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PSARA License For
Security Agency
All India Service @ Best Rates

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.

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

  • Mandatory to start a security agency
  • Only Citizens of India can apply
  • One state one licence
  • Set guidelines for a security agency
  • Builds Trust and Reliability

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

S. No.Name of RequirementDescription
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 BusinessThe 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 InstituteThe 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 InterestPSARA 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

S. No.Name of RequirementDescription
1.EducationThe director/partner/owner etc. must be 8th standard pass or above.
2.Nationality & AgeIndian Nationality, Above 18 Years of Age.
3.Special QualificationSpecial Security Training to owners and key officers of the agency.
4.Clean AntecedentsThe antecedents of the agency’s key officials must be verified by the police department and Controlling Authority.
5.Financial StandingThe applicant must have good financial standing, and the controlling authority may ask for the Income Tax Returns.
6.No Bind Over Pending CaseThe 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

S. No.Name of DocumentsDescription
1.Basic Documents
  • Incorporation or Registration Certificate
  • MOA & AOA /LLP Agreement/Deed
  • Pan Card
  • TAN Allotment Letter
  • Shops & Establishment Act Registration
2.Premises Related
  • Rental Agreement
  • Electricity/Utility Bill of the Premises
  • NOC from the owner
3.Other Documents
  • MOU from Training Institute
  • Affidavits u/s 7(2) of PSARA Act
  • Guards Photo in uniform

Director/Owner Eligibility

S. No.Name of DocumentsDescription
1.Basic Documents
  • Colour Photo
  • Aadhar Card
  • Pan Card
  • Voter Id Card
  • Passport (If Issued)
  • Ration Card (If Issued)
  • Current Address Proof
  • Police verification certificate
  • Educational documents
  • Income Tax Return
  • Special Qualification Certificate

Other License that may be required

Name of Documents
  • Establishment’s photograph (exterior and Interior)
  • Professional Tax Enrollment (PTEC) If applicable
  • 3-Year ITR (5 years in the Case of Madhya Pradesh)
  • EPFO Registration Certificate (if applicable)
  • ESIC Registration Certificate (if applicable)
  • GST Certificate (if obtained)
  • Udyam Certificate (if obtained)

We have made a Comprehensive Guide to Cover

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

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

Q1.What is the importance of PSARA license?
Q2.Which entities can obtain a PSARA licence in India?
Q3.What is the process of PSARA license application?
Q4.What are the essential documents required for a PSARA license?
Q5.What are the eligibility criteria for a PSARA licence?
Q6.What is the validity of the PSARA licence?
Q7.What is the overall cost of a PSARA licence in India?
Q8.What are the penalties for operating without a PSARA licence?
Q9.Can a PSARA licence obtained in one state be transferred to another?
Q10.Is it possible to convert an individual's security agency into a private limited company?
Q11.Is the availability of an Ex-service Man necessary while applying for PSARA?
Q12.Is FDI permitted in the Private Security Agency business in India?
Q13.What is antecedent verification for the grant of a PSARA Licence?