Private Security Agency Licence (PSARA)We will extend our support in Documentation, Preparation, filing and subsequent Follow-up for the License to start 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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PSARA

PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity which involves in the business of providing Security Guards and other related services at an establishment as an alternate to the police. The operation of the private security agencies are governed by The Private Security Agencies Regulation Act, 2005, popularly known as PSARA.

After the enactment of the PSARA (act), it is mandatory for an security agency to obtain 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 license to start a private security agency is made to the competent authority if the state. The PSARA License is issued to operate in one or more district of a particular state or for the entire state.

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Eligibility For Applying For PSARA License

Who can apply for PSARA

An Individual, Partnership Firm , LLP , One Person Company (OPC) or a Private Limited Company can make the application for PSARA Licence/ Registration to the Competent Authority of the concerned state.

Name & Object of Applicant

The name of the entity should contain the word Security Services or Related terms which represent the object of the applicant. In the case of a Company, the MOA must contain Providing of Security services as one of the Main Objects.

Eligibility of Director / Principal Officer

For police verification of the applicant, they must be a Resident Indian, having sound financial standing (We need to submit a copy of ITR) and should have a clean antecedent and must not have been convicted of any offence.

MOU with Training Institute

The applicant for a PSARA Licence must enter into an MOU with training institute or an organisation as approved by the state controlling authority to impart training to the security guards. There is relaxation to the training requirements for ex-servicemen.

National Interest Clause

The PSARA Licence cannot be granted to a person if it is found to keeping Links with organisation or association, banned under any law or by a government order to protect National Security, Public Order, or to prevent any activity which is prejudicial to National Security.

Restriction of Foreign Investment

Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, lays out that the PSARA Licence shall not be issued if it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India. See FAQ for Detail.

Documents Required for PSARA License

Certificate of Incorporation & MOA
Proof of Registered Office
Signed MOA with Training Institute
Documents of Security Guards

Two Photographs of Promoters
PAN Card of Each Promoter
Identity & Address Proof of directors
ITR Copy of each director

Qualifying Documents

The first step to apply for a PSARA Licence is to gather all necessary registrations such as Pan Card, TAN Number, GST, PF, ESI, Registration of establishment under Shops & Establishment Act, ITR of every director, etc
MOU With a Training Institute

The applicant to enter into a Memorandum of Understanding with a recognised training institute for training its guards and supervisors. Every state has recognised various security training institutes for this purpose.
Police Verification

An application for police verification is filed in Form -I by the applicant, and in case the applicant is a firm, company or any other association of person, separate verification form shall be filed for every, partner or directors.
Application Filing

The psara application is filed before the controlling authority of PSARA, which is then processed for verification. After receipt of the NOC from the concerned Police authorities, controlling authority may either grants the Licence or rejects with a reason.
Time For Issue Of PSARA

The total time to complete the process for grant of PSARA License is approximate of 60 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.
Conditions Of PSARA Licence

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. A person from the army, navy or air force with a minimum of three years of experience, must be given preference.

Detailed Process Explainer Video on PSARA License

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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