What are the Documents Required for Obtaining the PSARA License?

In the past decade, many agencies have sprung up to provide security services to the public on account of the increased need for crime prevention. A PSARA licence is a mandatory requirement for any such agency that wishes to deploy security guards and engage in providing security services.

A PSARA license is a must for opening any private security agency in India. These private security agencies deploy trained security guards and provide other security services to various organizations across the country. These security agencies are regulated by an Act known as the Private Security Agencies Regulation Act. Let’s see about documents required for the issuance of a PSARA license in this article.

What Does the PSARA Act Entail?

The full form of PSA is Private Security Agencies, and the PSARA Act provides for the regulation of private security agencies and other ancillaries. It was passed by both the houses of parliament and received the consent of the President on 23 June 2005.  Further, the Act came into force on 15 March 2006. 

According to Section 3 of PSARA, each state should appoint a controlling authority, not below the rank of joint secretary, through a notification. Further, a PSARA license is granted to private security agencies by the controlling authority of the respective state in which the agencies are functioning. 

Eligibility Criteria for Obtaining a PSARA License

Any private limited company, limited liability partnership, one-person company, sole proprietorship, or partnership firm can get registered for a PSARA license. Moreover, all Indian nationals are eligible for a PSARA license, except for those who fall under the following categories:

• Convicted of an offence in connection with the promotion, formation, or management of a company
• Convicted of an offence for which the prescribed punishment is imprisonment of not less than two years
• Further, keeping ties with any organisation or association that is prohibited by law because its activities endanger national security or public order, or if it is suspected that such an entity is engaging in acts that endanger national security or public order
• Dismissed or expelled from government service on the grounds of misconduct or moral turpitude.

Eligibility Criteria for the Appointment of the Director/Principal Officer

• The applicant should be an Indian resident
• Moreover, the applicant should be financially sound (a copy of their ITR has to be submitted)
• The applicant should not have any criminal background.

Eligibility Criteria for the Appointment of a Security Guard

To become security personnel in any private security agency, the following eligibility requirements should be met:

• Should be a resident of India
• Should be over the age of 18 years but under the age of 65 years
• Must not have been convicted or dismissed on grounds of misconduct or moral turpitude.
• Should have completed the prescribed security training successfully
• Should satisfy the physical standards and other conditions

Additionally, any member of the Army, Navy, Air force, or any Armed Force of Union or Police with a minimum of three years experience is given special preference in the appointment procedure.

Prescribed Fee for the PSARA License

The application for a PSARA license must be accompanied by a fee of:

• ₹5000 /- if the private security agency is operating in one district.
• ₹10,000/- if the private security agency is operating in more than one but up to 5 districts.
• ₹25,000/- if the private security agency is operating in more than 5 districts or throughout the entire state.

Procedure to Obtain a PSARA License

The procedure to obtain a PSARA License is as follows:

• Document Preparation: Gather all required documents and ensure they are well-organized. You must collect various registrations and details of the agency’s promoters and directors. Clear and legible documentation is essential to prevent discrepancies. The application can be submitted through the online portal after e-signing formalities.
• MOU with Training Institutes: Choose an eligible training institute listed on the PSARA website (https://psara.gov.in) and enter into a Memorandum of Understanding (MOU) with them. This partnership is necessary to provide training to potential security personnel.  Agencies that offer training tend to attract high-quality employees. Ex-servicemen may receive certain exemptions and relaxations related to training requirements.
• Application Filing: Submit the application (Form-I) to the respective state authority for the PSARA License. Additionally, enclose Form-II for verification of the agency’s antecedents and an Affidavit in Form-III as required.
• Police Verification: After filing Form-I, police verification is conducted. If the agency is a partnership or a company, the directors are also subjected to police verification.
• Grant of PSARA License: The state authority will examine the application and may grant the PSARA License in Form-IV after successful verification. Alternatively, the application may be rejected.

Certifications and Licenses Related to Private Security Agency in India 

1. ESI Registration: Private Security Agencies in India are required to have ESI Registration under the ESI Act, 1948. This registration ensures that proper medical care is provided to the agency’s employees. The ESI Scheme is overseen by the Employees’ State Insurance Corporation (ESIC).

2. PF Registration: PF Registration is mandatory for Private Security Agencies. This registration allows employees to access the benefits of the Provident Fund Scheme, governed by the Miscellaneous Provisions Act, 1952. Without PF Registration, employees cannot avail of these benefits.

3. GST Registration: Every Private Security Agency in India must obtain GST Registration and obtain a GSTIN (GST Identification Number) to legally operate their security services business. Since security services are considered taxable under GST, this registration is mandatory.

4. ISO Certification: ISO Certification is essential for Private Security Agencies to ensure reliability and efficiency in their services. ISO has established a specific security operation management standard, ISO 18788:2015, which applies to Private Security Agencies. This certification reassures clients about the agency’s reliability and efficiency.

5. PSARA License: The PSARA (Private Security Agencies Regulation Act) License is required for Private Security Agencies to legally provide security guard services and offer training to security personnel. This license is granted by the government, permitting the agency to conduct its security services business.

Cancellation of the PSARA License

A license issued to any private security agency can be cancelled by the controlling officer if:

• The permit has been obtained by presenting fake or incomplete documents
• The license holder/holders have used fake photographs in the application
• The license holder is not complying with the provisions and rules of the PSARA Act and or has violated them
• Further, the license holder has misused any information pertaining to the PSARA license
• The private security agency is using a fake name instead of the registered name used at the time of obtaining a license
• The license holder is not providing services as per the PSARA Act
• Moreover, the private security agency is negligent in its duties
• Likewise, the private security agency is in any kind of anti-national activity.

Validity of a PSARA License

• Usually, a PSARA license is valid for up to 5 years 
• In the states of Uttarakhand, Madhya Pradesh, and Chhattisgarh, a PSARA license is valid for one year.

Time Period to Obtain a PSARA License

The time required to obtain the PSARA license depends on the specific state authority and its processing speed. Typically, it takes around 60 days from the date of application submission for the license to be granted.

Appointment of Supervisors

To comply with the provisions of the PSARA Act of 2005, the applicant must appoint supervisors. These individuals are responsible for overseeing and directing the agency’s security guard operations. Supervisors should have a minimum of three years of work experience in the army or the navy.

Operating Private Security Business

Once the security agency license is obtained, the company or firm must initiate operations within six months of acquiring the license. It is the responsibility of the security agency to provide training and skill development to security guards. Additionally, an adequate number of supervisors should be employed as required by the law.

When selecting private security guards, all private security agencies are required to give preference to individuals who have served in one of the following forces:

• Army
• Navy
• Air Force
• Any other armed forces of the Union
• Police, including armed constabularies of states
• Home Guards

These preferences help in ensuring that individuals with relevant experience and discipline are considered for security roles within the agency.

Renewal of PSARA License

• A PSARA license can be renewed by applying to the controlling authority, not less than 45 days before the permit’s expiry, along with the prescribed documents and the fee
• Moreover, the controlling authority will pass an order for renewal of license within 30 days from the date of receipt of application.

Therefore, if you’re an entrepreneur struggling to meet the demands of these provisions and guidelines, worry not, hand over the hassle of documentation and the stress of a lengthy application process to the experts at Vakilsearch.

FAQs: