All You Need to Know About PSARA License

What is Psara act?

Private Security Agencies are those associations engaged with giving security administrations including preparing of security guards. The activity of private security offices is administered by the Private Security Agencies Regulation Act, 2005, to put it plainly, called as 'PSARA.' No private security office can start a business or give security watch without holding a license.

The interest for private security administrations has expanded consistently among the general population to ensure themselves against the diverse sorts of wrongdoing. It prompted expanding in private security offices. Protect against solitary/hostile to national components going into the matter of private security administrations and the legislature has directed the development and activity of those offices through a demonstration called Private Security Agencies Regulation Act(PSARA), 2005 as it involves national security.

The legitimacy of PSARA license is 5 years and can be additionally re established for the next 5 years on an installment of the recommended expense.

What is PSARA license/ Private Security Agency License?

According to the PSARA Act, the State Government can assign an officer, not beneath the position of a Joint Secretary in the Home Department of the State or a proportional officer to be the Controlling Authority for the state. The Controlling Authority is in charge of the issuance of the PSARA license (Security license), its re establishment and guideline of the activity of private security offices. In the wake of getting an application, the controlling Authority makes such a request as it might suspect essentially. A NOC will be issued from the concerned police specialists. When it is issued, controlling expert may either allow the PSARA license or rejects it for a reason.it takes around 60 days to finish the procedure. Each private security offices are required to initiate its exercises inside a half year of getting the PSARA license.

Eligibility and Requirement for PSARA license

• Eligibility: Any Indian Company, Firm or Association of Persons is qualified to apply for a Private Security Agency license. If the applicant is a company, the majority shareholder must be an Indian. An Individual, Partnership Firm, LLP, One Person Company (OPC), or Private Limited Company can apply for a PSARA License/Registration to the Competent Authority of the concerned state.
• Name and Object of Applicant: The entity's name should contain the words "Security Services" or related terms that reflect the objective. For a company, the Memorandum of Association (MOA) must include "Providing Security Services" as one of the main objects.
• Qualification of Director/Principal Officer: The applicant must be a resident Indian, possess sound financial standing (a copy of ITR must be submitted), have a clean background, and should not have been convicted of any offense.
• MOU with Training Institute: The applicant must enter into a Memorandum of Understanding (MOU) with a training institute or organization approved by the state authority to provide training to security guards. Training requirements are relaxed for ex-servicemen.
• National Interest Clause: The PSARA License will not be granted if the applicant is found to have links with any organization or association banned under any law or government order in the interest of National Security, Public Order, or to prevent any activity prejudicial to National Security.
• Restriction on Foreign Investment: Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, states that a PSARA license shall not be issued to any agency not registered in India or having an owner, majority shareholder, partner, or director who is not an Indian citizen. (See FAQ for details.)

Documents Required for PSARA License

The procedure for obtaining a PSARA license differs as per state and the documents required for a security agency are mentioned below:

• Registration with the service tax department
• Allotment of PAN
• Employees State Insurance(ESI) Registration
• Provident fund (PF) Registration
• Registration of establishment under Shops & Establishment
• Registration under the Contractual labor Act
• All Below documents should be in proper format and shall have to be notarized
• Affidavit as per PASARA Act.
• Affidavit of security training
• Uniform Pattern
• Ownership proof for the principal place of business
• Logo for the security agency
• Identity card for all employees. Tie-ups for different yearly compliances
• Detailed armed licenses
• Character verification certificate for the employees
• Fees for PSARA license

To acquire PSARA permit, you may need to pay the accompanying expense

• For Private Security Agencies in One DIstrict – Rs. 5000
• For a Private Security organization in 5 district – Rs. 10000
• For a Private Security office in the entire state – Rs. 25000

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Procedure to Acquire PSARA license

In spite of the fact that the Indian Parliament passes the primary Law controlling the private security business as The Private Security Agencies (Regulation) Act, 2005. In any case, it gives that each state or association domain will delegate its controlling specialist and edge guidelines and method for making Private Security Agency license application form.

All the private security offices are required to get the PSARA License before beginning their activity.

At first, they need to choose the model of the business association. This choice ought to be made by considering different variables like Scale, money, Liabilities, Control, and so on. An application for a permit can be made for an area or five regions or a state.