The Private Security Agencies (Regulation) Act (PSARA), 2005 regulates operations of the Private Security Agencies in India. This act was enacted to ensure that these security agencies operate within a legal framework and are accountable to a regulatory mechanism.
If anyone wishes to begin a security agency, they need to mandatorily get the PSARA license at the state level, in India. Likewise, to offer support outside India, consent should be acquired from the Controlling Authority, which in-turn must consult the Central Government before authorisation.
An entity registered as:
- Private Limited Company
- Limited Liability Partnership (LLP)
- One Person Company (OPC)
- Sole Proprietorship
- Partnership Firm can apply for this license.
Furthermore, the Directors/Officers/Proprietors should ensure that these conditions are fulfilled:
- The applicant must be a resident of India.
- The applicant must be financially sound to afford the cost of operations.
- The applicant should not have any criminal record.
While applying for the PSARA license under the Private Security Agency Regulation Act, 2005, the applicant needs to affix the following documents:
- PAN Card
- GST registration certificate
- Employees State Insurance (ESI) registration letter
- Shops & Establishment act registration letter
- Provident fund (PF) registration letter
- Contractual Labour Act registration letter
- Income Tax Returns of directors
- Certificate of Company’s Incorporation
- Address proof of the Registered Office
The applicant needs to sign an MOU with a Government-Authorized training institute to train their security guards and supervisors.
The applicant needs to apply for police verification by filing Form-I. In case the applicant is a Company, Firm, or Association of Persons (AOP), every director/partner needs to furnish separate forms for verification.
Note: As per the amendments made in 2019 in the PSARA Act 2005, there will be no need for manual police verification of details of Directors/Partners/Proprietor at the time of applying for the license.
The PSARA license application has to be filled with the PSARA controlling authority located in every state. This will be processed after a NOC from the concerned police authority is received. On verifying the details, if satisfied, the authority will grant PSARA license or reject the application with a valid explanation.
The time taken for approval of the PSARA license differs from state to state. Generally, within 60 days one can obtain the license.
|Location of Business||Fees (INR)|
* The license fees in Karnataka is INR 50,000
A PSARA License is valid only for 5 years from the date of its issuance. However, in Uttrakhand, Madhya Pradesh and Chhattisgarh, the validity of this license is one year. The license once expired, can easily be renewed by filing a renewal application, 90 days before its expiry along with the renewal fee.
As per the Private Security Agencies Regulation Act (PSARA), 2005, the Private Security Agency (PSA) needs to adhere to specific guidelines:
- A private security agency should hire supervisors to look after the working of guards appointed in the organisation.
- Private Security Agencies (PSA) shall train the security guards appointed.
- Ex-defence candidates who have 3 years of experience shall be given priority for the position of supervisor.
- Security guards hired by PSA must follow the prescribed uniform policy.
Note: The act allows states to frame their own rules for granting the PSARA license. The points mentioned above are generalised for understanding the process.