There are tons of requirements one has to comply with before setting up a security services company in India. One such requirement is the PSARA license which is mandatory for establishing a private security agency in India.
At present, our nation is suffering from menacing law and order issues. Despite ample police force at disposal, the state government is finding it hard to maintain peace and harmony consistently. This is where private security agencies come so handy. They are now acting as additional arms for law enforcement agencies. The Private Security Agency (Regulation) Act, 2005 oversee the function of security Services Company in India.
The said Act enables security agencies to work within a legal regime. Therefore, any person who seeks to set up a security Services Company must have a PSARA license first. This write-up will provide ample information about this license and help you set up a security agency.
What is PSARA License?
Private Security Agencies Regulation Act, aka PSARA, is an apex government institution that regulates the working of security Services Companies in India.
The primary step to set up a security agency is to obtain a PSARA license as it encompasses all the critical attributes from formation to disqualification. Therefore, PSARA ensures the protection of Security Agencies’ interest, which trains the security guard with the required skill.
PSARA’s Compliances for Security Services Company in India
There is a long list of guidelines that a Private Security Agency (PSA) has to follow under PSARA. The list below manifests the same.
- Firstly, a security agency has to appoint supervisors to oversee the duties of hired security guards.
- Further, all PSAs must have a legitimate training protocol at their disposal to aptly train security guards with the required skill.
- According to Act, the preference should be given to the ex-defense candidate having three years of experience.
- Every PSA must follow PSARA’s guidelines while selecting or disqualifying the candidates.
- PSARA embraces continual improvement and seeks to refine the working of PSAs operating nationwide. Furthermore, it set out necessary guidelines for PSAs regarding the health conditions and uniform of candidates to be employed.
What is the Process for the obtainment of a PSARA License in India?
A Security Services Company ought to follow the below-mentioned guidelines to obtain the PSARA license:-
Arrange Necessary Documents
The first step to obtain the PSARA license is to arrange the necessary documentation such as PAN Card, GST, TAN number, PF, ITR of every director, ESI, etc.
Enter an MOU with Training Institute
Now, you have to approach a reputed training institute to signed a Memorandum of Understanding. It ensures seamless training and skill development of the company’s supervisors and guards.
File application for Police Verification
Further, you were required to file an application in Form-1 for police verification. If the applicant is a registered entity, it requires filing an independent application for every partner & director.
Obtain No Objection Certificate
Upon completing the verification process, you were required to avail of a NOC from the police authorities. The concerned Police authorities have the right to revoke the NOC request on finding any discrepancies.
Wait for the Issuance of PSARA License
The verification process and the issuance of the PSARA license will roughly take around 60 days from the application filing date. The process for obtaining a PSARA license varies from state to state, so it is advisable to meet the region-wise requirements without any discrepancies.
Documents to be Arranged by Security Services Company for PSARA license
Security Services Company is required to arrange the given documentations which go along with PSARA application:-
- Company’s Incorporation Certificate
- Identity proof of the active directors and partners.
- Registered office’s address proof
- Signed Memorandum of Association with a certified training institute.
- Documents of the candidates seeking the position of a security guard.
- The Security agency’s logo.
- ESI Registration as well as PF Registration
- Two digital photographs of promoters
- Character certificate of active employees
- Shops & Establishment license.
- ITR copy of active directors
- Promoters’ PAN card.
- Registration issued by the service tax department
- Certificate issued under the Contractual Labor Act;
- Affidavit of the security training
- Armed license
- An affidavit obtained under PSARA
An Outlook on Renewal & Expiration of PSARA License
According to the Private Security Agency (Regulation) Act, 2005, PSARA License stays operational for five years from the registration date. However, there is an exception: in Chhattisgarh and Uttarakhand, the license remains valid for not more than one year. As far as the renewal is concerned, the PSARA license can be renewed within the 90 Days timeline before the expiration date.
A New Web-Based System for issuing PSARA license
The Union Home Ministry has introduced an online portal https://psara.gov.in/ for issuing PSARA licenses to the Security Services Company. The government launches this portal to simplify the entire procedure of licensing. The new portal offers the following features:-
- Single window system for applying to any UT or state
- Payment Gateways for licensing fees
- Integrated with Interoperable Criminal Justice System
- Geo Tagging of office
Aspirants of Security Services Company can use this portal for prompt and seamless issuance of the PSARA license. From license facilitation to online grievance control, this portal covers every possible aspect of the licensing process. It mitigates the requirement of manual intervention, thereby saving time and cost for the applicant. The portal ensures convenience for both the authorities and the applicant.
What is the Fee Structure for the Issuance of the PSARA License?
- Security Services Company that functions in a Single District – Rs 5000
- Security Services Company that operates in 5 Districts – Rs 10000
- Security Services Company that operates in an Entire State – Rs 2500
We can conclude that the PSARA license renders a string of added benefits to the Security Services Company in India. Therefore, if you intend to start a PSA in Delhi, then a PSARA license is a must-have requirement for you.
Read our article:Procedure to Cancel Shop and Establishment Registration in India