Establishing any private security agency in India requires obtaining a PSARA licence. These agencies deploy well-trained security guards and offer diverse security services to organisations nationwide. Oversight of these security agencies falls under the purview of the Private Security Agencies Regulation Act. In this blog, we shall cover the documents required for PSARA licence.
Understanding the Role of PSARA Act
The PSARA Act, an acronym for the Private Security Agencies Regulation Act, constitutes a legislative framework crafted to supervise and govern private security agencies and associated entities. Enacted with the endorsement of both houses of parliament, the act secured the official approval of the President on June 23, 2005, and was subsequently enforced on March 15, 2006.
Key Provisions of PSARA Act – Section 3
According to Section 3 of the PSARA Act, each state is mandated to appoint a controlling authority through a formal notification. The controlling authority should hold a rank not below that of a joint secretary. This provision aims to establish a regulatory structure at the state level for these agencies.
PSARA Licence Eligibility Criteria
Let us first understand the eligibility for the licence before seeing the documents required for PSARA licence. The Private Security Agencies Regulation Act lays down specific eligibility criteria for obtaining a PSARA licence. The following entities and individuals are eligible for registration, unless falling under certain disqualifying categories:
Eligible Entities for PSARA Licence
The entities eligible for the licence are:
- Private Limited Company
- Limited Liability Partnership
- One-Person Company
- Sole Proprietorship
- Partnership Firm
Eligible Individuals for PSARA Licence
All Indian nationals are generally eligible for a PSARA licence. However, certain disqualifications exist, and individuals falling under the following categories are ineligible:
1. Conviction in Connection with Company Offences:
Found guilty of an offense linked to the promotion, establishment, or administration of a company.
2. Serious Criminal Convictions:
Convicted of an offense carrying a minimum imprisonment term of two years or more.
3. Association with Prohibited Organisations:
Maintaining affiliations with organisations or associations barred by law due to activities posing threats to national security or public order. This encompasses suspicion of involvement in acts jeopardising national security or public order.
4. Government Service Disqualification:
Discharged or ousted from government service due to misconduct or moral turpitude.
Eligibility Criteria for Director/Principal Officer Appointment
For the appointment of a Director/Principal Officer in a private security agency, specific eligibility criteria must be met:
1. Residency Requirement:
The applicant must be an Indian resident.
2. Financial Soundness:
The applicant should demonstrate financial soundness, substantiated by the submission of their Income Tax Return copy.
3. Clean Criminal Record:
The applicant must not have any criminal background.
Eligibility Criteria for Security Guard Appointment
To qualify for a position as a security guard in a private security agency then the following eligibility is needed:
1. Residency Status:
Should be a resident of India.
2. Age Requirement:
Age should be over 18 years but under 65 years.
3. Clean Record:
Must not have been convicted or dismissed on grounds of misconduct or moral turpitude.
4. Security Training:
Successful completion of the prescribed security training is mandatory.
5. Physical Standards and Conditions:
Should satisfy the specified physical standards and other conditions set by the agency.
6. Preferential Consideration for Armed Forces Personnel:
Any member of the Army, Navy, Air Force, or any Armed Force of the Union or Police with a minimum of three years of experience is given special preference in the appointment procedure.
Documents Required for PSARA Licence Application
The following are the documents required for PSARA licence to obtain a Private Security Agencies Regulation Act licence:
1. CoI:
One of the important documents required for PSARA licence is the official certificate of incorporation for the private security agency.
2. MoU:
Submit a signed memorandum of understanding outlining the terms and conditions of the agency.
3. Office Address Proof:
Furnish valid and recognised proof of the office address where the private security agency operates.
4. Employees State Insurance (ESI) Registration:
Include documentation confirming registration with the Employees State Insurance scheme.
5. Provident Fund (PF) Registration:
Submit proof of registration with the Provident Fund, ensuring compliance with employee welfare schemes.
6. Employee Identity Cards:
Provide identity cards for all employees associated with the private security agency.
7. Affidavit as per PSARA Act:
Obtain and submit an affidavit as per the guidelines outlined in the PSARA Act.
8. Logo and Uniform Pattern:
Include details and samples of the agency’s logo and the pattern of the security personnel’s uniform.
9. Income Tax Return:
Also required as part of documents required for PSARA licence is a copy of the Income Tax Return for the private security agency.
10. Character Certificates for Employees:
Provide character certificates for all employees, ensuring their suitability for roles within the private security agency.
Adhering to this checklist of documents required for PSARA licence ensures that the PSARA licence application is comprehensive and in compliance with the regulatory requirements set forth by the PSARA Act.
Procedure for Obtaining a PSARA Licence
Acquiring a Private Security Agencies Regulation Act Licence involves a detailed process as are given below:
1. Document Preparation:
Collect all necessary documents required for PSARA licence, ensuring they are well-organised. This includes registrations and details of the agency’s promoters and directors. Maintain clarity and legibility in documentation to prevent discrepancies. The application process can be initiated through the online portal after completing e-signing formalities.
2. MOU with Training Institutes:
Enter into a Memorandum of Understanding with an eligible training institute listed on the PSARA website (https://psara.gov.in). This partnership is crucial for providing training to potential security personnel. Agencies collaborating with training institutes often attract high-quality employees. Ex-servicemen may benefit from exemptions and relaxations related to training requirements.
3. Application Filing:
Submit the application (Form-I) to the respective state authority responsible for PSARA Licence issuance. Additionally, enclose Form-II for the verification of the agency’s antecedents and an Affidavit in Form-III as required.
4. Police Verification:
Following the submission of Form-I, police verification is conducted. In cases where the agency is a partnership or a company, directors are also subjected to police verification.
5. Grant of PSARA Licence:
The state authority will carefully examine the application, conducting necessary verifications. Upon successful verification, the PSARA Licence may be granted in Form-IV. However, there is the possibility of the application being rejected.
Final Thoughts
Obtaining a Private Security Agencies Regulation Act licence requires the preparation and submission of essential documents required for PSARA licence. These include the certificate of incorporation, signed memorandum of understanding, office address proof, registrations for Employees State Insurance and Provident Fund, employee identity cards, an affidavit as per the PSARA Act, details of the agency’s logo and uniform pattern, copy of Income Tax Return, and character certificates for all employees. Ensuring compliance with these requirements of documents required for PSARA licence is vital for a comprehensive and successful application process, aligning private security agencies with the regulatory framework established by the PSARA Act.
