PSARA License in India – An Overview

PSARA License in India is a mandatory certification for private security agencies to operate legally within the country. The Private Security Agencies (Regulation) Act, 2005 governs private security agencies in India. PSARA registration is especially important for security agencies to maintain trustworthiness and reliability and run seamlessly within the legal framework without any operational hassles.

The PSARA Act was established in 2005 to regulate the functioning of private security agencies, ensuring that these agencies maintain professionalism, accountability, and quality in the services they provide. The Act came into force on 15 March 2006. The respective state governments issue the license, which involves a comprehensive application process that includes background checks, financial scrutiny, and compliance with prescribed training requirements for security personnel. Obtain a PSARA License in India with our expert guidance and kickstart your private security agency.

Benefits of PSARA Security License

PSARA License is mandatory for running a private security agency in India. Necessary for legal compliance, it boosts credibility, allows companies to bid for government contracts, and helps expand networking and growth opportunities. Benefits of PSARA security license include:

Regulation & Standardization

It facilitates the smooth functioning of private security agencies, regulating their operations per regulatory needs. It helps set a standardized template for the industry, including background checks for security personnel, training and following protocols compulsory.

Credibility & Trust

A PSARA-licensed agency earns customer trust and credibility, boosting its reputation. This license ensures it follows and adheres to compliances, which helps attract more clients and enables business expansion through reliability and professionalism.

Accountability

Private security agencies with a valid PSARA License are accountable to regulatory authorities, facilitating transparency and responsibility. The accountability factor also helps these agencies maintain their ethical standards and protect the interests of their clients.

Market Access

PSARA registration opens up business opportunities for private security agencies to boost their client portfolios. Various government and corporate businesses mandate this. It is one of the core benefits of getting a PSARA security license.

Insurance & Legal Protection

Agencies with PSARA licenses manage business insurance with ease. Insurance plays a critical role in covering liabilities arising from security operations and offers legal protection in case of disputes or incidents involving security personnel.

Growth & Expansion

A PSARA license is not just a license; it's a gateway to growth and expansion. It's a stepping stone for a security agency to operate across different states in India, expanding its clientele and reaching new heights. It's a license for ambition and optimism.

Eligibility Criteria for PSARA License

Checklist for security agency ensuring it meets the required eligibility criteria for obtaining a PSARA License in India:

Checklist for applicants to apply for PSARA License:

• Under the Companies Act, the applicant must be a registered company or partnership firm.
• Applicants, including directors and majority shareholders, must be Indian citizens.
• Businesses should be financially sound in managing daily operations.
• Applicants, including directors or partners, should have a clean criminal record.
• The agency should offer training to security personnel.
• A police clearance certificate is required for directors and key personnel.
• A proper office setup, including all the necessary facilities, is compulsory.
• Applicants, including directors and partners, should be at least 18 years old.
• Applicants, including directors, should be of sound character and conduct.
• Though not mandatory, prior experience in security or a related field is valuable.
• Agency must meet all the legal and regulatory requirements of the labour laws, including offering benefits like ESI, PF, etc.
• No foreign national can come on board as a director or shareholder.
• It is illegal for the agency to employ personnel carrying firearms unless it is legitimate and licensed.
• Applicants must file an affidavit verifying compliance with PSARA requirements.
• The agency must run background checks on security personnel before hiring them.
  
  

  Checklist for Security Guards under PSARA License Regulations

  • The applicant must necessarily hold an Indian citizenship.
  • The applicant must be an individual aged between 18 and 65 years of age.
  • The applicant must have undergone prior training as mandated.
  • The applicant must not be terminated from any government service in any case.
  • The applicant must fulfil all the physical requirements necessary for this job.
  • The applicant must submit a character certificate regarding their individual character.

Documents Needed for PSARA Registration

Here is a list of documents required for PSARA registration, which an applicant must submit at the time of applying. These documents include:

• PAN Card & Certificate of Incorporation
• Two passport-size photos of the promoters, along with their PAN Cards
• GST number & Provident Fund Registration
• ESIC Registration & Registration under the Labour Act
• Registration under the Shops and Commercial Establishments Act
• Identity Proofs – for Directors and Employees
• Income Tax Returns Copies for the Directors
• Address Proof of the Agency Office
• Affidavit under Section 7 (2) of PSARA, 2005
• Affidavit for security training & MoU with the training institute

Step-by-Step PSARA License Online Registration

The procedure to obtain PSARA License online registration passes through several stages. Let us explore the step-by-step process:

Prepare Necessary Documents

Applicants must keep all the necessary filing documents ready. This helps save time during application filing, facilitating a smooth and hassle-free process. Besides, documents required for other registrations plus the details of promoters and directors must also be kept ready.

MOU with the Training Institute

Applicants seeking a PSARA License must apply for an MoU with the listed institute to train their candidates. Eligible training institutes are listed on the home page of PSARA’s official website. Training boosts an agency's capability to provide well-trained security staff adept at their work.

Application Filing

Once Step 1 and Step 2 are fulfilled, applicants must prepare to submit the application (Form-I) to the respective authorities in the state they are applying. They must also enclose Form-II for verification of its antecedents and submit an affidavit in Form-III along with Form-I.

Police Verification

Police verification follows the application submission process, which is submitted in Form-I. If the agency is a partnership or a company, then the respective directors of the business entities must also undertake police verification.

Obtaining PSARA License

After the police verification is done and a No Objection Certificate (NOC) is received, authorities review the application. Based on their own evaluation, they either approve the PSARA license or reject it.

Features of PSARA Security License

PSARA security license is a mandatory regulation for running a private security agency in India. Ensuring compliance, credibility and client trust, its features include:

• Ensures security agencies comply with the compulsory legal requirements to operate their business in India.
• Offers government recognition to the security agencies to run their private business.
• Boosts the security agency's trust, credibility and reputation with their clients and partners.
• Facilitates the agency in bidding for government grants, tenders, and contracts.
• The license mandates the agency to offer certified training to security personnel.
• The permit can be obtained to run the business at a specific state or national level.
• The license mandates police verification of agency owners and staff to develop a sense of security.
• The agency must comply with labour laws, firearms regulations, and employee welfare.
• The license is valid for five years and requires renewal post-expiry.
• Facilitates the agency in expanding its operations and delivering services across India.

Types of PSARA License in India

Let us delve into a quick overview of different types of PSARA licenses in India. The table highlights distinctive objectives and online application details of each license type, which cater to different security services and compliance needs.

Renewal of PSARA License Process

Security agencies in India must comply with the renewal of PSARA license process to ensure continued validity in operating their business legally in India. The process to renew the license is listed below:

• Submission of renewal application 90 days before the expiry date of the license.
• Submit updated documents, including police verification, employee training certificates, and financial statements, with the application.
• Police verification includes ensuring clearance from the police for the agency, its directors and other key personnel.
• While the business is legally operational, meeting compliance with PSARA regulations is a must.
• Payment of renewal fee according to the specific state regulations.
• Awaiting application review and receiving the final update on approval/rejection status based on compliance status.