Overview of PSARA License Renewal

Due to an extensive increase in the companies and societies establishments, the demand for personal security has also increased. So, the reason for the significant growth of Private Security Agencies across the country is the growing trend of hiring security guards from private businesses, companies, etc.

PSARA License is compulsorily required for entities running Private Security Agencies. PSARA stands for Private Security Agencies (Regulation) Act, 2005. This Act regulates all the Private Security Agencies in India. The purpose of enactment of it is to ensure that the security agencies are working as per relevant legal norms. 

A Private Security Agency is the entity that provides Security Guards and other related services at any establishment or building in the place of the police. They also operate outside India, but for that, they need to have consent from Controlling Authority.

Benefits of PSARA License

Following are the benefits of a PSARA License:

• Empowerment of training company 
• Attracting more customers 
• Avoiding denial of Rights and Services 
• Assistance in securing the trust of Potential Customer 
• Increase in the credibility of the Agency 
• Ensuring the smooth and efficient functioning of the entity 

Eligibility Criteria for PSARA License Renewal

Following are the different eligibility criteria for PSARA License as well as PSARA License Renewal:

• Business Structures:Sole Proprietorship, LLP, One Person Company (OPC), Partnership Firm, Association of Persons, and Private Limited Company.
• Director/Principal Officer:Indian nationals, not minors, have ample financial resources to cater to business expenses and have no criminal records.
• Security Guard:The person should be an Indian national, not be a minor or above 65 years of age, must have the training, have an excellent service track record and match the desired physical attributes. He must secure a character certificate from a previous organisation. 

The followings are the criteria where an applicant is not eligible for PSARA License and PSARA License Renewal:

• An applicant is being convicted for an offence concerning the formation, promotion or management of a company 
• A competent court convicted the applicant for such offences under which punishment is not less than two years. 
• An applicant has links and connections with such organisations or associations that are banned by any law for activities against public order or national security.
• An applicant has either been removed or dismissed from Government services on the grounds of moral turpitude or misconduct.
• Company/entity not incorporated in India 
• The proprietor of the company is not an Indian
• An Indian does not hold the majority of shares of such a company. 

Documents Required for PSARA License Renewal

Following is the list of all important documents required for the PSARA License Renewal:

• Original PSARA License
• Identity proof of all employees and directors
• Address proof of registered Agency 
• Duly affidavit acquired under Private Security Agencies Regulation Act 2005
• Logo of Private Security Agency 
• PAN Card details of the promoter
• Two Photographs of each promoter 
• Details of registration taken from the Service Tax Department 
• Certificate granted under provisions of Shops and Establishment Act 
• Employee State Insurance (ESI) Registration 
• Affidavit of Security training 
• Armed License 
• Character Certificate for employees 
• Income Tax Return (ITR) Copy of each director 
• Certificate of Incorporation of the Company 
• Duly signed Memorandum of Association along with training institute 
• Details of all Security Guard appointed

Procedure for PSARA License Renewal 

For PSARA License Renewal, the applicant has to follow the below-mentioned steps:

• An applicant has to make an application for PSARA License Renewal to the Controlling Authority not less than before the expiry of the reasonable period of the original PSARA License.
• The application for PSARA License Renewal is made in the prescribed Form along with the relevant fee and documents provided under the Private Security Agencies (Regulation) Act, 2005.
• The Controlling Authority has to pass an appropriate order on the said application of PSARA License Renewal within 30 days from the day of receiving such application.
• The Controlling Authority has to conduct the necessary inquiry after receiving the application. Thereafter, it has to renew or refuse to renew the License by making an order in writing.
• In case of refusal to renew the PSARA License, a reasonable opportunity is provided to the applicant to be heard, and no order of refusal is passed without that granting such opportunity.
• And in case of acceptance, the PSARA License of the applicant is renewed by the Controlling Authority.

Pointers Related to the PSARA License and its Renewal

Following are certain points that one needs to keep in mind before applying for PSARA License and PSARA License Renewal:

• FDI is not permitted in PSARA
• Applicant must have an office before obtaining the PSARA License. It can be rented, leased or owned, and if it is rented, then the rent agreement can be registered or unregistered.
• In some states, the applicant must be financially sound and must reflect it in their Income Tax Return.
• Anyone can apply for the PSARA License and PSARA License Renewal and is not limited to an ex-serviceman of the armed forces or any other force.
• PSARA License obtained is valid for a period of five years unless it is cancelled.
• A person operating a security business without a valid license is punished with imprisonment for a term that can be extended to one year or with a fine that can extend up to a total of Rs. 25000 or both. 
• If any private security guard or a supervisor wears a uniform of the Navy, Army, Air Force or any other armed forces of Union or Police or any dress having the appearance or any of the distinctive marks of such Navy or any other armed forces; then in such case such guard or supervisor and the proprietor of his Agency shall be eligible for a punishment of imprisonment of a term that can be extended to one year or with a fine that can be extended to Rs. 5000 or both. 

• In an offence is committed by any company under the Private Security Agencies (Regulation) Act, 2005, then every person in charge and responsible for the offence. However, if such a person who is liable for punishment proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of a such offence, then nothing shall render such person liable for any of the punishment.

Cancellation of the PSARA License (original or renewed)

Following are the conditions for the cancellation of the original as well as renewed PSARA License:

• License acquired by way of misrepresentation or suppression of material facts
• The License was acquired by using false documents or photographs
• License holder either infringes Provisions of Act of 2005 or conditions under which License was granted.
• The license holder misused the information acquired during the discharge of his duties in offering security at the Agency.
• The License was misrepresented that, is an instrumentality of the Government. 
• The License was impersonated or abetted impersonation of some Government Servant.
• Concerned Agency failed in providing services agreed to another person. 
• Concerned Agency failed to operate post one year of obtaining the PSARA License.
• The licensee has either done or lent his or her assistance in doing something that is in contravention of the order of the court.   
• Licensee poses a threat to national security.