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PSARA License

PSARA License is mandatory to start and run a Security Guard Agency business in India. Hence before supplying the security guards the private security agency should obtain PSARA License. Our Experts can help you in getting PSARA License at minimum cost.

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What is a PSARA License?

The full form of PSARA is Private Security Agency (Regulation) Act, 2005 which is a comprehensive law enacted to regulate the proper functioning of Private Security Agencies in India. PSARA License is the license granted under the Act to validate the legal existence of such agencies in India.

The current era witnesses a surge in individuals embarking on entrepreneurial ventures and establishing their own enterprises. This rapid proliferation of small businesses in the commercial realm has underscored the imperative for security and safety measures. Entities specializing in training and offering security services are commonly referred to as security agencies. Presently, a multitude of private security agencies has emerged to address the security requirements of both individuals and businesses. In India, the Private Security Agency (Regulation) Act, 2005 (PSARA) vigilantly oversees all operations and activities of these diverse private security agencies.

The growing business environment in India has heightened the demand for private security across various sectors. From banks to upscale restaurants, car showrooms to state-of-the-art factories, the necessity for robust protection has become paramount to either ward off criminal elements or ensure the proper maintenance of security measures. In response to this escalating safety concern, the Private Security Agency (Regulation) Act, 2005 (PSARA) was enacted. This legislation provides the framework for establishing a legitimate private security agency in India. Furthermore, the Act governs every facet of private security agencies in the country, encompassing aspects such as registration and the recruitment of personnel for security services.

What is a Private Security Agency?

A private security agency is a business entity created to provide security services to a range of sectors, including banking, information technology, finance, and industries. The introduction of the Private Security Agencies (Regulation) Act, 2005 (PSARA) aimed to instill a specific standard of professionalism in the realm of security services. To legally operate, these agencies must obtain a PSARA license. Beyond offering security services, these agencies also extend the opportunity to train individuals aspiring to pursue careers in security-related fields.

Significant Role Played by Private Security Agencies in India

Private security agencies play a pivotal role as business entities dedicated to providing security services across diverse sectors. The implementation of the Private Security Agencies (Regulation) Act, 2005 (PSARA) was a strategic move to establish and uphold a specific standard of professionalism within the realm of security services. A crucial prerequisite for the operation of security agencies in India is the acquisition of a PSARA license, which serves as a fundamental mandate.

Beyond the provision of security services, these agencies also contribute to the professional development of individuals by offering comprehensive training programs tailored to the demands of security-centric careers. This dual focus on service provision and skill enhancement underscores the integral role that private security agencies play in ensuring the safety and protection of businesses from various verticals in the dynamic landscape of India.

What are the Benefits of PSARA License?

The following are the benefits of PSARA License in India:

  1. Empowers the training company;
  2. This License helps in gaining the potential customers’ trust;
  3. Increases credibility of agency;
  4. Attracts more customers;
  5. It ensures that the functioning of the organization is smooth;
  6. Avoid denial of rights & services.

Who is Eligible for PSARA?

Regarding Business Organization Type:

Entities eligible for registration under the Private Security Agencies (Regulation) Act, 2005 (PSARA) and the subsequent acquisition of a PSARA license include:

  • Sole Proprietorship
  • One Person Company
  • Partnership Firm
  • Limited Liability Partnership (LLP)
  • Association of Persons
  • Private Limited Company

Regarding Director/Principal Officer Role Eligibility:

Becoming a Director/Principal Officer is subject to specific eligibility criteria:

  • Must be a citizen of India.
  • Must be at least 18 years old.
  • Must possess adequate financial resources to cover business expenses.
  • Must not have any convictions.

Regarding Security Guard Role Eligibility:

Qualifying for the role of a security guard requires meeting the following criteria:

  • Must be a citizen of India.
  • Must be between the ages of 18 and 65.
  • Must have undergone prior training.
  • Must not have been terminated from any government service.
  • Must meet the specified physical attributes.
  • Proof of the individual’s character must be provided.

Documents Required for PSARA License

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

  • 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
  • Proof of identity for directors and employees
  • Copies of Income Tax Returns for Directors
  • Two passport-size photographs of promoters along with their PANs
  • Proof of address for the agency office
  • Affidavit as per Section 7 (2) of PSARA, 2005
  • Security training affidavit
  • Certificate of Incorporation
  • Signed Memorandum of Understanding (MOU) with the training institute

How to apply for PSARA License?

Step-by-step process to get PSARA License:

  1. Document Organization: Gather all necessary documents and organize them systematically to ensure a smooth application process. Clear and legible documents related to registrations, as well as details of promoters and directors, are crucial to avoid discrepancies. Utilize the online portal for application submission, taking advantage of the e-signing feature for a seamless process.
  2. Memorandum of Understanding (MOU) with a Training Institute: Identify eligible training institutes on the https://psara.gov.in homepage and establish a Memorandum of Association (MOU) with a chosen institute. This collaboration enables the agency to provide effective training to its candidates, enhancing the quality of its workforce. Ex-servicemen may benefit from certain relaxations and exemptions related to agency training requirements.
  3. Application Filing: Complete all preceding steps before filing the application (Form-I) with the respective state authority for the PSARA License. Include Form-II for antecedent verification and accompany Form-III affidavit with Form-I.
  4. Police Verification: Following the application filing, police verification is initiated. In cases where the agency is a partnership or a company, directors must undergo police verification as part of the process.
  5. Grant of PSARA License: Upon submission, the authority reviews the application. If accompanied by a No Objection Certificate (NOC) from the police post-verification, the authority proceeds to either grant the PSARA License in Form-IV or reject the application based on the circumstances.

Timeframe for Obtaining a PSARA 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.

Appointment of Supervisors

Applicants are mandated to appoint supervisors to align with the stipulations of the PSARA, 2005. These supervisors play a crucial role in overseeing and directing the agency’s operations, specifically in relation to the work conducted by security guards. The appointed supervisors must have a minimum of three years of work experience in either the army or the navy.

Contact RegisterKaro’s Experts for Premium Support on PSARA License

Navigating the incorporation process is more intricate than it appears. It’s crucial to steer clear of any oversights during application filing or document submission, as this can be a laborious and time-consuming endeavor. If time constraints or a lack of familiarity with registration compliances pose challenges, consider leveraging the services of RegisterKaro.

Our relentless commitment revolves around eliminating factors that could impede the efficiency of the system, ensuring that our services are not only seamless but also easily accessible. This commitment to excellence is the driving force behind our reputation for unparalleled professionalism and quality.

FAQs

  • What is a PSARA license?

A PSARA license, governed by the Private Security Agencies (Regulation) Act, 2005, is a legal authorization required for individuals or entities intending to operate as private security agencies in India.

  • Who needs to obtain a PSARA license?

Any business or individual providing private security services, including security agencies and their employees, must obtain a PSARA license to operate legally in India.

  • What documents are required for obtaining a PSARA license?

Necessary documents include PAN, GSTIN, Provident Fund Registration, ESIC Registration, identity proof of directors and employees, Income Tax Returns of Directors, and various registration certificates.

  • How long does it take to obtain a PSARA license?

The time frame for obtaining a PSARA license varies, typically taking around 60 days from the date of application submission. The exact duration depends on the processing efficiency of the state authority.

  • Is training mandatory for security guards under PSARA?

Yes, training is a mandatory requirement for security guards under PSARA. Private security agencies must enter into a Memorandum of Understanding (MOU) with a training institute to ensure proper training of their personnel.

  • Can an individual apply for a PSARA license, or is it restricted to companies only?

Both individuals and various types of business entities, including sole proprietorships, partnerships, and private limited companies, are eligible to apply for a PSARA license.

  • What is the role of supervisors in the PSARA licensing process?

Supervisors play a vital role in overseeing and directing the operations of a private security agency, particularly in relation to the work of security guards. They are required to have at least three years of work experience in the army or navy.

  • What happens during the police verification process in the PSARA licensing procedure?

After filing the application, the police verification process is initiated. This involves verifying the antecedents of the applicants, and in the case of a partnership or company, directors are also subject to police verification.

  • Can ex-servicemen benefit from any relaxations in PSARA training requirements?

Yes, ex-servicemen may receive certain relaxations and exemptions related to training requirements when pursuing careers in private security agencies.

  • What happens if the PSARA license application is rejected?

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

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