PSARA License is a prerequisite before any person starts a private security business in India. The Private Security Agency means an entity which involves in the business of providing Secrity Guards and other related services at an establishment as an alternate to the police. The operation of the private security agencies are governed by The Private Security Agencies Regulation Act, 2005, popularly known as PSARA.

After the enactment of the PSARA (Act), it is mandatory for an security agency to obtain License from the State Controlling Authority Concerned prior to commencing the business and in case of non compliance the law provides for stringent penal consequences. The application for license to start a private security agency is made to the competent authority if the state. The PSARA License is issued to operate in one or more district of a particular state or for the entire state.

Eligibility For Applying For PSARA License

An Individual, Partnership Firm, LLP, Private Limited Company or Public Ltd Company can make the application for PSARA Licence/ Registration to the Competent Authority of the concerned state.

Name & Object of Applicant

The name of the entity should contain the word Security Services or Related terms which represent the object of the applicant. In the case of a Company, the MOA must contain Providing of Security services as one of the Main Objects.

Eligibility of Director/Principal Officer

For police verification of the applicant, they must be a Resident Indian, having sound financial standing (We need to submit a copy of ITR) and should have a clean antecedent and must not have been convicted of any offence.

MoU with Training Institute

The applicant for a PSARA Licence must enter into an MOU with training institute or an organisation as approved by the state controlling authority to impart training to the security guards. There is relaxation to the training requirements for ex-servicemen.

National Interest Clause

 The PSARA Licence cannot be granted to a person if it is found to keeping Links with organisation or association, banned under any law or by a government order to protect National Security, Public Order, or to prevent any activity which is prejudicial to National Security.

Restriction of Foreign Investment

Section 6(2) of The Private Security Agencies (Regulation) Act, 2005, lays out that the PSARA License shall not be issued if it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India.

Documents Required for PSARA License
Steps for Application in PSARA License
Availability of Qualifying Documents

The first step to apply for a PSARA License is to gather all necessary registrations such as Pan Card, TAN Number, GST, PF, ESI, Registration of establishment under Shops & Establishment Act, ITR of every director, etc

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