, and disqualification prescribed under the PSARA.
  • According to PSARA, security guards should follow the specified uniform policy.

What are the Amendments made in the PSARA?

Recently, the Private Security Agency Licensing Portal has been unleashed by the government. This portal comes with the features of a Single-Window System for enabling licensing across the nation. The Private Security Agency Licensing Portal is being linked with the ICJA (Integrated Criminal Justice System) for the antecedent verification. This portal has simplified the process of online payment of licensing fees, together with the facilities of e-sign. However, to date, there are only some states that accept online procedure. In contrast, some states are still in the stage of acceptance.

Major Amendments in 2019

  • After the launch of the Private Security Agency Licensing Portal, now there is no need for applying manually for the police verification of the details concerning to Directors/Proprietors/Partners for the grant of PSARA License.
  • Controlling Authority is compulsorily asked to utilize electronic databases of crime and criminals such as CCTNS, ICJS, and other similar facilities for verifying the applicant's antecedents.
  • Electronic mediums like the Demand Draft or the banker’s cheque will be accepted for fees.
  • Centre has made the National Skill Qualification Framework (NSQF) mandatory and compulsory from 27th December onwards.
  • Based on the complete training and job requirement, the Private Security Agencies will hire ex-defense personnel. However, no agency shall appoint any of the ranks of the paramilitary forces, armed forces, or state police forces.
  • The Character and Antecedent Certificate, if once granted, the same will be valid for three years regardless of the change in employment status.
  • The Controlling Authority, either Suo Motu or by its officer, should verify the premises being used by the private security agency as the registered address.
  • The Controlling Authority should have a physical copy of the PSARA License. The same is then required to be delivered by a speed post within fifteen days of the issuance to the registered office of the PSA (Private Security Agency). The private security agency is mandatorily asked to display the same at its place of business.

Package Inclusions

  • GST (Goods and Service Tax) registration
  • Allotment of PAN (Permanent Account Number)
  • Provident Fund (PF) Registration
  • Complete Documentation
  • Filing of PSARA application
  • End-to-end follow up with the department
  • Free consultation over the telephone

FAQs for PSARA License

The respective state authorities grant PSARA License on an individual basis.

The following listed are the fee structure applicable for PSARA License:

  1. For a Single District: Rs 5000
  2. For 5 Districts: Rs 10000
  3. For an Entire State: Rs 25000(Except in Karnataka: Rs 50000)

The Validity Period of PSARA License is for five years starting from the date of enrollment in most Indian states apart from Uttarakhand and Chhattisgarh. Both of these states’ issues PSARA License for one year.

One should apply for the Renewal of PSARA License at least ninety-days before its expiry date.

Yes, although the Indian Parliament had passed a primary law regulating and governing the private security business in India as the Private Security Agencies (Regulation) Act, 2005. But this act provides that every state or union territory shall have the power to appoint its controlling authority and can frame procedure and rules for the grant of PSARA Licence.

Although the documents required, vary from one state to another. However, some of the standard documents needed for obtaining PSARA License is mentioned below:

  1. Identity proofs of all the employees and directors.
  2. Address proof of the agency’s registered.
  3. A duly certified affidavit acquired under the Private Security Agencies Regulation Act, 2005.
  4. Logo of the Private Security Agency.
  5. PAN Card details of the promoters.
  6. Two passport-sized photographs of the promoters.
  7. Details of registration acquired from the Service tax department.
  8. Certificate granted under the provisions of the Shops and Establishment Act.
  9. ESI (Employee State Insurance) Registration.
  10. PF (Provident Fund) Registration.
  11. Affidavit of the Security Training.
  12. Armed License.
  13. Character Certificate for the employees.
  14. Copy of the ITR (Income Tax Return) of each director.
  15. Company’s Certificate of Incorporation.
  16. Duly signed MOA (Memorandum of association) along with the training institute.
  17. Details of all the Security Guard appointed.

No, according to Section 4 of the PSARA Act, 2005, in case an agency wants to offer security services abroad, the same is then firstly required to obtain permission or approval from the Controlling Authority. The controlling authority before approving shall first consult the Central Government.

Although the documents required, vary from one state to another. However, some of the standard documents needed for obtaining PSARA License is mentioned below:

  1. Identity proofs of all the employees and directors.
  2. Address proof of the agency’s registered.
  3. A duly certified affidavit acquired under the Private Security Agencies Regulation Act, 2005.
  4. Logo of the Private Security Agency.
  5. PAN Card details of the promoters.
  6. Two passport-sized photographs of the promoters.
  7. Details of registration acquired from the Service tax department.
  8. Certificate granted under the provisions of the Shops and Establishment Act.
  9. ESI (Employee State Insurance) Registration.
  10. PF (Provident Fund) Registration.
  11. Affidavit of the Security Training.
  12. Armed License.
  13. Character Certificate for the employees.
  14. Copy of the ITR (Income Tax Return) of each director.
  15. Company’s Certificate of Incorporation.
  16. Duly signed MOA (Memorandum of association) along with the training institute.
  17. Details of all the Security Guard appointed.

Section 7 (4) of the PSARA Act 2005 obliges the Controlling Authority to act on to an application (whether to issue or refuse to grant the license) within sixty days, starting from the date of receipt of the complete application.

Section 13 of the PSARA Act 2005 provides the grounds of cancellation of license. The grounds on which a PSARA License stands cancelled are as follows:

  1. A license was acquired by way of misrepresentation or suppression of material facts;
  2. A license was acquired by using false documents or photographs;
  3. The License holder has either infringed the provisions of PSARA Act 2005 or the conditions in which the license was given;
  4. The License holder has misused the information acquired during the discharge of the agency’s duties in offering security;
  5. The License holder has misrepresented that it is an instrumentality of the Government;
  6. The License holder has impersonated, or abetted impersonation of some Government Servant;
  7. The concerned Agency has failed miserably to operate post one year of the grant of license;
  8. License holder failed miserably to provide services agreed to another person;
  9. License Holder has either done, or lent his or her assistance in doing, something which was in contravention of a Court order;
  10. There have been several repeated instances where the guards employed by the Security Agency:
    1. Found guilty of gross negligence;
    2. Committed Misappropriation or Breach of Trust of property they were meant to protect;
    3. Were found drunk or undisciplined;
    4. Found guilty of serious crimes;
    5. Had schemed against the property which they were expected to protect.
  11. That the license holder poses a threat to the national security;

An Individual, One Person Company, Partnership Firm, Limited Liability Partnership, Private Limited Company is qualified and eligible to apply for the PSARA License. Moreover, the qualified individual or the business structure is required to make an application to the respective State Competent Authority for the registration of the Private Security Agency.

A Private Security Agency (PSA) is either an individual or a group of people who are distinct from the Government and are involved in the business of offering Private Security Services, comprising of the training of guards or supervisors or providing guards or supervisors to any other business undertakings.

Every State Government appoints an officer of the Rank of Joint Secretary in the Home Department or an officer of equivalent rank to serve as the Controlling Authority under the PSARA.

The condition that needs to be fulfilled by the proposed Director is mentioned below:

  1. He or she must be an Indian resident,
  2. He or she must have a sound financial standing (needed to submit a copy of the ITR as a proof).
  3. The concerned person must not be sentenced for any offense and should have a perfect precursor past.

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 Licenses for different states.

The License to operate a Private Security Agency can be attained by process of obtaining a No Objection from the office of the Deputy Police Commissioner Office to grant

The FDI (Foreign Direct Investment) is a PSA which 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 License. However, he has to follow certain standards set by the state Controlling Authority. To provide training to security guard, the PSA needs to enter into MOU (Memorandum of Understanding) with the trusted security guard training institute.

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