PSARA License Fees, Process and Validity

  • Setindiabiz Team
  • July 27, 2023
PSARA License Fees, Process and Validity
The Private Security Agencies Regulation Act (PSARA), 2005 plays a crucial role in regulating the operations of private security agencies in India. Enacted to ensure the safety and security of citizens, this act requires all private security agencies to obtain a valid PSARA license before they can legally offer their services to clients. The license serves as a testament to the agency’s compliance with essential regulations and standards set forth by the PSARA Act.
Private security agencies provide an array of services, including guarding, surveillance, investigation, and protection of assets and individuals. These agencies may cater to a diverse clientele, ranging from corporate entities and residential complexes to events and public gatherings. The PSARA license not only adds credibility to the agency but also assures its clients that the services they are being provided are coming from a recognized and accountable organization.

Process of PSARA License Application

Obtaining the PSARA License involves a detailed step wise process which must be followed by applicant agencies and individuals to get their license in time. These steps begin from checking whether the agency is eligible for PSARA license or not, and end all the way to grant of license by the Controlling authority after examination of the PSARA license application and documents. You can go through our complete and detailed guide on how to apply for a PSARA license to understand the subject better. However, here’s an overview to get an idea!

Step 1: Eligibility Check

Before beginning with the application process for PSARA license, it is essential to thoroughly review the eligibility criteria specified under the PSARA Act. PSARA license can be applied by both business entities and individuals delivering private security services. However, in either case the applicant must be an Indian entity, with a clean legal and financial record. Moreover, if the applicant is a business entity, then its principal officers must also be Indian citizens with verifiable antecedents and special qualification to provide security services. You can visit our detailed blog Eligibility for PSARA and get a detailed overview of the same.

Step 2: Application Form

The first formal step in the PSARA license application process is obtaining and submitting Form 1 to your jurisdictional Controlling Authority. To fill out the form, you will have to provide the details of the agency, its owners, key managerial persons, area of operation, business premises, and so on. The form will have to be signed by the authorised person if the applicant is a business, or the service provider if the applicant is an individual. Once you have completed the form, the next step is extremely crucial.

Step 3: Document Compilation

Gathering all the necessary documents is a critical aspect of the application process. These documents act as evidence supporting the legitimacy and credibility of your security agency. Compile documents such as the Certificate of Incorporation, Memorandum of Association (MoA), Articles of Association (AoA), Agreements or Deeds that constituted your agency, address proof and photographs of the business premises, identity and address proofs of the key managerial persons, police verification certificate of key managerial persons, equipment details, Income Tax Returns, other tax and regulatory registration certificates, and most importantly an MOU from a recognized Security Training Institute. For a complete list of documents, read our comprehensive guide on Documents Required for PSARA license.

Step 4: Examination of the Application

After completing the application form and assembling all the required documents, submit them to the regulatory body, which in this case is your jurisdictional Controlling Authority. If you’re not sure in which Controlling Authority’s jurisdiction your agency falls, you can check the same on the PSARA website. The application you submit will undergo a rigorous examination process to ensure compliance with the PSARA Act and other relevant regulations. The authority will carefully review the information provided in the application form, cross-check all the submitted documents before proceeding further.

Step 5: Inspection

In some instances, the regulatory authority may conduct an inspection of your agency’s premises. The inspection is aimed at evaluating the infrastructure, safety measures, equipment and compliance with other regulatory guidelines. Be prepared for the inspection and ensure that your agency adheres to the necessary safety standards and other requirements within its business premises.

Step 6: Grant of PSARA License

Following the examination of your application and successful completion of the inspection (if applicable), your agency will be granted the PSARA license. This license serves as official recognition of your agency’s compliance with the PSARA Act and authorization to operate as a private security agency. It is a legal testament to your agency’s commitment to providing professional and authentic security services in India.

PSARA License Fees

The government fee for obtaining a PSARA License is a critical component of the overall cost involved in the application process. The fee structure is designed to vary based on the area of operation for the private security agency. Here are the different government fee slabs:
  • For One District: Rs. 5,000/- If your security agency operates in a single district, the government fee for the PSARA License application is Rs. 5,000/-. This fee is payable to the regulatory authorities as part of the application process.
  • For Up to Five Districts: Rs. 10,000/- For security agencies operating across up to five districts, the government fee is Rs. 10,000/-. This fee applies to those agencies that have a wider operational scope within multiple districts.
  • For More than Five Districts: Rs. 25,000/- Agencies with operations spanning more than five districts are required to pay a government fee of Rs. 25,000/-. This higher fee reflects the broader geographical reach of such agencies.
  • For the Entire State: Rs. 25,000/- Private security agencies with statewide operations, covering all districts within a state, are also charged a government fee of Rs. 25,000/-. This is the highest fee slab and is applicable to agencies with the most extensive area of operation.
Government Fee Slabs:
Area of Operation Government Fee
For One District
Rs. 5,000/-
For Up to Five Districts
Rs. 10,000/-
For More than Five Districts
Rs. 25,000/-
For the Entire State
Rs. 25,000/-
Understanding the government fee structure will enable you to estimate the overall cost involved in obtaining the PSARA License and ensure a smooth and successful application process. If you require further information or assistance regarding the government fees or any other aspect of the PSARA License application, please feel free to reach out to us for guidance.

PSARA License Validity

The PSARA License comes with a predetermined validity period, which varies based on the regulatory authority and the state of operation. Typically, the license’s validity is 5 years in most states, except Chattisgarh and Uttarakhand where the duration is 1 year. During this period, the security agency can legally provide its services in their designated area of operation. It is crucial for agency owners to keep track of the license’s expiration date to avoid any disruptions in their operations. Operating with an expired license can lead to severe penalties, including potential closure of the agency, so the solution here is to renew the license in time. Usually, you can file the renewal application 45 days prior to the expiry date.

Obtaining a PSARA License is a crucial step for private security agencies in India. The application process, supported by the necessary documents, ensures legal recognition and compliance with essential regulations. By understanding the government fee structure, security agency owners can plan their budget effectively and proceed with confidence. Moreover, maintaining a valid PSARA License and timely renewal are vital to sustain lawful operations, preserve the agency’s reputation, and instill trust among clients. As the security industry continues to play a vital role in safeguarding individuals and assets, adherence to the PSARA License requirements becomes paramount for agencies aiming to thrive in a competitive and regulated landscape.

Conclusion

FAQs

Q1: What is the purpose of the PSARA License?

The PSARA License is a legal requirement for private security agencies in India. It ensures that agencies comply with regulations, maintain necessary standards, and provide reliable security services to clients.

Q2: What is the validity of the PSARA License?

The validity of the PSARA License typically ranges from one to three years, depending on the state of operation and the regulatory authority.

Q3: Can the PSARA License be renewed?

Yes, the PSARA License can be renewed by filing a renewal application 45 days before it expires. It is essential to initiate the renewal process well in advance to ensure continuous legal operations.

Q4: What happens if a private security agency operates without a valid PSARA License?

Operating without a valid PSARA License is illegal and can lead to severe penalties, including fines of up to Rs.25,000, imprisonment of the owner for up to a year and the closure of the agency by the Controlling Authority.

Q5: Are the government fees for the PSARA License refundable?

No, the government fees paid for the PSARA License application and renewal are non-refundable, irrespective of the license being granted or not.

Leave a Reply

Your email address will not be published. Required fields are marked *

Talk To An Expert

*Your Information is safe with us | Privacy Policy

  • SETINDIABIZ
  • PARTNER PROGRAM
BECOME OUR PARTNER
Exclusive Offer For CA, CS, CMA, Advocate & Tax Practitioners