Private Security Agencies Regulation Act License in India

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Our world today is brimming with people embarking on entrepreneurial journeys, eager to launch their businesses or establish their own enterprises. This surge in small-scale enterprises has brought forth an imperative concern, security and safety.

Enterprises specialising in training and delivering security solutions go by the name of security agencies. In the contemporary landscape, a multitude of private security agencies has sprung up, aiming to address the security requirements of both individuals and businesses. In India, these diverse private security agencies operate under the vigilant oversight of the Private Security Agencies (Regulation) Act, 2005, commonly known as PSARA licence, by obtaining the Private Security Agencies Regulation Act Licence in India.

Understanding Private Security Agencies

Private Security Agencies, often referred to as simply ‘agencies,’ are commercial enterprises designed to provide security services to a wide range of businesses spanning industries such as banking, information technology, finance, and more.

The inception of Private Security Agencies Regulation Act Licence in India in 2005 aimed to instill a particular level of professionalism within the realm of security services. Operating as a private security agency is contingent upon obtaining a valid PSARA licence. Beyond delivering security solutions, these agencies extend their services to include the training of prospective individuals interested in pursuing careers in the security sector.

Eligibility Criteria Under Private Security Agencies Regulation Act 

The eligibility for different organisations and entities to obtain Private Security Agencies Regulation Act Licence in India has been mentioned below:

For Business Organisations

Entities eligible for registration under the PSARA, 2005 and the acquisition of a Private Security Agencies Regulation Act licence in India include:

1. Sole Proprietorship
2. One Person Company
3. Partnership Firm
4. Limited Liability Partnership (LLP)
5. Association of Persons
6. Private Limited Company

For Directors/Principal Officers

Eligibility criteria for the role of a Director/Principal Officer are subject to specific requirements:

1. Indian Citizenship: Must possess Indian citizenship.
2. Age Requirement: Must be at least 18 years of age.
3. Financial Resources: Must have sufficient financial resources to cover business expenses.
4. Clean Record: Must not have any criminal convictions.

For Security Guards

Eligibility for the position of a security guard is contingent on meeting the following criteria:

1. Indian Citizenship: Must hold Indian citizenship.
2. Age Range: Must be an individual aged between 18 and 65.
3. Training: Must have received prior training.
4. Government Service Record: Must not have been terminated from any government service.
5. Physical Attributes: Must meet the required physical attributes.
6. Character Assurance: Must provide assurance regarding their character.

Documents Necessary for Obtaining Private Security Agencies Regulation Act Licence in India

To obtain a Private Security Agencies Regulation Act licence in India, the following documents are required:

1. Registration Certificates:

• PAN (Permanent Account Number)
• GSTIN (Goods and Services Tax Identification Number)
• Provident Fund Registration
• ESIC (Employees State Insurance Corporation) Registration
• Registration under the Shops and Commercial Establishments Act
• Registration under the Labour Act

2. Proof of Identity:

• Proof of identity for both directors and employees of the agency.

3. Income Tax Documents:

• Copies of the Income Tax Returns of the Directors.

4. Photographs:

• Two passport-sized photographs of the promoters along with their PAN cards.

5. Address Proof:

•  Proof of address for the Agency Office.

6. Affidavit:

• Affidavit as required under Section 7 (2) of the PSARA, 2005.

7. Security Training Affidavit:

• Documentation demonstrating compliance with security training requirements.

8. Certificate of Incorporation:

• Certificate of Incorporation for the agency.

9. Memorandum of Understanding:

•  Signed Memorandum of Understanding with the training institute.

Procedure to Obtain Private Security Agencies Regulation Act Licence in India

The procedure for getting a Private Security Agencies Regulation Act Licence in India is as follows:

1. Document Arrangement:

• Gather all the necessary documents required for the PSARA licence application.
• Ensure documents are well-organised for efficient processing.

2. Document Clarity:

• Ensure that documents related to registrations, promoter, and director details are clear and legible to prevent discrepancies.

3. Online Application:

• Use the online portal for submitting the PSARA licence application.
• Utilise the e-signing feature available on the online portal for a streamlined application process.

4. Memorandum of Understanding:

• Identify eligible training institutes listed on https://psara.gov.in.
• Enter into a Memorandum of Understanding with a training institute to provide training to candidates.
• Having a training partnership enhances the appeal and quality of the agency’s employees.
• Ex-servicemen may receive certain relaxations or exemptions regarding training requirements.

5. Application Filing:

• Submit the application (Form-I) to the respective state authority for the PSARA Licence.
• Include Form-II for the verification of the agency’s antecedents.
• Accompany the application with an Affidavit in Form-III.

6. Police Verification:

• After filing Form-I, the next step involves police verification.
• In cases of partnership or company agencies, directors may also need to undergo police verification.

7. Grant of PSARA Licence:

• The authority will examine the application.
• If the application is accompanied by a No Objection Certificate (NOC) from the police after successful verification, the authority will either:
• Grant the PSARA Licence in Form-IV, or
• Reject the application, if necessary.

Following these steps diligently will facilitate the process of obtaining Private Security Agencies Regulation Act Licence in India and ensuring compliance with regulatory requirements and police verification.

Time Period to Obtain Private Security Agencies Regulation Act Licence in India

The duration required to obtain a Private Security Agency Regulation Act licence in India is contingent upon the efficiency of the specific state authority responsible for processing applications. As a general guideline, the approval process for a PSARA licence application typically takes around sixty days from the date of submission. Variations may arise due to disparities in local administrative procedures and workloads. It’s essential for applicants to be prepared for potential variations in processing times and to plan accordingly when applying for a PSARA licence.

Final Thoughts

The Private Security Agencies Regulation Act licence in India plays a pivotal role in ensuring the professionalisation of security services in a rapidly evolving entrepreneurial landscape. Private security agencies, operating under the purview of PSARA, are critical for safeguarding businesses across various sectors. Eligibility criteria for business organisations, directors, and security guards are defined to uphold industry standards and safety.

While the time period for obtaining a PSARA licence typically is around 60 days, it may vary by state. Applicants should be mindful of these timelines as they embark on the journey to secure their PSARA licence, contributing to enhanced security and safety in the entrepreneurial realm.