Running a Private Security Agency in India is indeed a very lucrative business idea that requires careful planning and organization. If you are planning to start a Private Security Agency in India, you should not overlook the potential risks associated with the workforce, i.e., the security personnel employed. Therefore, workforce support is certainly beneficial to your business and, in turn, beneficial to potential customers. Therefore, in order to do justice to this aspect, it is important to comply with various legal requirements, such as ESI Registration, PF Registration, ISO Certification and many more related to the same. In this blog we are going to discuss in detail all about the Private Security Agency in India. The private security business had its basic foundations in the mid-1960s in India. Up to this point, such establishments were associated with only a few specific endowments, such as luxury inns, government offices, banks, and palatial homes.

What are Private Security Agencies? 

Private Security Agency is the agencies that provide security guards. If anyone wants to hire a security guard for their businesses or for any individual, he or she can take the help of the Private Security Agencies. They not only provide service related to guards but also provides training to the people who want to become a security guard. 

Update of 2005 Regarding Private Security Agency in India

After 2005 every Private Security Agency in India needs PSARA License to deploy security services. PSARA License Renewal is also required every 5 years. PSARA stands for Private Security Agencies (Regulation) Act, 2005. Private Security Agency in India are those agencies that deploy armed or without armed security to the individual or associations as an alternative to the police. Licensing was started by the government for safety purposes. It is a prerequisite condition for every Private Security Agency in India. Government has a separate portal for PASARA Licensing. Its name is Private Security Agency Licensing Portal. It is not a one-time license. If the government finds that there is a violation of the provision of the PSARA Act, then even in the renewal stage one’s license can be suspended. Section 4 of the Act clearly states that no person or Agency can commence business without the PSARA License. Therefore having PSARA License is very important. 

Process to Start a Private Security Agency in India 

Like every business this business of providing security services also required to have proper preparation that is very basic but necessary for the success of any business. Given below are some basic things which one must done before starting a Private Security Agency in India-

1. Business Planning 

Like any other business, starting a Private Security Agency in India needs a proper business plan to execute.  In fact, it’s the most important thing because the safety of thousands of people and things depends on it. A business plan contains everything about your company that you need to get started.  For example, the names of directors, company name, company summary, and list of shareholders, initial investments, and location of parent company, marketing strategies, vision and mission, target market, type of agency, services and competitors are the most crucial aspects.  Hence you should prepare a proper business plan. 

2. Choose a Type of Security Agency 

There are various types of security agencies in India. You have to choose one from them. The list of various types of Private Security Agency in India is given below- 

• Personal Security 
• Home Security 
• Car Security 
• Data Security 
• Event Security 
• Aviation Security 
• Technical Security 
• Unarmed Security 
• Armed Security 
• Bodyguard 
• Security Video Surveillance 
• Security Services on Patrol
  

3. Distinct Logo 

In the present era, every type of businesses have competitors in the market, hence to make your business distinct from the others you must have a distinct logo which will help your business to stand differ from its competitors. 

4. Documentation  

Proper documentation is very necessary to start the Private Security Agency in India. given below is the list of documents required for the Private Security Agency. List which is given below is not exhaustive in nature- 

• Passport size photograph of all directors of the security agency 
• Copy of PAN Card is required
• Proof of identity of all directors of the security agency
• Passport , Voter ID  and Driver’s License are also required 
• Proof of Residence of all directors which must not be older than two months
•  Bank Statement , Telephone or Cellular Bill, Internet Bill and Utility Bill
• Aadhar Card of all Directors is required mandatorily 
• Address proof of the business which must not be older than the two months. 
• Registration related to the service tax department 
• ESI Registration Certificate
• ISO Certification is also required o
• PSARA License is mandatorily required after the update of the 2005
• PF Registration to get the benefit of Provident Fund Scheme
• Affidavit related to the security training
• Ownership proof of the place of security agency
• Detailed Armed Licenses is also required 
• Character certificate of the employees 

5. Must Ensure that Employees Fulfil the Eligibility Criteria 

To start a Private Security Agency in India one who is starting the business must ensure that the employees are fulfilling the eligibility criteria for the same, which is given below- 

• One who wants to provide security services must be the citizen of India. 
• Minimum age for the above-mentioned business is 18-years and maximum is 65-years. 
• Non-Objectionable character and antecedents are required for the security service business. 
• One must pass the security training successfully 
• Must match the physical standards 
• Must not be convicted by any court in India 
• Must not be dismissed from any government institution because of bad behaviour. 

6. Certificates and Licenses

One, who wants to start Private Security Agency in India, must take the required certificates, licenses and registrations for the fulfilment of the legal compliances. Without such registrations, licenses and certifications it is almost impossible to secure your business. Hence to secure your business from penalties and to get some government benefits one must take the required certificates and licenses. 

Certifications and Licenses Related to Private Security Agency in India 

There are certain licenses and certificates which are required by the Private Security Agencies for their legal commencement. Such licenses and certifications which are necessary for Private Security Agency in India are given below- 

1. ESI Registration 

For the purpose of providing proper medical care to the employees of the Private Security Agency in India one need to have ESI Registration under the ESI Act, 1948. Employees’ State Insurance Corporation (ESIC) is a body formed under ESI Act, 1948 to look after ESI Scheme. 

2. PF Registration

PF here refers to Provident Fund. To get the benefits of the Provident Fund Scheme, PF Registration is mandatory. Without this registration employees cannot get the benefits of the Provident Fund Scheme that is controlled by the Miscellaneous Provisions Act, 1952. 

3. GST Registration 

Every Private Security Agency in India must have GST Registration and they must obtain GSTIN to run their business of providing security services. GST refers to Goods and Services Tax, providing security is also a kind of service which is taxable. Hence it is mandatory for Private Security Agency in India to take GST Registration. 

4. ISO Certification 

As private security services are kind of services which must have reliability and efficiency, it is necessary to the Private Security Agency in India to have this certification called ISO Certification.  This will assure the clients about the reliability and efficiency of the agency. ISO already framed a separate security operation management standard which will specifically applicable on the Private Security Agencies. And this will known as the ISO 18788:2015. 

5. PSARA License 

Permission taken by a Private Security Agency to do the business of providing service related to security guards and also the consent for providing training to them is called PSARA License. We can also say that to legalize the businesses of Private Security Guard, permission is given by the government and that permission is called PSARA License. Following in the form of info graphic are the benefits of the PSARA License- 

Eligibility to Obtain Security Agency License 

There are various kinds of entities present as per the Companies Act, 2013^[1], but not all of them are eligible to get the license of the private security agencies. There are few entities which can take above-mentioned license which are given below- 

• Sole Proprietorship 
• Partnership Firms  
• One Person Company 
• Limited Liability Company 
• Private Limited Companies 

Conclusion

Nowadays, security is the main concern of everyone. Hence there is a growing trend of hiring personal Security guards in every sector like banking, finance, IT, etc from the Private Security Agency. But at the same time for the security of the country, the government has to take some protective measures. Therefore government came up with PSARA Licensing. PSARA License and it’s time to time Renewal will help the government to stop the illegal activities running in the name of Private Security Agency in India. Security is not an option. It has become an essential service for everyone, be it an individual, office, bank, school, hospital or even data. Handling a Private Security Agency is not as easy as it seems yet it is very important to handle the same with alertness. In short, the crime rate is increasing rapidly, which leads to an increased need for security. Therefore, learning how to set up a Private Security Agency in India will benefit not only you but society as well. In case you have any doubt regarding the Private Security Agency, you can contact BizAdvisors. We have a very good team of experts who can help you to solve your doubt regarding Private Security Agency in India.

Read our article:Documents Required for Obtaining PSARA License in India