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PSARA License

Updated on:  

08 min read

The world we live in at present is one where various individuals are venturing out to commence their own businesses or set up their own establishments. This meteoric rise of small businesses in the commercial space has also led to the need for security and safety.

Businesses that specialise in training and providing security services are called security agencies. Today, there are numerous private security agencies established to cater to the security needs of individuals and businesses alike. In India, all the operations and activities of the various private security agencies come under the watchful eye of the Private Security Agencies (Regulation) Act, 2005 (PSARA).

Private Security Agency

Private security agencies (agencies) are business establishments formed with the purpose of offering security services to businesses in various sector, including banking, information technology, finance, industries and the like.

PSARA, 2005 was introduced so as to establish a certain standard of professionalism in the field of security services. Agencies cannot lawfully exist without obtaining a PSARA license. These agencies not only provide security services but also offer the option of training potential candidates for their security-centric careers.

Eligibility Criteria Under PSARA

In terms of the type of business organisation

The following entities are eligible to register under the PSARA, 2005 and obtain a PSARA license:-

  • Sole Proprietorship,
  • One Person Company,
  • Partnership Firm,
  • LLP,
  • Association of Persons, and
  • Private Limited Company.

In terms of the role of a Director/Principal Officer

The eligibility to be a Director/Principal Officer is not one that is open to all. There are specific criteria to be fulfilled in order to be eligible for the same:-

  • Must have Indian citizenship.
  • Must have attained at least 18 years of age.
  • Must possess adequate financial resources to bear the business expenses.
  • Must not have any convictions against him whatsoever.

In terms of the role of a Security Guard

Landing the role of a security guard will be plausible on ticking the following boxes:-

  • Must have Indian citizenship.
  • Must be an individual between the ages of 18 and 65.
  • Must have acquired prior training.
  • Must not be terminated from any government service, in any case.
  • Must measure up to all the desired physical attributes.
  • Assurance regarding the character of the individual has to be provided.

Documents Necessary for Obtaining a PSARA License

  • The following registration certificates:
    • PAN
    • GSTIN
    • Provident Fund Registration
    • ESIC (Employees State Insurance Corporation) Registration
    • Registration under Shops and Commercial Establishments Act
    • Registration under the Labour Act
  • Proof of identity of the directors and the employees
  • Copies of the Income Tax Returns of the Directors
  • Two passport size photographs of the promoters along with their PANs
  • Proof of address of the Agency Office
  • Affidavit as under Section 7 (2) of PSARA, 2005
  • Security training affidavit
  • Certificate of Incorporation
  • Signed Memorandum of Understanding (MOU) with the training institute

Procedure to Obtain a PSARA License

Organise all the necessary documents

The documents necessary for the application have to be collected and sorted accordingly in order to ensure quick and smooth processing of the application, which will, in turn, speed up the process of obtaining the license.

The documents pertaining to the various registrations as well as the details of the promoters and directors have to be clear and in a legible format so as to avoid any discrepancy. Once the documents are obtained, the application can be made on the online portal. The availability of the e-signing feature enables the entire process to be carried out seamlessly on the online portal itself.

Enter into a Memorandum of Understanding (MOU) with a training institute

The eligible training institutes will be displayed on the home page of https://psara.gov.in. The applicant has to enter into an MoU with a training institute so as to be able to provide training to its candidates.

An agency that provides training will offer more of an appeal and will be able to boast high-quality employees. Ex-servicemen are offered a certain amount of relaxation and exemption with regard to the training aspects of the agency.

Filing of the application

Once all the steps mentioned above are completed, the applicant will have to file the application (Form-I) with the respective state authority for PSARA License. The applicant should also enclose Form-II for verification of its antecedents. Affidavit in Form-III needs to be accompanied along with Form-I. 

Verification is done by police

Police verification is the next step in the process. This verification will be done after the filing of Form-I. Where the agency is a partnership or a company, the respective directors will have to go for the police verification as well.

Grant of PSARA License

Where the application is accompanied by a No Objection Certificate (NOC) from the police after verification, the authority will examine the application and then proceed to either grant the PSARA License in Form-IV or reject the same, as the case may be.

Time Period to Obtain a PSARA License

The time period taken to obtain the PSARA license is entirely dependent on the particular state authority and the quickness with which it processes the applications. Ideally, the time period for the grant of the application is roughly 60 days from the date of receiving the application.

Appointment of Supervisors

Supervisors are to be appointed by the applicant in order to comply with the provisions of the PSARA, 2005. The supervisors shall oversee and direct the operations of the agency in relation to the work of the security guards. The supervisors so appointed must be individuals who possess at least three years of work experience in the army or the navy.

Disclaimer:The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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