The Private Security Agencies Regulation Act (PSARA) is a legislative framework overseeing and managing the functions of private security agencies. It is mandatory for every private security agency to obtain a valid licence to conduct their operations legally. However, this PSARA licence comes with a specified validity period, making the renewal process of PSARA indispensable for the ongoing lawful functioning of security agencies. It is imperative for agencies to comprehend the renewal process, its fundamental legal provisions, and the essential documentation required. This understanding is critical for ensuring compliance with the law and upholding the credibility of their services
Requirement for PSARA License Renewal
Private security agencies play a pivotal role in protecting the valuable assets and properties of their clients by implementing a variety of effective and efficient security solutions. Nevertheless, the imperative to hold these agencies accountable for their services persists, prompting the mandatory licensing stipulated by the PSARA Act.
This licence serves as an assurance that the agency adheres to all government-prescribed laws and standards, ensuring that its services are credible, reliable, and meet the required benchmarks. It is noteworthy, however, that the licence is subject to a finite validity period, necessitating regular renewal for the agency to sustain its operations within India.
When is PSARA Renewal Required?
Understanding the deadline for PSARA Renewal hinges on the awareness of the PSARA License's validity period. The granted PSARA licence is valid for 5 years from the date of issuance. To initiate the renewal process, an application must be submitted 45 days prior to the licence's expiry. Non-renewal also carries penalties, including fines of up to Rs. 25,000, imprisonment for the licence holder for up to 1 year, or maybe both.
Conditions for PSARA License Renewal
PSARA licence renewal is essential for private security agencies to uphold their legal statuses and continue providing security services professionally. However, such renewal is subject to the fulfilment of certain conditions mentioned in Rule 6 of the PSARA Central Model Rules. Complying with these conditions is crucial for the successful renewal of the licence. So, let’s explore what these conditions are one by one.
Maintenance of Principal Place of Business
To be eligible for PSARA licence renewal, the private security agency must continue to maintain its principal place of business within the jurisdiction of the Controlling Authority, as mentioned in the initial licence. This condition ensures that the agency’s administrative and operational headquarters remain accessible and accountable to the regulatory authorities.
Provision of Training for Security Guards & Supervisors
One of the crucial requirements for PSARA licence renewal is the ongoing provision of training for security guards and supervisors from the recognized Training Institute with which the agency has signed an MOU. This training is essential to equip the security personnels with the necessary skills, knowledge, and professional ethics to carry out their duties efficiently and responsibly.
Adherence to Licence Conditions
Private security agencies seeking renewal must continue to comply with the conditions stipulated in their existing licence. These conditions may include maintaining a specified minimum number of trained security personnel, adhering to operational protocols, and meeting financial and administrative requirements. Adherence to these conditions demonstrates the agency’s commitment to maintaining high standards in its operations. For a detailed explanation you can read our comprehensive guides on PSARA License Eligibility, and PSARA Compliance.
Absence of Criminal Antecedents
As part of the renewal process, the antecedents of its key managerial officers are thoroughly examined to ensure that there are no criminal records associated with them. This verification is typically conducted through databases like Crime and Criminal Tracking Network and Systems (CCTNS) and Interoperable Criminal Justice System (ICJS) to ensure 100% accuracy of results.
Process of PSARA License Renewal: A Step by Step Guide
The process of PSARA License Renewal is quite similar to the initial grant of PSARA License. It involves filing an application in Form 1 through the online or offline mode, as prescribed by the State Government. Moreover, like the initial licence, the renewed licence is also granted by the jurisdictional Controlling Authority, through an order passed to the effect of the same. Here is the step by step process of PSARA licence renewal
Step 1: Review the Renewal Timeline
Private security agencies must be aware of the expiration date of their current PSARA licence. Renewal applications should be initiated well in advance to this date to avoid any disruptions of services. The exact due date, as mentioned earlier, is 45 days prior to the date of expiry, and the renewal application can be filed on or anytime before it. However, if the application is filed after this date it may not be entertained by the Controlling Authority.
Step 2: Collect Required Documents
Before commencing the renewal process, agencies must gather all the necessary documentation as per the guidelines provided by the Controlling Authority. These documents typically include the existing PSARA licence, the documents of the agency’s incorporation, documents related to its principal officers, documents business premises, income tax returns, regulatory and tax registration certificates and so on.
Step 3: Submit the Renewal Application
Once all the required documents are collected and compiled, the agency must submit the PSARA licence renewal application to the jurisdictional Controlling Authority in the prescribed Form 1. One can file this form online on the Controlling Authority’s website or offline by visiting the Controlling Authority’s Office, whichever is applicable in your state. To submit the application, one must pay the required application fees which are the same as the fees for initial grant of License.
Step 4: Criminal Antecedents Verification
Once the application is submitted, the Controlling Authority conducts a thorough review and strictly verifies the antecedents of the agency and its principal officers. The antecedent verification is necessary for confirming that the agency is being operated by people who are rightly qualified and experienced to the job. This raises the credibility of the services being provided by the agency and enhances the trustworthiness of its clients.
Step 5: Grant of Renewed Licence
Once the Controlling Authority is satisfied with the agency’s compliance and verification, an order is issued for the renewal of the licence. The renewal is mainly extended for the same period as the validity of the initial licence for 5 years in most states. Note that there is no limit to the number of times a PSARA licence can be renewed.
Documents Required for PSARA License Renewal
PSARA Renewal Application is incomplete without the submission of the supporting documents. These documents must be ideally collected before the application process begins to avoid any chaos or hindrance to the application’s progression. The documents include the documents of the agency’s incorporation, documents of its principal officers, documents of the business premises, and other miscellaneous tax and regulatory registrations.
- Original PSARA Licence
- PAN, Identity & Address Proof of Key managerial persons
- Registered Address proof of Agency
- Duly signed affidavit acquired under section 7(2) PSARA Act, 2005
- Logo of Private Security Agency
- Shops and Establishment Act Registration Certificate
- EPF and ESI Registration Certificate
- Affidavit of Security training
- Arms Licence
- Character Certificate for employees
- Copy of Income Tax Return (ITR)
- Certificate of Incorporation
- Duly signed Memorandum of Association
- Details of all Security Guards appointed
How Startupfino Helps you?
PSARA licence renewal is a critical process for private security agencies to maintain legal compliance and credibility in the industry. Startupfino helps in submitting the required documents, and following the outlined procedure, agencies can ensure uninterrupted operations and demonstrate their commitment to professionalism and safety. A renewed PSARA licence reinforces the agency’s reputation, instils trust among clients, and reaffirms their dedication to providing reliable and responsible security services in accordance with the Private Security Agencies Regulation Act.
