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Kandarp Vanita
| Updated: 27 Apr, 2021 | Category: PSARA

What are the Essential Conditions of PSARA License?

Essential Conditions of PSARA Licence

The Ministry of Home Affairs manages this Act called Private Security Agencies Regulation Act, 2005 (PSARA) that monitors the Private Security Industry in India. This Act regulates the administration of the private security agencies through a Controlling Authorities as appointed by a State Government. In India the PSARA license is a mandatory requirement for opening any private security agency. These Private Security Agencies are the associations involved in giving administration of security which shall also include preparing security guards. Hence, it is necessary for the private security office to hold a license otherwise it cannot start a business or give security watch. Therefore, this article deals with all the necessary conditions required to get the PSARA license Online.

What is PSARA License?

The Private Security Agency business is one of the most required and fast developing business with a massive demand and potential growth in India. Due to reason of ever emerging demand by the business and industry segments for private security, this Private Security Agency business is on the rise for about more than 20% and still there is a huge available market which is wide open for the future ventures.

Considering the present situation and looking into different aspects, private security has significant role to play, whether it is any transportation of valuables or cash transfer to ATM, or any safeguard to important members of business people.

The State Government[1] can assign an officer in accordance with the PSARA Act, an officer not below the Joint Secretary’s position in the State Home Department or any officer of the same position who shall be the Controlling Authority for the state.

The authority in charge of issuance of the PSARA license is the Controlling Authority and they are also authorised to manage its re establishment and come up with the guidelines of the activities of private security offices. Thus, PSARA License is issued to these private security agencies to operate their business in India.

Read our article:Private Security Agency cannot engage Guard without License

What are the Advantages of PSARA License?

The following are the few advantages of PSARA License:-

Advantages of PSARA License

What is the Eligibility Condition to Obtain PSARA License?

All Indian nationals are eligible for PSARA license as an individual or as a Firm or Company, but the exceptions are given below:-

  • Any person who has been convicted for an offence in relation with the formation or promotion of the company
  • Any person convicted by the court for an offence for which the punishment is imprisonment of not less than 2 years.
  • Any person who is keeping links with the organisation or union which is disqualified or banned under any law because of their activities which might create threat to the public order or the national security or there is any information about that person involving in activities that are detrimental to public order or national security.
  • Anyone who has been removed or dismissed from the Government service on grounds of moral turpitude or misconduct.
  • Any company, or a firm or any association of persons which are not registered in India or having a majority shareholder, or partner or director who is not an Indian citizen shall not be considered for issuing of a licence under this Act.

What are the Requirements for PSARA License?

  • FDI is not allowed in PSARA.
  • The applicant must be in the possession of the office before applying for license. The office can be owned, rented or leased.
  • In case if it is rented then the rent agreement can be registered or it can be unregistered but it is mandatory to have the No Objection Certificate from the owner of the premises.
  • In few of the states the applicant must be financially stable and that should exactly reflect in his Income Tax Return.
  • There is no requirement of any Minimum Educational Qualification.
  • Any person can send an application for PSARA license. Hence, it is not only restricted to ex armed forces or servicemen or any other forces.

What are the Documents Required for PSARA License?

The major documents that are requisite for the security agency are given below:-

  • Service tax department Registration
  • PAN Allotment
  • Registration of Employees State Insurance(ESI)
  • Registration of Provident fund (PF)
  • Registration of establishment under Shops & Establishment
  • Registration under the Contractual labour Act
  • Affidavit in accordance with PASARA Act.
  • Security Training Affidavit
  • Uniform Pattern
  • If it is a principal place of business then ownership proof of the same
  • Logo for security agency
  • All the employees should have their Identity card. And tie-ups for yearly compliance.
  • Detailed armed licenses.
  • Certificate of Character verification for the employees
  • Fees required for PSARA license
  • Copy of ITR

All the below given documents must be in accurate format and must be notarized. PSARA License is issued state wise and it is valid for the time period of 5 years and shall be renewed every 5 years. To obtain the PSARA license the government fees is given as follows:

  • For One District Private Security Agencies – Rs. 5000
  • For 5 districts Private Security organization– Rs. 10000
  • For the entire states Private Security office– Rs. 25000

What is the Procedure to Acquire PSARA License?

All the private security offices are mandated to get the PSARA License before starting with their activity.

  • At first, the applicant should have all the required documents as has been given above.
  • Then it is mandatory for the applicant to enter into a MoU with the organisation that is involved in training the security guards.
  • The applicant is required to have the police verification in Form –I.
  • The applicant for PSARA license Online has to be filed with the Controlling Authority.
  • The total time for obtaining the PSARA license is 60 days which varies from state to state.

Conclusion

The Private Security Agency should commence its operations within the time period of six months after obtaining the PSARA License Online. The PSARA mentions the different conditions like eligibility criteria, qualification and the disqualifications for a security guard.

Therefore, it is necessary that before obtaining the PSARA License Online the applicant is complying with all the requirements and the conditions above mentioned.

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

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Kandarp Vanita

Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents & dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.

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