We live in a constantly changing and evolving world. Every day, hundreds of new businesses are getting registered with footfall in the millions. This has increased the need for crowd management as well as raised security concerns. To address these issues, businesses and housing societies are increasingly opting for the services of private security agencies. These agencies provide security to private property, government property, housing societies, small and large businesses to name a few. Establishments like schools, hospitals, banks, jewellery shops etc routinely hire private armed security personnel for the safety of their businesses and customers. Many individuals also hire private security for themselves. In India, private security agencies need to register under the Private Security Agencies (Regulation) Act, 2005 (PSARA). This act was introduced to standardize the business of private security and also set some standards regarding private security. This act provides for rules and regulations regarding opening and operating a private security agency in India. Running a security agency without PSARA license is illegal. Agencies registered under the PSARA Act 2005 not only provide security services, but some agencies also render training services for security guards.
What is PSARA License Regulations?
Private security agencies are regulated under the PSARA Act 2005. Under the act it is mandatory to register a security company and obtain the necessary license before starting a security business in India. The license to operate a private security agency is granted by the state government. Agencies must strictly adhere to all the rules and regulations of the license and renew it when necessary. Failure to comply with the rules may result in the cancellation of the license. Apart from this, the agencies need to comply with following laws:
- The Minimum Wages Act 1948
- The Payment of Wages Act 1936
- The Payment of Bonus Act 1965
- The Payment of Gratuity Act 1972
- The Contract Labour(Regulation and Abolition Act) 1970
- The Industrial Disputes Act 1947
- The Equal Remuneration Act 1976
- The Employee Provident Fund and Miscellaneous Provisions Act 1952
Private Security Agencies (Regulation) Act, 2005 (PSARA)
Eligibility Criteria for PSARA License in India
Eligibility Criteria and Prerequisites
A person or company needs to fulfill certain criteria before applying for a private security agency license in India:
- A private security agency must be a registered company, LLP, firm etc
- Must have an office in state for which license is sought
- Director/s must be citizen of India.
- Must have a minimum of 25 employees, of which atleast half have completed prescribed training
- Adequate insurance coverage for all employees
Eligibility Criteria for Director
- The eligibility and criteria to work as director is as follows:
- Must be an Indian citizen.
- Must be of 18 years of age.
- Must have adequate financial and other resources to bear the business expenses.
- Must not have any convictions against him
Eligibility Criteria for Security Guard
A person looking to work as security guard in PSA’s needs to fulfill following criteria:
- Must be a citizen of India
- Must be between the ages of 18 and 65.
- Must have acquired prior and necessary training.
- Must not be terminated from any government service.
- Fulfill the desired physical measurements.
- Assurance regarding the character of the individual has must be provided.
What are the Documents Required for PSARA License?
- Certificate of Incorporation
- PAN
- GST
- Registration under the Labour Act
- Registration under Shops and Commercial Establishments Act
- Provident Fund Registration
- Employees State Insurance Corporation Registration
- Income Tax Returns of the Directors
- Copy of Identity Proof of the directors and the employees
- Two passport size photographs of the promoters with copy of PAN.
- Proof of address of the Agency Office
- Affidavit under Section 7 (2) of PSARA, 2005
- Security training affidavit
- Signed Memorandum of Understanding (MOU) with the training institute
- Character certificate of employees
- Identity card of employees
- Logo and uniform pattern of the agency
Stepwise Process of Obtaining Psara License
- Document Preparation: Gather all required documents and ensure they are well-organized. You must collect various registrations and details of the agency’s promoters and directors. Clear and legible documentation is essential to prevent discrepancies. The application can be submitted through the online portal after e-signing formalities.
- MOU with Training Institutes: Choose an eligible training institute listed on the PSARA website (https://psara.gov.in) and enter into a Memorandum of Understanding (MOU) with them. This partnership is necessary to provide training to potential security personnel. Agencies that offer training tend to attract high-quality employees. Ex-servicemen may receive certain exemptions and relaxations related to training requirements.
- Application Filing: Submit the application (Form-I) to the respective state authority for the PSARA License. Additionally, enclose Form-II for verification of the agency’s antecedents and an Affidavit in Form-III as required.
- Police Verification: After filing Form-I, police verification is conducted. If the agency is a partnership or a company, the directors are also subjected to police verification.
- Grant of PSARA License: The state authority will examine the application and may grant the PSARA License in Form-IV after successful verification. Alternatively, the application may be rejected.
FAQs
What are the penalties for operating without a PSARA licence?
Operating a private security agency without a PSARA licence can lead to imprisonment extending for 1 year. Also a fine may be imposed extending to Rs.25,000.
Is FDI permitted in the Private Security Agency business in India?
Foreign direct investment in a Private Security Agency is allowed up to 49% via the approval route. The application for the FDI is administered by the Union Ministry of Home Affairs. Hence before filing an application for PSARA Licence, a company having foreign investment must obtain prior approval from the Government. Also, all relevant reports like FC-GPR must be duly filed and approved.
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