PSARA License For Security Agency All India Service @ Best Rates
PSARA License is mandatory to start and run a Security Guard Agency business in India. Hence, before supplying the security guards, the private security agency should obtain a PSARA License.
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Private Security Agencies (Regulation) Act, 2005 (PSARA)
The Private Security Agencies (Regulation) Act, 2005, is a vital law in India to regulate private security agencies. It was enforced on the 14th of March 2006. The act is supported by the Private Security Agencies Central Model Rules, 2006, providing implementation guidelines. Each state designates an officer, not below the rank of Joint Secretary, as the controlling authority for private security agencies.
Psara License Validity : A PSARA License remains valid for five years from the date of issuance. To renew the license, agencies must apply 45 days before its expiry. If the license expires, a new license will have to be obtained by filing a fresh application. Compliance with the renewal provisions is crucial to avoid penalties, suspension, or revocation of the license.
Eligibility Criteria for PSARA License in India
The table below summarises the eligibility criteria for agencies and their key managerial persons to obtain a PSARA License in India. The criteria include educational qualifications, nationality, age, special qualifications, clean antecedents, and a sound financial standing. Applicants must fulfil these criteria to apply for a PSARA License and enhance the credibility of their private security agencies.
Eligibility Requirement for Company/Firm
| S. No. | Name of Requirement | Description |
|---|---|---|
| 1. | Person Eligible To Apply For PSARA | Any entity, whether individual or business, is eligible to apply for the PSARA License. The indicative list of applicants includes
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| 2. | Name and Object of Business | The entity’s name should contain the word Security Services or related terms representing the applicant’s object. For a Company, the MOA must include a specific clause related to Providing Security Services. |
| 3. | MOU With Training Institute | The applicant must sign an MOU with a Security training institute recognised by the state controlling authority. This institute shall provide training to the Security guards employed by the agency. |
| 4. | National Interest | PSARA License cannot be granted to a person having links with an organisation or association banned in India. The goal is to protect National Security, Public Order, or prevent any activity prejudicial to National Security. |
Director/Owner Documents Director/Owner Eligibility
| S. No. | Name of Requirement | Description |
|---|---|---|
| 1. | Education | The director/partner/owner, etc., must be 8th standard pass or above. |
| 2. | Nationality & Age | Indian Nationality, Above 18 Years of Age. |
| 3. | Special Qualification | Special Security Training to owners and key officers of the agency. |
| 4. | Clean Antecedents | The antecedents of the agency’s key officials must be verified by the police department and the Controlling Authority. |
| 5. | Financial Standing | The applicant must have good financial standing, and the controlling authority may ask for the Income Tax Returns. |
| 6. | No Bind Over Pending Case | The key officials of the security agency must have no bind over pending court cases. |
Note: Is FDI Allowed in Indian Private Security Agencies?
The PSARA Licence will not be issued to agencies incorporated in a foreign land. Also, such agencies that have major shareholding or partnership from a foreign entity are forbidden from getting the PSARA license. However, foreign direct investment of up to 49% is allowed, subject to approval by the Government. Companies with foreign investment must ensure that all relevant reports, including FC-GPR, are duly filed and approved.
Key Features of PSARA License
- Mandatory to start a security agency
- Only Citizens of India can apply
- One state one licence
- Set guidelines for a security agency
- Builds Trust and Reliability
Stepwise Process of Obtaining Psara License
To operate legally in India, obtaining the PSARA license is a necessity. If you’re wondering how to apply for a PSARA Licence, here is an easy step-by-step navigation of the process. These steps will ensure complete compliance with the PSARA Act and ensure a smooth grant of the PSARA license.
Step 1: Documentation
Ensure correct and complete documentation, which varies based on the type of applicant (e.g., company, LLP, partnership firm). Gather all necessary paperwork for a smooth process. Please refer to the documentation section for the list of documents for the Psara Certificate.
Step 2: MOU With Training Institute
Sign a Memorandum of Understanding with a recognized Security training institute. This institute will be responsible for providing training to guards and supervisors. Each state has approved training institutes for this purpose.
Step 3: Application Filing
Apply for PSARA License before the controlling authority of the state where the agency intends to operate. It’s important to note that there is no provision for a central license covering all states. So, a separate application is required for each state.
Step 4: Antecedent Verification
After applying, the antecedents of the business and its principal officers are verified. The Local Police and the jurisdictional Controlling Authority are engaged for this purpose.
Step 5: Issue of PSARA License
Once the documents and antecedents are satisfactorily verified, the Controlling Authority issues the PSARA License. In some cases, a personal interview with the applicant may be required.
List of Documents For PSARA License Application
The table below outlines all the necessary documents required for a PSARA license. Please ensure that all these documents are gathered and submitted in their specific formats to expedite the application process further. Note that the documents provided below are generically applicable to all applicants. If you want to know the specific requirements as per your jurisdiction, refer to our comprehensive guide.
Documents of Company/LLP/Firm
| S. No. | Name of Documents | Description |
|---|---|---|
| 1. | Basic Documents |
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| 2. | Premises Related |
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| 3. | Other Documents |
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Director/Owner Eligibility
| S. No. | Name of Documents | Description |
|---|---|---|
| 1. | Basic Documents |
|
Other licenses that may be required
| Name of Documents |
|---|
| 1. Establishment’s photograph (exterior and Interior) |
| 2. Professional Tax Enrollment (PTEC) if applicable |
| 3. 3-Year ITR (5 years in the Case of Madhya Pradesh) |
| 4. EPFO Registration Certificate (if applicable) |
| 5. ESIC Registration Certificate (if applicable) |
| 6. GST Certificate (if obtained) |
| 7. Udyam Certificate (if obtained) |
We have made a Comprehensive Guide to cover
- ✔️ Eligibility Criteria
- ✔️ Complete List of Documents
- ✔️ State Level Variations
- ✔️ How to obtain an MOU?
- ✔️ Description of Guard Uniform
- ✔️ Specimen ID Card
- ✔️ How to take a Guard Photo
- ✔️ List of Equipment
Psara License Cost and Timeline
The timeline for obtaining the PSARA License varies from state to state. Further, it is also subject to the completion of documentation and antecedent verification by the police. Predicting an exact duration is challenging. Typically, it takes around 90-120 days from the date of filing to get the PSARA license. The application can be made for a district, five districts, or an entire state. However, for multiple states, different applications must be filed via different procedures.
The overall PSARA License Fee consists of three main components :
- Professional Fee: We offer a very reasonable fee structure for the PSARA License. Please contact us to get an estimate for the online application of the PSARA License.
- Cost of Training: Training the security guards and supervisors employed at your agency also adds to your cost. Try signing an MOU with a cost-effective Security Training Institute.
- Government fee: The government fee for the PSARA License varies on the basis of the agency’s area of operation. Here are the different fee slabs:
- For One District: Rs. 5,000/-
- For Up to Five Districts: Rs. 10,000/-
- For More than Five Districts: Rs. 25,000/-
- For Entire State: Rs. 25,000/-
- Out-of-pocket expenses: Travelling and lodging expenses also have to be taken into account. Such expenses are frequent while following up on the progress of the application through multiple government departments and police stations. The amount of these expenses depends on the specific merits of each case.
Frequently Asked Questions
PSARA licence is a mandatory requirement for private security agencies operating in India. The mandate is mentioned under section 4 of the Private Security Agency (Regulation) Act, 2005.
Any entity or individual planning to offer private security services must obtain a PSARA licence. This involves providing security guards, personal bodyguards, or surveillance manpower.
The process of obtaining the private security agency license involves filing an application with the state Controlling Authority. Documents are an important aspect of such an application. (Link).
Typical documents for a PSARA licence include the documents of the constitution and incorporation of the agency, documents of its key managerial persons, police verification NOC, documents of the premises, and documents of other tax and regulatory registrations like ESI, EPF, and GST.
The applicant must be an Indian citizen or an entity incorporated in India. It must have a valid name that does not show patronage of the Government. The name must be suffixed as “Security Agency” or “Security Services”, aptly describing its business activities. Its owner and key managerial persons must have a special training certificate from a recognised security training institute. This will establish their suitability to run a Private Security Agency. Moreover, their antecedents must be thoroughly verified, and an NOC must be obtained in this regard from the local police.
The PSARA Licence is valid for five years in most states. However, in states like Chhattisgarh and Uttarakhand, it is valid for one year. The renewal for the Licence can be filed 90 days before the expiry of the Licence.
The cost of a PSARA licence can vary based on the number of locations your agency provides services. So, for one district, the cost is Rs . 5,000, and for up to five districts, the cost is Rs . 10,000. For more than five districts or an entire state, the cost is Rs . 25,000.
Operating a private security agency without a PSARA licence can lead to imprisonment for 1 year. Also, a fine may be imposed extending to Rs . 25,000.
No, a PSARA licence obtained in one state cannot be transferred to another. A fresh application must be made in the new state if the agency plans to operate there.
Yes, it is possible to convert an individual’s security agency into a private limited company. However, this requires compliance with the PSARA Act. Also, a fresh PSARA license will have to be obtained in the company’s name.
No, it is not a mandatory requirement and a widespread myth. Anyone can apply for this Licence, provided they are an Indian Citizen and have a clean legal and financial background. However, preference may be given to ex-servicemen while hiring security personnel and supervisors for the agency.
Foreign direct investment in a Private Security Agency is allowed up to 49% via the approval route. The application for the FDI is administered by the Union Ministry of Home Affairs. Hence, before filing an application for a PSARA Licence, a company with foreign investment must obtain prior approval from the Government. Also, all relevant reports, like FC-GPR, must be duly filed and approved.
Antecedent Verification is a process of verifying the background of the key officers and promoters of a security agency. This is done to ensure that they are eligible to run the agency under the PSARA Act. For this, a No Objection from the office of the Deputy Police Commissioner has to be obtained.
