PSARA License: Your Guide to Starting a Private Security Agency in India

Obtaining a PSARA license is the crucial first step towards realizing your dream. Here, we provide a comprehensive guide to navigate the PSARA licensing process and ensure a smooth and successful launch for your agency.

What is a PSARA License?

The PSARA License, issued under the Private Security Agencies (Regulation) Act, 2005 (PSARA Act), is mandatory for any individual or entity wishing to operate a private security agency in India. This act aims to regulate the functioning of private security agencies, ensuring they operate within a legal framework and maintain high standards of professionalism and accountability.

Why is a PSARA License Necessary?

A PSARA license offers numerous benefits, including:

Legality and Credibility: Operating with a valid license demonstrates your agency’s compliance with Indian law, adding legitimacy and credibility to your business.
Business Opportunities: Holding a PSARA license opens doors to various business opportunities, allowing you to compete for contracts with government entities and private organizations.
Professional Image: Possessing a PSARA license portrays your agency as a professional and trustworthy entity, attracting potential clients and fostering trust in your services.

PSARA License Eligibility Requirements:

To be eligible for a PSARA license, you must fulfill the following criteria:

Be a citizen of India.
Be at least 21 years old.
Be of sound mind and not convicted of any offense involving moral turpitude.
Possess the prescribed educational qualifications and experience in security matters.
Have a clean financial background and not be involved in any illegal activities.

The PSARA Licensing Process:

Obtaining a PSARA license involves several steps:

1. Registration:

Register your agency online on the official PSARA website: https://psara.gov.in/
Choose an appropriate agency name and obtain approval from the licensing authority.
Pay the prescribed registration fees.

2. Document Submission:

Submit the hard copies of required documents as per the PSARA Act and state-specific regulations to the government. These typically include:

- Application form.
- Proof of identity and address of directors/partners.
- Educational qualifications of directors/partners.
- Proof of experience in security matters.
- Financial statements.
- Police verification reports.
- No Objection Certificate (NOC) from local authorities.
- Affidavits
3. Scrutiny and Verification:
- The licensing authority will scrutinize your application and documents.
- They may conduct further inquiries or request additional information.
- Police verification will be carried out for all directors/partners.
4. License Granting:
- Upon successful completion of the process, the licensing authority will grant you a PSARA license valid for a specified period (typically five years).
- You will be required to pay the license fee and comply with ongoing regulations.
Who can apply for psara license ?

The following persons can apply for psara license:
- Individual
- Proprietorship Firm
- Partneship Firm
- LLP
- Private Limited Company
- Residents Welfare Association
- Co-operative group housing societies
- Any other legal person
Psara License Document Checklist
Following are the basic documents required for psara license:
- PAN Card of the Proprietor/Partners/Directors.
- Aadhar Card of the Proprietor/Partners/Directors.
- Mobile Number and Email ID of the Proprietor/Partners/Directors.
- Photo of the Proprietor/Partners/Directors.
- PAN Card of Partnership Firm/Private Limited Company.
- Electricity Bill & Rent Agreement for registered place of business.
- Past 3 years Income Tax Returns of Proprietor/Partners/Directors (if availaible).
- Past 3 years Income Tax Returns of Partnership Firm/Private Limited Company (if availaible).
- Dress of security guard as per regulations
What is the cost of psara license ?

The cost of psara license for one state typically includes the following:
1. Fee to be deposited to the government: Rs 25000
2. Memorandum of understanding to be entered into: Rs 15000
3. Training Certificate of proprietor/partner/director: Rs 10000/certificate
4. Cost of affidavits and documentations including stamp duty: Rs 5000
5. Fee of consultant and liasoner: As the process of psara license is complicated which requires several visits to police stations and government departments hence a consultant and liasoner may be appointed. The typical professional fee of a consultant and liasoner for psara license may depend on state to state basis. It may range anywhere between Rs 30000 to Rs 100000.
How much time it takes for psara license ?

If the file is completed in all aspects without defects then it usually takes approx 45 days for psara license. Though it is to be noted that psara license approval timelines vary from state to state as every state has its own processes which are to be followed.

Links for Additional Resources
- Registration of Private Limited Company for psara license
- Proprietorship Firm registration for psara license
- Starting a startup
Some frequently asked questions

I want to run private security agency business in more than one state in India, do I need to take separate license for separate states or only 1 license will work ?

Yes, you will need to obtain the license for each state separately to run your security agency business in that particular state.
For example, if you want to run your business of private security in 2 states then you will have to apply for 2 Private Security agency license in each state respectively

Do I need to renew the license after some years or it will be perpetual in nature ?

The license of Private Security Agency is currently issued for a period of 5 year, meaning thereby every 5 year the license is needed to be renewed with the concerned authority.

Can I apply for the license for specific district in a state instead of entire state ?

Yes, you can apply for a specific district instead of entire state in case you wish to carry on the business within that district only and not other distrcits of the state. The Govt fee of Rs 25000 gets reduced in such case as well.
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