PSARA License

PSARA License in India: Documentations, Fees, and Process

calendar23 May, 2021
timeReading Time: 4 Minutes
PSARA License in India

The relationship between delinquency and India is deep-rooted. As per the data of the National Bureau of crime record, India’s crime rate rose steadily by 3% in 2017-2019. Despite several measures, the crime rate in India sees no obstacles and thrives seamlessly. This is a rising concern for people who resides in metropolitan areas where the crime rate is incredibly higher. At present, police authorities are struggling to cope with the prevailing crime rate; and that’s where private security firms come into the picture. Legally, in India, any firm that seeks to work as a security firm is required to avail of a PSARA license in India

Appointing security guards at your establishments serves as an obstacle to potential delinquents, whether private or public, wholesale or retail building. Trusted security from PSARA-licensed agency can be very reliable. Thus, with the growing demand of private security firms in India, the license under the Private Security Agencies Regulation Act, 2005 is a compulsory requirement for a firm to offer security-related services.

What is PSARA and why it is Mandatory for Security Agencies?

Private Security Agencies Regulation Act, 2005 (aka PSARA) regulates and administers the private security sector in India. This Act manages the overall operationability of private security agencies via Controlling Authorities appointed by the State Governments. The Ministry of Home Affairs is the one who manages the PSARA Act.

That implies, the concerned Union Territory or state government in which private security agency is located will have the right to govern their affairs, & appoint its controlling authority, & might also outline regulations in respect of it. No firm has the right to undertake private security business in the absence of a PSARA license in India.

As per PSARA Act, all Private security agencies are mandated to appoint an individual (controlling authority) to administer the work of security guards. With that said, the preference should be given to the person from a defense background who served more than three years of service life. The agencies must provide proper skills and training to the appointed personals. The Act also provides the criteria related to the health, qualification, disqualification, and code of conduct for a security guard.

Read our article:Suspension and Cancellation of PSARA license: Overall legal Position

Guidelines to be followed by Security Agencies under PSARA

The Private Security Agencies Regulation Act, 2005 has laid down some compulsory norms for all security companies. The list below manifests the same.

  • All private security firms were obligated with a responsibility to train the security personals with the mandatory skill aptly;
  • The preference must be given to person who spent 3 of service life in defense services.
  • The appointment of the supervisor is mandatory for these firms to oversee the working of guards
  • Further, inculcation of an independent framework for qualification, disqualification, and criteria is prohibited under the law. Security firms must undertake such activities in accordance with the PSARA Act;
  • The hired security guards are mandated to follow the prescribed code of conduct, including the dressing requisites cites under the PSARA Act in India.

Tasks to be Performed for the Obtainment of PSARA License in India

Like other government licenses, you need to follow an extensive procedure to avail PSARA license in India. The steps below will help to do the same. 

Tasks to be Performed for the Obtainment of PSARA License in India

Step 1: Collect the mandatory documents

Proper documentation is a key to successful government license or registration. Make sure to refer to the list below before rushing for application filling. 

  • PAN Card
  • Employees State Insurance (ESI) registration letter
  • GST registration certificate
  • MOA and AOA (in case of the private limited company)
  • Provident fund (PF) registration letter
  • Shops & Establishment act registration letter
  • Contractual Labor Act registration letter
  • Police verification certification
  • PAN and Addhaar card of Directors (in case of the private limited company)
  • PAN and Addhaar card of partner (in case of partnership firm)
  • PAN and Addhaar card of (in case of LLP)
  • MOU from the Training institute
  • Income Tax Returns of directors
  • Certificate of Company’s Incorporation
  • Address proof of the Registered Office

Step 2: Sign MOU with a certified training institute

After arranging the documents described above, the next step is to sign an MOU i.e., Memorandum of Understanding, with a certified training institute. You have to comply with this requisite to facilitate training to the hired personal seeking the position of security guard in a company. 

Step 3: Obtain Police verification

In this step, you were required to file Form-I for the obtainment of Police Verification. The separate form will be applicable in case of the applicant is a company, firm, or group of people. 

Step 4: Application Filing 

Next, you are required to visit PSARA controlling authority for filling application for a PSARA license application. The application processing will not be initiated until the applicant submits the NOC from the respective police authority.

Step 5: Grant of PSARA License

Based on the information cited in the form and annexed documentation, the authority may or may not grant the PSARA license. The reason for application cancellation will be duly shared with the applicant via the applicable medium. The applicant is eligible to file a PSARA license application for a locale or five areas or a state.

The approval process for a PSARA license in India may vary from state to state. Generally, a period of 60 days is required by the authority for the grant of PSARA license in India from the date of application filing. 

Cost Pertaining to PSARA license in India

The cost of PSARA license in India is given below-

Cost Pertaining to PSARA license in India
  • The Government[1] fee for availing PSARA license in Karnataka is Rs 50,000, for the entire state
  • The payment regarding the license can be made by Demand Draft or cash challan at designated banks.


Private security companies play a critical role in reducing the crime rate and increasing employment in India. Most organizations and establishments prefer availing services of PSARA-licensed firms because of their tight working protocols. Given the rate at which crime is thriving in India, an increasing number of firms will be routed to private security businesses in upcoming years. Again, these firms will require a PSARA license to undertake such business activities in India.

Read our article:What are the Essential Conditions of PSARA License?

PSARA License

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