PSARA License For Security Agency | All India Service

We will extend our support in Documentation, Preparation, filing and subsequent Follow-up for the License to start a private security agency in India. The license under PSARA is a mandatory requirement for an agency to deploy security guards and engage in Security related services.

Who should apply for Psara License!

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.

Legal Provisions

  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.

Eligibility Requirement for Company/Firm

  1. Person Eligible To Apply For PSARA: Any person, whether individual or a legal entity is eligible for making an application for the PSARA License. Following is the indicative list of applicants for PSARA
    • Private Limited Company
    • LLP/Partnership Firms Proprietorship Firm
    • Individual, etc.;
  2. Name and Object of Business: The entity’s name should contain the word Security Services or Related terms that represent the applicant’s object. In the case of a Company, the main objects of the MOA must include a specific clause relating to Providing of Security Services.
  3. MOU With Training Institute: The applicant for a PSARA License must enter into an MOU with a training institute or an organization as approved by the state controlling authority for imparting training to the security guards. There is relaxation to the training requirements for ex-servicemen.
  4. National Interest: The PSARA License cannot be granted to a person if it is found to keep Links with an organization or association, banned under any law or by a government order to protect National Security, Public Order, or prevent any activity prejudicial to National Security.

Director/ Owner Eligibility

  1. Education: The director/partner/owner etc. must be 8th standard pass or above.
  2. Nationality & Age: Indian Nationality, Above 18 Years of age.
  3. Special Qualification: Special qualification means completing a specialized 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.
  4. 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;
  5. Financial Standing: The applicant must have good financial standing and, to prove the same controlling authority, may ask for the Income Tax Returns.

FDI in PSARA

Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, lays out that the PSARA License shall not be issued if the applicant is not registered in India or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India. The foreign direct investment in a Private Security Agency business is allowed up to 49% in a Company or LLP under the approval route. The application for the FDI is administered by the Ministry of Home Affairs of the union government. Hence, before an application for a grant of PSARA Licence is moved by a company having foreign investment, it is a prerequisite to have the Prior Approval of the FDI. All relevant reports like FC-GPR are duly filed and approved.

List of Documents

Proprietorship

  1. Entity Documents

Private Limited Company

  1. Entity Documents

Partnership Firm

  1. Entity Documents

Timeline

The time required for grant of PSARA License varies from state to state and depends on the quality of documentation and how fast the antecedent verification is carried out at the local police station. As several government departments are involved, predicting a time frame is not desirable. However, The real process starts after the application is filed with the competent authority; it may take approximately 90-120 days from the date of filing the PSARA application. An application for a License can be made for a district or five districts or a state. The application process is different for each state.

The overall cost of the PSARA License depends on mainly three heads.

  1. Professional Fee: We extend our services to assist in getting the PSARA License. We may be engaged as a consultant for entire licensing activities or a specific purpose. We request you to obtain an official quotation from us.
  2. Cost of Training: The applicant has to engage a training institute for two purposes, firstly for special qualification training to its directors or principal officer and secondly towards an MOU between the applicant and the Institute for security guards’ training.
  3. Government Fee: The prescribed government fee for the PSARA License is based on the number of districts for which it is applied. The government fee is paid online through Internet Banking or Debit/Credit Card

4. Out of Pocket Fee: As the PSARA license involves multiple government departments and several police stations, some out-of-pocket expenses are required for travelling, lodging required for follow-up and objection removal. The amount of out of pocket expenses depends on the merits of each case.

    Conditions of License

    The PSARA specifies the criteria, qualification, and disqualification for a security guard. and the applicant must engage supervisors to supervise the work of security guards. While employing a supervisor the a person from the army, navy or air force with a minimum of three years of experience, must be given preference by the security agency.

    Contact: +91 9969561988

    E-mail: psaralicenseindia@gmail.com