What is PSARA Full Form and Meaning
What is PSARA License?
Who is the Controlling Authority for Granting PSARA License?
- Issuance & Renewal of the PSARA license
- Regulation of the operations of private security agencies.
- Recognition of Security Training Institutes to train Private Security Guards
- Other functions as prescribed by the PSARA Act.
Prerequisites & Eligibility For PSARA License
- Select the Right Type of Business Structure: To secure a PSARA License, the applicant agency must either be a company, a Limited Liability Partnership, a Partnership Firm, or a Sole Proprietorship.
- Select a Proper Name for the Agency: If you’re about to run a Private Security Agency, its name must be appropriate. It must not show patronage of the Government. Also, it must be suffixed by words like “Security Agency”, “Security Services”, or something similar, which aptly conveys its business activities,
- Incorporate/ Register your business to mark its legal existence: Before you apply for the PSARA License, your business must be constituted and incorporated by following the due process under law. For this you need to draft necessary constitutional documents, like MOA and AOA for a company, LLP agreement for LLP, Partnership Deed for a firm, and so on. Also, you need to apply for their incorporation with the appropriate authority and obtain the Incorporation Certificate.
- Antecedent Verification of Owners and Key Officers of the Agency: Owners, Directors or principal officers of the agency must be Indian citizens, financially sound, and free from any legal convictions.To ensure this, thorough verifications are conducted by the Controlling Authority and the local police authorities.
- Prepare the necessary documents for PSARA license: The last yet most important prerequisite to fulfill before the PSARA license application process is the collection and preparation of all the necessary documents. These include the documents of the key managerial persons, the documents of the agency’s legal constitution and incorporation, the documents of its premises, and documents related to other regulatory and tax registrations like the EPF, ESI, GST and so on.
Stages Of PSARA License Application
- Application Submission and Antecedent Verification: Private security agencies initiate the process by submitting a well-prepared application to the designated controlling authority of the respective state. The application contains essential details about the agency, its directors, and the proposed geographical area of operation.
- Inquiries by the Controlling Authority: Upon receiving the application, the controlling authority conducts in-depth inquiries to assess various aspects of the agency, its promoters, and its key managerial persons. They might inquire about their individual experience in operating security agencies, any special qualifications or skills that could contribute to the agency’s operations, and overall eligibility for obtaining the PSARA License.
- Police Verification NOC: The Police Verification No Objection Certificate holds significant importance in the PSARA License application process. It involves a thorough background check by relevant law enforcement authorities to ensure the applicants have no pending criminal cases and are of good character. Additionally, the police verifies if the applicants or their owners have any involvement in activities detrimental to national security or public order. The certificate is granted only after assuring the applicants’ integrity and suitability to operate a private security agency, and only upon receipt of the Police Verification NOC does the controlling authority proceed to grant the license, underscoring its crucial role in the evaluation and approval of PSARA License applications.
- Granting or Rejection of License: Based on the information obtained and the outcome of the verification process, the controlling authority decides whether to grant the PSARA License to the agency or reject the application by providing appropriate reasons for such decision. The PSARA license is typically granted within 60 days from the date of a complete application submission.
- Commencement of Operations: The PSARA License can be applied for a specific district, multiple districts, or the entire state, depending on the agency’s intended area of operation. The government fee for the application varies based on the number of districts applied for. Once the PSARA License is granted, the security agency must commence its business operations within six months from the date of issuance.
Activities Post-Grant of PSARA License
- Commence Operations Within 6 Months: After obtaining the PSARA License, the agency must begin operations within six months, setting up the office premises and deploying security guards for client services.
- Employ Security Guards under Strict Standards: Private security agencies must adhere to strict qualifying standards (link later) when hiring security guards, ensuring they are physically fit and capable of carrying out their duties effectively.
- Engage Supervisors for Security Guards: Within sixty days of obtaining the license, supervisors must be employed to oversee security guards’ work, maintaining a ratio of one supervisor for every fifteen guards.
- Give Preference to Ex-Servicemen While Hiring: When hiring supervisors, preference is given to those with a minimum of three years of experience in the Army, Navy, Air Force, or State Police.
- Conduct Comprehensive Character and Antecedent Verification: Thorough verification of character and antecedents is mandatory for security guards and supervisors before their employment.
- Conduct Training of Security Guards: Security guards must undergo training as per the syllabus outlined by the Controlling Authority, covering various aspects of security services.
- Maintain Essential Registers: Private security agencies are required to maintain registers containing critical information about management personnel, security guards, supervisors, and clients.
- Issue Photo Identity Cards to Guards & Supervisors: Identity cards with photographs must be issued to all security guards and supervisors, serving as a means of identification and verification of credentials.
Q1: Who needs a PSARA License?
Private security agencies providing security services in India need a PSARA License as per Section 4 of the PSARA Act. Not obtaining the license is an offense under the Act and can be penalized with a fine of up to Rs.25,000 or an imprisonment of a term up to 1 year or both.
Q2: What are the eligibility criteria for a PSARA License?
For agencies: Must be registered as a private limited company, limited liability partnership, partnership firm, or sole proprietorship. Directors/principal officers must be Indian citizens with no criminal records. For individuals: Indian nationality with no criminal convictions related to company management or offenses carrying a minimum two-year imprisonment.
Q3: What is antecedent verification in the PSARA License process?
Antecedent verification involves background checks to ensure applicants have a clean legal and financial record and are suitable for providing security services.
Q4: How long does it take to obtain a PSARA License?
PSARA License is obtained after completing various stages of application. The process usually takes 60 days from the date of submitting a complete application.
Q5: What activities follow the grant of a PSARA License?
Post-license, agencies must commence operations within six months, employ qualified security guards, engage adequate supervisors, conduct character and antecedent verification of employed personnels, provide security guard training, maintain essential registers, and issue photo identity cards to guards and supervisors.