The private security sector in India is rapidly growing, bringing in ample employment opportunities along with enhancing protection to the public and private realms. To ensure their regulation and accountability, the Government of India enacted the Private Security Agencies Regulation Act, 2005. Under this law, a private security agency needs to be registered under License of PSARA prior to the start of their operations.
This blog presents a full guide to PSARA license registration, covering all aspects, including eligibility, benefits, procedures, documents required, and compliance obligations. Here is everything you need to know to legally and easily start your private security business.
What is a PSARA License?
The PSARA License is a legal permit under the Private Security Agencies (Regulation) Act, 2005, granted so that any person or business may start and operate a private security agency in India. The service covers service providers who offer services of security guards, bodyguards, bouncers, armed guards, or surveillance to people, companies, or government bodies.
No private security agency shall advertise or provide security services within the territory of India without this license.
Benefits of Getting a PSARA License
Obtaining a PSARA License has manifold benefits:
1. Legal Recognition
Having a PSARA License is equivalent to giving your agency legal importance. It ensures that you function within India's regulatory ambit. It also provides wholesome protection against legal risks and strengthens your position of being a compliant and professional security service provider.
2. Business Growth
With the license in hand, the agency can work for large corporate clients, housing societies, industrial units, and even government departments. That is growth, and another way to expand across districts or states, subject to your license.
3. Confidence of Customers
Customers prefer to trust agencies that have the license and approval of the government. A PSARA certified agency gives the assurance that the employees are vetted, trained, and reliable in all respects. An agency like this lands their great reputation in the market.
4. Government Tenders
Most government contracts and tenders for security are only offered to agencies that have licenses. The PSARA License enables you to bid for lucrative public sector contracts and PSU contracts, which provide steady revenue and higher visibility.
5. Positioning in the Market
A PSARA License separates you from all unregistered or illegally operating individuals of the security industry. It marks your agency as credible, trustworthy, and compliant. This mark will only have an indispensable value for the steady growth of business, and also for long-term client relationships due to these skills.
6. Enhanced Framework
On-time training, documentation, and up-to-date personnel records are requirements for licensed agencies. This helps to maintain service quality, allow accountability, and instil discipline within the agency.
7. Eligibility for Insurance and Legal Coverage
Registered agencies also have access to business insurance and legal cover under the umbrella of Indian Laws. This favorably shields your company and employees against unforeseen liabilities while rendering a service.
Eligibility Criteria for PSARA License
The following eligibility criteria need to be fulfilled for the grant of a PSARA license:
1. Eligible Entities
Only the following entities shall be eligible to apply:
- Sole Proprietorship
- Partnership Firm
- LLP (Limited Liability Partnership)
- Private Limited Company
- One Person Company
2. Nationality
The applicant (owner/director/partner) for PSARA license must be an Indian citizen.
3. Clean Background
The person must not have any criminal record or association with any organization banned under any law.
4. Financial Standing
The applicant should have a good financial standing to take care of payment of salaries, training, and operational expenses.
5. Training Tie-up
The agency must have a tie-up with a Government-recognised training institute to impart training to its security personnel.
Documents Required for PSARA License
The List of Documents Required for the PSARA License Verification
For Business Entity
- Certificate of Incorporation/Registration
- PAN Card of the firm or company
- GST Registration Certificate
- Shops & Establishment Act Registration
- Proof of Registered Office (Electricity bill/Rent Agreement/NOC)
- PF and ESI Registration (if applicable)
For Directors/Proprietors/Partners
- PAN Card and Aadhar Card
- Passport-sized photograph
- Address proof (Electricity bill, Voter ID, etc.)
- ITR copies of the director
- Police Verification Report
Other Requirements
- Affidavit according to PSARA Act, 2005, Section 7(2)
- Security Training MOU with the recognized institute
- Sample of Uniform and identity card details
- Security equipment details, if applicable
State-wise Licensing Authority
The PSARA License is a state-level license that differs from state to state. The designated officer usually holds a Joint Secretary rank or above in the Home Department. This authority examines applications, conducts background checks, and issues licenses in accordance with the provisions made under the Private Security Agencies Regulation Act, 2005.
As the license is state-specific, an agency seeking to operate in more than one state must apply separately in each of the states. It is not possible to operate in states other than the one in which the license was issued with a single license. For example, if the agency intends to provide security services in Delhi and Haryana, it shall have to obtain separate licenses from these two states.
Different states have quite different rules with respect to application procedures, documentation required, fees to be charged, and timelines for approval. Of course, every businessman postulating an expansion has to carefully evaluate differences in procedures and accordingly fit their plans; however, an application in multiple states simultaneously would require maximized coordination with full adherence to the guidelines issued by each of them.
Types of PSARA Licenses
Depending upon the area of operations, PSARA License can be classified into the following types that you can apply for, depending on the location at which you plan to supply security services:
1. District-Level License
This license allows a private security agency to provide security services in a single district. This is suitable for smaller or local agencies wishing to serve clients in a particular city or district. Cost-wise, it is lesser, and compliance-wise, it is also less cumbersome than the other licenses.
2. State-Level License
This license will allow the agency to provide security services in all the districts within a particular state. Ideal for medium to large agencies wishing to work in urban, semi-urban, and rural areas of the state under a single license.
3. Multi-Level Operations
Business houses wishing to be added to operations in more than one state do not avail a Central or National license. An agency will have to make separate applications and ensure separate PSARA licenses for each state in which it works. Each state will have its own application procedure and criteria, as well as its own Governing Authority. This certainly does complicate expansion into more than one state, but is quite manageable, provided there is due planning.
Step-by-Step Process for PSARA License Registration
A brief explanation of the steps involved in acquiring a PSARA License:
Step 1: Establishment of the Business
The business needs to be registered as a legal entity, such as a Private Limited, LLP, or Partnership Registration. PAN, GST, and other local licenses may be required.
Step 2: Police Verification
Police verification must be carried out for the applicant and all key personnel involved. A clean police record will be required.
Step 3: MOU with Training Institute
Enter into a Memorandum of Understanding (MoU) with a training institution recognized by the state government for training your guards.
Step 4: Documentation
Gather and prepare the necessary documentation. This may include identity proof for the business and the persons involved, affidavits, a memorandum of understanding with the training institute, etc.
Step 5: Submission of Application
Lodge the application for the PSARA License with the Controlling Authority of the concerned state, duly accompanied by the necessary documentation.
Step 6: Background Search
The Controlling Authority conducts a thorough background check; the background of applicant(s) and the business is also verified.
Step 7: Grant of License
Upon satisfaction, the authority shall grant the license, which ideally falls due 60 days from the date of submission of the application.
Time Taken to Obtain PSARA License
State-wise variation of average processing time usually places it at about 45 to 60 working days from submission of the completed application, plus all required documents. This includes police verification, background check, and document verification by the controlling authority. Delay in documentation or verification, further stretching the time for issuance of license under PSARA, should be avoided by proper adherence to documentation right from the start.
Validity and Renewal of PSARA License
Validity of PSARA License
In most states of India, the PSARA License remains valid for 5 years from the date of issue of the license. However, in certain states like Uttarakhand and Chhattisgarh, this license is given only for 1 year. Hence, it is incumbent upon agencies to constantly keep a watch on the validity of their licenses for the smooth operation of business and to stay out of any legal wrangle.
Renewal of PSARA License and Penalty for Delay
Renew the license before it lapses by filing the renewal application at least 90 days prior to the date of expiry to keep your security agency running legally. On the other hand, late renewal attracts penalties such as fines or suspension on the license for a temporary period. In some cases, a late renewal could attract another set of complications that would require the applicant to go through the license application anew, thereby leading to more unnecessary paperwork and time. Early renewal helps in keeping the business operation smooth and free from regulatory hiccups.
Key Compliance After Getting the PSARA License
Once you’ve obtained the license, you must follow certain ongoing compliance:
1. Training
All guards must undergo a minimum of hours of training as per PSARA norms, including physical fitness, fire safety, first aid, and emergency response.
2. Uniform and Identity Cards
All deployed personnel must wear the agency-prescribed uniform and carry an identity card at all times.
3. Maintenance of Registers
Proper registers must be maintained, including:
- Deployment records
- Duty roster
- Attendance
- Salary details
- Training logs
4. Code of Conduct
Guards must not carry unauthorized firearms or use force unnecessarily. Misconduct may lead to the cancellation of the license.
5. Periodic Reporting
In some states, private security agencies must file periodic reports or renewals with the Controlling Authority.
Penalties for Operating Without a PSARA License
Operating a private security agency without a valid PSARA license is considered a punishable offence under Indian law. It can lead to:
- Fines up to ₹25,000 or more
- Imprisonment for up to 1 year
- Seizure of operations and legal action
- Damage the reputation of the agency
Conclusion
The initiation of a private security agency in India is a worthy business project with vast opportunities for growth. In the registration of PSARA License, one might face some complications depending upon the procedure to be followed, and much time is consumed. Choosing an appropriate structure for your business is the very first step. Police verifications also have to be done by you. After that, it is always mandated to follow the rules and regulations of your particular state and work with training institutes. Attention should be given to each one of these steps for compliance. That's where JustStart comes into play.
We stand for legal and business registrations and intermediates the entire process of PSARA License registration for you. Our very experienced team works with you in setting up your business and helps with drafting the necessary documents. We are involved in coordinating with government-approved training institutes and in submitting the license application to the respective state authority.
Frequently Asked Questions (FAQs)
Q1. Is PSARA License compulsory for all security agencies?
Yes, it is necessary to have a PSARA License for any private security agency to operate legally in India.
Q2. Can one apply for PSARA License through the Internet?
Yes, many states do have online portals for PSARA applications. However, some portion of the application, depending on the state, may have to be done offline.
Q3. What is the cost of PSARA License Registration?
It varies from state to state, depending on the number of districts, attorney's fees, and other government charges; it generally ranges from 25,000 to 1,00,000.
Q4. Can a Non-Citizen apply for PSARA License in India?
No, only such persons who are Indian citizens, or Indian owned companies, can apply for the license.
Q5. Can the PSARA License be used simultaneously in Multiple States?
No, you have to apply separately for the license in each state where you plan to operate, as it is a license for a particular state.
