Understanding and providing the documents required for PSARA License is of utmost importance, when it comes to successfully implementing the PSARA application process. In this blog, we will learn the entire list of such documents and their significance for complete conceptual clarity. The PSARA license full form originates from the Private Security Agency (Regulation) Act or PSARA Act. The Act makes obtaining the PSARA License mandatory for private security agencies operating in India, in order to ensure their smooth regulation by their respective State Governments. PSARA license helps agencies meet specific standards, guidelines, and legal requirements, promoting their professionalism and credibility in the industry.
Who is Eligible for Obtaining a PSARA License?
PSARA License can be obtained either by Private Security Agencies or by Individual Security Personnels in India. However, they must fulfill a prescribed set of eligibility criterias as mentioned in the PSARA Act. Moreover, if the applicant is an agency, even its directors or principal officers must fulfill a set of conditions for the license to be successfully obtained. Let’s discuss all of these eligibility criterias one by one.
Eligibility for Applicant Agency
An agency applying for PSARA License can either be a private limited company, limited liability partnership, partnership firm or sole proprietorship. However, it is important to choose a name for the security agency that does not imply any government patronage, as per the guidelines set by the Ministry of Home Affairs (MHA). Also, the name should be suffixed by words like “Security Services”, “Security Agency”, and so on, clearly indicating the nature of its business activity. As far as the directors or principal officers of the agencies are concerned, they must be Indian Citizens. Moreover, they must demonstrate financial soundness and must not be convicted of any legal offense.
Eligibility for Applicant Individual
The PSARA license can be applied by all Indian nationals. However, they must not be convicted of any legal offense related to the promotion, formation, or management of a company or any offense carrying a minimum imprisonment term of two years. Those associated with organizations banned by law due to activities that pose a national security threat, and those dismissed or expelled from government service due to misconduct or moral turpitude are also not eligible to run a Private Security Agency and apply for PSARA License.
What are the Documents Required for PSARA License?
Application for PSARA License is incomplete without the submission of certain required documents. These documents serve as proof of legitimacy and compliance of your private security agency. They showcase your agency’s legal formation and establish its adherence to the legal framework outlined by the PSARA Act. We have enlisted all the documents required for PSARA License in the table below. These Documents have been clearly categorized into the documents of the applicant agency, its managerial personnels, equipment used, uniform of security guards, and premises for a more comprehensive and clear understanding.
Documents of Security Agency
- Registration or Incorporation Certificate
- MOA & AOA of LLP/Partnership Agreement
- Shop & Establishment Registration
- GST Registration
- PT Registration (if applicable)
- MSME Registration (if any)
- PAN & TAN
- PF & ESI (if applicable)
Documents of Key Managerial Persons
- Photograph
- PAN Card
- Election Card
- Aadhar Card (UID)
- Voter ID card
- Passport
- Address Proof
- Electric/Telephone bill
- Registered Leave & license
- Income Tax Return of last 3 years
Other Mandatory Documents
- MOU: Memorandum of Understanding with Recognised Security Training Institute
- Special Qualification: Training Certificates for agency’s owners and key management personnels
- Photographs of Guards: Colour photo in full uniform
- Specimen Badge and Logo
- Specimen Identity Card
Premises Related
- Rent Agreement
- Recent Electricity Bill (not older than two months).
- Property Tax Receipt/Conversion Charges Paid Receipt (if applicable)
- Photograph of Premises (inside and outside) to authenticate the location along with the Signboard of the Agency with longitude and latitude.
Important Notes:
- Key Managerial Person for the purpose of PSARA License documentation refers to individuals involved in controlling the management of the security agency. These include directors in case of a company, designated partners in case of an LLP, and partners in case of Partnership Firm.
- If the private security agency has already obtained a license from the Controlling Authority of any other State then the requirement of training of the licensee shall not be necessary as per circular no N0.24021/22/2021-PM-1 dated 20th Oct 2022. It means once the licensee has obtained a special qualification certificate from a recognised training institute of one state he needs to to redo training in order to make an application for other states.
- As per circular no. 24021/22/2021-PM-1 dated 20th Oct 2022, if the antecedent of the applicant has already been verified in a state he has previously obtained the PSARA License, the same need not be done again, provided such verification was completed during the validity period of the license.
State Level Variations:
- In the states of Haryana and Maharashtra, current Property tax receipt/ Conversion charges paid receipt for commercial premises is required.
- In karnataka Premises must have Training room of 200 sq Feet and a separate office space supported Layout plan with Floor area containing location of toilets,
- You need an ITR of Five consecutive years including the current year ITR to apply for PSARA license in Madhya Pradesh. If the entity is a newly constituted entity the ITR of the promoters could be filed apa
- The managerial personnels of Applicant Agency must have Passport to apply for Psara in the state of Haryana
How to Obtain MOU with a Training Institute?
All Private Security agencies need to train their guards from a recognized training institute. For this the agency needs to sign an MOU or Memorandum of Understanding with the concerned Training Institute. You can visit the official PSARA website and check the names of Training Institutes recognized by your States’ Controlling Authority in your area. Once you have selected the institute, you can approach them for the MOU and provide them all the information they seek.
How to Take a Guard's Photo?
Guard’s Photo must be taken in the coloured format, in four views- front, back, left and right. He must be holding a stick in his hand and must be in full uniform.
Description of Guard Uniform:
Full uniform of the private security guard employed by a PSARA licensed agency includes shirt, trouser, belt, tie, cap, shoes, lanyard, ID card and badge. Here are a few specifications:
- Arm badge for distinguishing it from other agency
- Shoulder or chest badge to indicate guard’s position in the organization
- Whistle attached to the whistle cord(lanyard) and to be kept in the left pocket of the shirt
- Rubber sole shoes with eyelet and laces
- Cap having the distinguishing mark of the private security agency
- Every guard shall carry a notebook and a writing instrument with him
- The uniform should not resemble to uniform of police or Armed forces or Paramilitary Forces
Specimen ID Card:
The Guard’s ID card must contain his Identity Number, Name, Designation, Employee Number, Blood Group, Date of Issue and Validity duration. It must be signed by the employee as well as the employer. We are sharing a downloadable specimen ID card for your reference.
List of Equipment:
You must provide the complete list of all equipment to be used by the agency while providing security services. Also the count of each of these equipment must be mentioned. These may include door framed detectors, handheld metal detectors, wireless telephones, alarm devices and so on.
Cancellation of PSARA licence
Private Security Agencies. These agencies are required to obtain a valid license under the Private Security Agencies Regulation Act (PSARA) to operate lawfully. However, the significance of a PSARA license also means that it can be subject to cancellation or suspension under specific circumstances. This article delves into the reasons and grounds for the cancellation of a PSARA license, shedding light on the importance of adhering to the regulations and upholding the integrity of the private security industry.
Security agencies play a pivotal role in safeguarding the well-being and assets of their clients, ensuring a secure environment for various establishments and individuals. They are granted the privilege to operate legally in India and offer their services under the authority of a valid PSARA license. To obtain this license, the agency needs to fulfill numerous conditions as discussed earlier in the blog. However, even after the license is obtained, it can be revoked by the authorities on certain objectionable grounds.
Grounds for Cancellation of PSARA License
- Obtaining the license through misrepresentation or using false documents,
- Violating the PSARA Act or license conditions,
- Misusing obtained information obtained during the discharge of duties as a private security agency.
- Falsely representing the agency’s affiliation with the government,
- Impersonating a public servant,
- Failure to commence activities or provide services,
- Non-compliance with court orders or lawful authorities, and
- Engaging in acts that threaten national security, public order, or law and order
PSARA License Fees
As PSARA license is a mandatory legal requirement, its fee plays a crucial role while preparing the budget for starting a Private Security Agency. The Government fees for filing the PSARA license application varies depending on the operational scope of the agency, such that it keeps on increasing as the number of jurisdictions in which the agency operates increases. The fee structure for PSARA license is designed to accommodate agencies with different service areas, enabling fair and proportional licensing costs for all.
- Fees for Agencies in One District: For agencies that operate within a single district, the government fee for the PSARA license application is ₹5000/-. This category is suitable for agencies providing security services in a localized area, such as within a city or specific region.
- Fees for Agencies in Up to Five Districts: Agencies with a broader operational reach, covering multiple districts within a state, fall under this category. The government fee for the PSARA license application of such agencies is ₹10,000/-. This fee structure accommodates agencies with a moderately expanded service area.
- Fees for Agencies in More than Five Districts: For agencies that provide security services across a large geographic area, operating in more than five districts or throughout an entire state, the government fee for the PSARA license application is ₹25,000/-. This category applies to agencies with a significant presence and operational scope, offering services across extensive regions.
PSARA License Validity & Renewal
Typically, the validity of a PSARA license extends up to 5 years, allowing private security agencies to conduct their operations legally and offer services to clients within the specified region. However, it is essential to note that certain states, such as Uttarakhand, Madhya Pradesh, and Chhattisgarh, have a shorter validity period, with licenses being valid for 1 year only. Agencies should be aware of the specific validity period applicable to their respective states.
To ensure continuous compliance and the legality of operations, private security agencies must initiate the PSARA license renewal process before the license’s expiration. The renewal application should be submitted to the controlling authority at least 45 days before the license’s expiry date. The application must include the required documents along with the prescribed renewal fee.
Upon receiving the application, the controlling authority will review the submitted documents and assess the agency’s compliance with regulations. The renewal order will be issued within 30 days of receiving the application, provided that all requirements are met satisfactorily. Successful renewal enables the private security agency to continue its operations without any interruptions.
Obtaining a PSARA license requires a thorough understanding of eligibility criteria and the submission of all the documents listed in this blog. This can make the process exhaustive and legally intricate for any layperson to execute. So, if you want to obtain a PSARA license for yourself or your private security agency, consider partnering with Team Setindiabiz for expert assistance and guidance. We provide end-to-end PSARA license services throughout India and ensure the easy and smooth setting up of your private security agency.
FAQs
Q1: Can an individual apply for a PSARA license?
Private Security Agency License, PSARA, can be granted to both individuals and companies. Both can apply for and obtain a PSARA license, provided they meet the necessary criteria and requirements.
Q2: Are there any specific qualifications required for a PSARA license?
Yes, to run a Private Security Agency, the key management professional must have the Special Qualification Certificate obtained from a recognized Training Institute. However, as far their educational background and experience are concerned, there are no specific qualification requirements.
Q3: What is the validity period of a Private Security Agency license?
PSARA Validity typically extends to five years, except for those obtained in Uttarakhand, Madhya Pradesh, and Chhattisgarh, where the validity period is 1 year only . Its renewal application needs to be filed 45 days before its expiry.
Q4: Can a security agency operate in multiple states with one PSARA license?
No, a PSARA license is typically issued by the respective state controlling authority, and it is valid only within the jurisdiction of that particular state. If a security agency intends to operate in multiple states, it needs to obtain separate licenses for each state.
Q5: Are there any post-license compliance requirements for PSARA license holders?
Yes, PSARA license holders are required to comply with various post-license obligations, such as maintaining proper register of employees, submitting regular reports to the controlling authority, ensuring the minimum wages and benefits for security personnel, and adhering to the code of conduct specified by the regulating authorities. Non-compliance can result in penalties or cancellation of the license.
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