To monitor and control security firms or organizations operating in the nation, the Private Security Agencies (Regulation) Act (PSARA) was passed in 2005. The Act provides from the Eligibility for PSARA License in India to Eligibility to be a private security guard. The Act is exhaustive in nature.  These days, it is not new to hear cases of fraud or deception. Even a person employed as private security personnel cannot be trusted. Earlier their deployment into the service was not authentic and no set criteria or rules were there, not even for the private agencies engaged in the practice of hiring security guards. Thereby leading to several fake or fraudulent deployments. 

Every customer availing of any kind of service wishes to get it from an authenticated agency or a business organization. This helps them build their trust. Therefore, the PSARA Act was introduced in response to growing worries about how private security firms or agencies operated, as they did not undertake any background checks on the individuals hired as private security guards and supervisors. The Act also provides set rules for Eligibility for PSARA Licence in India. It also makes the agencies responsible to work under a set boundary. In this article, we will discuss eligibility for a PSARA license.

What is PSARA License?

All parts of the operations relating to the private security agency business in India are governed under the Private Security Agencies Regulation Act (PSARA), 2005. According to the PSARA Act, a person must obtain a PSARA License in India before starting a security agency firm. Additionally, approval must be requested from the Controlling Authority in order to provide service outside of India, and this authority must first approach the Central Government before granting such permission.

Eligibility for PSARA License

According to Section 5 of the Act, when the appropriate ancestry verification has been completed by the authorities, All Indian Nationals are to be considered for the granting of the license. However certain individuals, as provided under Section 6 are not eligible for their issuance of the license. They are:

A person who has been:

• convicted of an offense connected with the promotion, formation, or management of a company.
• convicted by a competent court for an offense punishment for which is imprisonment of not less than two years.
• In contact with any organization or association which is banned under any law on account of their activities that pose threat to national security or public order, or if the person is himself engaged in such an act which is prejudicial to national security or public order.
• dismissed or removed from Government service on grounds of misconduct or moral turpitude.
• Or a company firm or an association if it has a founder, majority shareholder, partner, or director who is not an Indian citizen and is not registered in India.

1. Eligibility Requirements for Businesses:

Any business that wants to register under the PSARA License must do so in line with the Private Security Agencies Act of 2005 by registering as:

• Private Limited Company
• Limited Liability Partnership (LLP)
• One Person Company (OPC)
• Sole Proprietorship
• Partnership Firm

2. Eligibility Criteria for Director/Officer

• The applicant must be a resident of India.
• The applicant must be financially stable to afford the cost of operations.
• Never had any criminal records.

3. Eligibility Criteria for Becoming A Private Security Guard:

The following Criteria must be followed for becoming a security guard and getting appointed by private security agencies:

• The applicant must a citizen of India.
• Applicant’s age must be more than 18 and less than 65 years of age.
• The applicant must have gone to Security training.
• The applicant should never have been terminated from government service.

Documents Required for the PSARA License. 

Section 7 of the Act states that the candidates Eligible for PSARA Licence in India are required to submit an affidavit incorporating the details as mentioned under Section 6, ensuring that trainers and supervisors for the private security guards required under sub-section (2) of section 9 are available and that the provision of Section 11 is fulfilled. 

Moreover, the Act states that every application is to be accompanied by a fee of:

Rupees five thousand, or ten thousand, or twenty-five thousand based on which part of the State the agency is operating from, whether it is a district, more than one district, or in the whole of a State.

The other required documents for PSARA License are: 

• Registration documents:
• PAN
• GSTIN
• Provident Fund Registration
• ESIC (Employees State Insurance Corporation) Registration
• Registration under the Shops and Commercial Establishments Act
• Registration under the Labour Act
• Proof of identity of the directors and the employees
• Copies of the Income Tax Returns of the Directors
• Two passport-size photographs of the promoters along with their PANs
• Proof of address of the Agency Office
• Affidavit as under Section 7 (2) of PSARA, 2005^[1]
• Security training affidavit
• Certificate of Incorporation
• Signed Memorandum of Understanding (MOU) with the training institute

Mainly, the process to get the candidates who are Eligible for PSARA Licence in India involves the following steps under the Act:

• Collecting and uploading the necessary documentation for a security agency: Specific paperwork must be obtained and uploaded online to obtain the license.
• MOU with an established training facility: In order to train its supervisors and security guards, the applicant is required to enter into an MOU with a training center. This training center is expected to be acknowledged by the government.
• A police statement: An application for police verification must be made using Form-I.
• Application submission: The private agency involved in the business of deploying private security guards, should apply to get the PSARA license when an application form is filled by them. The same is processed only after receiving the NOC from the appropriate police authorities.

Conclusion

Security guards are entrusted with a crucial responsibility. If they are not restricted by set eligibility criteria, then it could lead to a myriad of vulnerabilities to the public availing of their services. Therefore, the PSARA Act can be said to be a step ahead in order to ensure that such vulnerabilities are set to a minimum. It has provided rules and regulations along with the set criteria in the form of Eligibility for PSARA Licence in India for private individuals or the agencies seeking a such license.  This Central Act has delegated the power to the State Governments to frame rules prescribing the conditions on which a license is to be granted under this Act. This license, however, is not perpetual, the Controlling Authority may revoke it in accordance with Section 13 of the Act if necessary. Seek professional advice for PSARA License. You can also reach Bizadvisors.io for more information.

Read our article:How to Start a Private Security Agency in India?