PSARA License

Know all PSARA License Requirements before Opening a Private Security Firm

calendar10 Apr, 2021
timeReading Time: 4 Minutes
PSARA License Requirements before Opening a Private Security Firm

The private security sector has witnessed significant growth in past years owing to the growing demand of the corporate sector. It is also creating ample job opportunities in our country.

The private securities act as extended arms of law enforcement agencies and help relieve police forces from non-essential duties to focus on core areas. To open a private security firm in India, one must obtain the PSARA license from the relevant state controlling authority. In this article, you will come across essential PSARA license requirements to set up a private security firm in India.

What is PSARA License?

PSARA license is a prerequisite that an individual needs to set up a private security firm in India. A private security firm refers to an establishment that offers the services of security guards.

Private Security Agencies Regulation Act, 2005 covers every establishment that is actively working as a registered private entity in a security sector. The said Act is a pioneer for many companies as it provides brief guidelines on how to operate, how to appoint, and how to disqualify the candidates.

Prerequisites for Starting a Private Security Firm in India

Security services have become a must-have necessity considering the present-day scenario of our menacing society. But, stepping into the security business is not a cup of tea for everyone because of the sheer competition. That is the reason why many startups & entrepreneurs fail to achieve success in this business domain. Therefore, it is imperative to conduct comprehensive research on the same to ensure long-term success.

One has to explore the current generation security requirements of the masses and outline their strategies accordingly. Thus, you should clearly understand this business[1] model and then apply for a PASARA license. After obtaining this license, the private security firm has to ensure conformity with the rules and regulations of the PSARA Act. Following are some important points that worth considering consider before entering into such a business domain.

Private Security Firm in India

Choose Apt Service Category

Selecting the correct service category is the first step to enter a security business. If you don’t have ample fund at disposal, avoid rendering a broad portfolio of the services. Select an apt service category that perfectly syncs with your economic and social goals. 

Select a Correct Business Model

All private security firms are needed to avail PSARA License before commencing their business operation.

At first, the parties have to opt for an apt business model. The company must consider the attributes like Scale, finance, Liabilities, and Control to serve such a purpose. The entity seeking a PSARA license can select the following business models. 

  • Sole proprietorship
  • LLP
  • Partnership Firm
  • Pvt. Ltd. Company
  • NGO

After selecting the model, the applicant can proceed further to obtain the PSARA license. 

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

Obtain the PSARA License

Once you have selected the suitable business model, it’s time to obtain the mandatory permits and licenses. The most basic license that a company needs to avail is a PASARA license. 

Outline a Business Strategy

Create a vision and mission for your future endeavors. Make sure to write down a comprehensive description of your firm, services, finances, and obligations in advance. A good business plan will empower you to make informed decisions even in the most troublesome situation.

Design a Firm’s Logo

Not many people consider logo creation as an essential business decision. A company without a logo needs a considerable marketing budget to create an identity among the target audience. A logo adds value to the business and solidifies its presence in the market at no cost whatsoever. Sometimes it takes months for a firm to get a perfect logo. Therefore, it’s essential to hire a company or marketing agencies to serve such a purpose.

Make an Online Presence

It’s hard to discover a single business today that does not possess an online identity. If you want to reach your consumer base with carefulness, make sure to build a user-friendly website without any second thought. The online presence is imperative for businesses today to ensure long-term success. 

Procure Funds

Funding is everything to a business. No plan can come to action in the absence of adequate funding. Explore the financial market and List the institutions that can offer you easy credit at a lower interest rate. At present, many private lenders and NBFCs are offering lucrative financial schemes to aspiring startups and entrepreneurs at a lower interest rate. 

List of Document Required for PSARA License

Documentation is a crucial part of obtaining a PSARA license. Below we have curated a list of mandatory documents required by those seeking this license 

  • The Certificate of your Company’s Incorporation;
  • Documents of security guards;
  • Signed MOA along with the training institute;
  • Residential proof of the registered office;
  • Identity proof related to employees and directors;
  • An Affidavit obtained under PSARA;
  • PAN card of the promoters;
  • Registration attained from the service tax department;
  • The logo for your security firm;
  • A Certificate of registration issued under Shops & Establishment Act;

ESI Registration

  • Provident Fund Registration;
  • A Certificate issued under the Contractual Labour Act;
  • Two passport size photographs of promoters;
  • Affidavit of the security training;
  • ITR copy of all directors;

Armed license;

  • Character verification certificate for every employee.

Guidelines for Security Agencies under PSARA

The Private Security Agencies Regulation Act, 2005 has set out some mandatory guidelines for all security companies. These are as follows: 

  • The proposed private security firm must have a legit training protocol in place to train the security personals with the required skill; 
  • As per the Act, priority must be given to candidates from the defense background.
  • All the Private Security firms must appoint supervisors to oversee the working of guards
  • Further, no security agencies can set up an independent framework for qualification, disqualification, and criteria for the security guard. Such actions are supposed to be taken in accordance with the PSARA Act;
  • Lastly, the hired security guards should comply with the uniform policy as mentioned under the PSAR Act. 


PSAR Act set out a long list of the guidelines for private security agencies in India. It is mandatory to obtain this license if an establishment or individual intends to open private security agencies in India. The competition in the security agencies realm has become quite steep, so it is advisable to pick the right security domain that favors your economic and social goals. The proper selection of services can help businesses grow consistently regardless of competition level in the security sector. 

Read our article:PSARA License: Renewal and Penalties

PSARA License

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