PSARA

Importance of a PSARA License in the Private Security Industry

calendar13 Mar, 2024
timeReading Time: 5 Minutes
Importance of a PSARA License

Private Security Agencies and training agencies in India are regulated by the Private Security Agency Regulation Act, 2005 (PSARA). Private Security Agencies in India are put under strict compliance and regulatory framework due to the sensitive and crucial nature of private security agencies. PSARA lays down the standards of professionalism, training, and recruitment of security personnel, as well as the functioning of security companies and training agencies. Due to growing incidences of lapses in security caused by untrained and incompetent security guards and professionals, the government has made stricter compliance with the provisions of the PSARA, keeping in view the importance of the PSARA License to ensure the prevention of major security mishappenings. As per the application process for obtaining a PSARA license, the designated private security agency or individual must file an application with the designated authority, providing all the necessary details and documentation in accordance with the prescribed regulations.

Importance of a PSARA License

Since large corporates and Multi-National companies are setting up a physical presence in India, the requirement for skilled and qualified security guards, personnel, and technical staff is on the rise. Security guards must meet the required fitness and professional criteria as required under PSARA, as well as be given proper training by the recruitment agencies. Various parameters which highlight the Importance of a PSARA License for private security agencies in India are –

Ensuring Quality Professionals

PSARA License ensures that the standards for operating private securities agencies are upheld and that competent and reliable entities operate in the market. In order to obtain a PSARA License, the agencies must adhere to the protocols and standards related to the code of conduct, training of security guards, compliance with regulatory standards, and upholding the highest standards of professionalism in the industry.

Reliability and Trustworthiness

One of the Importance of a PSARA License is that, it instils reliability and trustworthiness in the minds of the public since it ensures that private security agencies are accountable for their actions and operations. Security agencies that hold a valid PSARA license are regarded as reliable and genuine in the market, and it helps build trust with the clients as well as government defence enforcement agencies.

Alignment with International Security Standards

PSARA License signifies that the private security agency conforms to security standards that are necessary to provide highly trained and prepared security personnel for foreign dignitaries and VIPs which is one of the importance of a PSARA License. If a Security Agency aligns with PSARA Security standards, it would instil confidence and faith in foreign entities, celebrities, and corporate figures, subsequently raising the importance of a PSARA Licenses for Private Security Agencies.

Compliance with Legal and regulatory Obligations

PSARA License ensures that the Private Security Agency complies with the required legal and regulatory requirements and regulatory. These include adherence to labour, employment, tax, industrial, and payroll-related compliances. By adhering to Legal and regulatory obligations, security agencies ensure that they are not in conflict with the regulatory obligations and mitigate any future possibility of legal implications. This comes as an importance of a PSARA License

Prevention of Crime

Security Companies that hold valid PSARA Licenses need to understand the importance of a PSARA License to actively support public safety and crime prevention by using the PSARA License to operate. Private security guards are essential to the upkeep of law and order because they keep a visible presence, discourage criminal activity, and support law enforcement. Their cooperation with law enforcement contributes to the establishment of a safer atmosphere for people and enterprises.

Documents Required for Private Security Agency License

In order to apply for a PSARA License, the entity is required to apply to the Ministry of Home Affairs’ online portal and understand the importance of a PSARA License. The documents required to be submitted along with the application are –

  • Documents of Incorporation of the company – MOA, AOA, Trust /LLP Deed, Certificate of Incorporation, Letter of Intent of the members.
  • GSTIN registration, income tax returns, and PAN of the company.
  • Registration under various social security regulations – Provident Fund, ESI, Maternity Benefit, contract labour regulations, shops and establishments etc.
  • Details of the Directors / Owner of the company such as Address Proof, AADHAR card, PAN card, photographs, etc.
  • MOU signed with recognized Training Institutes and Recruitment Agencies.
  • Details of the agency premises – Proof of Ownership, Rent agreement, lease, license/ rent agreement, and property tax certificate.
  • Details of the security personnel engaged by the company, such as personal details, AADHAR, Photographs, background check reports and police verification records.

Eligibility for obtaining a License for the Private Security Industry

Any individual or enterprise who wants to establish a security agency in India must understand the importance of a PSARA License and is required to obtain a PSARA License under the provisions of the PSARA Act. To license, authorize and inspect security training agencies in India, PSARA stipulated that every respective state should appoint an officer not below the rank of Joint Secretary in the Department of Home Affairs of the State for the purpose of effectively discharging the provisions for the Act. As per the Act, the entity that desires to get itself registered as a private security industry must be incorporated as a company, LLP, partnership, one-person company, or sole proprietorship. The applicant for a PSARA License must be an Indian citizen and satisfy the following conditions –

  • Must be above 18 years of age.
  • Must not have been convicted of an offence by a court of law for which imprisonment under Indian law is prescribed for not less than two years.
  • Must not have links with any organization, company or association that is banned or prohibited by law or any enforcement agency or such organization that endangers national security.
  • Must not have been dismissed from Government Service on the grounds of misconduct or fraud. 

Process to apply for PSARA License

After understanding the importance of a PSARA License, let us talk about the process of applying for a PSARA license:

Preparation of Documents 

After collecting all necessary documents required for the PSARA Application, such as PAN, AADHAR, AOA, incorporation documents, GST, ESIC, EPF, etc, the Address proof and rent/lease/ownership agreement of the office of the agency are required to be submitted along with the details of members. The applicant must also submit an affidavit of eligibility as required under section 7 of the Act.

Enter MOU With Training Institute

The applicant must enter into a Memorandum of Understanding (MOU) with a training institute that has been authorized by the Joint Secretary of the State.

Application Submission

An application in Form – 1 has to be filed with the state controlling authority, which is then examined and verified by authorized representatives of the department. i.e. Additionally, past records and the agency’s work history shall be filed in Form -II, along with an affidavit in Form -III. The application can be made on the Private Security Agency Licensing Portal of the Ministry of Home Affairs.

Police Verification

Following the filing of the necessary paperwork and application in the requisite Form, the regulatory bodies thoroughly inspect the agency’s premises. It also verifies the physical well-being, criminal histories, personal information, and data of the company’s directors and owners of the security guards and personnel hired by the agency.

License Issuance

After receipt of all the documents and police verification of the agency premises, The appropriate verifications will be carried out while the application is carefully examined by the state authority. If the authority is satisfied with the details and believes the agency is fit to carry out the business, it issues a PSARA license in Form IV. However, it is also possible that the application can be rejected on certain grounds as well.           

Conclusion

Private Security Agencies in India are required to fulfil certain standardization and quality requirements under the PSARA for the purpose of Obtaining a license to carry out their activities. Keeping in mind the importance of the PSARA License, the applicant must prepare and submit the requisite documents to the regulatory authority, followed by a verification of the security guards and premises by authorized inspectors of the State Government. All these compliances are necessary to make a PSARA license application. Any error or omission in the PSARA license documentation process can lead to the license being rejected by the authorities.

If you are looking for a reliable and trustworthy advisory service provider to assist you in the preparation of the PSARA license application for your business and help you understand the importance of a PSARA License, you have come to the right place. Corpbiz is a trusted name in corporate incorporation advisory services. Our services will ensure that you stay compliant with all necessary documentation and verification needs without worrying about exorbitant consulting and advisory fees.    

Frequently Asked Questions (FAQs)

  1. What is PSARA?

    PSARA stands for Private Security Agencies (Regulation) Act, 2005. It is the law that governs the functioning licensing and regulation of Private Security Agencies in the Country.

  2. What is the importance of a PSARA License?

    Due to growing incidences of lapses in security caused by untrained and incompetent security guards and professionals, the government has made stricter compliance with the provisions of the PSARA, keeping in view the importance of a PSARA License to ensure the prevention of major security mishappenings.

  3. What is the validity of a PSARA License?

    A PSARA Linces remains valid for a period of five years from the issue, after which it has to be renewed.

  4. Can a Foreign Entity or Non-Resident Individual apply for a PSARA License?

    No, if any company or firm or an association of firm is registered outside India, it or he/she cannot apply for a PSARA License. Only Indian residents and Companies incorporated in India are allowed to apply for a PSARA license.

  5. What are the documents required to make an application for a PSARA License?

    In order to make an application for a PSARA License,the applicant mustsubmit PAN, AADHAR, AOA, incorporation documents, GST, ESIC, EPF, etc. The address proof and rent/lease/ownership agreement of the agency's office are required to be submitted along with the details of the members. Additionally, a copy of the MOU signed with a training agency is also required to be submitted.

  6. Which body regulates Security Agencies under the Act?

    The State Government of each respective state designates an authority not below the rank of a Joint Secretary in the Department of Home Affairs of the State for the purpose of effectively discharging the provisions for the Act.

  7. What is the fee applicable to be paid by the agency for a PSARA License?

    The PSARA license fee depends upon the number of districts in a particular state to which the applicant is seeking to provide security services. The Government license fee for one district the fees is Rs. 5,000/-, for five districts, the fee is Rs. 10,000/- and for the entire state, the fee is Rs. 25,000/-

  8. What happens if someone overlooks the importance of a PSARA License?

    If someone operates an agency without a valid PSARA license and overlooks the importance of a PSARA License, he/she is punishable with up to 1 year imprisonment or Rs. 25,000/-.

  9. Is a single PSARA license sufficient for all states?

    No, an entity is required to obtain a separate license for every individual state, as there is no central or consolidated PSARA License.

  10. What is the Importance of Police Verification in PSARA License?

    Yes, Police Verification for the members /shareholders and security guards trained by the agency is a necessary requirement to be fulfilled before making a PSARA License Application. The information shall be enclosed and submitted in Form 1 under PSAR Rules.

  11. How can Corpbiz help me set up a private security Agency?

    We understand the importance of a PSARA License for a private security agency in India. Our dedicated compliance team can help you with the process of document preparation, application submission, filing, fee payment and procurement of a PSARA License from the Regulatory Authorities.

Read Our Article: Guide On Mastering The PSARA License

Request a Call Back

Are you human? : 3 + 8 =

Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality