All about PSARA License: Documents, Procedure, Benefits, Requirements

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 an eye 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 business 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 work. Therefore, the Private Security Agencies Regulation Act laid numerous set of rules for the proper functioning and registration of private security agencies.

In India, all the operations and activities of the various private security agencies come under the watchful eye of the Private Security Agencies (Regulation) Act, 2005 (PSARA).

Private Security Agency

Private security agencies (agencies) are business establishments formed with the purpose of offering security services to businesses in various sector, including banking, information technology, finance, industries and the like.

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 not only provide security services but also offer the option of training potential candidates for their security-centric careers.

 

Eligibility Criteria for Securing PSARA License

The following eligibility criterion has to be satisfied for securing a PSARA License:

  • Any form of Entity
  • Director Appointment
  • Role of a Security Guard
  1. Any form of Entity

The organisation can be any form of entity which is regulated under respective laws and rules. If the applicant is a sole proprietorship, a partnership, a limited liability partnership, a private limited company or a one person company, then they can apply for the above license.

 

  1. Director Appointment

A director has to be appointed to carry out the services of the company. The following criterion has to be sufficed by the individual appointed as a director:

1. Director must be a resident Indian.

2. The director must be more than 18 years of age.

3. The director must not be convicted of any crime and any other offence.

4. The director must not be bankrupt.

5. The director must be financially sound.

 

  1. Role of a 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 Required to Obtain PSARA License

Although the documents vary from state to state, there are common documents which you would require to attach them along with the application for obtaining the PSARA License. The documents you would need to provide are as follows:

  • Identity proofs of the directors and employees
  • Address proof of the office of the agency
  • The affidavit obtained under Private Security Agencies Regulation Act
  • Logo of the agency
  • PAN Card of promoters
  • Two photographs of the promoters
  • Details of registration obtained from the Service tax department
  • Certificate under the Shops and Establishment Act
  • ESI Registration
  • Provident fund {PF} registration
  • Affidavit of the security training
  • Armed license
  • Character certificate for employees
  • Copy of Income Tax Return {ITR} of each director
  • Company incorporation certificate
  • Signed Memorandum of association {MOA} with the training institute
  • Details of the security guard

 

Registration Procedure for PSARA License

  • Collecting the all Qualifying Documents: The initial step to apply for a PSARA License is to assemble every single important enrollment, for example, Pan Card, TAN Number, GST, PF, ESI, Registration of foundation under Shops and Establishment Act, ITR of each chief, and so forth.
  • Signing MOU With A Training Institute: The candidates to go into a Memorandum of Understanding (MOU) with a training institute or organization as sanctioned by the state controlling jurisdiction with the motive to impart training to the security guards. Each state has perceived different security preparing establishments for this reason.
  • Police Verification: An application for police confirmation is recorded in Form - I by the candidate, and on the off chance that the candidate is a firm, organization or some other relationship of individual, separate check structure will be petitioned for each, accomplice or chiefs.
  • Application Filing: The PSARA application is recorded before the controlling authority of PSARA, which is then prepared for check. After receipt of the NOC from the concerned Police specialists, controlling authority may either concedes the License or rejects with an explanation.
  • Issuance of PSARA Certificate: 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.

 

Benefits of Securing PSARA License

Amidst the increased crime rate, the concern for security is also rising; thus, the need for private security services is also increasing. With an end goal of protecting solitary or anti-national components are going into business. Therefore, to support such organizations, the government has put up measures like the Private Security Agencies Regulation Act to benefit, arrange and monitor the working of these agencies.

Under the guidelines of this act, no individual or private security agency is allowed to run a business of providing security services to other private business establishments, individual or property. Therefore, the government works as a medium for providing licenses to such agencies, ensuring their compliance with the guidelines of the Act.

Moreover, obtaining a license under this act serves as proof that the organization conforms to all the guidelines of the PSARA and runs in consonance with those regulations. Furthermore, the agency holding a Certificate of Registration under the PSARA is more reliable in the eyes of their potential customer. The following are the benefits of securing a PSARA License:

  • Provides Training

Securing this license would empower the company to provide training based facilities to all securities of private securities agencies.

  • Increases Reputation

A customer would obviously utilise the services of an organisation that has this form of license. Hence, the reputation of the private security agency is more due to this license.

  • Compliance with Law

Securing this license ensures that the agency is compliant with the provisions of the law.

  • Increases the Credibility

With increased reputation brought in the organisation the credibility would also improve.

  • Promotes Effective Functioning-

The organisation can effectively function smoothly without any legal problems and issues.

 

Activities governed under the PSARA Act

The following activities are governed under the PSARA Act:

  • Formation of Securities Agencies
  • Training of Securities Agencies
  • Regulation of Securities Agencies
  • Disqualification of Securities Agencies

 

Conditions in which your application may get disqualified

Your application may get rejected or disqualified if the government sees it unfit for the betterment of the general public, so keep in mind these points to avoid that situation. If the proposed director of the security agency lies under any of the following categories, it will lead to disqualification.

A person or entity should not be the one that is convicted with an offence of promoting, forming or managing a company which is included in an undischarged insolvent.

Also, the person or entity should not be one who has been convicted with any crime for which the prescribed punishment is imprisonment, not less than two years.

Furthermore, if the applicant is found keeping links with an organization or firm which is banned by the government under any law on account of their corrupt activities, he would not be granted the license.

Moreover, such organizations or firms dismissed or removed by the government on the grounds of misconduct, or moral turpitude.

A company, firm, or association not registered in India, has a proprietor or significant shareholder, partner, or director who is not a citizen of India, is not considered for the issuance of the license under the provided Act.

Note: - Private Security Agency refers to an individual or a group of individuals, involved in a business of providing security services. However, these security service providers are privately owned firms other than the government agencies, department, or organization. Furthermore, these private firms are involved in providing security services to other organizations, business, or a person or property. In addition, they provide training to private security guards or their supervisors.

 

PSARA License Fees

The fees for obtaining PSARA License for private security agencies {PSA} operating at various places are provided below:

  • Rs 5000 for PSAs operating in one district
  • Rs 10000 for PSAs operating in two districts
  • Rs 25000 for PSAs operating in the entire state

Please Note:

The Government fee for Karnataka is Rs 50,000, for the entire state

The payment can be made by cash challan or Demand Draft at designated banks.

 

Guidelines for Renewal of PSARA License

A PSARA License is valid for five years from the date of issuance of the license. However, in the state of Uttrakhand and Chattisghar, this license is valid for one year. Furthermore, the license after its expiry needs to be renewed; for the same, the following steps needs to be taken:

  • The applicant needs to apply for the renewal of their license not less than 90 days before the expiry date of the license.
  • The application must be submitted along with the documents as specified under Sections 6, 7, and 11 of PSARA with the prescribed fees.

 

Compliances as Per the PSARA

Under the PSARA guidelines, the private security agencies are required to follow certain compliances as follows:

  • All private security agencies should hire supervisors to supervise the working of guards appointed in the organization
  • These agencies are obliged to train the security guards appointed in their firm
  • PSAs should give priority to ex-defence candidates holding three years of experience
  • The PSAs need to follow every criteria, qualification, and disqualification specified under the PSARA
  • According to PSARA, security guards must follow the prescribed uniform policy

 

Minimum Requirements for securing PSARA License

The following requirements are required in order to obtain this form of license:

  • Information and Objects of Applicant

First, the applicant should provide details related to the name of the company. Along with this, the applicant must mention the information and objects of the business. Such objects must be mentioned in the Memorandum of Association (MOA) of the Company. Hence, the company must have its objects as ‘Private Securities Agencies or Providing Private Security Agency Services’.

  • Memorandum of Understanding with Training Institute

The organisation or entity must have entered into a Memorandum of Understanding (MOU) with an institute that provides training and other form of services to securities. The institute must be accredited and reputed by the state government. This institute must provide the training programs.

  • Company Formed in Natural Interest

PSARA license would not be granted to any institute or organisation that is banned from working by the government of India. Hence, this license would only be provided to organisations and agencies that work in the interest of the country. The national interests of the country must be considered here.

  • No Foreign Direct Investment

Foreign direct investment is permitted in India. However, there are particular sectors, which are prohibited from receiving any form of Foreign Direct Investment. Under section 6(2) of the Private Security Agency (Regulation) Act, 2005 such license would not be granted to a company that is not resident in India. Even if the directors were a foreign national then this form of license would not be provided.

 

What are the important forms required for this form of license?

The following forms are required for PSARA License:

1. Form I- Which would provide information and details related to the character and activities carried out by the applicant.

2. Form II- Information related to the security guards or the supervisor that is appointed.

3. Form III- Certificate related to character and antecedents.

4. Form IV- Certificate related to training.

5. Form V- Application for the Renewal License or a New License for carrying out the business of a private security agency.

6. Form VI- Engagement license to carry out the private security agency.

7. Form VII- Appeal filing form.

8. Form VIII- Particulars register.

9. Form IX- Photo ID of the Security Guard and Supervisor.

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