PSARA License

Updated on June 11, 2025 11:54:35 AM

In today's dynamic world, security concerns permeate every facet of life. From safeguarding businesses and communities to ensuring personal safety, the private security industry plays a crucial role in fostering a secure and stable environment. Yet, operating within this vital sector demands adherence to a specific regulatory framework: the Private Security Agencies Regulation Act (PSARA).

Understanding and navigating the PSARA license process, complete with its documentation, procedures, eligibility requirements, and potential consequences for cancellation, is no longer optional – it's essential for any aspiring security agency owner. Dive in and unlock the knowledge that will navigate you through the PSARA maze, ensuring your agency operates with legitimacy, professionalism, and a commitment to securing a safer future for all.

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What is the PSARA ACT?

The PSARA registration is an abbreviation for The Private Security Agencies (Regulation) Act, 2005 is an extensive law enacted to ensure the functioning of private security agencies in India. Its main purpose is to make sure that these agencies operate within a legal framework and are accountable to a regulatory mechanism.

The regulation and oversight of private security services across the nation has reached a critical milestone thanks to this significant piece of legislation. Concerns about the quality of services provided by some agencies were raised due to the absence of a standardized regulatory system, which could pose a threat to public safety and security.

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What is a PSARA License?

PSARA License, short for Private Security Agencies (Regulation) Act License, is a mandatory permit required for a private organization an individual to penetrate operations in the country. Private security agencies must adhere to legal parameters and maintain high standards of professionalism and accountability under the Private Security Agencies (Regulation) Act, 2005 (PSARA Act).

PSARA License is only applicable in the state it was issued. As a result, PSARA does not recognise the concept of a single license that covers the entire country. The license mentioned above must be acquired by the applicants from the State Controlling Authority of the state.

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What are the types of PSARA License?

Private security agencies can seek various licenses under India's Private Security Agencies Regulation Act (PSARA) based on their operational scale. These permits are made to meet particular requirements.

  • License for unarmed guards
  • License for armed guards
  • Cash in Transit (CIT) License
  • Central monitoring system (CMS) License
  • Event Security License
  • License for security consultant
  • Private detective agency license
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What documents are required for the PSARA License Registration?

Below given is the checklist of documents required for the PSARA License registration -

  • Documents required for Security Agencies
  • Documents of Controlling Personnel
  • Documents related to Premises
  • Other mandatory Documents

Documents required for Security Agencies

Documents of Controlling Personnel

  • Photographs
  • PAN Card
  • Election Card
  • Aadhar Card (UID)
  • Voter ID Card
  • Passport
  • Address Proof
  • Electronic/Telephone Bill
  • Registered Leave and License
  • Income Tax return of last 3 years

Documents related to Premises

  • Rent Agreement
  • Recent Electricity Bill (not older than 2 months)
  • Property Tax Receipt/Conversion Charges Paid (if applicable)
  • Photo of premises (inside and outside) to authenticate the location

Other mandatory Documents

  • MOU : A Memorandum of Understanding has been established with a security training institute that is well-respected.
  • Special Qualification : Training Certificates for agency’s owners and key personnels.
  • Photographs of security guards : Property Tax Receipt/Conversion Charges Paid (if applicable)
    • 1. Coloured photo in uniform
    • 2. Specimen Badge and Logo
    • 3. Identity Card
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Who’s eligible to obtain a PSARA License?

A PSARA license is available for registered private limited companies, limited liability partnerships(LLP), one-person companies(OPC), sole proprietorships, or partnership firms. Moreover, any Indian resident is eligible for a PSARA License except for those who falls under the below mentioned category:

  • Prosecuted for an offense related to the promotion, formation, or management of a business.
  • Found guilty of an offense where the penalty is set at a minimum of two years in prison.
  • Keeping connections with the organization or association that is prohibited by the law because of endangered national security or public order.
  • The grounds for dismissal or expulsion from government service are misconduct or moral turpitude.

For the role of Director/ Principal Officer

  • The applicant should be an Indian resident.
  • One should not have a criminal background.
  • Must have financial resources to recover business expenses.
  • The officer/director must be above 18 years old to apply.

For the role of a Security Guard

In order to apply for the role of a security guard in a private organization or association, below given requirements should be met:

  • Indian citizenship is required.
  • It is necessary for the person to be between 18 and 65 years old.
  • Must have prior experience.
  • Shouldn’t be fired from any government organization.
  • The individual should meet the physical standards and other conditions.
  • The security training required should have been successfully completed.
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What is the process for getting a PSARA license?

Document Preparation

The documents required for the application should be stored and collected all in one place to ensure smooth functioning of the process, which will speed up the application. After obtaining all the documents, the application can be made through an online portal. The online portal can seamlessly carry out the entire process due to the availability of the e-signing feature.

Memorandum of Understanding

Select a training institute that fits your requirements, which can be found on the PSARA website, and enter into a Memorandum of Understanding (MOU) with them. This is required to provide training to the potential security personnel. Agencies offering training tend to attract high-quality employees. Training requirements may require ex-servicemen to receive certain exemptions and relaxations.

Application Filing

After the completion of the previous step, the applicant must submit an application form (I) to the concerned authorities for the PSARA License. In addition to that, enclose form (II) for verification of its acenedent. Form (III) for affidavit is required as well along with form (I).

Police Verification

The police verification is the next step in regard to the application process. The nominated directors are required to undergo police verification regardless of whether the agency is a corporation or a partnership.

Grant of PSARA License

The state authority will examine the application after receiving a No Objection Certificate (NOC) from police and may grant the PSARA License in form (IV) in case of successful verification.It's possible that the application won't be accepted.

Time period for getting PSARA License

Considering the date of filing an application for PSARA License, the entire process will take sixty days. The application process differs from state to state.

Supervisor Appointment

The applicant must designate supervisors in order to comply with PSARA 2005 provisions. The supervisor’s are in charge of overseeing and directing the activities of the agency's security guard’s work. Individuals with the experience of at least three in the army or navy are appointed as supervisors.

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What is the cost of PSARA License registration?

PSARA License is mandatory to maintain the legal framework and the registration fees are necessary for several reasons, ultimately serving both private and public entities.

Registration fees contribute to the cost of managing, monitoring and enforcing PSARA Regulations. This includes maintaining a dedicated administrative structure, conducting inspections on a regular basis and investigating potential violations. Providing fair and proportional licensing costs to all agencies with different service areas is achieved through the fee structure for PSARA license.

IEC Registration in Kothrud Fees
Fees for agencies in one district: ₹5,000/-
Fees for agencies up to five districts ₹10,000/-
Fees for agencies in more than five districts ₹25,000/-
Fees for agencies in the entire state ₹25,000/-

Note: The aforementioned Fees is exclusive of GST.

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What is the validity period for the PSARA license?

Usually the licenses in most of the states are valid till 5 years of issuance, granting security agencies the necessary authority to conduct their operations legally and provide their services in the designated region.

Certain states like Uttarakhand, Madhya Pradesh and Chhattisgarh have comparatively shorter validity of 1 year only. It is crucial for agencies to be aware of the specific validity period applicable to their respective states.

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What is the renewal process for PSARA License?

Operating a private security agency in India mandates a valid PSARA License, ensuring timely renewal is important to ensure your agency adheres to regulations, maintains professionalism, and avoids legal trouble.

PSARA License usually lasts for 5 years in most of the states except Uttarakhand, Madhya Pradesh and Chhattisgarh in which the validity is of 1 year. The renewal process must be initiated at least before 45 days of expiry of PSARA License. Operating with an expired license can lead to penalties and suspension.

The renewal order will be issued within 30 days of receiving the application.

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Amendment of PSARA License

A PSARA License is crucial for operating a private security agency in India, but changes occur. Whether expanding operations, modifying services, or updating personnel, amending your license ensures legality and smooth business continuity. Typical justification for changing a license include:

  • Change in ownership : The concerned authorities must be informed on prior basis in case of change in agency’s ownership or management. The license might need to be amended in order to reflect changes.
  • Change in address : As per state regulations, if the entity moves to a new address, it must inform the regulating authorities and update the same in the license.
  • Change in service : In case the agency intends to introduce new services (such as CIT services) or discontinue certain current services, the license should be adjusted accordingly.
  • Change in key personnel : In case there are any revisions needed, the governing authority must be kept informed of any changes to key personnel, such as directors or partners.
  • Equipment change : Whenever the agency buys or sells security tools such as guns or surveillance systems, the license needs to be updated.
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Under what circumstances can a PSARA license be canceled in India?

A PSARA License is your passport to operating a private security agency in India, but certain violations can lead to its cancellation. Here's what you need to know about the cancellation process, its implications, and how to avoid it:

Grounds for cancellation of PSARA License

Below given are some circumstances under which the license can be canceled:

  • Obtaining license via misinterpretation or using false documents.
  • Violating the PSARA Act or License conditions.
  • Misusing information during discharge of duties as a private security agency.
  • Falsely representing the agency’s affiliation with the government.
  • Impersonating a public servant.
  • Failure to commence activities or provide services.
  • Non-compliance with court orders or lawful authorities.
  • Engaging in acts that threaten national security, public order, or law and order.
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Conclusion

Obtaining and maintaining a PSARA License is a crucial step for private security agencies in India. While the process may seem intricate, understanding the eligibility criteria, required documents, application procedures, and renewal guidelines empowers you to navigate the system efficiently.

Remember, compliance isn't just about avoiding cancellation; it's about upholding professionalism, ensuring public safety, and building a thriving security agency. By diligently following the PSARA framework and seeking guidance when needed, you can secure your license, operate with confidence, and contribute to a more secure environment for everyone.

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Frequently Asked Questions (FAQs)

What is PSARA Certification?

The Private Security Agency (Regulation) Act, 2005 (PSARA) is a law in India that regulates the functioning of private security agencies. The license ensures that the agencies meet certain standards of professionalism, training, and equipment, and that they operate in accordance with the law.

Who’s eligible for a PSARA License?

Indian citizens or companies with clean records, security qualifications, and sufficient finances can lead PSARA-licensed security agencies, adhering to specific criteria varying by state.

Why is PSARA required?

PSARA ensures professionalism, trust & safety in private security: qualified guards, ethical operations, & adherence to law, creating a secure environment for all.

What is the penalty for a PSARA License?

Penalties for PSARA license violations range from hefty fines to license suspension or even cancellation, depending on the severity of the offense.

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