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Overview of PSARA license in Tamil Nadu

GOI introduced the Private Security Agencies (Regulation) Act, 2005, to cater to ever-rising security needs across India. The Act was enacted to fill the gap within the legal framework meant to curb India's crime. Today, thousands of private security agencies are working under its ambit and providing security solutions to different business verticals. Anyone looking to start PSA in India should mandatorily register under this Act by obtaining a PSARA licence. The controlling authority of the respective state formulates operating guidelines for such firms.

Governing Scope of the PSARA Act, 2005

PSARA Act 2005 seeks to govern the given aspect of the registered the Private Security Agency

  • Licensing procedure
  • Operational norms for PSAs
  • Training of guards
  • Appointment of supervisor
  • Code of conduct for appointed guards

Who can apply for PSARA License in Tamil Nadu?

Given are the eligible business types that fit the criteria for grant of PSARA license;

  • Sole Proprietorship
  • Private Limited Company under Companies Act, 2013
  • Limited Liability Partnership (LLP) under LLP Act, 2008
  • Partnership Firm
  • One Person Company (i.e. OPC) under Companies Act, 2013

Apart from that, PSARA Act 2005 also set out the following conditions for the grant of a PSARA license;

  • The PSARA license is inaccessible to non-Indian
  • The presence of adequate fiscal potential is mandatory for proposed PSAs. This will reflect their ability to address operating costs.
  • Applicants should have a clean track record from a legal standpoint.

Generalized Documents for PSARA License 

  • PAN Card
  • Registered Office's address proof
  • GST registration certificate.
  • Income Tax Returns of directors
  • Contractual Labour Act registration letter
  • Employees' State Insurance, i.e. ESI registration letter
  • Shops & Establishment act registration letter
  • Certificate of Company's Incorporation
  • Provident fund registration letter

PSARA license in Tamil Nadu: Registration Process

License seekers should follow the given procedure for securing the PSARA license in Tamil Nadu.

Step 1: Arrange aforesaid Document

PSA Act, 2005 mandates license seekers to arrange the aforesaid paper works for PSARA license in Tamil Nadu;

Step 2: Sign MOU with training institute (Government-certified)

The term MOU is an abbreviation for the Memorandum of Understanding. It is typically used as a viable instrument for serving a specific purpose agreed by interested parties. In this case, the license seeker needs to sign MOU with a Government institution for the training’s facilitation.

Step 3: Police Verification

Thorough Police vetting is the next step in this process. To get started with the police inspection, a form should be filed by the license seeker via Form-I.

For applicants representing a company or Association of Persons, aka AOPs, separate form filing should be done by every partner/director.

Please note that the GOI has removed the requirement for the Document's manual verification from PSA Act, 2005 via certain amendments.

Step 4: Filling of PSARA Application

PSARA license is granted on a state-wise basis. That means that the application filing should be done.

The application relating to the PSARA license is a file with the state-based controlling authority. The application processing shall come to effect as soon as the authority receives the NOC from the concerned police department,

Upon thorough vetting of the application and Documents attached thereto, the authority may or may not confer the PSARA license to the concerned license seeker.

In case of application rejection, the authority concerned shall forward the notification for the same to the applicant via registered contact.

The licensing procedure for the PSARA license is usually completed within two months timeframe. However, it's worth noting that this is not a standard timeframe since it can vary depending on a case-wise basis.

What are the Validity and Renewal norms for PSARA license in Tamil Nadu?

Five years is the typical validity of a PSARA license. But in the states like MP, Uttrakhand, and Chhattisgarh, the validity period for this license has been slashed down by four years. That means it will remain valid for one year. The PSARA license can be renewed within ninety days from the expiration date.

Norms to be followed by the holders of PSARA license in Tamil Nadu

  • Private Security Agencies Regulation Act (PSARA), 2005 has set out norms for the holder of PSARA license in Tamil Nadu.
  • A private security agency (PSA) operational in Tamil Nadu must appoint a supervisor for administering guards.
  • A private security agency (PSA) must facilitate standard training for the appointed guards in accordance with the norms of the governing Act.
  • During supervisor selection, the candidate from an army or defense background (with three years of experience) should be prioritised.
  • All guards must adhere to the standard uniform code

Training norms for the holders of PSARA license in Tamil Nadu

The Controlling Authority shall be responsible for setting out extensive training modules for guards' training. As per the Private Security Agencies (Regulation) Act, 2005, the guards shall undergo;

  • 200 hours of classroom instructions
  • 60 hours of field training

The PSA must complete the said training module within 20 working days

The Act provides for different training schedules for ex-servicemen and former police personnel. According to the Act, the said officials must undergo;

  • 40 hours of classroom instructions
  • 16 hours of field training

The completion timeline of the above training schedule has been capped at seven working days under the Act.

Activities for appointed guards under training module

  • Physical Fitness training
  • Crowd control
  • Fire fighting
  • Physical security, household security, assets' security, etc.
  • Identification of fabricated explosives
  • Examination of an individual's credentials relating to the identity
  • Handling and operating firearms (optional)
  • Reading & comprehending English alphabets & Arabic numerals

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Once you follow the requisites above without conceding any error, the authority shall grant the license for sure. One should not forget that the vetting protocol for such a license is quite stringent. The rate of rejection is also not on the lower side either. Thus, availing of professional help can be a viable option to keep such nuisances out of the equation.

The only thing that can keep such issues out of the equation is the precise know-how of the underlying legalities. Corpbiz can provide great assistance by keeping you abreast of all the norms.

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