PSARA LICENSE IN INDIA

PSARA LICENSE IN INDIA

Private Security Agencies are those entities who provides security guards and other services related to security administration.


PSARA LICENSE

PSARA License is mandatory for those who wants to start a private security business in the country. The movement of private security offices is governed by the Private Security Agencies Regulation Act, 2005, best known as 'PSARA.' 

The demand of private security administrations has increased rapidly in the society. Now the private security is required in every place where any kind of  risk exists. This encouraged the growth of private security Company’s offices.
 

After the introduction of the Private Security Agencies Regulation Act, 2005 (PSARA), it is compulsory for the security agencies company to obtain License from the respective State Controlling Authority concerned before commencing the security business in its jurisdiction.
 

In case anyone starts their security service business before obtaining the license then such businesses shall be penalized in accordance with the law. The Controlling Authority of the state has the power to issue the PSARA License to the security agencies.

The State Government assigns any officer not below the rank of Joint Secretary in the Home Department of the state or an officer of the same stature to be the Controlling Authority of the State. For obtaining PSARA License, one has to make the application for the same to the Controlling Authority of the state. Proper police verification is also done before granting the License in order to check and verify the laid down criteria.

The Controlling Authority can either accept or reject the License based on the NOC issued by the authorized police officer. As per the law, the whole procedure for granting the License shall be finished within 6o days from the date of filing the application.
 

Eligibility Criteria for obtaining PSARA License

Under the PSARA License Act, 2005, there are various laid down eligibility criteria’s that one has to fulfill in order to obtain the license. As per the PSARA License Act, 2005, the following entities can make the application for obtaining PSARA License:-

  • Sole Proprietorship/Individual;
  • Partnership Firm;
  • One Person Company (OPC);
  • Private Limited Company/Public Limited Company;
  • Limited Liability Partnership
     

Eligibility Criteria for Principal Officer/Director

i.  The applicant must be a citizen of India;

ii.  The applicant must have a solid financial background in order to bear the cost of operations.

iii.  Should not have any criminal record or should not have been convicted by any court.
 


 

Eligibility Criteria for Becoming a Private Security Guard

In order to become a Private Security Guard, one must fulfill the following criteria and they are:

  1. Must be a citizen of India;
  2. Minimum 18 years of age and should be below 65 years;
  3. Should not have any non-objectionable character and background;
  4. Should have successfully completed the security training successfully;
  5. Must have fulfilled the physical standards;
  6. Should not have any criminal record or have not been convicted by any court;
  7. The applicant must not have been terminated from any Government institution due to misconduct or any other reason.
     

Other Eligibilities

  1. The License cannot be granted to those agencies who have any link with those organization or institutions which are banned under any law or by any government in order to safeguard the national interest.
     
  2. The name of the agency should contain the word Security Services or other related terms that represents 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.
     
  3. PSARA License will not be issued to those entities that are not registered in India, or having an owner or a maximum number of shareholders, partner or director, who is not a citizen of India, as per section 6(2) of the Private Security Agencies (Regulation) Act, 2005.
     

Documents required for PSARA License

The documents as required for obtaining the License differ from state to state. The requirement of documents for eligibility varies from state to state. 

  1. Proof of Identity of the Directors and Employees; 
  2. Registered Agency’s address proof; 
  3. Copy of a duly certified affidavit acquired under the Private Security Agencies Regulation Act, 2005;
  4. Logo of the Security Agency;
  5. Promoters PAN card detail;
  6. 2 passport-sized photographs of the promoters;
  7. Registration details acquired from the Service tax department;
  8. Copy of the certificate as granted under the provisions of the Shops and Establishment Act;
  9. Registration details of Employee State Insurance (ESI);
  10. Registration details of Provident Fund (PF) Registration;
  11. Affidavit of the Security Training;
  12. Details of Armed License;
  13. Employees Character Certificate;
  14. Copy of the Income Tax Return (ITR) of the directors;
  15. Company’s Certificate of Incorporation (COI) & Memorandum of Association (MOA);
  16. Duly signed MOU (Memorandum of Understanding) with the training institute.
     

All the above-mentioned documents along with the application form has to be submitted to the Concerned Authority of the State.
 

Registration Procedure for obtaining PSARA License

One has to follow the following steps for obtaining the PSARA License-
 

Qualifying Documents

In order to obtain the PSARA License, the first step is to assemble all the necessary documents such as PAN Card, TAN (Tax Deduction Account Number), GST Registration certificate, Registration certificate of PF (Provident Fund) and ESI (Employee State Insurance), Certificate of Registration under the Shops and Establishment Act, Copy of the ITR (Income Tax Return) of each director/partners etc.
 

MOU With a Training Institute

It is mandatory for the applicant to enter into an MOU (Memorandum of Understanding) with those recognized organization/institute involved in providing training to security guards. These recognized institutes will provide a proper training to the security guards and the supervisors. In every state, there a various recognized training institute having specialization in providing the training to the guards. 
 

Police Verification

The concerned applicant has to file Form-I for police verification. In case of companies, firms or any other association of person, a separate verification form has to be filed for each and every director or partner.
 

Application Filing

For obtaining the license, the PSARA application has to be filed before the controlling authority of the PSARA, after which a proper verification will be done. After receiving the NOC (No Objection Certificate) from the concerned Police authority, the controlling authority of the state may either grant or reject the License with a proper explanation.
 

Time Taken for Issue of PSARA License

The whole process of obtaining the PSARA License shall be completed within 60 days from the date of filing the application. The procedure of obtaining the PSARA License varies from state to state.
 

PSARA License Terms & Conditions

The terms & conditions specify the criteria, qualification, and disqualification for a security guard. It is necessary for the applicant to engage supervisors in order to supervise the work of security guards. A person coming from the navy, army, or air force with a minimum of three years of experience should be given preference.
 

Fees Structure of PSARA License

a.  In case of a Single District: Rs 5000;

b.  In case of 5 Districts: Rs 10000;

c.  For an Entire State: Rs 25000 (Except in Karnataka: Rs 50000).
 

Validity & Renewal of PSARA License

The validity of a PSARA License is five years from the date of the issuance. But for the states of Uttarakhand, Madhya Pradesh and Chhattisgarh license is issued only for one year. PSARA License is required to be renewed after its expiry and the steps for renewing the same are as follows:

  • One has to make an application for the renewal of the PSARA license not less than 90 days before the license expiry date.
     
  • One has to submit the application form along with all the requisite documents as prescribed under Sections 6, 7, and 11 of the PSARA with the prescribed fees.
     

Mandatory Compliances to be followed as per PSARA

As per the PSARA regulations, the security agencies have to follow certain mandatory compliances and they are:

  • It is mandatory for the private security agencies to hire supervisors in order to supervise the work of the guards as appointed by the organization.
  • It is obligatory for the agencies to train the security guards.
  • It is necessary for the security agencies to give priority to the ex-defense candidates who are having at least three years of experience.
  • The agencies have to follow each and every qualification, criteria, and disqualification prescribed under the PSARA Act.
  • As per the PSARA, security guards have to follow the specified uniform policy.
     

Some Important Amendments of PSARA Act, 2005

Private Security Agency Licensing Portal has been launched by Government of India in the year 2019. This portal has features such as single window system for granting license, linking with Integrated Criminal Justice System (ICJS) for verification of antecedent, online payment facility of licensing fees.

It also contains features such as facilities of e-sign and geo-tagging which eases the PSARA Licensing procedure. Its approval is in the mixed stage as some of the States have accepted the Online Procedure, whereas some States are still in process of the acceptance.

Major Amendments in 2019 –

  1. As Private Security Agency Licensing Portal has been launched, thus now there will be no need of manual police verification of details of Directors/Partners/Proprietor at the time of applying for grant of license for private security agency.
     
  2. Controlling Authority shall utilize electronic databases of crime & criminal like CCTNS, ICJS and similar facilities for verification of antecedents of the applicant.
     
  3. Electronic method such as Demand Draft or Banker’s Cheque will be accepted for paying the License fees.
     
  4. National Skill Qualification Framework (NSQF) became mandatory from 27th December 2018 as per the amendment.
     
  5. Based on training completed and requirement of the job, Private Security agencies will be allowed their own designations under the rules subject to a condition as per which no agency shall be adopting any of the ranks of the armed forces, paramilitary forces or state police forces.
     
  6. Validity of the Character & Antecedent Certificate once issued will be for 3 years . This will be irrespective of the change in employer status.
     
  7. The Controlling Authority either by itself or through its officer shall verify the premises of the private security agency at the address or addresses provided by the agency.
     
  8. It will be the responsibility of the Controlling Authority to get the physical copy of the license delivered by post within 15 days of issue to the private security agency’s registered address. The private security agency shall be bound to display the same at its place of business.
     

Frequently Asked Questions (FAQs)
 

Can PSARA License of one state be used in another state?

No, PSARA License of one state cannot be used in another state.
 

Who has the authority to issue the PSARA License?

Concerned Authority of the State is authorized to issue the PSARA License. 
 

What is the validity of the PSARA License?

The validity of PSARA License is 5 years. One has to renew the same before the expiry of the date of license issued.
 

Can PSARA License be renewed?

Yes, PSARA License can be renewed after its validity period, which is 5 years.
 

Who are eligible to obtain PSARA License?

The Following entities are eligible for obtaining PSARA License and they are-

  • Sole Proprietorship/Individual;
  • Partnership Firm;
  • One Person Company;
  • Private Limited Company/Public Limited Company;
  • Limited Liability Partnership.
     
Under which Act PSARA License are governed?

PSARA License are governed under the Private Security Agencies Regulation Act, 2005.
 

When to apply for the renewal of PSARA License?

In order to renew the PSARA License, one has to apply at least 90 days before the date of expiry of the issue of License.
 

What is the prescribed fee for obtaining PSARA License?

The prescribed fee for obtaining the PSARA License is as follows:

  • In case of a Single District: Rs 5000
  • In case of 5 Districts: Rs 10000
  • For an Entire State: Rs 25000 (Except in Karnataka: Rs 50000)
     
What is the time involved for the issuance of PSARA License?

The time involved for the issuance of PSARA License is 60 days after the submission of complete application to the Concerned Authority of the State.
 

What are the important documents that are required for obtaining the PSARA License?

The important documents that is required for obtaining the PSARA License:

  1. Proof of Identity of the Directors and Employees 
  2. Registered Agency’s address proof 
  3. Copy of a duly certified affidavit acquired under the Private Security Agencies Regulation Act, 2005
  4. Logo of the Security Agency
  5. Promoters PAN card detail
  6. 2 passport-sized photographs of the promoters
  7. Registration details acquired from the Service tax department
  8. Copy of the certificate as granted under the provisions of the Shops and Establishment Act.
  9. Registration details of Employee State Insurance (ESI) 
  10. Registration details of Provident Fund (PF) Registration
  11. Affidavit of the Security Training
  12. Details of Armed License
  13. Employees Character Certificate 
  14. Copy of the Income Tax Return (ITR) of the directors
  15. Company’s Certificate of Incorporation (COI) & Memorandum of Association (MOA)
  16. Duly signed MOU (Memorandum of Understanding) with the training institute.???????
     
Edited by Minu Mishra