The business of security agencies is flourishing in India. These security agencies provide the services of deploying trained security guards alongside providing security services to the organisations. However, the industry is regulated with certain statutory requirements. If you wish to open any private security agency in India, you need to obtain a PSARA license. Let’s understand the intricacies of PSARA license in India and how you can obtain the same.
What is a PSARA License?
PSARA License is a statutory license granted under the Private Security Agencies (Regulation) Act, 2005. The act was enacted to establish standards of professionalism in the area of security standards. Private Security Agencies (PSAs) cannot operate without obtaining PSARA registration in India. After obtaining this license, PSAs can seamlessly provide security services to various organisations like finance, banking organisations, information technology etc. Further, they can also provide security service training to the potential candidates.
Eligibility Criteria for PSARA License Registration in India
To obtain a PSARA License, you need to fulfil the following eligibility criteria for PSARA registration:
General Eligibility:
- The entity should be a sole proprietorship, partnership firm, Limited Liability Partnership, Association of Persons, One Person Company or private limited company.
- The applicant should not be convicted of an offence in connection with the promotion or formation or management of a company
- The applicant should not be convicted of an offence where the punishment is imprisonment of not less than 2 years
- The applicant should not be associated with any association or organisation that is prohibited by law whose activities can endanger public order or national security
- The applicant should not be dismissed or expelled from the government service on the grounds of moral turpitude or misconduct
Eligibility for Directors or Principal Officers:
- The applicant should be a resident of India
- The applicant should be sound financially
- The applicant should not have any criminal background
Eligibility for Appointment of Security Guard:
- The applicant should be a resident of India
- The applicant should be above the age of 18 years but below 65 years
- The applicant should not have been dismissed or convicted on grounds of moral turpitude or misconduct
- The applicant should have completed the prescribed security training
- The applicant should have satisfied the physical standards and other conditions
Process to Apply for PSARA License in India
You need to follow the below process to apply for PSARA License in India:
- Prepare Documentation: The first step to apply for PSARA License is to gather all the necessary documentation. This includes the incorporation and registration documents of the organisation, documents relating to the promoters and directors etc. The documents should be clear and legible to avoid any discrepancies.
- Entering Into MOU: You need to enter into a Memorandum of Understanding (MOU) with eligible training institutions that are listed on the PSARA website. This is important to provide the necessary training to the security personnel.
- Filing of Application: You need to file the required application in Form-I with the respective state authority for the PSARA License registration. Further, you shall also enclose Form-II for verification and an affidavit in Form-III.
- Police Verification: Following the filing of the PSARA registration application, police verification shall be conducted by the organisation as well as the director concerned.
- Grant of License: After scrutinising the application and completion of the formalities, the concerned authority shall decide on the approval or rejection of the PSARA License application.
Post Incorporation Compliances
Once you complete the certification and obtain the PSARA License, you need to ensure compliance with the following post-incorporation compliances:
- ESI Registration: ESI registration shall be undertaken by the PSAs to ensure that they provide adequate insurance cover to their security personnel staff.
- PF Registration: Provident Fund registration is mandatory for the PSA organisations. Without PF registration, organisations cannot provide PF benefits to their employees.
- GST Registration: GST registration is mandatory for any business if it fulfils the eligibility criteria or crosses the prescribed threshold of turnover.
- ISO Certification: ISO certification for PSA organisations demonstrates the reliability and efficiency of services provided by the PSA organisations. This also portrays a positive image in the minds of the service recipients and is a sign of reliability.
- Other Compliances: Other compliances related to PSA organisation include income tax compliances, MCA compliances (in the case of companies or LLP) etc.
In a Nutshell
Operating a Private Security Agency is definitely a profitable business in India. However, you should ensure that you have ensured all the compliances associated with a PSA organisation to ensure seamless business without any legal hurdles. ASC Group is a pioneering professional organisation with deep expertise in business licensing and certification. It provides end-to-end services relating to PSARA registration in India, from application to liaising with the concerned authorities. If you are planning to start a security agency in India, feel free to contact the ASC Group.
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