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PSARA License
To Start Private Security Guard Agency Business
We will extend our support in Documentation, Preparation, filing and subsequent Follow-up for the License to start a private security agency in India. The Licence under PSARA is a mandatory requirement for an agency to deploy security guards and engage in Security related services.
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Steps for Issue of PSARA License
Step 1
Training Institute MOU
Step 2
Psara Application Filing
Step 3
Police Verification
Step 4
Issue of Psara License
Who should apply for Psara License!
PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity that provides Private Security Guards and other related services at an establishment as an alternate to the police. The private security agencies' operation is governed by The Private Security Agencies Regulation Act, 2005, enforced by the Department of Internal Security of the Ministry of Home affairs, Government of India
After the enactment of the PSARA (Act), it is mandatory for a security agency to obtain a Licence from the State Controlling Authority Concerned prior to commencing the business and in case of non-compliance, the law provides for stringent penal consequences. The application for PSARA License to start a private security agency is made to the competent authority of the state. The PSARA License is issued to operate in one or more districts of a particular state or for the entire state.
Legal Provisions
- Law: The Private Security Agencies (Regulation) Act, 2005
- Rules: Private Security Agencies Central Model Rules, 2006
- Enforcement Date: 14th March 2006
- State Government Role: This is a Central Law, However under section 3 of PSARA, every state is required to designate an officer, not below the rank of Joint Secretary, as the controlling authority, by way of a notification.
- Validity of License: The PSARA License remains valid for five years from the date of issuance of the license. The application for renewal of the Psara license has to be filed 45 days prior to the license expiry. Once the license gets expired, a fresh application would be required.
Eligibility Requirment for Company/Firm
- Person Eligible To Apply For PSARA: Any person, whether individual or a legal entity is eligible for making an application for the PSARA License. Following is the indicative list of applicants for PSARA
- Private Limited Company
- LLP/Partnership Firms
- Proprietorship Firm
- Individual, etc;
- Name and Object of Business: The entity's name should contain the word Security Services or Related terms that represent the applicant's object. In the case of a Company, the main objects of the MOA must include a specific clause relating to Providing of Security Services.
- MOU With Training Institute: The applicant for a PSARA Licence must enter into an MOU with a training institute or an organisation as approved by the state controlling authority for imparting training to the security guards. There is relaxation to the training requirements for ex-servicemen.
- National Interest: The PSARA Licence cannot be granted to a person if it is found to keep Links with an organisation or association, banned under any law or by a government order to protect National Security, Public Order, or prevent any activity prejudicial to National Security.
Director/ Owner Eligibility
- Education: The director/partner/owner etc. must be 8th standard pass or above.
- Nationality & Age: Indian Nationality, Above 18 Years of age.
- Special Qualification: Special qualification means completing a specialised training conducted by the training institute for the owners, directors, or the applicant's principal officer to train them for running a security guard agency. Such special qualification training is mandatory for all directors or the applicant firm's principal officer, including the person from an army Background.
- Clean Antecedents: The antecedent of the applicant's key persons, such as its director or the principal officers, are verified by the police department/Controlling Authority; Following information is generally verified during the verification stage.
- The residential address as per the information and documents filed.
- The involvement in any criminal activity in India
- The controlling authority may ask for a certificate from Tehsildar for antecedent verification. It is required to clarify that no Bind over cases pending against them.
- The term "Bind Over" refers to holding a person for trial on bond (bail) or in jail. Binding over means to order a defendant to be placed in custody pending the outcome of proceedings against him or her;
- Financial Standing: The applicant must have good financial standing and, to prove the same controlling authority, may ask for the Income Tax Returns.
FDI in PSARA
Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, lays out that the PSARA Licence shall not be issued if the applicant is not registered in India or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India. The foreign direct investment in a Private Security Agency business is allowed up to 49% in a Company or LLP under the approval route. The application for the FDI is administered by the Ministry of Home Affairs of the union government. Hence, before an application for a grant of PSARA Licence is moved by a company having foreign investment, it is a prerequisite to have the Prior Approval of the FDI. All relevant reports like FC-GPR are duly filed and approved.
Stepwise Steps of Psara
Step 1: Documentation
The correct documentation is necessary for a hassle-free process, and the List of documents required depends on the type of applicant. Read More
Step 2: MOU With Training Institute
The applicant will enter into a Memorandum of Understanding with a recognised training institute to train its guards and supervisors. Every state has recognised various security training institutes for this purpose.
Step 3: Application Filing
The application for the grant of PSARA License is filed before the respective state's controlling authority has jurisdiction. A separate application is to be filed for each state as there is no provision for one central license covering all states.
Step 4: Verification
After the filing of the application, the antecedent of the business and its directors or principal officer is then verified by the Local Police station having jurisdiction on the address of the applicant or the director/principal officer(s) as the case may be.
Step 5: Issue of PSARA License
After satisfactory verification of the documents and the applicant's antecedent, the Controlling Authority issues the PSARA License. However, in some cases, the Controlling Authority may require a personal interview of the applicant.
State Level Variation:
The grant of PSARA License is more or less the same across all the states in India. However, there are minor variations in the way documents are prepared and submitted. As the police is a state subject, we found that the process of antecedent verification of the applicant, director or principal officer varies from state to state.
List of Documents
- Entity Documents
- Certificate of Incorporation (COI)
- Memorandum of Association (MoA)
- Article of Association (AOA)
- Pan Card Copy of entity
- Each Director Documents
- Passport size Photograph
- Pan card
- Aadhar card
- Address proof
- Police verification certificate
- Educational documents
- Premises Related
- Rental Agreement in the name of the entity
- Ownership proof of the premises ie. Latest electricity bill/property tax paid receipt/ sale deed (property papers) of the premises
- Other Documents
- MOU from training Institute
- Affidavits
- Guards Photo in uniform
- Establishment photograph (exterior and Interior)
- Shop Act registration Certificate
- PF and ESIC certificate (if any)
- GST Certificate (If any)
Timeline
The time required for grant of PSARA Licence varies from state to state and depends on the quality of documentation and how fast the antecedent verification is carried out at the local police station. As several government departments are involved, predicting a time frame is not desirable. However, The real process starts after the application is filed with the competent authority; it may take approximately 90-120 days from the date of filing the PSARA application. An application for a Licence can be made for a district or five districts or a state. The application process is different for each state.
Pricing
The overall cost of the PSARA License depends on mainly three heads.
- Professional Fee: We extend our services to assist in getting the PSARA License. We may be engaged as a consultant for entire licensing activities or a specific purpose. We request you to obtain an official quotation from us.
- Cost of Training: The applicant has to engage a training institute for two purposes, firstly for special qualification training to its directors or principal officer and secondly towards an MOU between the applicant and the Institute for security guards' training.
- Government Fee: The prescribed government fee for the PSARA License is based on the number of districts for which it is applied. The government fee is paid online through Internet Banking or Debit/Credit Card
Sl. No. Particulars Amount (INR) 1. For One District Rs. 5,000/- 2. For Upto Five District Rs. 10,000/- 3. For More than five District Rs. 25,000/- 4. For Entire State Rs. 25,000/- - Out of Pocket Fee: As the PSARA license involves multiple government departments and several police stations, some out-of-pocket expenses are required for travelling, lodging required for follow-up and objection removal. The amount of out of pocket expenses depends on the merits of each case.
Conditions of License
The PSARA specifies the criteria, qualification, and disqualification for a security guard. and the applicant must engage supervisors to supervise the work of security guards. While employing a supervisor the a person from the army, navy or air force with a minimum of three years of experience, must be given preference by the security agency.
Frequently Asked Questions
What Is The Validity Of The PSARA Licence?
The Licence granted to engage or provide Private Security Guard under The Private Security Agencies (Regulation) Act, 2005 is valid for five years in most of the states. However, in the states like Chhattisgarh, Uttarakhand it is valid for one year. The renewal for the Licence can be filed 90 days before the expiry of the Licence.
Can An Agency Work In Any State Once It Obtains The Licence In One Particular State?
Every state grants this Licence after the agency fulfils the requirements raised by the authority. An agency can not work in the state where it does not have PSARA Licence. It merely means that the said Licence is state specific and to work/operate in other states, one is supposed to apply for PSARA Licence at respective State controlling authority.
For instance, if an agency has a PSARA Licence in DELHI, then it is supposed to work in the districts of Delhi only, and if it wants to operate in NCR region such as NOIDA, Gurugram, then it has to apply for a Licence in the states of U.P and Haryana respectively.
Is procedure for grant of PSARA Licence differs from state to state?
Yes, Though the Indian Parliament passes the main Law regulating the private security business as The Private Security Agencies (Regulation) Act, 2005. However, it provides that every state or union territory shall appoint its controlling authority and frame rules and procedure for making application for the grant of the PSARA Licence
Is The Availability Of An Ex-service Men Or Army Men A Necessity While Applying?
No, it is not a mandatory requirement and a widespread myth. Anyone can apply for this Licence, subject to fulfilling some criterion as laid by the state Controlling Authority. For imparting training to security guards, applicant agency can enter into an MoU with a recognised security guard training institute.
What is the Government fees for PSARA Licence?
The fees payable can be divided into the following categories:
- For one district -- Rs. 5,000/-
- For 2 to 5 districts in a state -- Rs. 10,000/-.
- For the entire state -- Rs. 25,000/-.
The above-said fees are identical throughout India, except for the state of Karnataka, where the government fee for the entire state is Rs. 50,000/-. The government fee can be paid by way of Demand Draft or through cash challan at designated banks.
What are the primary documents required at the time of PSARA application?
It is crucial to understand that each Controlling authority has its own set of requirements which can be met with proper consultation at the time of filing of the application. However, the following are common List of documents required at the time of filing of the application for PSARA Licence at State Controlling Authority.
- Certificate of Incorporation & MOA
- Address proof of the registered address.
- PAN Card of Company and all its director
- Registration under GST
- PF and ESIC Registration
- Registration of establishment under Shops & Establishment
- ITR of the applicant and of all its directors,
- Educational qualification,
- Logo and badge of the firm,
- MoU with a training institute etc.
- Details of arme licenses
- The Uniform pattern (Photographs of guards in uniform)
- Police verification report
Is FDI Permitted in the Private Security Agency Business in India?
The foreign direct investment in a Private Security Agency business is allowed up to 49% in a Company or LLP under the approval route. The applications for the FDI is administered by the Ministry of Home Affairs of the union government. Hence before an application for grant of PSARA Licence is moved by a company having foreign investment, it is a prerequisite to have the Prior Approval of the FDI and all relevant reports like FC-GPR is duly filed and approved.
What is antecedent Verification for Grant of PSARA Licence?
This is a process of obtaining a No Objection from the office of the Deputy Police Commissioner Office for Issuing the Licence to operate a Private Security Licence. The major checkpoints while considering the application for police verification are as under.
- General police record pertaining to the applicant
- Any pending case or complaint
- That the applicant or its owners is/was not indulging in activities which are prejudicial to national security or public order.
- Details of earlier operated security agency by the applicant either individually or in a partnership. Does the applicant possess any special qualification or skill which may facilitate in the operations of the agency?
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