PSARA License - Benefits, Process and Eligibility

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 vigilante’ 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.

Benefits for Obtaining 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.

• Empowers the training company
  
• Attracts more customers
  
• Avoid denial of rights and services
  
• Helps in gaining the trust of potential customer
  
• Increases credibility of agency
  
• Ensures the smooth functioning of the organization
  

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
  

Eligibility Criteria to Apply For PSARA License

The PSARA License is not granted to just any private security agency, and there are various criteria specified under the PSARA to be eligible for obtaining the license.

These Criterions Are As Follows:

Eligibility Criteria for Companies

As per the Private Security Agencies Regulation Act, 2005 every company willing to register themselves under PSARA needs to register themselves as any of the following business entity types;

• Sole Proprietorship
  
• Limited Liability Partnership
  
• One Person Company
  
• Private Limited Company
  
• Partnership Firm
  

Eligibility Criteria for Director / Principal Officer

For being the director or principal officer of a company, one must fulfil the following criteria described below:

• The person must be a citizen of India
  
• Also, he should be financially sound for bearing the costs of running the PSA
  
• He should never be convicted for any legal offence
  
• Finally, he had never been convicted by an eligible court for any offence
  

Eligibility Criteria to Become a Security Guard

• The person must be an Indian citizen
  
• The age limit of the person must be between 18 to 65
  
• The person must be trained
  
• Furthermore, the person must not have been terminated from any government service, under any circumstances
  
• Also, the person must satisfy all the prescribed physical standards
  
• Lastly, the person should assure the PSA about his character
  

Registration Procedure for PSARA License

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.

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.

Time for Issue Of PSARA

The all out time to finish the procedure for grant of PSARA License is inexact of 60 days from the date of documenting the PSARA application. An application for a License can be made for a locale or five areas or a state. The application procedure is distinctive for each state.

States of PSARA License

The PSARA determines the criteria, capability, and preclusion for a security watch. Furthermore, the candidate must connect with bosses to regulate crafted by security watches. An individual from the military, naval force or flying corps with at least three years of experience must be given inclination.

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. Also, 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
  

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 Chhattisgarh, 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
  

Frequently Asked Questions

Q 1. Will License of One State Be Applicable in Another State?

No the PSARA License of one state cannot be applicable to operate in another state.

Q 2. Who issues PSARA License?

States authorities issue PSARA license individually. Separate PSARA License for every state.

Q 3. What about FDI in Private Security Agency Business?

FDI of 46% is allowed in Private Security Agency Business under the company or LLP form of business organization.

Q 4. What is PSARA License Fees Structure?

• For a Single District – Rs.5000
  
• For 5 Districts – Rs.10000
  
• For an Entire State – Rs.25000 (Except in Karnataka – Rs.50000)
  

Q 5. What is the expiry and renewal of PSARA License?

The PSARA License is substantial for five years from the date of enrollment in most of states aside from Chhattisgarh and Uttarakhand. The states of Chhattisgarh and Uttarakhand grant for one year.

The renewal of PSARA License should be possible beginning from 90 days before the date of expiry.

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Posted by Pooja

Team Taxaj