PSARA license is a must essential for opening any private security company in India. These security agencies render trained security guards and additional security services to different organizations across the country. These security agencies are authorized by an act called the Private Security Agencies Regulation Act.
Overview of PSARA License
Due to a rapid increase in companies or business establishments, the need to obtain personal security has also considerably mounted. Therefore, the significant rise in PSAs (Private of Security Agencies) across the nation increases hiring security guards from private business establishments.
Even though these PSAs help in adhering to the safety requirements of the private sector. Though, there was also a concern about the way these agencies manage. Thus, the PSAR Act, 2005, was passed by Parliament. PSARA 2005 lays under a set of rules regarding the registration of the Private Security Agencies Regulation Act, licenses, and the proper functioning of PSAs.
The government passed the private Security Agencies Regulation Act 2005 (PSARA) to implement laws regarding Private Security Agencies. Further, the PSARA also has attention and check over the Registration of the Private Security Agencies.
WHAT ARE PRIVATE SECURITY AGENCIES?
Private security agencies are those companies that provide security services to different hospitals, ATMs, banks, and companies, and so more. These agencies also give training to the security guards who these agencies hire. A PSA must obtain PSARA License for its service.
What is PSARA License?
All the organizations concerning the services of security agencies are directed and managed by the Private Security Agencies Act, 2005. This act is known as PSARA. As per this Act, no person is allowed to originate or take out the business affairs of the Private Security Agency without getting PSARA License. The State controlling authorization issues the License.
The Private Security Agencies Regulation Act (PSARA) was passed in the year 2005. Bellow listed issue comes under the PSAR Act 2005:
- Creation of PSAs (Private Security Agencies) in India
- Management of PSAs (Private Security Agencies) in India
- Regulation of PSAs (Private Security Agencies) in India
- Limitation of PSAs (Private Security Agencies) in India.
The scope of the PSARA License is restricted to a single state, i.e., the State in which it was issued. So, PSARA seems the concept of a single permit with nationwide coverage. The applicants are needed to get the stated License from the State Controlling Authority of the concerned State.
Benefits OF PSARA LICENSE
The list mentioned below are the benefits of PSARA License:
- Empowers the Training Company
- Attracts more Consumers
- Avoid Dismissal of the Rights and Services
- Assists in ensuring the security of the Potential Consumer
- Increases Reliability of the Agency
- Secures the Stable and Effective handling of the organization
ELIGIBILITY CRITERIA FOR APPLYING FOR PSARA LICENSE?
The Private Security Agencies Regulation License is not assigned to any private security agency. There are many criteria directed under the PSARA 2005 to match eligibility for getting the PSARA Permit.
The following listed are the standards for applying for PSARA Permit:
Eligibility For The Companies
According to the PSARA, 2005, every company obliging to get itself listed under PSARA is required to file itself as any of the following listed business structures:
- Private Limited Company
- Limited Liability Partnership
- Partnership Firm
- Sole Proprietorship
- One Person Company
Eligibility For The Appointment Of Director/Principal Officer
For being selected as the director or chief officer of a Private Security Agency, one should fill the following listed criteria:
- An applicant must be an Indian citizen,
- An applicant should be financially stable
- The concerned person must not be convicted for any offense and should have a perfect forebear past.
Eligibility For Being Hired As Security Guard
The following listed criteria must be fulfilled for being appointed as Security Guard in a Private Security Agency:
- The applicant must be an Indian citizen.
- The age limit of the person should be between 18 to 65
- The applicant must have proper training.
- The applicant must not have been dismissed or removed from any government service under any circumstances.
- The applicant must complete all the specified physical criteria.
- The applicant must ensure the agency about his appearance.
WHAT ARE THE MINIMUM REQUIREMENTS FOR Getting PSARA LICENSE?
The minimum obligations that must be filled for getting PSARA Permission are as follows:
- Name and Object of the Candidate: The name of the object or organization must include the word “security service” or all other relevant or associated words indicating the object. If the applicant is a company, then the MOA (Memorandum of Association) must include ‘Providing of Security Company’s the foremost thing of the organization.
- MOU with Training Institute: The candidate is mandatorily needed to enter into a Memorandum of Understanding (MOU) with the organization or institute involved in preparation security guards. The institute or the company dealing in the training services must have permission from the State controlling authority. Though, in these training programs, special relaxation and adaptability are being provided to the veterans.
- National Interest Cause: The PSARA license is not allotted to a person connected or associated with any organization, which the Indian government had banned. If an association or an entity is working against the national interest or engaged in any activity, it is prejudicial to national security. Then the State controlling authority will not give PSARA License to such organizations.
- Limitation on Foreign Investment: According to section 6(2) of The PSARA, 2005, a Private Security Agencies Regulation Act license will not be allowed if an item or a company is not registered in India or is having a majority or proprietorship an of a stockholder, Directors, or Partners outside India.
WHO ARE NOT Able TO Get PSARA LICENSE?
Section 6 of the PSARA Act allots to the requirements concerning the inabilities of a candidate. The following listed are the limitations due to which the candidate is not qualified to get licenses:
- The candidate has been convicted for an infringement concerning the organization, promotion, or the management of a company;
- A court of competent has sentenced the concerned applicant for the violations whose prescribed punishment is not less than two years;
- The candidate is having connections or relationship with an organization or coupling which is exceptionally forbidden by any law for the actions against the public law or national defense;
- The candidate has been either dismissed or suspended from the government service on the grounds of moral turpitude or misconduct:
- The said company has not been blended in India;
- If the Proprietor of the Company is not Indian;
- An Indian does not own the bulk shareholding of the said company.
WHAT ARE THE GROUNDS FOR THE CANCELLATION OF THE PSARA LICENSE?
Section 13 of the PSARA 2005 provides the grounds for the cancellation of the License. The following listed are the grounds on which a PSARA License stands canceled:
- The License has been fulfilled by giving false or fake documents.
- The license holder has used faked photos.
- The license holder does not adhere to the terms and laws of the PSARA act and infringes it with any one of them.
- Misuse of any data about the license.
- The PSAs use a fraudulent name for operating instead of the name used when getting a license.
- The license holder is not giving the services as per the PSARA act.
- The private security agency is careless in its duties.
- If the private security agency is required in any anti-national venture.
WHEN SECURITY GUARD DISQUALIFIED FROM BE HIRED?
There must be several repeated cases where the guards applied by the Security Agency:
- Observed guilty of apparent negligence;
- Dedicated Misappropriation or Violation of Trust of property they were intended to guard;
- Were found drunk or wired;
- Found criminal record;
- Had schemed on the property which they were supposed to cover.
WHAT ARE THE DOCUMENTS Required TO Get PSARA LICENSE ONLINE?
Although the document must vary from one State to another, some of the official documents necessary for getting a PSARA Permit online are mentioned below:
- Certificate of incorporation
- Signed Memorandum of Understanding
- Address proof of the office
- Employees state insurance registration.
- Provident fund registration
- Identity cards of all employees
- An affidavit obtained as per the PSARA act
- Logo for the private security agency
- Uniform pattern
- Copy of ITR
- Character certificate of all employees
Which Forms come under the PSARA?
The forms that come under the purview of PSARA is explained below:
|Form I||Verification of Character and Antecedents of the Applicant|
|Form II||Verification of Character and Antecedents of the Security Guard or Supervisor|
|Form III||Character and Antecedents Certificate|
|Form IV||A Training Certificate|
|Form V||Application for the New License or the Renewal of License in order to engage in the Business of a Private Security Agency|
|Form VI||License to engage in the business of the Private Security Agency|
|Form VII||Form for Filing an Appeal|
|Form VIII||Register of the Particulars|
|Form IX||Photo ID Card for the Private Security Guard and Supervisor|
WHAT IS THE PROCEDURE TO Get PSARA LICENSE?
The steps involved in the procedure for obtaining PSARA License is summarised below:
- Certify Documents: The first step for getting a PSARA Permit is to collect every single essential document, such as Permanent Account Number (PAN) Card, Tax Deduction Account (TAN) Number, Goods and Service Tax (Tax) Registration, Provident Fund (PF) and Employee State Insurance (ESI) Registration, Registering under the Shops and Establishment Act, copy of the Income Tax Return (ITR) of each director or stockholder or associate and so forth.
- Memorandum of Understanding With A Training Institute: The applicant is required to enter into a Memorandum of Understanding (MOU) with the organization or institute included in training security guards. The institute or the establishment in the training services must have got permission from the State verifying authority. Though, in these training programs, extraordinary relaxation and affability are being provided to the ex-servicemen.
- Police Verifying: The applicant is needed to apply for the police verifying in Form – I. However, if the applicant is an organization, firm, or another individual connection, separate proof will be requested for each associate or director.
- Application Request: The PSARA request is registered before the controlling authority of the PSARA, which is then provided more for confirmation. After getting the No Objection Certificate (NOC) from the concerned Police specialists, the State establishing authority may either allow or deny it with an example.
- Time for Issue of PSARA: The total time to complete obtaining the PSARA License is sixty days beginning from the date of registering the PSARA application. The process of getting the PSARA Permit differs from State to State.
- States of PSARA Licence: The PSARA describes the ability, limitation, and standards for a security guard. And the candidate needs to engage executives to manage the work of security guards. A person from the air, navy, or army force with a minimum of 3 years of experience should be given preference.
What is the Fees Structure of PSARA License?
The following listed are the fee structure applicable for PSARA License:
- For a Single District: Rs 5000
- For 5 Districts: Rs 10000
- For an Entire State: Rs 25000 (Except in Karnataka: Rs 50000)
GUIDELINES FOR THE RENEWAL OF PSARA LICENSE?
PSARA Licence is valid for five years since the issuance of the declared License. However, the State of Madhya Pradesh, Uttarakhand, and Chhattisgarh have valid licenses for one year. PSARA License should be renewed after its expiry. There are specific procedures to be followed for the Renewal of the Private Security Agencies Regulation Act License.
- The applicant has to make a request 90 days before the License expiry date.
- The applicant must register for the PSARA Permit and the certificates guided under sections 6, 7, and 11 of the PSARA Act with the prescribed fee.
WHAT ARE THE COMPLIANCES AS PER PSARA?
Under the PSARA regulations, the PSA is needed to follow certain guided agreements. The following listed are the compliances that are to be complied with:
- Private Security Agencies must hire supervisors to supervise the working of the guards appointed in the organization.
- These security agencies are restrained from training the security guards appointed in their firms.
- PSAs are needed to compute ex-defense applicants who hold at least three years of experience.
- The PSAs are necessary to ensure every requirement, guidelines, and elimination prescribed under the PSARA.
- According to PSARA, security guards should understand the specified uniform policy.
- Security guards should know the designated uniform policy, according to PSARA.
What are the Amendments made in the PSARA?
The government of India has recently launched PSA Licensing Portal, with features of a single-window system for licensing over the nation, linked with ICJS (Integrated Criminal Justice System) for antecedent’s verifying. This portal has an online payment method option to pay for the license fee, together with the amenities of e-sign. However, there are just some states that allow online systems, where some States are still accepting.
Important Amendments In 2019
- After the PSAs (Private Security Agency) Licensing Portal launch, there is no obligation to apply for the police confirmation of the organizations concerning Directors/Owners/Associates for the Private Security Agencies Regulation License grant.
- Controlling administration is imperatively asked to employ computerized databases of corruption and criminals such as Crime and Criminal Tracking Network & Systems (CCTNS), Inter-operable Criminal Justice System (ICJS), and other applicant-related facilities.
- Electronic mediums like the DD or the banker’s cheque will be held for fees.
- The Centre has established the NSQF (National Skill Qualification Framework) necessary and mandatory from 27th December onwards.
- Based on the comprehensive preparation and job requirement, the PSA will hire ex-defense personnel. However, no agency shall select any of the ranks of the paramilitary forces, armored forces, or state police forces.
- The Character and Antecedent Certificate, if once given, identical, will be legitimate for three years although the change in employment status.
- The Controlling Authority, either Suo Motu or by its deputy officer, should check the bases being managed by the PSAs as the filed address.
- The Controlling Authority should have a hard copy of the Private Security Agencies Regulation Act License. The same is then needed to be delivered by a speed post in 15 days of the issuance to the certified office of the Private Security Agency. The private security agency is compulsory requested to display the identical at its place of business.
FAQs for PSARA License
PSARA is an abstract for the Private Security Agencies Regulation Act. The government of India brought out this act to regulate all forms of private securities in India.
The individual state authorities have the right to grant PSARA Licenses on an exclusive basis.
If a person wants PSARA License just for one district, then the charge will be Rs 5000. But, if he/she needs a license for five districts or a Whole State, then the charge will be Rs 10000 and Rs 25000 (But in Karnataka: Rs 50000), respectively.
A PSARA License is valid for five years from the date of enrollment in most of the Indian states apart from Uttarakhand and Chhattisgarh. Both of those states grant PSARA licenses for one year.
As per section 6 of the PSARA Act, 2005, any disqualified person cannot apply for PSARA License.
Every State Government requires to appoint an officer of the Rank of Joint Secretary in the Home Department or an officer of equivalent rank to serve as the Controlling Authority under the PSARA.
Yes, if a candidate needs to operate a business in more than one state, then he/she requires to apply for a separate PSARA License. Further, the process for getting PSARA License varies for each State.
While applying for the PSARA license under the Private Security Agency Regulation Act, 2005, the applicant must affix the following documents: PAN Card. Tax registration certificate. Employees State Insurance (ESI) registration letter.
Section 7 (4) of the PSARA Act 2005 obliges the Controlling Authority to act on an application (whether to issue or refuse to grant the License) within sixty days, starting from the date of receipt of the complete application.
No, according to Section 4 of the PSARA Act, 2005, if an agency wants to offer security services abroad, the same is then first required to obtain permission or approval from the Controlling Authority. The controlling authority, before approving, shall first consult the Central Government.
One should apply for the Renewal of PSARA License at least ninety days before its expiry date.
No, the agency can't operate in other states with a License obtained in a specific form. The License is state-specific; therefore, the agency needs to get different Licenses for different states.
Why legaltoast ?
5 Stars Rated