What is PSARA License?
With rapid industrialisation and economic development, the number of business enterprises and establishment is rapidly increasing in India. However, with increase in industries, there are rising concerns about the security threats and peace within organizations which could not be handled by governmental forces all the time which creates the need to have a private security system within every eligible business organization capable to handle all such misfortunate events. However, before hiring and employing any security officer or agent it is necessary to ensure that the security officers are adequately trained and hold necessary skills in pursuance of their duties, which is undertaken through private security agencies.
Private security establishments/agencies are such business establishments that primarily hire employees to cater security personnel needs of various businesses under various sectors such as banking, information technology, finance, industries and for similar industries. Such agencies not only hire and employ such individuals, but also offer training facilities for inculcating security skills and necessary mannerisms (PSARA License Registration).
Therefore, the Private Security Regulation Act 2005 came into place providing for licensing of business entities that intend to offer private security services to private entities and corporations. Apart from this, following are the primary objectives of the PSARA Act-
- To provide for the creation of private security agencies through grant of licenses and to oversee their functioning, their operation within a legal structure and making them accountable for their roles & responsibilities.
- Setting standards for the personnel verification who are employed either as private security guards and supervisors.
- Ensuring proper regulation of private security agencies and security personnel so that they do not encroach over the functions of police forces undertaking use of illegal weapons, criminal activities, wearing police verifications.
Thus, a private security agency may include armed as well as unarmed security personnel’s to be employed in places of higher security requirements like corporate offices, guesthouses, hotels, lodges, private bungalows, lodges ,bodyguards, parking, security services. Such private security agencies also offer personnel training, maintenance of guards, hiring and employing personnel and manage their salary and other related compliances in India.
Therefore, no eligible applicant shall start any business agency or commence business operations unless he/she obtains a PASARA license under the provisions of State PASARA Act and Rules where the private agency is proposed to be located. If any private security agency starts initiates business operations without obtaining permit from the concerned State Government or fails to adhere to State PSARA rules and regulations, the State Authority can levy penalty or can also cancel the license or suspend the permit held under the PSARA Act.
PSARA License Registration With Legalmart
The process of PASARA registration is a simple online process which could be easily processed through an online application on the online state portal. For which, the applicant is required to fill required forms and upload required attachments. However, it is necessary to practice caution while preparing, collecting and submitting information on the portal. Therefore, it is always advisable to take assistance of an expert source which could give you reliable information and expert assistance in successfully completing the process of PASARA registration making you worry lesser about getting registration timely without any worries and focusing on business at the comfort of your convenience. For which, Legalmart has gained experience in PASARA registration under one roof.
Eligibility Of PSARA License Registration
The following entities are eligible to register under the PSARA, 2005 and obtain a PSARA license can make the application for PSARA Registration to the Competent Authority of the concerned state-
- Type of business Establishment-Any type of business entity can start a private security agency such as-
- A sole proprietorship.
- A Partnership Firm.
- Limited Liability Partnership Firm.
- Private Company.
- Association of Persons (AOP).
- Business Name & its Objectives: It shall be necessary for the private security agency to add “Security Services” or related word that is related to the object “Security services”. Further, such object should also be added in the MOA or as primary objectives of the business entity.
- National Interest: An applicant becomes debarred from making application or obtaining PSARA License, where it is found that such person is linked with or related or associated with any person or organization that is likely to be involved with any organization or person that is banned in India or wanted under orders of any law to ensure safety & security of the Nation.
- Sound financial position-Such private security agency must have a good financial position and adequate capital to maintain the business for which the Government may require copy of ITR of the business owner of directors/partners in the business entity.
- No Past criminal records-The key persons of the business entity including the owner of the business shall have no past criminal records which shall be verified by the police officers through police verification process.
- Holding any Special Qualification- All the directors including employer shall hold mandatory specialised training with respect to running of a private security agency from a training institute.
- Eligibility for a Director/Principal Officer
A person to be appointed as a director of the business establishment shall meet the following business criteria-
- Must be a citizen of India.
- Must have attained majority as per law.
- Must be in a financially sound position.
- Should not be convicted under law with respect to cases of moral misconduct on any grounds of moral misconduct.
- Eligibility for being hired/employed by the security agency-An individual to become eligible to be hired by a private security agency, must meet the following criteria-
- Must be a resident in India.
- Must satisfy criteria required for all conditions and physical standards.
- Should have attained at least 18 years of age but should not exceed the age of 65 years.
- Must undergo prescribed security training.
- Should not have been convicted or dismissed with respect to cases of moral misconduct on any grounds of moral misconduct.
- Ex-serviceman of any military forces such as Army, Navy, Air force or Police experience will be given preference.
Benefits of PSARA License Registration
Following are the benefits of the PASARA License-
- Authorizes business entity to carry security services–
PASARA license is necessary to be obtained by every private business entity wanting to start business operations. Therefore, a business entity holding a license is authorized to hire and employ personnel for catering security needs of the private security organizations.
- Increases credibility-
PASARA license is not only necessary to start business as a private security agency, but also indicates that the employees hired are adequately trained and skilled in their profession, that will help the security agency to build consumer trust and hence better credibility.
- Provides Training-
Only a PASARA License holder agency can provide services related to training of security personnel’s to all of the security personnel of other security agencies.
- Legal Compliance
A private security agency holding PASARA License is subject to registration and certain compliances failing to complete the same can lead to penalty or even cancellation or suspension of license. Thus, such private security agency is complaint with law.
- Promotes Effective Functioning-
A private security organization holding PASARA license is granted legal protection from any unwarranted claims or legal issues.
Documents Required for PSARA License Registration
As PASARA License is a state-level license, so the documents differs from state to state. Therefore, the general list of documents required for PSARA License is provided below-
- PAN identification number of the entity.
- Proof of identification of the directors and the employees hired by the entity.
- ITR copies of the Directors filed in the previous year.
- Two Passport sized photos of the promoters along with their PAN identification number.
- Proof of registered address of the Entity.
- Original copy of Affidavit required to be submitted under Section 7 (2) of PSARA, Act 2005.
- Original Copy of Affidavit related to security training.
- Copy of the Certificate of Incorporation of entity.
- Duly signed Memorandum of Understanding entered between the entity and the training institute.
- Logo of the Private Security Agency.
- Armed License.
- Medical certificate and character certificate of the concerned employees.
- Also, a copy of registration certificate under the following acts is necessary to be attached with the application-
- GST Registration Certificate including GSTIN.
- Provident Fund Registration.
- ESIC (Employees State Insurance Corporation) Registration.
- Registration certificate under Shops and Commercial Establishments Act.
- Registration under the Contract Labour Act (Regulation & Abolition) Act.
Online Process for PSARA License Registration
Step 1- Preparation & Collection of documents
As the first step towards PASARA registration, the business entity proposed to get PASARA license needs to prepare and arrange all necessary documents required for registration process to ensure timely completion of the application process. It is necessary to understand that the documents related to PASARA registration as well as the details of business owner/ promoter need to be in a clear and standardized format to avoid rejection of application.
Step 2 – MOU with a Security Training Institute
Further, the online PASARA portal contains name of the training institutes specialized in providing personnel training services. After choosing the name of the institute, the applicant shall be required to enter a Memorandum of Understanding between the Training institute and the entity itself agreeing to the fact that it will impart training facilities to eligible candidates. Additionally, ex-servicemen will be allowed exemptions in case of training aspects in the agency.
Step 3- Filing of the PASARA application
On preparation and collection of all the required documents, the applicant needs to log on to the State PASARA portal. As the next step towards application of PASRA License, the applicant needs to file details in application PASRA Form -I with the concerned State Authority under the Act.
Next, the applicant shall be required to fill Form-II which is for verification purposes.
Further, an affidavit needs to be filled and attached with the Form-I for registration purposes. After submission of application and upload of documents, the applicant can submit the form by e-signing on the portal.
Step 4- Application for Police Verification
Next, the applicant shall be required to apply for the police verification of the business entity. Once Form-I is duly filled and submitted, the applicant has to apply for police verification and the respective officers (i.e. directors in case of company and partners in case of partnership firm/LLP)
Step 5 –Issue of License
Once the applicant receives police verification clearance from the nearby local police station in the location of business operations of the entity, the authority will examine the application and may grant the license on satisfaction of all the requirements in Form-IV.
Step 6- Appointment of Supervisors
On receipt of the license, the applicant shall be required to mandatorily appoint a supervisor in the business organization to ensure that the provisions of the act are complied with regularly. They shall also be responsible to undertake monitoring and overseeing the actions of the security agency under his control. However, such supervisor should hold an experience of at least 3 years of working in armed forces.
Time validity for Obtaining PSARA License
Since, the PASRA Act is a state-level act and the time required for obtaining license is different in each state depending upon the State authority. However, normally the time period required for obtaining the license is anywhere between 40 to 60 days from the date of receipt of the application.
Why you Choose Legalmart?
Therefore, the process of PASARA registration is a simple, hassle-free and efficient process that is necessary to be obtained by every private security agency to commence business operations in India. However, it is always advisable to choose a reliable source for preparation of documents and application for PASARA license registration because not filling adequate information or any discrepancy in documents may lead to delay in the process or even rejection of the application. At Legalmart, we hold years of professional experience in undertaking and successfully completing registration process due to our unique features including-
- Large team of professionals such as Chartered Accountants, Company secretaries, Legal professionals and many more.
- End to end assistance from guidance to document preparation to submission on the portal and successfully getting registration.
- Simple, quick and efficient process of registration with complete transparency and at reasonable prices.
- Efficient and quick response towards your doubts and queries.