An Overview Of PSARA License Registration In India
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. 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 its time to time Renewal will help the government to stop the illegal activities running in the name of Private Security Agencies.
After 2005 every private security service company 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 Agencies 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. 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.
What are Private Security Agencies?
Private Security Agencies are 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.
What is PSARA License?
Permission taken by the Private Security Agencies 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.
Benefits of PSARA License-
Following are the benefits of the above discussed license-
- It will increase the reliability and accountability of the Agency.
- Empowers the training company.
- It attracts more customers.
- Create goodwill in the market.
- It will help in gaining the trust of potential customers.
- Increase the credibility of the agency.
- Helps in smooth functioning of the organization.
- Increase the responsibility of the agency towards the customer.
- Gives customers a sense of security.
Eligibility criteria to get PSARA License-
Business Organizations that are eligible are given below-
- Sole Proprietorship Businesses
- One Person Company an individual’s entity
- Partnership firms and LLPs
- Various Associations
- Private Limited Company etc.
Eligibility criteria in terms of Director and principal officers are given below-
- Must be a citizen of India
- Must be a major or attend the age of majority
- Must have sufficient financial resources to run the business
- Must have a crime-free track record
For the role of the security guard following are the eligibility criteria-
- Must be an India Citizen
- Must be a major
- Not cross the age of 65 years yet
- Must have adequate training
- Must have an excellent track record
- Must have desired physical strength
- Must have character certificate from the previous firms, where he had worked before
Documents Required for PSARA License and PSARA License Renewal-
Following is the list of documents for PSARA License and PSARA License Renewal. Both PSARA License and PSARA License Renewal documents are almost the same. Because the application made for the PSARA License Renewal is almost the same as PSARA License. Before applying for the License following list of documents must be checked-
- Incorporation Certificate of the Company.
- Memorandum of Understanding (MOU) which is signed.
- ID Proofs of all the Security guards, Directors, and employees.
- Registered office’s Address Proof.
- Affidavit which is obtained under the Private Security Agencies (Regulation) Act, 2005.
- Promoters PAN detail.
- Private Security Company’s Logo.
- Employees States Insurance Registration.
- Documentary proof regarding Security training, affidavit can work here.
- Provident Fund Documents.
- Two photographs from each promoter.
- One Copy of Income Tax Returns of every Director.
- All the employees detailed character certificates.
Pre- requisites for PSARA License
- Allotment of PAN card Number
- Registration with the service tax department of the government
- Provident fund registration is also required
- Shops and Commercial establishments license is mandatory
- Registration under the Contractual Labor Act is also necessary
- Employees State Insurance Registration is one of the mandatory things
The complete procedure to get PSARA License-
PSARA License is necessarily required for every Private Security Agency. Hence, knowing the process of getting a PSARA License is very important. Following is the step-by-step guide to obtaining the PSARA License-
- Step-1 An application for a grant of license shall be made to the Controlling Authority on behalf of the Private Security Agency.
- Step-2 Applicant shall submit an affidavit related to the details provided under Section 6 of the Private Security Agencies (Regulation) Act, 2005.
- Step-3 Ensure the requirement of section 9(2), regarding the training of the security guards and supervisors. Step-4 Fulfils all the conditions of Section 11 regarding the pending cases of the applicant. Either before the police or a Court of Law.
- Step-5 On receipt of the application Controlling Authority will do the inquiry. With inquiry, no objection certificate of police is also required in written form.
- Step-6 After the due process Controlling Authority either grants the license or refuses to grant the license. This process is supposed to be completed within 60 days after receiving the application.
- Step-7 If refused then, a reasonable opportunity of being heard will be given to the applicant. Also, the refusal order must be the speaking order.
- Step-8 If the License is granted then it will be valid for 5 years unless it is saved from cancelation under Section 13(1).
Pricing of PSARA License
There are three main areas where costs can be incurred which are:
Government fee:For every license, a certain fee has to be paid as a government fee. It can be either paid via net banking or debit/ credit card. The following table gives a better idea of how the fee is calculated:
Professional and other costs:For obtaining a PSARA License, companies usually take the help of professionals, and thus, certain costs are incurred in payment for the services. In addition, the process of PSARA License involves visitation of government departments and police stations, and thus the cost is incurred in these things as well.
Training Costs:In addition to the government and the professional few, a private security agency has to incur training costs. Investment in a training institution is done for better and quality training for its officers and also an MOU is signed between the applicant and the training institute where such costs are involved.
PSARA License Renewal-
From time to time PSARA License Renewal is necessary. It is not a one-time license. It has been granted for 5 years at a time. After 5 years PSARA License Renewal is compulsory. Renewal will be for the next 5 years only. After that, if any company wants to continue the business, they have to repeat the same process every 5 years. There is no alternative for the PSARA License Renewal. Following are the steps for PSARA License Renewal-
- Step-1 Application for the PSARA License Renewal shall be made to the Controlling Authority. It must be made prior to 45 days of the expiry of the validity period.
- Step-2 Application must fulfill the compliances of Section 6, 7, and 11 of the Private Security Agencies (Regulation) Act, 2005.
- Step-3 The Controlling Authority has to pass an order regarding the PSARA License Renewal within 30 days, after receiving the Renewal application.
- Step-4 On receipt of the application Controlling Authority will do the inquiry.
- Step-5 After the due process Controlling Authority either grants the Renewal of PSARA License or refuses to grant the same license.
- Step-6 If refused then, a reasonable opportunity of being heard will be given to the applicant. Also, the refusal order must be the speaking order.
- Step-7 If the application is accepted then the license will be renewed for further 5 years.
Suspension and Cancellation of PSARA License-
Section 13 of the Private Security Agencies (Regulation) Act, 2005 explains the conditions in which Suspension and Cancellation of PSARA licenses are possible. The controlling Authority can cancel or suspend the license on any one or more of the following grounds-
- License has been obtained through misrepresentation.
- If there is any suppression of material facts.
- If there is forgery regarding documents and photographs.
- If the Licensee has violated any provision of the Private Security Agencies (Regulation) Act, 2005 or any other compliance which is mandatory for the License.
- If there is a misuse of information obtained by the license holder during the discharge of his or her duty.
- If the License holder represents his agency as the instrumentality of the Government.
- If it is found that the information on the License has been used illegally.
- Using a different name other than the name for which the license has been granted.
- If represented or tries to represent as a public servant.
- If any private Security Agency fails to commence its activities on time.
- If any Private Security Agency fails to engage a supervisor on time.
- If the licensee failed to give the services on which he or she agreed to any person.
- If the licensee refused to give those services for which he or she agreed to any person.
- Any act of license holder which is against the law.
- If the license holder instigates or facilitated any act which is unlawful.
- If the guards appointed by the Private Security Agencies are found to do any illegal act or negligent or drunk or indiscipline on duty.
- Any act of license holder which is against the National Security or Public Order or Law and Order of the Country leads to suspension or Cancellation of PSARA License.
Conditions on which Suspension or Cancellation of PSARA License is possible-
Following are the condition which has to be followed on the part of the government before Suspension or Cancellation of the license mentioned above-
- Controlling authorities cannot directly cancel the License. First, it should order a Suspension of license which should be for 30 days.
- Then within 15 days of the Suspension Order, Private Security Agency has to give reasonable cause for not extending that suspension order to the Cancellation order.
- Every order regarding the suspension or cancellation of the PSARA License should be a speaking order.
- One copy of such order will be given to the affected person.
- No order of Cancellation of PSARA License can be made without giving a reasonable opportunity to be heard.
Right of Licensee against Suspension or Cancellation order-
If the PSARA License holder is not satisfied with the Suspension or Cancellation order of the mentioned license by the Controlling Authority, he can appeal against such order passed by the Controlling Authority. An appeal must be done within 60 days from the date of order of suspension and cancellation of License. If an appeal will be done after 60 days then a satisfactory reason is required due to which one fails to appeal within the time limit. An appeal will be presented before the Home Secretary of the State Government. Copy of the order of suspension or cancellation of the license must be attached with the appeal. Before disposing of the appeal one must be given a reasonable opportunity of being heard, without giving an opportunity one cannot move ahead.
Guidelines to avoid the Suspension or Cancellation of License–
Here are some guidelines which can save you from the suspension or cancellation of the PSARA License. Following are the small steps that can be your big help-
- Follow all the compliances needed for the PSARA License.
- Provisions of Private Security Agencies (Regulation) Act, 2005 or any change in the provision of the same action must be followed.
- If the government makes any change to the Private Security Agencies (Regulation) Act, 2005 then don’t ignore it.
- Give proper training to the guards.
- Keep eye on the guards so that they cannot do the things which can lead to suspension or cancellation of the PSARA License.
- Don’t try to defraud the government.
Penalties, operating without a valid PSARA License or PSARA License Renewal or using Unauthorized Uniform-
As per the Private Security Agencies (Regulation) Act, 2005 PSARA License is mandatory for Private Security Agencies. A person, who is operating without the valid PSARA License or without PSARA License Renewal, or using an unauthorized uniform, must have to pay legal Penalties, which are sufficient to collapse your business and goodwill in the market. These penalties are given below-
- Any person or Agency, who is working without a valid PSARA License, shall be punished with imprisonment or fine, or both.
- Imprisonment can be extended up to 1 year and fine can be extended up to 25000 Rs.
- Above punishment will remain the same if one will not complete the PSARA License Renewal after the valid period expires.
- Additionally as per the Private Security Agencies (Regulation) Act, 2005 if any private security guard or supervisor wears a uniform that is unauthorized shall be punished.
- Punishment for using an unauthorized uniform can be imprisonment or fine or both.
- Imprisonment can be extended up to 1 year. Fine can be extended up to 5000 Rs.
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PSARA License and PSARA License Renewal are mandatory for Private Security Agencies these days. If any person or Agency found who is working without a valid PSARA License or without PSARA License Renewal, shall be punished. The security of the Country is the duty of the government; therefore government provides the mentioned license. 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 A Suspension or cancellation of PSARA License is a check of government on the Private Security Service providers. So that they cannot do something which is against the security of the nation. Order of suspension or Cancellation of PSARA License by the Controlling Authority is appealable. A reasonable opportunity of being heard will be given to the aggrieved party. But this process is very rigorous. Hence safe from suspension and cancellation will be better for the business. One such thing happens; the goodwill of the business suffers. After that surviving in the market is very difficult. Hence to take the license is suggested.
Frequently Asked Questions
The full form of the above license is the Private Security Agencies (Regulation) Act.
Permission taken by the Private Security Agencies to do the business of providing service related to security guards and also the consent for providing training to them is called PSARA License.
- Attracts more customers
- Sense of security