Private Security Agencies are organisations involved in providing security services, including the training of security guards. The operations of these agencies are governed by the Private Security Agencies Regulation Act, 2005. Obtaining a PSARA certificate is part of this regulatory framework. Without a PSARA permit under the PSARA 2005, no individual or private security organisation can conduct a business or offer security protection services. In this blog, we shall see the benefits of PSARA licence.
Importance of PSARA Licence
In private security services, possessing a PSARA licence is imperative for various reasons. This legal requirement plays a vital role in addressing issues that security organisations encounter in recovering payments from establishments availing the services of Private Security Guards (PSGs). Failure to comply with PSARA regulations can lead to pending prosecutions in different courts, contributing to delays in the disbursement of monthly salaries to PSGs.
The current scenario witnesses security organisations grappling with pending prosecutions as they strive to recover payments from institutions employing PSGs. This difficulty not only hampers the timely compensation of PSGs but also raises the spectre of increased costs. In such a context, there is a likelihood that security organisations may resort to classifying PSGs as casual laborers rather than permanent employees, further complicating the employment landscape. Overcoming this challenge requires a concerted effort from employers and administrators to strengthen the legislation and ensure adherence to minimum wage standards.
Regulatory Framework for PSARA Licence
Recognising the essential role of private security in safeguarding organisations, the government took cognisance of the need for a regulatory framework. In 2005, the government passed the Private Security Agencies Regulation Act to govern and oversee organisations involved in training and providing security personnel. This legislative measure aims to establish standards and guidelines, ensuring that private security services operate within a legal and ethical framework. Complying with the PSARA licencing requirements becomes a crucial step for private security agencies to legitimise their operations and contribute to a more regulated and secure environment.
Requirements for Obtaining a PSARA Licence
To obtain a PSARA licence, a company must fulfil several prerequisites. Mentioned below are the key criteria:
1. Shops and Establishments Registration:
The company must have a valid Shops and Establishments registration. This registration is a basic requirement to establish the legality of the business operation.
2. Employee State Insurance Registration:
The company needs to be registered under the Employee State Insurance scheme. This registration ensures that the company provides social security benefits to its employees.
3. Provident Fund Registration:
Registration under the Provident Fund is mandatory. This ensures that the company contributes to the provident fund for the financial well-being of its employees.
4. Registration under the Contractual Labour Act:
Compliance with the Contractual Labour Act is crucial. This registration is necessary for companies engaging contract labour, outlining the terms and conditions of employment.
5. PAN Card:
The company must possess a valid PAN card. This is essential for financial transactions and tax compliance.
6. GST Registration:
Goods and Services Tax registration is a prerequisite. This ensures that the company complies with the indirect tax regulations and contributes to the national tax system.
Fulfilling these requirements is a fundamental step toward obtaining a PSARA licence, allowing the company to engage in private security services in accordance with the law.
Benefits of PSARA Licence
There are several benefits of PSARA licence for security organisations. This legal authorisation empowers the training company and provides a framework for their operations. Mentioned are the key benefits of a PSARA licence:
1. Empowerment of the Training Company:
One of the primary benefits of PSARA licence is to register under specific categories, typically divided into one district, three to five districts, or a set of districts. The licence, renewable every five years, allows the training and empowering organisation to provide private security services to other companies or individuals in need. It positions the licenced private security organisation similarly to a trade union, enabling it to exercise rights and secure interests that would be otherwise inaccessible without the licence.
2. Avoidance of Denial of Rights:
One of the major benefits of PSARA licence is that certain rights, such as the ability to sue or be sued, which are applicable to registered companies or organisations, are denied to unlicenced private security agencies. The PSARA licence empowers the agency to offer private security services to other entities, and obtaining human labour for such services necessitates a licence. Additionally, the licence ensures legal recognition and the authority to initiate legal proceedings, a privilege granted by the 2005 Act.
3. Commencement of Recruiting Activities:
Another one of the benefits of PSARA licence is that a Private Security Agency that has applied for and obtained a PSARA licence faces a waiting period of six months before commencing its activities, including recruiting, training, and placement. This process, initiated post-recruitment, involves training individuals and officially certifying them as competent security personnel. Only after the employing agency is satisfied with the recruit’s character will they proceed with training and placement, sending the individual to work at a specified company or required workplace on a contractual basis.
Final Thoughts
There are many benefits of PSARA licence to private security agencies. The licence empowers training organisations to categorise and operate within specific districts, fostering effective service provision. Legal recognition afforded by the licence positions agencies akin to trade unions, enabling them to exercise rights crucial for securing their interests. Additionally, a PSARA licence mitigates the denial of rights faced by unlicenced agencies, ensuring the ability to sue or be sued. This facilitates compliant recruitment, training, and placement activities, establishing a framework for legitimate and competent private security services. Overall, the benefits of PSARA licence include legal validation, operational empowerment, and enhanced protection of agency rights.
