Private security agencies are those who provide security services to banks, various companies and ATM’s, hospitals etc. These agencies also provide training to the security guards who are employed with these security agencies. It’s mandatory for Private Security Agencies to obtain license for their operation, issued by the state controlling authority. Regulations for operations of security agencies are governed by Private Security Agencies Act, 2005, popularly known as PSARA. According to this Act, no person shall start or carry on the business of Private Security Agency without the PSARA License.
What is PSARA License?
All the operations of private security agency business in India are regulated by Private Security Agencies Act, 2005[1]. The said Act states, that if a person or agency is willing to set security business in India needs to obtain the PSARA license from controlling authority.
Eligibility and Requirement Criteria for Online PSARA License
Who can apply?
An Individual, Partnership Firm, One Person Company, LLP, Private Limited Company is qualified to apply for PSARA License. The qualified company can make an application to the concerned state competent authority for registration of Private Security Agency.
What should be the name and object of applicant?
The name of the entity should contain the word security service or any other related word, which can represent the object. Where applicant is a company, Memorandum of Association must contain ‘Providing of Security Company’ as its main object of the company.
What should be Director’s eligibility?
Director should be an Indian resident, who should have sound financial standing (Required to submit a copy of ITR). Person should not be sentenced for any offence and ought to have a perfect precursor past.
MOU with Training Institute
The applicant must have entered into an MOU with the institute or organisation engaged in providing training to the security guard. The institute should be approved by the state controlling authority. In such training programs, special relaxation is being provided to the ex-servicemen.
National Interest Cause
PSARA license cannot be issued to the person who is found to be associated or linked with any organisation or association, which is banned under the Indian Law/Government. If an association is found to be working against the national security, or engaged in any activity which is prejudicial to national security, govt. Do not grant PSARA license to such associations.
Restriction of Foreign Investment
As per section 6(2) of The Private Security Agencies (Regulation) Act, 2005[2], PSARA license will not be issued, if an entity is not registered in India, or having proprietorship or a majority of shareholder, partners or Director of outside India.
Read our article:Who cannot apply for PSARA License? Eligibility Criteria
Persons not eligible for PSARA license
According to Private Security Agencies Act, 2005, a person shall not be eligible for issue of a license under this Act, if he has been—
- Applicant who is convicted for an offence in connection with promotion, formation or management of a company including an undischarged insolvent; or
- If an applicant is convicted by a competent court for an offence, for which prescribed punishment is imprisonment of not less than two years; or
- If applicant is keeping links with any organisation or association which is banned under any law on account of their activities which are threat to the national security or public order or there is information about such a person indulging in activities which are prejudicial to national security or public order; or
- If applicant is dismissed or removed from Government service on the grounds of misconduct or moral turpitude;
A company, firm or an association of persons shall not be considered for issue of a license under this Act, if, they are not registered in India, or having a proprietor or a majority shareholder, partner or Director, who is not a citizen of India.
Documents Required For PSARA License in Uttar Pradesh
- Residential Proof of Proprietor /Partners / Director;
- Date of Birth Proof which can be ( Adhar / PAN ) of Proprietor / Partners / Directors;
- Three Photographs of Proprietor / Partners / Directors;
- Affidavit as per PSARA Act ;
- Rent / Lease Agreement ( In case where premises on Rent );
- No Objection Certificate ( N.O.C ) (In case where premises on Rent);
- Ownership Proof of Business Premises;
- Signed MOA with Training Institute
- Memorandum of Associations ( In case of Pvt. / Limited / OPC / Company );
- Certificate of Incorporation ( In case of Pvt. / Limited / OPC / Company );
- Partnership Deed ( In case of Partnership Firm );
- E-mail Address;
- Demand Draft Rs. 500/- of Proprietor /Partners / Director;
- Three Year Income Tax Return ( 10,00,000/- Yearly );
- Guard / Supervisor Photo with Uniform;
- Identity Card of Agency;
Govt. Fee for PSARA License in Uttar Pradesh
Following is the fee structure in Uttar Pradesh for applying for Online PSARA license in Uttar Pradesh are;
- In entire Uttar Pradesh –
For providing services security services in entire Uttar Pradesh prescribed govt. fee is 25,000/-. (Twenty Five Thousand Rupees Only);
- For Five District in Uttar Pradesh –
For providing services security services in five districts of Uttar Pradesh prescribed govt. fee is 10,000/-. (Ten Thousand Rupees Only);
- For Single District –
For providing services security services in five districts of Uttar Pradesh prescribed govt. fee is 5,000/-. (Five Thousand Rupees Only).
Renewal of PSARA license
- An application of Renewal is required to be made to the controlling authority. Application shall be made not less than forty days before the expiry of license.
- Application shall be made with the requisite fee, and other documents shall be furnished according to section 6, 7, 8 of the Private Security Agencies Act, 2005.
- Controlling authority required to pass an order on the renewal application of license within 30 days from the date of receiving complete applicant’s renewal application.
- After receiving applicant’s renewal application, controlling authority will make a necessary enquiry if authority finds any inquiry is required.
- Further, controlling authority by order in writing will renew the license or can refuse the same.
- NO order in respect of license refusal shall be passed without providing the reasonable opportunity of being heard to the applicant.
Validity of PSARA License
Usually, PSARA license is valid for 5 years in many of the states of India. However, in the states like Uttarakhand and Chhattisgarh, the license is valid only for 1 year.
Eligibility of Security Guard;
Private security can employ any person as a private security guard;
- Who is a Citizen of India
- Who has attained the age of eighteen years, but has not attained the age of sixty-five years;
- A person can satisfy the agency about his character in such a manner prescribed under the Act;
- A person who has successfully completed security training;
- Completely fulfils such physical standards as required to be a security guard; and
No such person can be appointed as a security guard who has been convicted by a competent court or who has been dismissed or removed on the grounds of misconduct, during his govt. Service tenure.
Every private security agency while employing a person as a private security guard, shall provide first preference to the person who is from the background of;
- Army;
- Navy;
- Air Force;
- Any other armed forces of the Union;
- Police, including armed constabularies of States; and
- Home Guards.
Cancellation or Suspension of PSARA License;
The Controlling Authority may cancel any license on the following reasons;
- If the License holder has obtained a license on misrepresenting of fact while applying for the license.
- If the license holder has forged documents or photographs in respect of obtaining a license.
- If the license holder has violated the provisions of this Act or the rules made there under or any of the conditions of the license.
- If the private security agency had failed to commence its activities or to engage a supervisor within the specified time period.
- If the license holder is or has willfully failed or refused to provide the services agreed to any person;
- If the license holder has violated court order or an order of a lawful authority;
- If a license holder has violated the provisions of the Acts prescribed by the Central Government;
- If repeated instance by private security guards provided by the private security agency is committed such as;
- In case where agency fails to provide private security;
- Where security guards have committed a breach of trust or misappropriated the property where they are appointed
- If security guards were found habitually drunker or indiscipline;
- If Security guards were found to be involved in committing crimes.
Corpbiz is the current market leader in providing and renewing the PSARA License. If you are also planning to commence the business of security agency or you want to renew your license, feel free to contact us.
Read our article:PSARA License – Know it’s Eligibility Criteria and Documents Required
