PSARA License - An Overview
With the increase in number of offices and business establishments, there has been a rapid increase with the requirements of security guards. Hence with the increase with the requirements of security guards, there will be more amounts of agencies forming to carry out the requirements related to PSARA license.
The main aim of the PSARA Act, 2005 was to improve the way in which private securities agencies work in India. This was passed by the parliament in the year 2005 to carry out the requirements related to private security agencies.
Therefore the main motive of this regulation was to improve the standards related to securities agencies in India. Apart from this, the regulation ensures that there is compliance maintained with the registration requirements related to obtaining the license for private securities agencies.
What is a Private Securities Agency (PSARA License)?
Any organisation or establishment that works in providing training services to private security guards for offices, malls and other forms of establishments is known as a private securities agency. Therefore it is important for the private security agency to obtain the PSARA license before carrying out operations.
Statutory Provisions related to PSARA License
The Private Security Agencies Act, 2005 regulates all the activities carried out by an establishment that engages in providing and training of security guards. As per the act any agency that carries out these activities without obtaining the requisite license would not be allowed to operate as per the requirements of the act.
Hence the applicant would have to apply to the respective state where the applicant is residing. The state authority would provide the license. The requirements of applying in one state would be different from another state. There is no central scheme for this form of license.
What activities are governed under the PSARA Act?
The following activities are governed under the PSARA Act:
- Formation of Securities Agencies
- Training of Securities Agencies
- Regulation of Securities Agencies
- Disqualification of Securities Agencies
Benefits of Securing PSARA License
The following are the benefits of securing a PSARA License:
- Provides Training
- Increases Reputation
- Compliance with Law
- Increases the Credibility
- Promotes Effective Functioning
- Provides Training
Securing this license would empower the company to provide training based facilities to all securities of private securities agencies.
- Increases Reputation
A customer would obviously utilise the services of an organisation that has this form of license. Hence the reputation of the private security agency is more due to this license.
- Compliance with Law
Securing this license ensures that the agency is compliant with the provisions of the law.
- Increases the Credibility
With increased reputation brought in the organisation the credibility would also improve.
- Promotes Effective Functioning-
The organisation can effectively function smoothly without any legal problems and issues.
Eligibility Criteria for Securing PSARA License
The following eligibility criterion has to be satisfied for securing a PSARA License:
- Any form of Entity
- Director Appointment
- Any form of Entity
The organisation can be any form of entity which is regulated under respective laws and rules. If the applicant is a sole proprietorship, a partnership, a limited liability partnership, a private limited company or a one person company, then they can apply for the above license.
- Director Appointment
A director has to be appointed to carry out the services of the company. The following criterion has to be sufficed by the individual appointed as a director:
1. Director must be a resident Indian.
2. The director must be more than 18 years of age.
3.The director must not be convicted of any crime and any other offence.
4.The director must not be bankrupt.
5.The director must be financially sound.
Minimum Requirements for securing PSARA License
The following requirements are required in order to obtain this form of license:
- Information and Objects of Applicant
- Memorandum of Understanding with Training Institute
- Company Formed in Natural Interest
- No Foreign Direct Investment
- Information and Objects of Applicant
First and foremost, the applicant should provide details related to the name of the company. Along with this the information and objects of the business must be mentioned by the applicant. Such objects must be mentioned in the Memorandum of Association (MOA) of the Company. Hence the company must have its objects as ‘Private Securities Agencies or Providing Private Security Agency Services’.
- Memorandum of Understanding with Training Institute
The organisation or entity must have entered into a Memorandum of Understanding (MOU) with an institute that provides training and other form of services to securities. The institute must be accredited and reputed by the state government. The training programs must be provided by this institute.
- Company Formed in Natural Interest
PSARA license would not be granted to any institute or organisation that is banned from working by the government of India. Hence this license would only be provided to organisations and agencies that work in the interest of the country. The national interests of the country must be considered here.
- No Foreign Direct Investment
Foreign direct investment is permitted in India. However, there are particular sectors which are prohibited from receiving any form of Foreign Direct Investment. Under section 6(2) of the Private Security Agency (Regulation) Act, 2005 such license would not be granted to a company that is not resident in India. Even if the directors are a foreign national then this form of license would not be provided.
How do I apply for a PSARA License? (PSARA License Procedure)
The following procedure has to be considered for securing a PSARA License:
- Secure Documents
- Enter into MOU
- Go For Police Verification
- File the Application
- Time Period for License
- Specifications related to Supervisors
Secure Documents In the first step, the applicant has to secure all the important documents. Some of the documents would include the PAN, TAN, Goods and Services Tax Registration, Provident Fund Registration, Employees State Insurance Registration. Apart from this the registration under the respective Shops and Establishments Act must be got for the PSARA License. Apart from this the applicant must also provide or furnish the income tax report of each director and shareholder of the organisation. Since 2019 the application for the PSARA, is made online through the Private Security Agency Licensing Portal. This portal is integrated and connected to the Integrated Criminal Justice System (ICJS). Hence all the application filing, renewal, payment of fees and other processes can be carried out online. In this process there are full resources such as e-signing and geo-tagging systems which make the process straightforward.
- Enter into MOU
- In the next step, the applicant would have to enter into a Memorandum of Understanding with an organisation which is engaged in training of security guards. The institute or the organization dealing in the training services must have obtained approval by the state controlling authority. However, in these training programs, special relaxation and flexibility is being provided to the ex-servicemen.
- Go for Police Verification
In the next step the applicant would have to go for the process of police verification. Police verification can be done through Form- I. However, if the applicant is an organisation or a partnership company, then all the directors and shareholders would have to go for police verification.
- File the Application
After this step, the applicant would have to file the application with the respective state authority for PSARA. If there is a No Objection Certificate (NOC) from the Police authority then the authority to grant the PSARA license would either issue the license or reject the license.
- Time Period for License
As the state authority is important in determining the requirements related to PSARA, the time line for securing this form of license would vary from one state to another state. Usually it would take about 2 months to secure this license
- Specifications Related to Supervisors
The applicant has to appoint supervisors in accordance to the requirement of the above act. Supervisors must engage in order to manage the work that is carried out for security guards. Any individual who has experience of working in the army or navy for minimum of three years must be appointed as a supervisor. This would usually be given as a preference.
Renewal of PSARA License
Usually in all states the PSARA License is valid for a period of 5 years. However, the license for renewal in the states of Uttarakhand and Chhattisgarh is valid for a period of one year. The applicant has to ensure that the application for the renewal of license should be submitted three months or 90 days before the period of expiry. In order to be compliant with the provisions of the PSARA Act, the documents along with the fee must be paid in order for the renewal of the license.
Fees for PSARA License
1. For a Single District the Fees structure would be Rs. 5000/-.
2. For five districts the fee structure would be R. 10,000/-.
3.For entire state the fee structure would be Rs. 25,000/-. However, there are specific exceptions and states have the authority to charge more for the license. For example -Karnataka state charges Rs. 50,000/- for the license.
Is it possible for the authority to revoke PSARA License?
Once the license is granted to the applicant there are specific compliances which have to be followed by the applicant. The organisation or applicant also has to ensure that specific activities are not carried out. If these acts or activities are carried out, the authority has the right to revoke the PSARA license. The grounds for revocation of this license are present under section 13 of the PSARA Act, 2005. The following instances would provide the authority the right to revoke a license:
1. If the information submitted is got through misrepresentation of facts.
2. If any form of false documentation or photographs are submitted.
3. If the license holder has cheated or impersonated the government authority.
4. If there is misuse of information for discharging certain duties related to the license.
5. If the services are not provided as per the requirement of the client.
6.If there is a threat for national security.
1. Identity proofs of all executives of the firm
2. Registered Address Proof of the Agency
3. A duly affidavit acquired under the Private Security Agencies Regulation Act, 2005
4. Logo of the Private Security Agency. This will be the trademark of the agency.
5. PAN Card details of the promoters and members
6. Two passport-sized photographs of the promoters
7. Details of registration acquired from the Service tax department
8. Certificate granted under the provisions of the Shops and Establishment Act.
9. ESI (Employee State Insurance) Registration
10. PF (Provident Fund) Registration
11. Affidavit of the Security Training
12. Armed License
13. Character Certificate for the employees
14. Copy of the ITR (Income Tax Return) of each director
15. Certificate of Incorporation of the Company
16. Duly signed Memorandum of Understanding with the Training Institute
17. of all the Security Guard appointed
What are the important forms required for this form of license?
The following forms are required for PSARA License:
1. Form I- Which would provide information and details related to the character and activities carried out by the applicant.
2. Form II- Information related to the security guards or the supervisor that is appointed.
3. Form III- Certificate related to character and antecedents.
4. Form IV- Certificate related to training.
5. Form V- Application for the Renewal License or a New License for carrying out the business of a private security agency.
6. Form VI- Engagement license to carry out the private security agency.
7. Form VII- Appeal filing form.
8. Form VIII- Particulars register.
9. Form IX- Photo ID of the Security Guard and Supervisor.
How to reach Enterslice for PSARA License
1. Fill up the online form.
2. One of our professionals will get back to you.
3. All queries can be addressed to one of our experienced professionals.
4. Track and monitor the progress of your application.
5. Get Deliverables.
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