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How to Start Pasara License


What is Pasara License

In today’s world people are in need to set up their own business or set up their own establishments. This meteoric rise of small businesses in the commercial space has led to the need for security and safety.

Businesses that are versed in training and providing security services are called security agencies. Today, there are numerous private security agencies established to cater to the security needs of individuals and businesses alike. In India, all the operations and activities of the various private security agencies come under the watchful eye of the Private agencies (Regulation) Act, 2005 (PSARA).

Private Security Agency

Private Security Agencies are business establishments formed with the purpose of offering security services to business in various sectors or departments, including banking, information technology, finance, industries etc.

PSARA, 2005 was introduced so as to establish a certain standard of professionalism in the field of security services. Agencies cannot lawfully exist without obtaining a PSARA license. These agencies along with the security services also offer the option of training potential candidates for the security-centric careers.

Who Should Apply for PSARA License?

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

The demand for security has increased considerably due to an increase in the number of business establishments in recent years. The growing tendency of hiring security guards from private sources by the private 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 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 the private security agencies.

PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity that provides Private Security Guards and other related services at an establishment as an alternate to the police. The private security agencies’ operation is governed by The Private Security Agencies Regulation Act, 2005, enforced by the Department of Internal Security of the Ministry of Home affairs, Government of India

After the enactment of the PSARA (Act), it is mandatory for a security agency to obtain a Licence from the State Controlling Authority Concerned prior to commencing the business and in case of non-compliance, the law provides for stringent penal consequences. The application for PSARA License to start a private security agency is made to the competent authority of the state. The PSARA 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 of the license. The application for renewal of the Psara license has to be filed 45 days prior to the license expiry. Once the license gets expired, a fresh application would be required.

What Are the Eligibility Criteria Under Psara?

In terms of the type of business organization:

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

  • Sole Proprietorship

  • One Person Company

  • LLP

  • Association of Persons, and

  • Private Limited Company

In terms of the role of a Director/Principal Officer

The eligibility to be a Director/Principal Officer is not one that is open to all. There are specific criteria to be fulfilled in order to be eligible for the same:

  • Must have Indian Citizenship.

  • Must have attend 18 years of age.

  • Must possess adequate financial resources to bear the business expenses.

  • Must not have any convictions against him whatsoever.

In terms of the role of Security Guard

Landing the role of a security guard will be plausible on ticking the following boxes:

  • Must have Indian Citizenship.

  • Must be an individual between the ages of 18 and 65.

  • Must have acquired prior training.

  • Must not be terminated from any government service, in any case.

  • Must measure up to all the desired physical attributes.

  • Assurance regarding the character of the individual has to be provided.

Documents Necessary for Obtaining a Psara License

The following registration certificates:

  • PAN


  • 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 the directors and the employees

  • Affidavit as under Section 7 (2) of PSARA, 2005

  • Security Training Affidavit

  • Copies of the Income Tax Returns of the Directors

  • Two passport size photographs of the promoters along with their PANs

  • Proof of Address of the Agency Office

  • Certificate of incorporation

  • Sign Memorandum of Understanding (MOU) with the training institute

What Are the Eligibility for the Directors/owner

  • Education: The director/partner/owner etc. must be 8th standard pass or above.

  • Nationality & Age: Indian Nationality, above 18 Years of age.

  • Special Qualification: Special qualification means completing a specialised training conducted by the training institute for the owners, directors, or the applicant’s principal officer to train them for running a security guard agency. Such special qualification training is mandatory for all directors or the applicant firm’s principal officer, including the person from an army Background.

  • Clean Antecedents: The antecedent of the applicant’s key persons, such as its director or the principal officers, are verified by the police department/Controlling Authority; Following information is generally verified during the verification stage.

    • The residential address as per the information and documents filed.

    • The involvement in any criminal activity in India

    • The controlling authority may ask for a certificate from Tehsildar for antecedent verification. It is required to clarify that no Bind over cases pending against them.

    • The term “Bind Over” refers to holding a person for trial on bond (bail) or in jail. Binding over means to order a defendant to be placed in custody pending the outcome of proceedings against him or her;

  • Financial Standing: The applicant must have good financial standing and, to prove the same controlling authority, may ask for the Income Tax Returns.

Procedure to Obtain a Pasara License


Organise all the necessary Documents

The documents necessary for the application have to be collected and sorted accordingly in order to ensure quick and smooth processing of the application, which will, in turn, speed up the process of obtaining the license.

The documents pertaining to the various registrations as well as the details of the promoters and directors have to be clear and in a legible format so as to avoid any discrepancy. Once the documents are obtained, the application can be made on the online portal. The availability of the e-signing feature enables the entire process to be carried out seamlessly on the online portal itself.

Enter into a Memorandum of Understanding (MOU) with a training institute

The eligible training institutes will be displayed on the home page of The applicant has to enter into an MoU with a training institute so as to be able to provide training to its candidates.

An agency that provides training will offer more of an appeal and will be able to boast high-quality employees. Ex-servicemen are offered a certain amount of relaxation and exemption with regard to the training aspects of the agency.

Filing of the application

Once all the steps mentioned above are completed, the applicant will have to file the application (Form-I) with the respective state authority for PSARA License. The applicant should also enclose Form-II for verification of its antecedents. Affidavit in Form-III needs to be accompanied along with Form-I.

Verification is done by police

Police verification is the next step in the process. This verification will be done after the filing of Form-I. Where the agency is a partnership or a company, the respective directors will have to go for the police verification as well.

Grant of PSARA License

Where the application is accompanied by a No Objection Certificate (NOC) from the police after verification, the authority will examine the application and then proceed to either grant the PSARA License in Form-IV or reject the same, as the case may be.

Time Period to Obtain a PSARA License

The time period taken to obtain the PSARA license is entirely dependent on the particular state authority and the quickness with which it processes the applications. Ideally, the time period for the grant of the application is roughly 60 days from the date of receiving the application.

Appointment of Supervisors

Supervisors are to be appointed by the applicant in order to comply with the provisions of the PSARA, 2005. The supervisors shall oversee and direct the operations of the agency in relation to the work of the security guards. The supervisors so appointed must be individuals who possess at least three years of work experience in the army or the navy.

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

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


For one district in a state- cost (5000/- Rs)
For 2-5 districts in a state- cost (10,000/- Rs)
For the whole state- cost (25,000/- Rs)

For obtaining a PSARA License, companies usually take the help of professionals, and thus, certain costs are incurred in payment for the services. In addition, the process of PSARA License involves visitation of government departments, police stations and thus the cost is incurred in these things as well.

In addition to the government and the professional few, a private security agency has to incur training costs. Investment in a training institution is done for better and quality training to its officers and also an MOU is signed between the applicant and the training institute where such costs are involved.

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

Yes, it is required to get the license renewal once it expires.

No, it is not at all necessary for the applicants to be ex-servicemen or army men. Anyone can apply for such a license.

PSARA License is a state specific, that is the agency has to obtain a separate license for every state it operates in.

Although the governing act is passed by the Indian Parliament, the rules and regulations are subject to the states. Thus, the procedure might vary across the states.

Yes, it is allowed as per the rules of the PSARA Act, 2005. An FDI can be made up to 49% in a Company or business.

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