About PSARA

PSARA License

At A2Z FINEDGE, we specialize in delivering seamless and efficient PSARA (Private Security Agencies Regulation Act) Registration services. With a team of seasoned professionals, including Chartered Accountants (CA), Company Secretaries (CS), MBAs, Lawyers, and Advocates, we ensure comprehensive compliance and registration solutions for private security agencies across India. Whether you are starting a new agency or ensuring compliance for an existing one, Filing Corner is your one-stop solution.

What is PSARA License ?

 

In India, the PASARA (Private Agency Security Regulation Act) license is required for private security agencies that wish to operate legally. This license ensures that agencies comply with specific standards and regulations, promoting public safety and security. The PASARA Act, 2005 governs the recruitment, training, and operations of private security agencies across the country.

PSARA registration is crucial for security agencies to ensure trustworthiness and reliability, allowing them to operate smoothly within the legal framework without any operational complications. The respective state governments issue the license, which involves a comprehensive application process that includes background checks, financial scrutiny, and compliance with prescribed training requirements for security personnel.

What is a Private Security Agency ?

 

A private security agency is a business entity providing security services across various sectors including Banking, Information Agency, Finance and Industries. To operate legally, these agencies must secure a PSARA license. In addition to offering security services, they also provide training opportunities for individuals pursuing careers in security-related fields.

Businesses that Use PSARA Certified Security Agencies

 

-          Government Offices

-          Banks and Financial Institutions

-          High-profile Residences (VIPs, Celebrities)

-          Airports

-          Defence and Military Establishments

-          Hospitals and Healthcare Facilities

-          Critical Infrastructure (Power Plants, Dams)

-          IT and Data Centres

Apart from the above some other significant business units also uses PSARA certified security agencies, such as Educational Institutions, Hospitality Industry, Shopping Malls, Manufacturing Units, Event Management Companies, Logistics and Warehouses, Corporate Offices and Residential Complexes.

Types of Security Services

 

PSARA License for Providing Armed Security Services:

Þ     This license allows agencies to deploy armed security personnel for providing protection to assets, individuals, and properties.

Þ     The agency must ensure that personnel are trained to handle weapons, follow legal procedures, and are well-versed in safety protocols.

PSARA License for Providing Unarmed Security Services:

Þ     This license permits agencies to provide unarmed security personnel to ensure the safety and protection of individuals, properties, and establishments.

Þ     The unarmed personnel are typically engaged in tasks like surveillance, crowd control, guarding premises, and ensuring security through non-violent means.

Legal and Regulatory Framework of PSARA

1.       Private Security Agencies Regulation Act, 2005:

-        Enacted to regulate private security agencies and ensure they adhere to proper standards.

-        Provides guidelines for licensing, training, and operation of PSAs.

2.      State-Specific Rules:

-        States are authorized to implement their own rules and guidelines under PSARA.

-        Licensing and compliance requirements may vary slightly across states.

3.      Mandatory Training Requirements:

-        Security personnel must undergo training as prescribed by PSARA.

-        Topics include physical security, fire safety, crowd control, and first aid.

4.      Role of Controlling Authority:

-        Each state has a Controlling Authority responsible for issuing licenses, monitoring compliance, and conducting inspections.

Benefits of PSARA License

 

ü  Legal Compliance : The PSARA license ensures that the security agency is operating legally in India. It is a mandatory requirement for all security agencies, and operating without one can lead to penalties, fines, or even imprisonment.

ü  Credibility : It enhances the reputation of the security agency, signalling to clients that the agency is legitimate, professional, and operates within the boundaries of the law.

ü  Professional Standards : The PSARA license requires agencies to meet certain standards, including employee training, proper background checks, and maintaining operational safety protocols. This leads to higher-quality services and a more professional workforce.

ü  Eligibility for Government Projects : Many government agencies and large corporations require security providers to be PSARA-certified before contracting their services.

ü  Regulated Hiring Process : The PSARA license mandates background checks for all security personnel, ensuring that employees have a clean record and are fit for the role. This creates a safer work environment for both employees and clients.

ü  Training in Safety Protocols : Security personnel are trained in various safety and emergency procedures, such as first aid, fire fighting, and responding to law enforcement, which enhances overall safety for both employees and the people they protect.

ü  Reduced Risk of Mismanagement : The PSARA Act ensures that agencies operate under specific guidelines, reducing the likelihood of mismanagement or malpractice.

 

Eligibility for Registration

 

Type of Business Organization :

Ø  Sole Proprietorship

Ø  One Person Company (OPC)

Ø  Partnership Firm

Ø  Limited Liability Partnership (LLP)

Ø  Association of Persons (AOP)

Ø  Private Limited Company

 

Checklist for Applicants (including Directors, Shareholders, Partners etc.):

Ø  Must be Indian citizens

Ø  Should be at least 18 years of age

Ø  Should have a clean criminal record

Ø  Agency must meet all the legal and regulatory requirements of the labour laws, including offering benefits like ESI, PF, etc.

Ø  Other required licenses (Shop and Establishment/GST/Professional Tax Registration)

Ø  Businesses should be financially sound in managing daily operations

Checklist for Security Guards :

Ø  Must necessarily hold an Indian citizenship

Ø  An individual aged between 18 and 65 years of age

Ø  Have undergone prior training as mandated

Ø  Must not be terminated from any government service in any case

Ø  Must fulfil all the physical requirements necessary for the job

Ø  Proof of the individual’s character must be provided

Document Requirements for PSARA License

 

To obtain a Private Security Agencies (Regulation) Act, 2005 (PSARA) license, the following registration certificates and documents are necessary :

General Documents:

·         Certificate of Incorporation (for companies/LLPs).

·         Memorandum of Association (MOA) and Articles of Association (AOA).

·         PAN Card of the agency.

·         Address proof of the registered office.

·         GST Certificate

·         EPF, ESIC and Registration under Labour Act

·         Registration under the Shops and Commercial Establishments Act

Director/Partner Documents:

·         Identity proof (e.g., Aadhaar, PAN Card, Passport).

·         Address proof (e.g., utility bills, voter ID).

·         Passport-size photographs.

·         Police clearance certificate.

·         Copies of Last 3 Years Income Tax Returns for Directors

Additional Documents:

·         Employee details (e.g., ID proofs, training certificates).

·         Affidavits and declarations as per as per Section 7 (2) of PSARA, 2005.

·         Proof of ownership or lease agreement of the premises.

·         Training facility details and agreements.

·         Security training affidavit

·         Signed Memorandum of Understanding (MOU) with the training institute

Registration Process for PSARA License

 

The procedure to obtain PSARA License online registration are as follows :

1.      Prepare Necessary Documents :

-          Applicants must keep all the necessary filing documents ready. This helps save time during application filing, facilitating a smooth and hassle-free process.

 

2.     Entering MoU with Training Institute :

-          Proper training enhances an agency’s ability to provide skilled and competent security staff, ensuring they are well-prepared for their duties.

-          Applicants seeking a PSARA license must establish an MoU with an approved training institute to train their personnel. A list of eligible training institutes can be found on the homepage of the official PSARA website.

 

3.     Application for Registration :

-          Applicants must prepare to submit the application (Form-I) to the respective authorities in the state they are applying.

-          They must also enclose Form-II for verification of its antecedents and submit an affidavit in Form-III along with Form-I.

 

4.     Police Verification :

-          Police verification is conducted after submitting the application in Form-I.

-          If the agency is a partnership or a company, the respective partners or directors of the business entities must also undergo police verification.

-          Verification of the background of the promoters and directors are conducted to ensure they have no criminal record.

 

5.     Issuance of License :

-          The duration required to obtain a PSARA license is contingent upon the efficiency of the specific state authority processing the applications. Generally, the application processing time is around 60 days from the date of application submission.

-          Once the application is submitted, the authority reviews it. If it is accompanied by a No Objection Certificate (NOC) from the police after verification, the authority will either grant the PSARA License in Form-IV or reject the application, depending on the circumstances.

 

6.     Renewal of License :

-          The PSARA license needs to be renewed after its validity period (typically 5 years). The renewal process involves submitting updated documents, training details, and payment of the applicable renewal fees.

-          To renew a PSARA license, you must apply to the Controlling Authority at least 45 days before the license expires. The Controlling Authority will issue a renewal order within 30 days of receiving the application.

 

 

7.      Post-Registration Compliance :

-          Ensuring its security personnel undergo regular training as per PSARA guidelines

-          Maintaining updated records covering details about employees, deployment and training

-          Conducting police verification of its employees at frequent intervals

-          Ensuring compliance with labour laws, including proper wages, PF, and ESI compliance for employees

-          Ensuring timely tax filings, including GST and other taxes, as per the relevant law

Penalties for Non-Compliance

Operating a private security agency without adhering to PSARA regulations can result in specific penalties, including:

·         Monetary Fines: A fine of up to ₹25,000 for operating without a valid PSARA license. Additional fines for non-compliance with specific operational standards.

·         License Suspension or Cancellation: The Controlling Authority may suspend or cancel the PSARA license if serious violations are detected, such as failure to conduct proper employee verification or inadequate training facilities.

·         Legal Prosecution: Legal action under the PSARA Act may result in further financial penalties or imprisonment for repeated or severe offenses.

·         Closure of Agency Operations: Persistent or unresolved non-compliance can lead to mandatory closure of the agency by the Controlling Authority.

·         Reputational Damage: Operating without authorization damages trust and credibility, potentially resulting in loss of clients and future business opportunities.

FAQs

 

1.      What is a PSARA license ?

·         A PSARA license is a legal requirement for private security agencies to operate in India. It is issued under the Private Security Agencies Regulation Act (PSARA).

 

2.     Why is a PSARA license necessary ?

·         A PSARA license is necessary to ensure that security agencies operate legally and provide trained and qualified security personnel.

 

3.     How long does it take to obtain a PSARA license ?

·         The process can take 30 to 60 days, depending on the state and the completeness of the application. Delays may occur if additional information or documents are required.

 

4.     Can I apply for a PSARA license if I already run a security agency ?

·         Yes, existing security agencies can apply for a PSARA license if they are operating without one.

 

5.     How long is a PSARA license valid ?

·         A PSARA license is typically valid for five years. After that, it must be renewed by submitting updated documents, including employee training records and a payment of the renewal fee.

 

6.     What happens if I operate without a PSARA license ?

·         Operating without a PSARA license is illegal and can result in penalties, fines, or imprisonment. Additionally, the agency may be disqualified from providing security services to businesses, government entities, or high-profile clients.

 

7.      Can a PSARA license be transferred to another person or agency ?

·         No, a PSARA license is non-transferable.

 

8.     Is there a fee for applying for a PSARA license ?

·         Yes, there is a fee for the PSARA license application. The amount varies from state to state and is paid to the regulatory authority at the time of application submission.

 

9.     Can a security agency offer services in multiple states with a PSARA license ?

·         Agencies looking to expand their services across more than one state should apply for a multi-state PSARA certificate. Separate approvals are required for each state, depending on their rules and regulations for security businesses.

 

Why Choose Filing Corner for PSARA Registration?

1.       Expert Guidance: Our team of experts simplifies the complex process of PSARA registration.

2.      Comprehensive Support: From documentation to submission and follow-ups, we manage the entire process.

3.      Tailored Services: Customized solutions to meet your specific business needs.

4.      Time Efficiency: Minimized delays with a streamlined approach.

5.      Compliance Assurance: Ensuring your agency meets all regulatory requirements.

Get Started with Filing Corner

Navigating the complexities of PSARA registration doesn’t have to be daunting. At Filing Corner, we provide end-to-end assistance, ensuring your agency complies with all legal and regulatory requirements. Contact us today to begin your journey toward becoming a licensed private security agency.

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