Private Security Agencies in India are regulated by the Private Security Agencies (Regulation) Act,2005 and Private Security Agencies Central Model Rules, 2006. The Security Agency sector in India is booming and is also a very crucial sector with regard to the security and safety of important organizations and establishments. Since corporate and business organizations are growing very rapidly in India, the need for skilled and qualified staff as security professionals is increasing. However, there is prevailing rampancy in the incidents of lapses of security caused by the incompetency of staff trained by these security agencies. The private security industry in India faces various challenges, including the need to uphold stringent security standards, comply with regulatory provisions, and address evolving security threats. However, these challenges also present opportunities for private security agencies to demonstrate their professionalism, contribute to India’s overall security landscape and enhance the safety and security of individuals and businesses. The Act prescribes the standards for the training and recruitment of personnel and staff by security agencies. It lays down strict compliance measures to be observed by these security agencies for setting – up a private security staffing and recruitment agency. The application process for obtaining a PSARA license involves several steps. The interested 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. The authority then verifies the information and evaluates to determine the eligibility of the applicant. It is essential to ensure that the application is accurately and comprehensively filled to facilitate the smooth processing of the license.
Who is Eligible to obtain a PSARA License?
Any individual or enterprise who wants to establish a security agency in India is required to obtain a PSARA License under the provisions of the PSARA Act. The applicant must be an Entity incorporated in India to obtain a PSARA License. No company that was founded outside India is permitted to offer private security services in India. Furthermore, it is prohibited for agencies that are incorporated in India but have a majority of their shares or partnerships in other countries to create a private security agency there. Apart from nationality, the entity must satisfy the following conditions in order to be eligible to make a PSARA license application-
The Authorities must ensure that the entity making an application has a clean track record, free of any legal or disciplinary proceedings against him/her imposed by any enforcement authorities. The local police or enforcement authority must verify the antecedents of the applicants before issuing a license by ensuring that the applicant does not have any convictions of crime, financial misappropriations, fraud, or charge of any other nature. The Police or enforcement agency would issue a No-Objection Certificate to the person, which shall be used for making the PSARA license application.
Collaboration with Training Institutes and recruitment agencies
The company must have associations and collaboration with recognized staffing and training institutes that supply security personnel. The Agency must enter into a Memorandum of Understanding (MOU) with these training institutes and ensure that such training institutes have been recognized by local authorities and accreditation agencies at the central and state levels. Associating with recognized training and staffing agencies is a necessary compliance for the purpose of making a PSARA license application.
Legal Business Name and Activity
The Agency seeking a PSARA license shall choose a legally valid and appropriate name for its business for filing a PSARA License Application and Checklist for Security Agencies, keeping in view that such name should reflect the fact that the Agency is only engaged in providing service services and manpower and no other activity. The name shall include the term ‘security agency’ or ‘security services’ and Pvt. Ltd, or LLP as a suffix. Further, the Agency shall not solicit any kind of association or engagement with any Government Authority or PPP Project.
Compliance with Labour and Employment regulations
The Agency shall ensure that it complies with all relevant compliances related to labour, employment, and payroll of the professionals engaged by it. The Agency shall register with social security provisions of the law, such as Employees State Insurance, Provident Fund, Maternity Benefits, Gratuity, and other prevailing employee-safety regulations. If the Agency does not comply with employee and social security provisions, it shall not be eligible to make a PSARA license application.
PSARA license documentation Requirements
In order to make a PSARA online application, private security agencies must obtain a PSARA License. The authorized Controlling Authorities require the submission of many crucial documents and disclosers in order to enable a seamless and prosperous application procedure. These comprise the Agency’s records, the owners’ and principal officials’ personal records, the records pertaining to its commercial space, and the records pertaining to the training and institutes with which it is associated. Based on the statutory requirements, copies of the following documents are required for the PSARA license application –
- Documents of Incorporation of The Security Agency – MOA, AOA, Trust /LLP Deed, Certificate of Incorporation, and MSME Registration certificate (if applicable).
- 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, DIN, 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, charter certificate, and police verification record.
Process to make a PSARA online application for approval
After obtaining and preparing all necessary documents required for making a PSARA License Application, the Agency shall proceed with the PSARA online application process by following the steps as mentioned below –
Collecting and Filing of Requisite Documents
After collecting all necessary documents, an Application in Form – 1 has to be filed with the regulatory authorities responsible for administering and licensing securities agencies in the respective state. Additionally, past records and antecedents of the Agency shall be filed in Form -II, along with an affidavit in Form -III.
After the submission of the documents, the regulatory authorities conduct a thorough verification of the Agency’s premises. It also conducts verification of the security guards and employees engaged by the Agency for their physical health, background verification, personal details, and details of the directors and owners of the company.
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.
Security Agencies in India are required to fulfil certain commercial requirements under the PSARA Act for the purpose of Obtaining a license to carry out their activities. Several documents were 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 authorities rejecting the license.
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Frequently Asked Questions (FAQs)
PSARA stands for Private Security Agencies (Regulation) Act, 2009. The law governs the functioning and licensing of Security Agencies in the Country.
Any individual or enterprise who is resident Indian or is a company incorporated in India and who wants to establish a private security agency is required to obtain a PSARA License under the provisions of the PSARA Act.
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.
The Act has stated that every Agency shall file an application for renewal 45 days from the date of expiry of the PSARA License.
The State Government of each respective state designates an authority not below the rank of a Joint Secretary of the State as the state’s Apex Controlling body of Security Agencies.
A PSARA Linces remains valid for a period of five years from the issue, after which it has to be renewed.
An Agency must obtain valid registration under social security schemes such as ESI, Provident Fund, Gratuity, Maternity Benefit, Factories and Shops and Establishment Act are some of the labour and employment compliances which are necessary to be followed in order to apply for a PSARA License.
Yes, it is required that the applicant provide police verification upon filing an application for a new license or a renewal with the Controlling Authority. The applicant must also enclose Form-I to verify their background. Every proprietor, majority shareholder, partner, and director must complete a separate Form-1 if the application is submitted by a business, partnership firm, or other organization of individuals.
The PSARA license fee is bifurcated depending on the number of districts in a particular state to which the applicant is seeking to provide security services.
If someone operates an agency without a valid PSARA license, he/she is punishable with up to 1 year imprisonment or Rs. 25,000/-.
Read our Article: PSARA License – Know It’s Eligibility Criteria And Documents Required