PSARA License

Introduction to PSARA

The private security business is a growing industry. With residential complexes mushrooming in cities, large industrial complexes coming up, and the world becoming more competitive, security of persons, of assets and of trade secrets have increased. The PSARA, or the Private Security Agencies (Regulation) Act, was enacted in the year 2005 by the Parliament to oversee and manage the private security agencies operating in India. It was established on March 23, 2005 to bring a sense of responsibility, professionalism, and consistency in the private security industry.

These private security agencies are essential for keeping various places, people, and valuables safe. PSARA provides guidelines for how these agencies should get a licence, how their personnel should be trained, and what kind of behaviour is expected from the security staff.

How Does PSARA Define a Private Security Agency?

Section 2(e) of the Private Security Agencies (Regulation) Act, (PSARA) 2005, has defined "private security agency" as below: 

"private security agency" means a person or body of persons other than a government agency, department or organisation engaged in the business of providing private security services including training to private security guards or their supervisor or providing private security guards to any industrial or business undertaking or a company or any other person or property”

Thus it includes any individual or group, excluding government agencies, government departments, or local authorities, involved in offering security services. These services cover not only the supply of trained security personnel but also extend to providing the training of private security guards and their deployment on a contractual basis.

Is PSARA Implemented by the Central and/or State Governments?

The Private Security Agencies (Regulation) Act, (PSARA) 2005, stands as a central legislation crafted by the Parliament of India, falling under the jurisdiction of the central government. This legislative piece establishes a comprehensive framework for the regulation of private security agencies operating across the country, delineating processes for licensing, setting standards for personnel, and addressing related concerns.

While the act is enacted by the central government, its practical application involves a collaborative effort between the central and state governments. The central government assumes the responsibility of overseeing the overarching framework and establishing certain standards. However, the act bestows authority upon state governments to execute its provisions within their specific domains.

In this shared responsibility, state governments play a pivotal role in the licensing procedure for private security agencies. Their duties encompass the grant of licences, background verifications, and ensuring strict adherence to the act's stipulations. The act's design allows for adaptability, recognizing and accommodating regional variations and considerations. States actively engage in the regulation and supervision of private security agencies, tailoring their approaches to align with local requirements and nuances.

In summary, the Private Security Agencies (Regulation) Act is a central legislation, but its implementation is a collaborative effort between the central and state governments, with states having a significant role in enforcing the provisions within their territories.

Compliances under PSARA

The implementation of the Private Security Agencies (Regulation) Act (PSARA), 2005, involves several steps, and individuals or entities wishing to start a private security agency need to adhere to certain compliances under this act. The specific requirements can vary depending on the state, as the act empowers state governments to enforce its provisions. Below are some general steps and compliances that a person or an entity may need to follow:

1. Application for Licence:

- Submit an application for a licence to the appropriate controlling authority designated by the state government.

2. Eligibility Criteria:

- Ensure that the applicant, as well as the key managerial personnel, meet the eligibility criteria specified in the act. This may include factors such as good character, sound financial standing, and relevant experience.

3. Security Deposit:

- Furnish the required security deposit as per the state's rules.

4. Verification and Background Checks:

- Undergo a verification process, including background checks of the applicant and key personnel. This may involve police verification to ensure that those involved in the agency do not have criminal records.

5. Training Requirements:

- Ensure that security personnel employed by the agency undergo the necessary training as per the standards set by the psara Act.

6. Compliance with Standards:

- Demonstrate compliance with the standards prescribed under the act, including maintaining a code of conduct for security personnel and adhering to uniform and identification requirements.

PSARA Rules Different Business Structures?

like a Company, an LLP, Partnership firm, or a sole proprietorship

1. Identify Controlling Authority:

- Determine the designated controlling authority for private security agency licences in your state. This information is typically available on the official website of the state's police department or the relevant regulatory body.

2. Application Form:

- Obtain the prescribed application form for a private security agency licence from the designated authority. Many states provide these forms on their official websites.

3. Prepare Required Documents:

(Each document should be duly attested by the applicant/applicants)

1.     Age Proof - For proprietor/ each partner/each Designated partner/ each Director of Company

2.  Residential Address Proof-  For proprietor/ each partner/each Designated partner/ each Director of Company

3.  Affidavit as required (Notarised)- For proprietor/ each partner/each Designated partner/ each Director of Company Agency

4.  Copy of PAN Card - For proprietor/ each partner/each Designated partner/ each Director of Company

5.  Copy of PAN Card – of partnership form /of LLP / of Company

6.  Trade Licence (Current Year) - In place of Business purpose “Security Business” must be included

7.  Professional Tax Enrolment Certificate & Challan (Current Year)

8.  EPFO and ESIC Registration Certificate with Challan. (Declaration may be allowed for Start Up)

9.  GST Registration Certificate

10. I.T. Return Acknowledgement (Current A.Y) - With current year Profit & Loss Balance Sheet

11. Partnership Deed in case of partnership firm Partnership Deed must be registered under Registration Act)

12. LLP Deed in case of a Limited Liability Partnership

13. Memorandum and Articles of Association of the Company- object clause must contain the phrase Security Business

14. Documents related to Trainer :

For Ex-serviceman/ Retired Police Officer

1.    Identity Card

2.    P.P.O.

3.    Discharge Book, if applicable

4.    Consent letter

OR

For recognised training institutes :

1.    Copy of agreement

2.    Documents of recognition

3.    Other particulars like Faculties, Indoor & Outdoor Training Facilities, etc.

15. Trainer should have requisite expertise to impart training as per the provision of the psara Act, 2005 and the applicable rules

16. Fees to be deposited in the account as designated for the purpose by the State Government

4. Security Deposit:

- Pay the required security deposit, as per the rules of the state.

5. Submit Application:

- Submit the application along with the necessary documents to the controlling authority.

6. Inspection:

- Be prepared for an inspection of your premises by the police or regulatory authorities.

7. Approval and Issuance:

- Once all requirements are met and the inspection is satisfactory, the controlling authority may grant the licence.

State-Specific Examples:

Maharashtra:

- Controlling Authority: Maharashtra State Security Corporation (MSSC).

- Application Form: Available on the MSSC website.

- Documents: Similar to the general list, including proof of financial stability, site plan, and details of security personnel.

Gujarat:

- Controlling Authority: Gujarat Private Security Services Act & Rules Controlling Authority.

- Application Form: Available on the official website.

- Documents: Similar to the general list, plus character certificates for key personnel.

Karnataka:

- Controlling Authority: Karnataka Private Security Agencies Regulation Rules, 2008.

- Application Form: Available on the Karnataka State Police website.

- Documents: Similar to the general list, including a copy of the PAN card of the applicant.

Tamil Nadu:

- Controlling Authority: Tamil Nadu Private Security Agencies (Regulation) Rules, 2008.

- Application Form: Available on the official website of the Tamil Nadu Police.

- Documents: Similar to the general list, including a character certificate for the applicant.

West Bengal:

- Controlling Authority: West Bengal Security Agencies Rules, 2009.

- Application Form: Available on the official website of the West Bengal Police.

- Documents: Similar to the general list, with additional requirements such as an affidavit regarding financial stability.

Madhya Pradesh:

- Controlling Authority: Madhya Pradesh Private Security Agencies Rules, 2009.

- Application Form: Available on the official website.

- Documents: Similar to the general list, including an affidavit regarding the financial position of the applicant.

Uttar Pradesh:

- Controlling Authority: Uttar Pradesh Private Security Agencies (Regulation) Rules, 2009.

- Application Form: Available on the official website of Uttar Pradesh Police.

- Documents: Similar to the general list, including a certificate of experience in the field of private security.

Eligibility Criteria to Obtain PSARA Licence:

The eligibility criteria for obtaining a licence under the Private Security Agencies (Regulation) Act, 2005 (psara Act), have been outlined in the Act itself. State Governments, too, are empowered to add additional criteria or specifications as per their discretion. Thus, specific criteria for eligibility may vary from state to state as added items may be included.

List of Criteria for being eligible to register under psara Act, 2005:

1. Good Character:

- The applicant, as well as key managerial personnel, should have a good character.

2. Financial Stability:

- The applicant should demonstrate financial stability. This may involve providing proof of financial resources or stability.

3. Relevant Experience:

- The applicant should have relevant experience or expertise in the field of private security services.

4. Sound Infrastructure:

- The applicant should have a sound infrastructure to carry out security services effectively.

5. Training Compliance:

- The private security agency should comply with the training requirements specified in the Act.

6. Compliance with Standards:

- The agency should adhere to the standards prescribed in the Act, including maintaining a code of conduct for security personnel.

State-Specific Criteria for PSARA Licence:

Since the State governments have the authority to introduce additional criteria or specifications beyond those outlined in the psara Act, these additional criterias may be based on the following basis:

1. Education Qualifications:

- Some states may specify educational qualifications for key personnel.

2. Language Proficiency:

- Certain states may require language proficiency, especially if the security agency is expected to operate in multilingual regions.

3. Health Standards:

- Health standards for security personnel may be an additional criterion in some states.

4. Character Certificates:

- Some states may require character certificates for key personnel.

5. Local Residency:

- Certain states may have residency requirements for the applicant or key personnel.

6. Additional Documentation:

- States may require additional documentation beyond what is specified in the psara Act.

To ascertain the precise eligibility criteria applicable in a specific state, it is recommended to refer to the rules and regulations laid down by the respective state government's controlling authority for private security agencies. This information is usually available on the official website of the state police department or the designated regulatory body responsible for private security regulation.