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PSARA License In India - Documents, Eligibility And Costs


PSARA License In India : Documents, Eligibility And Costs

PSARA License In India Documents, Eligibility And Costs

According to data from the National Bureau of Crime Record, crime rates in India rose steadily by 3% from 2017 to 2019. Despite some measures, India’s crime rate has no barriers and is seamlessly rising. This is of increasing concern to people in metropolitan areas where crime rates are very high. The need for security has increased and the number of new companies being established has grown significantly. For security purposes, individuals tend to hire security guards from private sources. For these reasons,  numerous private security companies across the country have been settled and have helped meet their security needs. However,  the way these security agencies operate is a major concern. It is often shown that these agencies carry out their duties without checking the personal information or criminal records of these private security guards and bosses. Thus, to keep their activities in check, the Government of India introduced the Private Security Agencies( Regulation) Act, 2005. This Act mandates all the private security agencies to obtain a PSARA license in India. 

Authority For PSARA License

The Private Security Agency Regulation Act of 2005 (also known as PSARA) regulates and controls the private security sector in India. The Ministry of Home Affairs governs the PSARA Act. The law regulates the overall functioning of private security authorities through administrative authorities appointed by the state government. This means that the state government, where the relevant Union Territory or private security authorities are located, has the right to regulate its operations, appoint its governing authority, and issue regulations in this regard.

Eligibility Criteria For Obtaining PSARA License in India

Following are the eligibility criteria for applicants of PSARA License in India:

Following companies are eligible for PSARA license : 

  • Private limited companies
  • One Person Company 
  • Limited Liability Partnership 
  • Partnership Firm 
  • Sole Proprietorship Firm

Following are the eligibility criteria for directors of a company:

  • The Director must be a resident of India. 
  • The Director must not have any criminal records in the past.
  • The Director must be financially stable.

Following are the eligibility criteria for security guards in the company:

  • They must be citizens of India.
  • They must have attained majority i.e above 18 years of age, but less than 65 years of age.
  • The Security guards to be appointed must have undergone security training. 
  • The applicant must not be terminated from any government service.

Documents required for PSARA License

Following are the mandatory documents required for obtaining a PSARA License in India:

  • Copy of certificate of incorporation of the company.
  • Identity proof of the employees of the company 
  • Identity proof of the directors of the company 
  • Copy of duly signed MoU with the training institute 
  • Proof of residence of the place of business
  • Copy of PAN card of the directors
  • Proof of registration from the department of service tax
  • Copy of MOA and AOA of the company 
  • Proof of clean criminal records of all the directors of the company 
  • Copy of Income Tax Returns of all the directors of the company.
  • Affidavit of the security training.
  • Certificate of the character of all the employees of the company.
  • Two passport size photographs of the promoters
  • Copy of registration from Employee State Insurance
  • Affidavit under PSARA  
  • Logo of the company applying to obtain such license. 

Costs incurred in obtaining a PSARA License

Apart from the costs incurred in setting up a private security agency, there are a few costs required to be incurred in the form of a registration fee which is as follows:

  • If the agency wants to obtain a PSARA license for one district, then the fee would be Rs 5000.
  • If the agency wants to obtain a PSARA license for up to five districts, the fee would be Rs 10,000.
  • If the agency wants to obtain a PSARA license for the entire state, the fee would be Rs 25,000.

The validity of a PSARA license is five years in India except for Uttrakhand, Madhya Pradesh and Chattisgarh where the validity is one year only. After the expiration of the license, one has to file a renewal application with self-attested documents as required for such a procedure.


With the increasing crime rate, one can feel the need to take security services from a private security agency. They play an important role in keeping crimes in check. However, people are sceptical about the functioning of private security agencies.  To keep a check on them, the Government of India[1] has mandated all the private security agencies to obtain a PSARA License in India. Also, a time to time renewal will keep proper supervision and regulation on such agencies by the concerned authorities.

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