PSARA License

What is PSARA License?

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

Who is Eligible for PSARA License?

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?

Below are the mandatory documents required to register as PSA:

• 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

What is the Process of PSARA License?

The application can be made in both online and offline mode. Following are the steps for registration:

• Application via Form I, II, III is submitted to the Controlling Authority for the grant of a license. Form I shall be accompanied by a DD/Cheque or evidence of payment of fees.
• The fees for obtaining license under PSARA varies from state to state and according to number of districts license is opted for. Usually it is rupees 5000-25000 for state wide license.
• On receipt of all necessary forms, the controlling authority verifies the contents of the application and the particulars of the applicant and generate an electronic acknowledgement slip.
• A verification of the premises of the private security agency is done either by the controlling authority or by a person appointed by him. A police verification is also conducted.
• After necessary inquiries and police verification, the controlling authority grants license to the applicant, provided they follow the provisions of the act. If the private security agency has already obtained a license from the controlling authority of some other state, then the requirement of training of the licensee shall not be necessary. Usually a license is granted within 60 days.
• A physical copy of the license is required to be delivered by post within fifteen days to the office of the private security agency by the controlling authority.
• A copy of the license shall be displayed at the office premises of the PSA at all times.

What is PSARA License Validity?

Usually a PSARA license is valid for five years, but in some states it is valid for only one year. An application to renew the license muist be submitted 45 days before the expiry of license. After the receiving of application, the controlling authority shall pass renewal order within 30 days. 
The license can be cancelled on the following grounds: 

• If the license holder does not adhere to the rules or violates them knowingly. 
• If fake documents are submitted to obtain a license.
• If the license holder is not providing services as per the PSARA act.
• If the PSA is involved in some anti national activity. 

How Can ApkaTax Assist You?

What is the PSARA License Fees In India?

Are you looking for PSARA License Fees In India then here the details for you. The PSARA License cost In India start from ₹15000 to ₹52000 along with Government Fee ₹ Nil and Professional Fee ₹ Nil.

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