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Private Security Agency Licence (PSARA LICENSE)

Private Security Agency Licence (PSARA LICENSE)

PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity which involves in the business of providing Security Guards and other related services at an establishment as an alternate to the police. The operation of the private security agencies are governed by The Private Security Agencies Regulation Act, 2005, popularly known as PSARA.

 

 

 

40,000.00

We will extend our support in Documentation, Preparation, filing and subsequent Follow-up for the License to start private security agency in India. The Licence under PSARA is a mandatory requirement for an agency to deploy security guards and engage in Security related services.

PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity which involves in the business of providing Security Guards and other related services at an establishment as an alternate to the police. The operation of the private security agencies are governed by The Private Security Agencies Regulation Act, 2005, popularly known as PSARA.

After the enactment of the PSARA (act), it is mandatory for an security agency to obtain Licence from the State Controlling Authority Concerned prior to commencing the business and in case of non compliance the law provides for stringent penal consequences. The PSARA License is issued to operate in one or more district of a particular state or for the entire state.

Private Security Agencies are involved in Providing Security Services including Training of Security Guards. The operation of Private Security Agencies are Governed by THE PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005 (Short Form Called PSARA)and it was Commenced on 23rd June, 2005 and extends to the Whole of India except the State of Jammu and Kashmir. As per PSARA ACT No Person shall carry on or Commence the Business of Private Security Agency, unless he holds a Licence issued under PSARA Act.

How to apply for PSARA License

  • Filing Application along with the Documents
  • MOU with a Recognized Training Institute
  • Police Verification
  • Verification of Application

PUNISHMENT FOR NOT HAVING VALID LICENSE 

Any Person who not hold a valid License under PSARA shall be Punishable with Imprisonment for a term which may extend to One Year, or with Fine which may extend to Twenty-Five Thousand Rupees, or with both.All the private Security agencies must obtain license under PSARA 2005 to operate his business all over India . Private Security Agency License ( PSARA ) is mandatory for all running Private security Agencies.

Eligibility and Procedure

Who can apply for PSARA

An Individual, Partnership Firm, LLP, One Person Company (OPC)  or a Private Limited Company  can make the application for PSARA Licence/ Registration to the Competent Authority of the concerned state.

Eligibility of Director / Principal Officer

For police verification of the applicant, they must be a Resident Indian, having sound financial standing (We need to submit a copy of ITR) and should have a clean antecedent and must not have been convicted of any offence.

National Interest Clause

The PSARA Licence cannot be granted to a person if it is found to keeping Links with organisation or association, banned under any law or by a government order to protect National Security, Public Order, or to prevent any activity which is prejudicial to National Security.

Name & Object of Applicant

The name of the entity should contain the word Security Services or Related terms which represent the object of the applicant. In the case of a Company, the MOA must contain Providing of Security services as one of the Main Objects.

MOU with Training Institute

The applicant for a PSARA Licence must enter into an MOU with training institute or an organisation as approved by the state controlling authority to impart training to the security guards. There is relaxation to the training requirements for ex-servicemen.

Restriction of Foreign Investment

Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, lays out that the PSARA Licence shall not be issued if it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India.

Procedure for Grant of PSARA License

 

  • Qualifying Documents

The first step to apply for a PSARA Licence is to gather all necessary registrations such as Pan Card, TAN Number, GST, PF, ESI, Registration of establishment under Shops & Establishment Act, ITR of every director, etc

  • MOU With a Training Institute

The applicant to enter into a Memorandum of Understanding with a recognised training institute for training its guards and supervisors. Every state has recognised various security training institutes for this purpose.

  • Police Verification

An application for police verification is filed in Form -I by the applicant, and in case the applicant is a firm, company or any other association of person, separate verification form shall be filed for every, partner or directors.

  • Application Filing

The psara application is filed before the controlling authority of PSARA, which is then processed for verification. After receipt of the NOC from the concerned Police authorities, controlling authority may either grants the Licence or rejects with a reason.

  • Time For Issue Of PSARA

The total time to complete the process for grant of PSARA License is approximate of 60 days from the date of filing the PSARA application. An application for a Licence can be made for a district or five districts or a state. The application process is different for each state.

  • Conditions Of PSARA Licence

The PSARA specifies the criteria, qualification, and disqualification for a security guard. and the applicant must engage supervisors to supervise the work of security guards. A person from the army, navy or air force with a minimum of three years of experience, must be given preference.

Included in our PSARA LICENSE Package

  • Complete Documentation & Consultancy regarding PSARA
  • Preparation of Complete File For PSARA License
  • Starting to End Follow Up with State PSARA Department
  • Assistance at the time of Police Verification
  • Representation before PSARA Department
  • Issuance of PSARA License
  • Start Working Complying with all the Guidelines of PSARA

 

 

 

Government fees

The fees payable can be divided into the following categories:

  • For one district — Rs. 5,000/-
  • For 2 to 5 districts in a state — Rs. 10,000/-.
  • For the entire state — Rs. 25,000/-.

The above-said fees are identical throughout India, except for the state of Karnataka, where the government fee for the entire state is Rs. 50,000/-. The government fee can be paid by way of Demand Draft or through cash challan at designated banks.

MEMORANDUM OF UNDERSTANDING
( M.O.U ) @ 15,000/- ONLY

Note –

FOR UTTAR PRADESH

Draft in the Name Of  ‘  NIYANTRAK PRADHIKARI/A.D.G. L&O UP. LUCKNOW’

FOR DELHI

Draft in the Name Of  ‘  CONTROLLING AUTHORITY, GNCT OF DELHI ‘

FOR PUNJAB

Draft in the Name Of  ‘   ADGP (Security)-cum-Controlling Authority,  PB. Pvt. Security Agency   ‘

FOR HARYANA

Draft in the Name Of  ‘  Director General of Police, Haryana  ‘

FOR RAJASTHAN

Draft in the Name Of  ‘  (Director General, Home Guard, Rajasthan, Jaipur)  ‘

Documents Required

DELHI PSARA LICENSE
  1.  Address Proof of Proprietor /Partners / Director
  2. Date of Birth Proof ( Adhar / PAN ) of Proprietor / Partners / Directors
  3. Three Photo of Proprietor / Partners / Directors
  4. M.O.U ( Memorandum of Understaning ) of Training
  5. Rent / Lease Agreement ( If Business Premises on Rent )
  6.  No Objection Certificate ( N.O.C ) ( If Business Premises on Rent )
  7.  Ownership Proof of Business Premises
  8. Memorandum of Associations ( In case of Pvt. / Limited / OPC / Company )
  9. Certificate of Incorporation ( In case of Pvt. / Limited / OPC / Company )
  10. Partnership Deed ( In case of Partnership Firm )
  11. E-mail Address
UTTAR PRADESH PSARA LICENSE
  1.  Address Proof of Proprietor /Partners / Director
  2. Date of Birth Proof ( Adhar / PAN ) of Proprietor / Partners / Directors
  3. Three Photo of Proprietor / Partners / Directors
  4. Affidavit as Per Psara Act
  5. Rent / Lease Agreement ( If Business Premises on Rent )
  6.  No Objection Certificate ( N.O.C ) ( If Business Premises on Rent )
  7.  Ownership Proof of Business Premises
  8. Memorandum of Associations ( In case of Pvt. / Limited / OPC / Company )
  9. Certificate of Incorporation ( In case of Pvt. / Limited / OPC / Company )
  10. Partnership Deed ( In case of Partnership Firm )
  11. E-mail Address
  12. Demand Draft Rs. 500/- of Proprietor /Partners / Director
  13. Three Year Income Tax Return ( 10,00,000/- Yearly )
  14. Labour Department Registration
  15. Guard / Supervisor Photo with Uniform
  16. Identity Card of Agency
PUNJAB PSARA LICENSE

1. Certificate of incorporation of Company/Firm/ Society/Trust/ Association of Persons

Sole proprietor – Licence granted by Labour Department

2. Memorandum of association or Partnership Deed of Company/Firm/ Society/Trust/ Association of Persons

3.  Training Skills Certificate  of partners/ Directors / Proprietor

4. Proof of residence of partners/ Directors / Proprietor

5. Proof of ownership/Rent deed

6. Sample Identity card of Agency

7. Memorandum of understanding

8. Copy of PAN No of the Agency/sole proprietor

9. Copy of Current ITR

10. Pattern of Uniform

11. Office Photograph

12. Education Proof of partners/ Directors / Proprietor

13.. Email ID

HARYANA PSARA LICENSE

1. Certificate of incorporation of Company/Firm/ Society/Trust/ Association of Persons

Sole proprietor – licence granted by Labour Department

2. Memorandum of association or Partnership Deed of Company/Firm/ Society/Trust/ Association of Persons

3. Certificate of security training or Special Qualification Certificate of partners/ Directors / Proprietor

4. Proof of residence of partners/ Directors / Proprietor

5. Proof of ownership/Rent deed

6. Details of Arms license of partners/ Directors / Proprietor

7. Logo of Agency

8. Sample Identity card of Agency

9. Memorandum of understanding (MOU-1) For Training

10. Memorandum of understanding (MOU-2) For medical Annual Examination

11. Copy of Current Passport of the proprietor / directors / partners

12. Copy of UID No of the proprietor/directors/partners

13. Copy of DIN No of the proprietor/directors/partners

14. Copy of PAN No of the Agency/sole proprietor

15. Copy of Current ITR

16. Copy of GST Form-registration

17. Copy of ESI Form-registration

18. Copy of EPF Form-registration

19. Pattern of Uniform

20. Email ID

RAJASTHAN PSARA LICENSE

1. Certificate of incorporation of Company/Firm/ Society/Trust/ Association of Persons

Sole proprietor – Licence granted by Labour Department

2. Memorandum of association or Partnership Deed of Company/Firm/ Society/Trust/ Association of Persons

3.  Security skills Certificate  of partners/ Directors / Proprietor

4. Proof of residence of partners/ Directors / Proprietor

5. Proof of ownership/Rent deed

6. N.O.C on Rs. Stamp Paper from Land Loard

7. Sample Identity card of Agency

8. Memorandum of understanding

9. Copy of PAN No of the Agency/sole proprietor

10. Pattern of Uniform

11. Office Photograph

12. Education Proof of partners/ Directors / Proprietor

13.. Email ID

CHANDIGARH PSARA LICENSE

1. Certificate of incorporation of Company/Firm/ Society/Trust/ Association of Persons

Sole proprietor – Licence granted by Labour Department

2. Memorandum of association or Partnership Deed of Company/Firm/ Society/Trust/ Association of Persons

3.  Training Skills Certificate  of partners/ Directors / Proprietor

4. Proof of residence of partners/ Directors / Proprietor

5. Proof of ownership/Rent deed

6. Sample Identity card of Agency

7. Memorandum of understanding

8. Copy of PAN No of the Agency/sole proprietor

9. Copy of Current ITR

10. Pattern of Uniform

11. Office Photograph

12. Education Proof of partners/ Directors / Proprietor

13.. Email ID

MADHYA PRADESH PSARA LICENSE

1. Certificate of incorporation of Company/Firm/ Society/Trust/ Association of Persons 

2. Memorandum of association or Partnership Deed of Company/Firm/ Society/Trust/ Association of Persons

3. Labour License

4. Proof of residence of partners/ Directors / Proprietor

5. Proof of Ownership, Rent deed and NOC From Landlord ( If Rented)

6. Sample Identity card of Agency

7. Copy of PAN No of the Agency/sole proprietor

8. Copy of Current ITR

9. Pattern of Uniform

10. Office Photograph

11. Education Proof of partners/ Directors / Proprietor

12. ESI Registration

13. PF Registration

14. GST Registration

15.. Email ID

 

Guidelines for Renewal and Compliance

A PSARA License is valid for five years from the date of issuance of the license. However, in the state of Uttrakhand and Chattisghar, this license is valid for one year. Furthermore, the license after its expiry needs to be renewed; for the same, the following steps needs to be taken:

  • The applicant needs to apply for the renewal of their license not less than 90 days before the expiry date of the license.
  • The application must be submitted along with the documents as specified under Sections 6, 7, and 11 of PSARA with the prescribed fees.

Compliances as Per the PSARA

Under the PSARA guidelines, the private security agencies are required to follow certain compliances as follows:

  • All private security agencies should hire supervisors to supervise the working of guards appointed in the organization
  • These agencies are obliged to train the security guards appointed in their firm
  • PSAs should give priority to ex-defence candidates holding three years of experience
  • The PSAs need to follow every criteria, qualification, and disqualification specified under the PSARA
  • According to PSARA, security guards must follow the prescribed uniform policy

FAQ

Who issues PSARA License?

States authorties issue PSARA permit independently. Seprate PSARA License for each state.

What Is The Validity Of The PSARA Licence?

The Licence granted to engage or provide Private Security Guard under The Private Security Agencies (Regulation) Act, 2005 is valid for five years in most of the states. However, in the states like Chhattisgarh, Uttarakhand it is valid for one year. The renewal for the Licence can be filed 90 days before the expiry of the Licence.

Can An Agency Work In Any State Once It Obtains The Licence In One Particular State?

Every state grants this Licence after the agency fulfils the requirements raised by the authority. An agency can not work in the state where it does not have PSARA Licence. It merely means that the said Licence is state specific and to work/operate in other states, one is supposed to apply for PSARA Licence at respective State controlling authority.

For instance, if an agency has a PSARA Licence in DELHI, then it is supposed to work in the districts of Delhi only, and if it wants to operate in NCR region such as NOIDA, Gurugram, then it has to apply for a Licence in the states of U.P and Haryana respectively.

Is procedure for grant of PSARA Licence differs from state to state?

Yes, Though the Indian Parliament passes the main Law regulating the private security business as The Private Security Agencies (Regulation) Act, 2005. However, it provides that every state or union territory shall appoint its controlling authority and frame rules and procedure for making application for the grant of the PSARA Licence.

Is The Availability Of An Ex-service Men Or Army Men A Necessity While Applying?

No, it is not a mandatory requirement and a widespread myth. Anyone can apply for this Licence, subject to fulfilling some criterion as laid by the state Controlling Authority. For imparting training to security guards, applicant agency can enter into an MoU with a recognised security guard training institute.

What is the Government fees for PSARA Licence?

The fees payable can be divided into the following categories:

  • For one district — Rs. 5,000/-
  • For 2 to 5 districts in a state — Rs. 10,000/-.
  • For the entire state — Rs. 25,000/-.

The above-said fees are identical throughout India, except for the state of Karnataka, where the government fee for the entire state is Rs. 50,000/-. The government fee can be paid by way of Demand Draft or through cash challan at designated banks.

What are the primary documents required at the time of PSARA application?

It is crucial to understand that each Controlling authority has its own set of requirements which can be met with proper consultation at the time of filing of the application. However, the following are common List of documents required at the time of filing of the application for PSARA Licence at State Controlling Authority.

  • Identity proofs of the directors and employees
  • Address proof of the office of the agency
  • The affidavit obtained under Private Security Agencies Regulation Act
  • Logo of the agency
  • PAN Card of promoters
  • Two photographs of the promoters
  • Details of registration obtained from the Service tax department
  • Certificate under the Shops and Establishment Act
  • ESI Registration
  • Provident fund {PF} registration
  • Affidavit of the security training
  • Armed license
  • Character certificate for employees
  • Copy of Income Tax Return {ITR} of each director
  • Company incorporation certificate
  • Signed Memorandum of association {MOA} with the training institute
  • Details of the security guard

All Documents should be in proper format and be notarized:

  • Affidavit as per PSARA Act
  • Affidavit for security training
  • Ownership proof of the principal place of business
  • Logo of the security agency
  • Identity card of all employees
  • Detailed armed licenses
  • Character verification certificate for the employees
  • Design pattern of security Uniform

Is FDI Permitted in the Private Security Agency Business in India?

The foreign direct investment in a Private Security Agency business is allowed up to 49% in a Company or LLP under the approval route. The applications for the FDI is administered by the Ministry of Home Affairs of the union government. Hence before an application for grant of PSARA Licence is moved by a company having foreign investment, it is a prerequisite to have the Prior Approval of the FDI and all relevant reports like FC-GPR is duly filed and approved.

What is antecedent Verification for Grant of PSARA Licence?

This is a process of obtaining a No Objection from the office of the Deputy Police Commissioner Office for Issuing the Licence to operate a Private Security Licence. The major checkpoints while considering the application for police verification are as under.

  • General police record pertaining to the applicant
  • Any pending case or complaint
  • That the applicant or its owners is/was not indulging in activities which are prejudicial to national security or public order.
  • Details of earlier operated security agency by the applicant either individually or in a partnership.

Eligibility Criteria to Apply For PSARA License?

The PSARA License is not granted to just any private security agency, and there are various criteria specified under the PSARA to be eligible for obtaining the license.

These Criterions Are As Follows:

Eligibility Criteria for Companies

As per the Private Security Agencies Regulation Act, 2005 every company willing to register themselves under PSARA needs to register themselves as any of the following business entity types;

  • Sole Proprietorship
  • Limited Liability Partnership
  • One Person Company
  • Private Limited Company
  • Partnership Firm

Eligibility Criteria for Director / Principal Officer

For being the director or principal officer of a company, one must fulfil the following criteria described below:

  • The person must be a citizen of India
  • Also, he should be financially sound for bearing the costs of running the PSA
  • He should never be convicted for any legal offence
  • Finally, he had never been convicted by an eligible court for any offence

Eligibility Criteria to Become a Security Guard

  • The person must be an Indian citizen
  • The age limit of the person must be between 18 to 65
  • The person must be trained
  • Furthermore, the person must not have been terminated from any government service, under any circumstances
  • Also, the person must satisfy all the prescribed physical standards
  • Lastly, the person should assure the PSA about his character

 

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