PSARA License

A Private Security (PSARA) license is a mandatory requirement for private security agencies providing security services under the PSARA Act of 2005.

Private security agencies, engaged in services, including the training of security guards, are obligated to register under the Private Security Agencies Regulation Act, 2005 (PSARA).

In 2005, the Parliament introduced the Private Security Agencies (Regulation) Act to oversee the expanding realm of private security agencies. Operating a security agency without obtaining a license is now prohibited, and contravening this regulation may result in imprisonment for up to a year, a fine of up to 25,000 rupees, or both. Even providing such services abroad requires permission from the Controlling Authority, necessitating approval from the Central Government in such instances.

While acknowledging the growth of private security businesses, the Parliament also underscored governance issues, including flawed background checks and the use of uniforms resembling military, naval, air force, or police uniforms. To address these concerns, the PSARA Act was enacted.

ETaxwala is the premier legal and business services platform for PSARA license registration in India, offering a range of registration services like Trade License registration, ISO certification, MSME registration, etc.

Compulsions:

Section 4 of the PSARA Act, 2005 explicitly states that no person shall engage in the private security agency sector without obtaining a license.

Section 20(1) outlines penalties for violating Section 4, which include imprisonment for up to 1 year, a fine of up to Rs. 25,000, or both. Therefore, a license under the PSARA Act is essential for individuals involved or intending to engage in the Private Security Agency sector.

Documents Required For PSARA License Registration:

To obtain a license under the Private Security Agencies Regulation Act, 2005, the following documents must be submitted:

• Application in the specified form.
• Affidavit as per the PSARA Act, confirming eligibility and compliance.
• Ownership proof for the principal place of business.
• Logo of the security agency.
• Identity cards for all employees.
• Detailed armed licenses.
• Character verification certificate of the employees.
• Uniform pattern of the agency.
• Certificate of Incorporation, MOA/AOA, or Partnership Deed.

Preconditions for PSARA License Registration:

Before applying for the PSARA license, the following documentation needs to be completed:

• Allotment of PAN.
• GST Registration.
• PF Registration.
• ESI Registration.
• Shop & Establishment Registration.
• Registration under Contractual Labour (Regulation and Abolition) Act.

Registration Process of PSARA License:

ETaxwala simplifies the PSARA license application process:

Document Preparation: ETaxwala prepares your application and collects required documents based on the details provided.

Application Submission: ETaxwala submits the application and the affidavit in the required format to the authorities for processing.

License Issuance: Once the application is approved, and the license is granted, ETaxwala shares the license with you.

FAQs:

Q. What are the disqualifications for an application? / Who cannot apply for a license under the PSARA?


Ans: Section 6 outlines disqualifications for an applicant, who cannot obtain a license if:

• Convicted for an offense related to company promotion, formation, or management.
• Convicted for an offense with a prescribed punishment of not less than two years.
• Linked with a banned organization/association due to activities against public order or national security.
• Dismissed from Government service for misconduct or moral turpitude.
• The Company is not registered in India.
• The Proprietor of the Company is not Indian.
• Majority shareholding is not held by an Indian.
Q. Can an Indian run a security agency abroad without attracting the provisions of the PSARA Act?


Ans: No. Section 4 mandates that to provide security services abroad, an agency must obtain permission from the Controlling Authority, consulting the Central Government before approval.

Q. Who is the Controlling Authority for the PSARA?


Ans: Each State Government appoints a Joint Secretary Rank officer in the Home Department or an equivalent officer as the Controlling Authority under the PSARA.

Q. What is a Private Security Company?


Ans: A Private Security Agency is an entity distinct from the Government, engaged in providing private security services, including training guards/supervisors or offering them to other business undertakings.

Q. What are the fees for obtaining a private security license?


Ans: Section 7(3) outlines the fees for a license application:

• For operations in one district: Rs. 5000
• For operations in 2 to 5 districts: Rs. 10,000
• For statewide operations: Rs. 25,000
Q. Is there any time stipulation on the Controlling Authority to grant a license?


Ans: Section 7(4) obliges the Controlling Authority to respond to an application within 60 days from receiving a complete application, either granting or refusing the license.

Q. What is the validity of a private security license?


Ans: A license is valid for five years unless canceled earlier.

Q. What are the grounds of cancellation of a license?


Ans: Section 13 provides grounds for cancellation, including:

• Misrepresentation or suppression of material facts in obtaining the license.
• Use of false documents/photographs.
• Violation of PSARA provisions or license conditions.
• Misuse of information obtained during security duties.
• Impersonation or abetting impersonation of a Government Servant.
• Failure to operate post one year of license grant.
• Failure to render agreed services.
• Acts in contravention of a Court order.
• Repeated instances of guards' misconduct, negligence, breach of trust, crimes, or threats to national security by the license holder or their acts.