In this blog, we have discussed in detail the full form and eligibility for PSARA License under the PSARA Act, and explained the complete procedure and required set of documents to obtain the same.
Security Concerns across communities around the world have not just heightened but have also emerged into new forms. So, the need for such professional security services which not just understand the present challenges in the realm of security, but also have efficient technologies and resources to solve them, is being felt now more than ever. In this context, India has encountered a number of Private Security Agencies being established everyday since the past few years, with the goal of securing assets and other valuables of individuals and businesses alike.
The growth of security agencies in the private security sector has highlighted the need for their regulation under a robust framework of law. The PSARA or Private Security Agency (Regulation) Act of 2005 was enacted to fulfill this very purpose. The act not just regulates and controls every aspect of private security agencies operating in the country but also mandates a license to validate their existence under law.
Understanding PSARA License: Meaning & Full Form
PSARA is an abbreviation for the Private Security Agency (Regulation) Act, 2005 which is a comprehensive law enacted to regulate the functioning of Private Security Agencies in the country. PSARA license refers to the license granted under the act to validate the legal existence of such agencies. So, obtaining a PSARA license is mandatory for all private security agencies operating in India. The license allows these agencies to conduct their operations legally for a specific duration of time, after which it can be renewed for continuation. The ultimate aim behind granting the PSARA license is to ensure that security services offered by the licensed security agencies are up to the standards as prescribed by the PSARA Act.
The PSARA Act designates a Controlling Authority to grant the PSARA license to eligible applicants. The powers of such Controlling Authority is limited to its jurisdictional area only. This makes the validity of the PSARA license territorial as well. This means that the license shall be applicable only to the area of operation of the agency, and if the agency is looking forward to expanding its services to a different location, it will have to obtain a fresh license applicable to that location. In other words, a single PSARA license cannot validate your agency’s operations in multiple states or locations.
What is the Eligibility for Obtaining the PSARA License?
Any agency or individual providing security services to private clients are required to do so under the aegis of the PSARA license. However, the PSARA Act prescribes certain additional eligibility criterias for the applicants to meet before they apply for the license. These criterias are related to their nationality, their legal and financial antecedents, the business activities appropriately reflected in their names, and their association with a recognized training Institute to train their Security Guards. Here are the basic eligibility criterias for obtaining a PSARA License in India.
- Nationality: If the applicant is an Individual, he should be an Indian citizen, and if it is an agency, it should be incorporated in India. No business entity incorporated in a foreign country can provide private security services in India. Moreover, even agencies incorporated in India having a majority of foreign shareholding or partnership are forbidden from opening a Private Security Agency in India.
- Antecedent Verification: The antecedents of the owner and principal officers must be verified by the local / state police authorities and later by the Controlling Authorities before the license is issued. They must have a clean legal and financial record, meaning they must not be a convict under any legal offense. Moreover, if the proposed applicant is an individual must not be convicted of any offense related to the promotion, formation, or management of a company or any other 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 ineligible to obtain the PSARA license.
- Business Activity & Name: The concerned agency or individual applying for the PSARA license must be engaged only in the activity of providing security services. The business organization must have a name suffixed with words like “Security Agency” or “Security Services” to aptly reflect the business activity. Moreover, the name must not contain words which show a patronage of the Government or is misleading to the public.
- Association with Training Institute: Private Security Agencies must sign a Memorandum of Understanding (MOU) with a Training Institute recognized by the jurisdictional Controlling Authority. The Institute will be responsible for providing training to the Guards, Supervisors, and Staff of the Agency and help it comply with all the standards of quality security services as prescribed by the PSARA Act.
- Special Qualification of Owners and Principal Officers: The owners and Principal Officers of the agency must have obtained a Special Qualification Certificate indicating their experience or training in the field from a recognized Training Institute. The Certificate of each of these owners and principal officers must be submitted while applying for the PSARA license for verification by the Controlling Authority.
What are the Documents Required for PSARA License?
Acquiring a PSARA license is a vital step for any private security agency to establish its credibility and legality. To facilitate a smooth and successful application process, several essential documents must be submitted to the designated Controlling Authorities. These include the documents related to the agency, the personal documents of its owners and principal officers, the documents related to its business premises, and the documents related to the training institute it is affiliated with. The table below presents a complete list of all such documents.
| S.No | Category of Document | List of Documents |
|---|---|---|
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1. |
Documents of Security Agency |
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2. |
Documents of Shareholders/ Directors / Partners |
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3. |
Documents of Security Guards |
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4. |
Documents of Premises |
|
|
5. |
Documents of Security Training |
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Note: The table above mentions the generic list of documents for PSARA license. However, since the license is granted by the State Government, there are certain state-specific requirements as well. To learn the complete list of state-wise requirements for PSARA license, visit our detailed guide on PSARA documents - https://www.setindiabiz.com/learning/complete-guide-psara-license |
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Process to apply for a PSARA License
The process of acquiring a PSARA license involves several essential steps that must be meticulously followed to ensure a smooth and successful application. The steps involve checking the eligibility of the proposed applicant for PSARA, filing the PSARA application in Form 1 and submitting the prescribed list of documents. We have already discussed the eligibility criteria and documents in the sections above. So, let’s delve deeper into the process of PSARA license application step by step now.
Check Eligibility for PSARA License
Before initiating the application process, it is essential for the private security agency to verify its eligibility for obtaining the PSARA license. The agency must fulfill criterias regarding its legal existence and incorporation, the conditions applicable to its principal officers, the requirement of its association with Training Institute, a valid name and business premises for conducting operations and so on. You may refer to the section above for detailed explanation.
Document Preparation
Once eligibility is confirmed, the next step is to gather and prepare all the necessary documents required for the PSARA application. These documents may include the incorporation documents of the agency, the documents of its principal officers, the documents related to its business premises, and other documents specified by the State Government. For the complete list, you can refer to the section above.
Form Submission
The private security agency must fill out the application for PSARA license in the prescribed Form 1. This form can be obtained from the respective State Controlling Authority’s office or downloaded from their official website. The form seeks details of the agency, its key managerial persons, its business activities, area of operation, registered premises and so on. All these details must be filled out with accurate and updated information for successful approval of the application.
Background Verification
Upon submitting the application, the Controlling Authority initiates a thorough background verification process. This step involves scrutinizing the antecedents of the agency’s directors / partners and key managerial personnel to ensure they have no criminal records or disqualifications. The antecedent verification is necessary to ensure that the agency is in right hands and is being operated by experienced professionals.
Inspection and Assessment
Following the background verification, the Controlling Authority may conduct an on-site inspection of the agency’s premises to assess compliance with PSARA regulations. During this inspection, factors such as infrastructure, employee training, and adherence to security norms are evaluated. The requirement of inspection and assessment is based on the state where you’re applying for the license, and the necessity of the specific circumstances you application is in.
License Issuance
After fulfilling all the necessary requirements and complying with the Act’s provisions, the Controlling Authority grants the PSARA license to the private security agency. This license validates the agency’s legal status and permits it to provide security services to clients. The license is usually valid for 5 years, except in some states like Uttarakhand and Chhattisgarh, the validity only extends up to 1 year. To continue with the license, you must get it renewed before its expiry.
The PSARA license is a vital certification that grants private security agencies in India the authority to operate legally and ensure accountability in their services. By adhering to the step-by-step application process, fulfilling eligibility criteria, and submitting the required documents, agencies can establish themselves as credible entities, contributing to public safety and national security. Obtaining the PSARA license not only fosters trust among clients but also creates job opportunities and strengthens India’s security infrastructure. As the security landscape evolves, this license remains a crucial aspect for agencies dedicated to upholding ethical practices and safeguarding the well-being of the nation.
FAQs
Q1: What is the purpose of the PSARA License?
The PSARA License, serves as an authorization granted to private security agencies in India, allowing them to conduct their operations legally. The License is granted under the PSARA Act by designated Controlling Authorities.
Q2: How long does it take to obtain a PSARA License?
The timeline for obtaining a PSARA License may vary depending on the efficiency of the application process and the responsiveness of the Controlling Authority. Generally, the process may take 3 to 4 months, considering the background verification, on-site inspections, and other formalities involved.
Q3: Can a private security agency operate without a PSARA License?
No, it is illegal for a private security agency to operate without a valid PSARA License. The PSARA Act mandates that all private security agencies must obtain the license from the designated Controlling Authority to provide security services legally in India. Operating without a license can result in penalties like fine of up to Rs.25,000 or imprisonment up to a period of 1 year or both.
Q4: Is the PSARA License applicable throughout India?
PSARA license is not a Central License but a State-specific license. The license is only valid for a specific area of operation. So, if you want to operate in multiple states or across multiple locations, you need to obtain a license for each of these locations.