What is PSARA License

PSARA or Private Security Agencies Regulation Act is an Act by the Government of India to provide regulations for private security agencies. Additionally, the PSARA also keep vigilante’ over the registration of the private security agencies.

Introduction to PSARA License

Due to the increase in the number of business establishments in recent years, there is also an increase in the demand for security. The growing tendency of hiring security guards from private sources by the private business establishments, firms, person or property, etc. has led to the coming up of a large number of private security agencies across the country. Although these private security agencies help meeting the security requirements of the private sector, on the other hand there also is a concern for the way these agencies work. Therefore, the Private Security Agencies Regulation Act laid numerous sets of rules for the proper functioning and registration of private security agencies.

Eligibility Criteria to Apply For PSARA License

The PSARA License is not granted to just any private security agency, and there is various criteria specified under the PSARA to be eligible for obtaining the license.

These criterions are as follows;

Eligibility Criteria for Companies

As per the Private Security Agencies Regulation Act, 2005 every company willing to register themselves under PSARA needs to register themselves as any of the following business entity types;

• Sole Proprietorship
• Limited Liability Partnership
• One Person Company
• Private Limited Company
• Partnership Firm

Eligibility Criteria for Director / Principal Officer

For being the director or principal officer of a company one must fulfill the following criteria described below;

• The person must be a citizen of India
• Also, he should be financially sound for bearing the costs of running the PSA
• He should never be convicted of any legal offense
• Finally, he had never been convicted by an eligible court for any offense

Eligibility Criteria to Become a Security Guard

• The person must be an Indian citizen
• The age limit of the person must be between 18 to 65
• The person must be trained
• Furthermore, the person must not have been terminated from any government service, under any circumstances
• Also, the person must satisfy all the prescribed physical standards
• Lastly, the person should assure the PSA about his character

Conditions in which your application may get disqualified

Your application may get rejected or disqualified if the government sees it fit for the betterment of the general public, so keep in mind these points to avoid that situation. If the proposed director of the security agency lies under any of the following categories, it will lead to disqualification.

As per the Private Security Agencies Regulation Act, a person is not eligible for the issuance of a license under the following conditions;

• A person or entity should not be one that is convicted with an offense of promoting, forming or managing a company including a un- discharged insolvent.
• Also, the person or entity should not be one who has been convicted with any crime for which the prescribed punishment is imprisonment, not less than two years.
• Furthermore, if the applicant is found keeping links with an organization or firm which is banned by the government under any law on account of their corrupt activities, he would not be granted the license.
• Moreover, such organizations or firms dismissed or removed from the government on the grounds of misconduct, or moral turpitude are not eligible.

A company, firm, or association not registered in India, has a proprietor or significant shareholder, partner, or director who is not a citizen of India, is not considered for the issuance of the license under the provided Act.

Note: - Private Security Agency refers to an individual or a group of individuals, involved in a business of providing security services. However, these security service providers are privately owned firms other than the government agencies, department, or organization. Furthermore, these private firms are involved in providing security services to other organizations, business, or a person or property. Also, they provide training to private security guards or their supervisors.

Documents Required to Obtain PSARA License

Although the documents vary from state to state, there are common documents which you would require to attach them along with the application for obtaining the PSARA License. The documents you would need to provide are as follows;

• Company incorporation certificate
• Signed Memorandum of association {MOA} with the training institute
• Details of the security guard
• Identity proofs of the directors and employees
• Address proof of the office of the agency
• The affidavit obtained under Private Security Agencies Regulation Act
• Logo of the agency
• PAN Card of promoters
• Two photographs of the promoters
• Details of registration obtained from the Service tax department
• Certificate under the Shops and Establishment Act
• ESI Registration
• Provident fund {PF} registration
• Affidavit of the security training
• Armed license
• Character certificate for employees
• Copy of Income Tax Return {ITR} of each director

How to Apply For PSARA License

The Procedure for obtaining PSARA License is provided below;

• Step 1

  Filing Application along with Documents

• Step 2

  MOU with a Recognized Training Institute

• Step 3

  Police Verification

• Step 4

  Verification of Application

• Step 5

  Issuance of PSARA License

• Step 6

  Start Working Complying with all the Guidelines of PSARA

PSARA License Fees

The fees for obtaining PSARA License for private security agencies {PSA} operating at various places are provided below;

• Rs 5000 for PSAs operating in one district
• 10000 for PSAs operating in two districts
• 25000 for PSAs operating in the entire state

Guidelines for Renewal of PSARA License

A PSARA License is valid for a period of 5 years from the date of issuance of the license. However, in the state of Uttrakhand and Chattisghar this license is valid for a period of 1 year. Furthermore, the license after its expiry needs to be renewed; for the same, the following steps needs to be taken;

• The applicant needs to apply for the renewal of their license not less than 90 days prior to the expiry date of the license.
• The application must be submitted along with the documents as specified under Sections 6, 7, and 11 of PSARA with the prescribed fees.

Compliances as Per The PSARA

Under the PSARA guidelines, the private security agencies are required to follow certain compliances as follows;

• All private security agencies should hire supervisors to supervise the working of guards appointed in the organization
• These agencies are obliged to train the security guards appointed in their firm
• PSAs should give priority to ex-defense candidates holding three years of experience
• The PSAs need to follow every criteria, qualification, and disqualification specified under the PSARA
• According to PSARA, security guards must follow the prescribed uniform policy

What is The Need of Obtaining PSARA License And Its Benefits?

Amidst the increased crime rate the concern for security is also rising, thus the need for private security services are also increasing. With an end goal of providing protection against solitary or anti- national components are going into business. Therefore, to support such organizations the government has put up measures like the Private Security Agencies Regulation Act to benefit, arrange and monitor the working of these agencies.

Under the guidelines of this act, no individual or private security agency is allowed to run a business of providing security services to other private business establishments, individual or property. Therefore, the government under this act acts as a medium for providing licenses to such agencies ensuring their compliance with the guidelines of the Act.

Moreover, obtaining a license under this act serves as a proof that the organization conforms to all the guidelines of the PSARA and runs in consonance with those regulations. Furthermore, the agency holding a Certificate of Registration under the PSARA is more reliable in the eyes of their potential customer.

Benefits: -

• Empowers the training company
• Attracts more customers
• Avoid denial of rights and services
• Helps in gaining trust of potential customer
• Increases credibility of agency
• Ensures smooth functioning of the organization