PSARA License For Security Agency

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PSARA License is mandatory to start and run a Security Guard Agency business in India. Hence before supplying the security guards the private security agency should obtain PSARA License.

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Get PSARA License Online - Easy & Simple Process

Obtaining a PSARA license is mandatory to start or continue a private security agency in India. The requirement is mentioned under the Private Security Agencies Regulation Act of 2005. PSARA License is issued by the Controlling Authority of the respective state government under whose jurisdiction the agency falls.
At Setindiabiz, we have an experienced team of legal professionals to guide and assist you in filing the online application for PSARA license. We have explained the concept, legal provisions, eligibility conditions, documentation and stepwise process of obtaining PSARA license here. Feel free to contact us if you need to seek to know more or require any kind of consultation.

Key Features of PSARA License:

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Private Security Agencies (Regulation) Act, 2005 (PSARA)

The Private Security Agencies (Regulation) Act, 2005 is a vital law in India to regulate private security agencies in India. It was enforced on the 14th of March 2006. The act is supported by the Private Security Agencies Central Model Rules, 2006, providing implementation guidelines. Each state designates an officer, not below the rank of Joint Secretary, as the controlling authority for private security agencies.
Psara License Validity: A PSARA License remains valid for five years from the date of issuance. To renew the license, agencies must apply 45 days before its expiry. If the license expires, a new license will have to be obtained by filing a fresh application. Compliance with the renewal provisions is crucial to avoid penalties, suspension, or revocation of the license.

Eligibility Criteria for PSARA License in India

The table below summarises the eligibility criterias for agencies and their key managerial persons to obtain a PSARA License in India. The criterias include educational qualifications, nationality, age, special qualifications, clean antecedents, and a sound financial standing. Applicants must fulfil these criteria to apply for a PSARA License and enhance the credibility of their private security agencies.

Eligibility Requirement for Company/Firm

  1. Person Eligible To Apply For PSARA: Any entity, whether individual or business, is eligible to apply for the PSARA License. The indicative list of applicants includes
    1. Private Limited Company
    2. Limited Liability Partnership (LLP)
    3. Partnership Firms
    4. Proprietorship Firm (Individual)
  2. Name and Object of Business: The entity’s name should contain the word Security Services or related terms representing the applicant’s object. For a Company, the MOA must include a specific clause related to Providing Security Services.
  3. MOU With Training Institute: The applicant must sign an MOU with a Security training institute recognized by the state controlling authority. This institute shall provide training to the Security guards employed by the agency.
  4. National Interest: PSARA License cannot be granted to a person having links with an organization or association banned in India. The goal is to protect National Security, Public Order, or prevent any activity prejudicial to National Security.

Director/Owner Eligibility

  1. Education: The director/partner/owner etc. must be 8th standard pass or above.
  2. Nationality & Age: Indian Nationality, Above 18 Years of Age.
  3. Special Qualification: Special Security Training to owners and key officers of the agency.
  4. Clean Antecedents: The antecedents of the agency’s key officials must be verified by the police department and Controlling Authority.
  5. Financial Standing: The applicant must have good financial standing, and the controlling authority may ask for the Income Tax Returns.
  6. No Bind Over Pending Case: The key officials of the security agency must have no bind over pending court cases.
Note: Is FDI Allowed in Indian Private Security Agencies?

The PSARA Licence will not be issued to agencies incorporated on a foreign land. Also, such agencies who have major shareholding or partnership from a foreign entity are forbidden from getting the PSARA license. However, foreign direct investment of up to 49% is allowed subject to approval by the Government. Companies with foreign investment must ensure that all relevant reports, including FC-GPR, are duly filed and approved.

Stepwise Process of Obtaining Psara License

To operate legally in India, obtaining the PSARA license is a necessity. If you’re wondering how to apply PSARA Licence, here is an easy and simple step wise navigation of the process. These steps will ensure complete compliance with the PSARA Act, and ensure a smooth grant of PSARA license.

Step-1: Documentation

Ensure correct and complete documentation, which varies based on the type of applicant (e.g., company, LLP, partnership firm). Gather all necessary paperwork for a smooth process. Please refer to the documentation section for the list of documents for the Psara Certificate.

Step-2: MOU With Training Institute

Sign a Memorandum of Understanding with a recognized Security training institute. This institute will be responsible for providing training to guards and supervisors. Each state has approved training institutes for this purpose.

Step-3: Application Filing

Apply for PSARA License before the controlling authority of the state where the agency intends to operate. It’s important to note that there is no provision for a central license covering all states. So, a separate application is required for each state.

Step-4: Antecedent Verification

After applying, the antecedents of the business and its principal officers are verified. The Local Police and the jurisdictional Controlling Authority are engaged for this purpose.

Step 5: Issue of PSARA License

Once the documents and antecedents are satisfactorily verified, the Controlling Authority issues the PSARA License. In some cases, a personal interview with the applicant may be required.
Note: 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 police is a state subject, the exact process of antecedent verification may vary from state to state.

List of Documents For PSARA License Application

The table below outlines all the necessary documents required for PSARA license. Please ensure that all these documents are gathered and submitted in their specific formats to expedite the application process further. Note that the documents provided below are generically applicable to all applicants. If you want to know the specific requirements as per your jurisdiction, refer to our comprehensive guide.
Documents of Company/LLP/Firm Director/Owner Documents
    Basic Documents
  1. Incorporation or Registration Certificate
  2. MOA & AOA /LLP Agreement/Deed
  3. Pan Card
  4. TAN Allotment Letter
  5. Shops & Establishment Act Registration
    Premises Related
  1. Rental Agreement
  2. Electricity/Utility Bill of the Premises
  3. NOC from the owner
    Other Documents
  1. MOU from Training Institute
  2. Affidavits u/s 7(2) of PSARA Act
  3. Guards Photo in uniform
    Basic Documents
  1. Colour Photo
  2. Aadhar Card
  3. PAN Card
  4. Voter Id Card
  5. Passport (If Issued)
  6. Ration Card (If Issued)
  7. Current Address Proof
  8. Police verification certificate
  9. Educational documents
  10. Income Tax Return
  11. Special Qualification Certificate

Other License that may be required

  1. Establishment’s photograph (exterior and Interior)
  2. Professional Tax Enrollment (PTEC) If applicable
  3. 3-Year ITR (5 years in the Case of Madhya Pradesh)
  4. EPFO Registration Certificate (if applicable)
  5. ESIC Registration Certificate (if applicable)
  6. GST Certificate (if obtained)
  7. Udyam Certificate (if obtained)

We have made a Comprehensive Guide to Cover

  • Eligibility Criteria
  • Complete List of Documents
  • State Level Variations
  • How to obtain MOU?
  • Description of Guard Uniform
  • Specimen ID Card
  • How to take Guard Photo
  • List of Equipment

Psara License Cost and Timeline

The timeline for obtaining the PSARA License varies from state to state. Further, it is also subject to the completion of documentation and antecedent verification by the police. Predicting an exact duration is challenging. Typically it takes around 90-120 days from the date of filing to get the PSARA license. The application can be made for a district, five districts, or an entire state. However, for multiple states, different applications must be filed via different procedures.

The overall PSARA License Fee consists of three main components:

1. Professional Fee: We offer a very reasonable fee structure for PSARA License. Please contact us to know an estimate for the online application of PSARA License.

2. Cost of Training: Training the security guards and supervisors employed at your agency also adds up to your cost. Try signing an MOU with a cost-effective Security Training Institute.

3. Governmen fee: The government fee for the PSARA License varies on the basis of the agency’s area of operation. Here are the different fee slabs:

  1. For One District: Rs. 5,000/-
  2. For Up to Five Districts: Rs. 10,000/-
  3. For More than Five Districts: Rs. 25,000/-
  4. For Entire State: Rs. 25,000/-

4. Out-of-Pocket Expenses: Travelling and lodging expenses also have to be taken into account. Such expenses are frequent while following up the progress of the application through multiple government departments and police stations. The amount of these expenses depends on the specific merits of each case.

Frequently Asked Questions

Antecedent Verification is a process of verifying the background of the key officers and promoters of a security agency. This is done to ensure that they are eligible to run the agency under the PSARA Act. For this, a No Objection from the office of the Deputy Police Commissioner Office has to be obtained.
PSARA licence is a mandatory requirement for private security agencies operating in India. The mandate is mentioned under section 4 of the Private Security Agency (Regulation) Act, 2005.
Any entity or individual planning to offer private security services must obtain a PSARA licence. This involves providing security guards, personal bodyguards, or surveillance manpower.
The process of obtaining the private security agency license involves filing an application to the state Controlling Authority. Documents are an important aspect of such an application. (Link).
Typical documents for a PSARA licence include the documents of the constitution and incorporation of the agency, documents of its key managerial persons, police verification NOC, documents of the premises, and documents of other tax and regulatory registrations like ESI, EPF, and GST.
The applicant must be an Indian citizen or an entity incorporated in India. It must have a valid name which does not show patronage of the Government. The name must be suffixed as “Security Agency” or “Security Services” aptly describing its business activities.   It’s owner and key managerial persons must have a special training certificate from a recognized security training institute. This will establish their suitability to run a Private Security Agency. Moreover, their antecedents must be thoroughly verified and an NOC must be obtained in this regard from the local police.
The PSARA Licence is valid for five years in most states. However, in the states like Chhattisgarh, and Uttarakhand it is valid for one year. The renewal for the Licence can be filed 90 days before the expiry of the Licence.
The cost of a PSARA licence can vary based on the number of locations your agency is providing services. So, for one district the cost is Rs.5,000, and up to five districts the cost is Rs.10,000. For more than 5 districts or an entire state, the cost is Rs.25,000.
Operating a private security agency without a PSARA licence can lead to imprisonment extending for 1 year. Also a fine may be imposed extending to Rs.25,000.
No, a PSARA licence obtained in one state cannot be transferred to another. A fresh application must be made in the new state if the agency plans to operate there.
Yes, it is possible to convert an individual’s security agency into a private limited company. However, this requires compliance with the PSARA Act. Also, a fresh PSARA license will have to be obtained in the company’s name.
No, it is not a mandatory requirement and a widespread myth. Anyone can apply for this Licence, provided he is an Indian Citizen and has a clean legal and financial background. However, preference may be given to ex-servicemen while hiring security personnel and supervisors for the agency.
Foreign direct investment in a Private Security Agency is allowed up to 49% via the approval route. The application for the FDI is administered by the Union Ministry of Home Affairs. Hence before filing an application for PSARA Licence, a company having foreign investment must obtain prior approval from the Government. Also, all relevant reports like FC-GPR must be duly filed and approved.
Antecedent Verification is a process of verifying the background of the key officers and promoters of a security agency. This is done to ensure that they are eligible to run the agency under the PSARA Act. For this, a No Objection from the office of the Deputy Police Commissioner Office has to be obtained.

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