Legal Advice

PSARA (Private Security Agency Regulation Act) Licence

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.

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A PSARA licence 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.

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 licence 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 Licence

Any private limited company, limited liability partnership, one-person company, sole proprietorship, or partnership firm can get registered for a PSARA licence. Moreover, all Indian nationals are eligible for a PSARA licence, 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.

Documents Required for Obtaining the PSARA Licence

Given below is a checklist of the documents required for the issuance of a PSARA licence:

  • Certificate of incorporation
  • Signed memorandum of understanding
  • Address proof of the office
  • Employees state insurance registration
  • Provident fund registration
  • Identity card of all employees
  • An affidavit obtained as per the PSARA Act
  • Logo & uniform pattern of the private security agency
  • Copy of ITR
  • Character certificate of all employees.

Prescribed Fee for the PSARA Licence

The application for a PSARA licence 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.

Cancellation of the PSARA Licence

A licence 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 licence holder/holders have used fake photographs in the application
  • The licence holder is not complying with the provisions and rules of the PSARA Act and or has violated them
  • Further, the licence holder has misused any information pertaining to the PSARA licence
  • The private security agency is using a fake name instead of the registered name used at the time of obtaining a licence
  • The licence 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 Licence

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

Renewal of PSARA Licence

  • A PSARA licence 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 licence 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.


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