PSARA is a prerequisite license before a person can start business of a private security in India. A private security agency means an entity that provides private security guards and other related services at an establishment as an alternative to police protection. The operation of private security agencies is governed by the Private Security Agencies Regulation Act, 2005, enforced by the Department of Internal Security at the Ministry of Home Affairs, Government of India. Private security agencies are businesses that provide security services to different businesses in different industries. The Private Security Agencies Regulation Act of 2005 was created to ensure that these agencies followed certain standards of professionalism. A PSARA license serves as a permit for these agencies to operate. Besides offering security services, these agencies train selected candidates for careers in security.

Eligibility Requirement for license for Firm/Company/ – Any person, whether individual or a legal entity, can apply for the PSARA license. The following are the potential applicants:

• Individual,
• LLP/Partnership Firms
• Private Limited Company (PLC)
• Proprietorship Firm.
• Other Body Incorporated.

The name of your business should contain the words Security Services or related terms, if your main activity is providing security services. If you are a company, your Memorandum of Association must include specific clauses relating to the provision of security services.

To get a PSARA licence, an applicant must sign an MOU with a training institute or an organisation approved by the state-level police. The training requirements are relaxed for ex-servicemen.

The PSARA License will not be granted to a person if he/she is found to be associated with an organization that has been banned under any law or by a government order for the protection of National Security, Public Order, or for preventing any activity prejudicial to National Security.

PSARA and FDI

According to Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, if you’re planning to apply for a PSARA licence, you must be registered in India or have a majority shareholder who is a citizen of India. Foreign direct investment up to 49% is allowed under approval route. The application process is administered by the Ministry of Home Affairs so it’s important to get the Prior Approval from them before applying for a grant of the PSARA licence. All relevant reports like FC-GPR must be filed and approved.

Process of getting PSARA license

Documentation – To make the process go smoothly, it’s important to have all of the correct documentation handy. The documents you’ll need depend on your type of visa.

MOU/Agreement with Training Institute – Applicants for security licences must enter into a Memorandum of Understanding with a recognised training institute to train its guards and supervisors. Each state recognises various security training institutes for this purpose.

Online filing of application – You must file an application for a PSARA license before the state’s controlling authority has jurisdiction. You should file one application for each state since there is no central licensing authority.

Verification of information – After you file your business application, the Local Police station verifies the names and addresses of your business and its directors or officers (as appropriate).

Issue of license – After verifying the documents and the applicant’s background, the Controlling Authority issues a PSARA license. However, in some cases the Controlling Authority may require a personal interview of the applicant.

State Level Variation of information submitted – The license granting process for PSARA is largely the same across all states in India. However, each state has its own variations in how documents are prepared and submitted. As the police is a state subject, we found that antecedent verification of applicants, directors, or principal officers varied from state to state.