Psara Licence Registration Online in India

What Is a PSARA License?

In today's world, the rise of small businesses and commercial establishments has created a growing need for security and safety. Businesses that train and provide security services are called security agencies. In India, all operations and activities of private security agencies are governed by the Private Security Agencies (Regulation) Act, 2005 (PSARA).

Private Security Agency

Private Security Agencies are business establishments formed to offer security services to businesses across various sectors, including banking, information technology, finance, and industry. PSARA, 2005 was introduced to establish a standard of professionalism in the field of security services. Agencies cannot legally operate without obtaining a PSARA license. These agencies also offer training to candidates pursuing security-centric careers.

Who Should Apply for a PSARA License?

PSARA, or the Private Security Agencies Regulation Act, is a Government of India Act that regulates and oversees the registration of private security agencies. The demand for security has increased considerably due to the rise in commercial establishments in recent years. The growing practice of hiring security guards from private agencies has led to a large number of private security agencies operating across the country.

PSARA lays down rules for the proper functioning and registration of private security agencies. A PSARA License is a prerequisite before any person starts a private security business in India. The operations of private security agencies are governed by the Private Security Agencies Regulation Act, 2005, enforced by the Department of Internal Security under the Ministry of Home Affairs, Government of India.

After the enactment of PSARA, it is mandatory for a security agency to obtain a license from the State Controlling Authority prior to commencing business. Non-compliance attracts stringent penal consequences. The application for a PSARA License is made to the competent authority of the relevant state. The license is issued to operate in one or more districts of a particular state or for the entire state.

What Is the Legal Provision for PSARA License?

1. Law: The Private Security Agencies (Regulation) Act, 2005
2. Rules: Private Security Agencies Central Model Rules, 2006
3. Enforcement Date: 14th March 2006
4. State Government Role: This is a Central Law. However, under Section 3 of PSARA, every state is required to designate an officer not below the rank of Joint Secretary as the controlling authority, by way of a notification.
5. Validity of License: The PSARA License remains valid for five years from the date of issuance. The application for renewal must be filed 45 days prior to expiry. Once the license expires, a fresh application is required.

Eligibility Criteria Under PSARA

Type of Business Organisation

The following entities are eligible to register under PSARA, 2005 and obtain a PSARA license:

• Sole Proprietorship
• One Person Company
• LLP
• Association of Persons
• Private Limited Company

Eligibility for Director / Principal Officer

• Must hold Indian citizenship.
• Must be at least 18 years of age.
• Must possess adequate financial resources to meet business expenses.
• Must have no criminal convictions whatsoever.

Eligibility for Security Guard

• Must hold Indian citizenship.
• Must be between the ages of 18 and 65.
• Must have completed prior training.
• Must not have been terminated from any government service.
• Must meet the required physical attributes.
• Must have character verification provided.

Documents Required for Obtaining a PSARA License

• PAN
• GSTIN
• Provident Fund Registration
• ESIC (Employee State Insurance Corporation) Registration
• Registration under Shops and Commercial Establishments Act
• Registration under the Labour Act
• Proof of identity of directors and employees
• Affidavit under Section 7(2) of PSARA, 2005
• Security Training Affidavit
• Copies of Income Tax Returns of the Directors
• Two passport-sized photographs of the promoters along with their PANs
• Proof of address of the agency office
• Certificate of Incorporation
• Signed Memorandum of Understanding (MOU) with the training institute

Eligibility Criteria for Directors / Owners

• Education: The director, partner, or owner must be at least 8th standard pass.
• Nationality and Age: Indian nationality, above 18 years of age.
• Special Qualification: Directors and the principal officer of the applicant firm must complete a specialised training programme conducted by a recognised training institute. This training is mandatory for all directors and principal officers, including those from an army background.
• Clean Antecedents: The background of key persons such as directors and principal officers is verified by the police department or Controlling Authority. The following are generally verified:
  • Residential address as per submitted documents
  • Involvement in any criminal activity in India
  • A certificate from the Tehsildar may be required for antecedent verification, confirming no "Bind Over" cases are pending. "Bind Over" refers to holding a person for trial on bond or in jail pending the outcome of proceedings.
• Financial Standing: The applicant must demonstrate good financial standing. The controlling authority may request Income Tax Returns as proof.

Procedure to Obtain a PSARA License

Step 1: Organise All Necessary Documents

All documents must be collected and sorted to ensure smooth and quick processing of the application. Documents related to various registrations and the details of promoters and directors must be clear and legible. Once documents are ready, the application can be submitted through the online portal, which also supports e-signing for a fully online process.

Step 2: Enter into an MOU with a Training Institute

Eligible training institutes are listed on the PSARA official website at https://psara.gov.in. The applicant must enter into an MOU with a training institute to be able to provide training to security candidates. Ex-servicemen are offered some relaxation regarding training requirements.

Step 3: Filing of the Application

Once the above steps are completed, the applicant must file the application in Form-I with the respective state authority for the PSARA License. Form-II for antecedent verification must also be enclosed. An affidavit in Form-III must accompany Form-I.

Step 4: Police Verification

Police verification is conducted after the filing of Form-I. Where the agency is a partnership firm or a company, the respective directors must also undergo police verification.

Step 5: Grant of PSARA License

Where the application is supported by a No Objection Certificate (NOC) from the police after verification, the authority examines the application and proceeds to either grant the PSARA License in Form-IV or reject it, as the case may be.

Time Period

The time period for obtaining the PSARA License depends on the respective state authority. Ideally, the grant of the license takes approximately 60 days from the date of receiving the application.

Appointment of Supervisors

Supervisors must be appointed to comply with the provisions of PSARA, 2005. Supervisors oversee and direct the operations of the agency in relation to the work of security guards. Supervisors must have at least three years of experience in the army or navy.

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FAQs

Q1. What is the validity period of a PSARA License?

In most Indian states, the license is valid for 5 years. However, in Uttarakhand and Chhattisgarh, it is valid for only 1 year.

Q2. Is the approval procedure the same across all Indian states?

No. As per the PSARA Act, every Indian state is at liberty to frame its own rules for granting the license.

Q3. Is having an ex-army person on the board mandatory for the application?

No.

Q4. What is the government fee for a PSARA License?

• For one district in a state: Rs. 5,000
• For 2 to 5 districts in a state: Rs. 10,000
• For the entire state: Rs. 25,000

Q5. What are the costs for professional assistance?

Companies typically engage professionals to help obtain a PSARA License, and costs are incurred for their services. The process also involves visits to government departments and police stations, which add to the overall cost.

Q6. What are the costs for training?

In addition to government and professional fees, a private security agency must incur training costs. An MOU is signed with a training institute, and investment in quality training for officers is required.

Q7. What is the governing act for the private security business in India?

The Private Security Agencies Regulation Act, 2005 is the governing act for private security agencies in India.

Q8. Is renewal of the PSARA License required?

Yes, the license must be renewed once it expires.

Q9. Is the applicant required to be an ex-serviceman or army person?

No. It is not necessary for the applicant to be an ex-serviceman or army person. Anyone can apply for the license.

Q10. Is a separate license required for every state where the agency operates?

Yes. The PSARA License is state-specific. A separate license must be obtained for every state in which the agency operates.

Q11. Is PSARA License uniform across all of India?

While the governing act is passed by the Indian Parliament, the rules and regulations are subject to each state. The procedure may therefore vary across states.

Q12. Is foreign direct investment (FDI) allowed in a private security agency business in India?

Yes. As per the PSARA Act, 2005, FDI of up to 49% is permitted in a private security agency.