Private Security Agency

How to Get a Licence for a Private Security Agency?

Online Legal India LogoBy Online Legal India Published On 30 Nov 2022 Updated On 02 Dec 2022 Category Legal

In India, operating a private security agency requires a PSARA (Private Security Agencies Regulation Act) licence. These private security companies deploy experienced and trained security professionals and also offer other protection services to different enterprises across the nation. The Private Security Agencies Regulation Act is the law that governs these security companies.  

What is Private Security Agency?  

A private security agency is a commercial entity created with the aim of providing security services to companies in different industries, including banking, Information Technology, finance, and other business-related fields.   

In order to create a specific level of professionalism in the security service industry, PSARA, 2005 was implemented. Without getting a PSARA licence, agencies are not permitted to operate.    

What Do You Understand by PSARA Act?  

The PSARA Act regulates private security firms and other related entities. On June 23, 2005, it was ratified by both chambers of parliament and signed by the President. Additionally, the Act became effective on March 15, 2006. 

Section 3 of PSARA mandates that each state establish a controlling authority through the notification, which is not below the rank of joint secretary. Additionally, the governing body of the state in which the agency is operating issues a PSARA licence to private security firms.

What Are the Eligibility Criteria for Obtaining a PSARA Licence?  

Any private limited company, limited liability partnership, one-person company, sole proprietorship, or partnership firm can submit the application for a PSARA licence. Additionally, all citizens of India are qualified to apply for a PSARA licence, with the exception of the following groups:

  • Convicted of a crime involving the development, creation, or management of a business 
  • Convicted of a crime for which the mandatory minimum sentence is two years in jail 
  • Additionally, maintaining connections with any group or association is illegal because its activities jeopardise public safety or national security or if it is believed that such a group or association is carrying out activities that endanger public safety or national security
  • A person who has been fired or expelled from government employment due to malfeasance or moral turpitude.  

Documents Required for Registering Private Security Agency

A list of documents needed to issue a PSARA licence is provided below:  

  1. Registration certificate 
    1. PAN
    2. GST Registration
    3. Provident Fund Registration
    4. ESIC Registration
    5. Registration under the Shops and Commercial Establishments Act
    6. Registration under the Labour Act
  2. Proof of identity of the directors and the employees
  3. Income Tax Returns copies of the Directors
  4. Two passport-size photographs of the promoters together with their PAN card
  5. Address proof of the Agency Office
  6. Affidavit as under Section 7 (2) of PSARA, 2005
  7. Security training certificate
  8. Certificate of Incorporation
  9. Signed Memorandum of Understanding (MOU) with the training institute

Process to Get a Licence for a Private Security Agency

According to the PSARA Act, no one is allowed to run or start a private security agency business without first obtaining a licence. Furthermore, the Central Government must be consulted before the Controlling Authority grants authorisation for a private security organisation to provide private security outside of India. 

As a result, anyone intending to start a security agency firm must obtain a licence. The procedures to obtain the licence are listed below: 

Prepare all the required documents

To ensure a speedy and efficient application process for getting the licence, the required documents must be gathered and arranged appropriately

To prevent any discrepancies, the documents referring to the numerous registrations, as well as the information on the promoters and directors, must be crystal clear and in a manner that is easy to read. Once the necessary paperwork is in hand, the application can be submitted online. The process can be completed quickly and easily on the online portal itself, thanks to the availability of the e-signing feature.  

Enter into MOU with a training institute

The training institutes that are eligible will be visible on the home page. To be able to train its recruits, the applicant must sign into an MOU (Memorandum of Understanding) with a training institute.

A company that offers training will be more appealing and able to identify high-quality staff. Ex-servicemen are granted some latitude and exemptions with regard to the agency’s training requirements.

Submitting application

After completing the above mentioned procedures, the applicant must submit Form-I, an application for a PSARA licence, to the right state authorities. The application should also include Form-2 so that its antecedents can be verified. Form-I and an affidavit in Form-III must be submitted together.

Verification by Police

The following step in the procedure is police verification. Form-I will be filed after this verification is completed. The individual directors will need to go to the police for verification in cases where the agency is a partnership or corporation. 

Get a PSARA licence

The authority will review the application in cases when it is accompanied by a No Objection Certificate (NOC) from the police following verification before deciding whether to award the PSARA licence in Form-IV or deny it, depending on the circumstances. 

Time period to get a licence for a Private Security Agency

It’s time to obtain a licence for operating a Private Security Agency firm. Due to the involvement of numerous administrative ministries, forecasting a time period is challenging. The petition must be submitted to the right authorities, and this could take 90-120 days from the date of PSARA registration before the procedure actually starts. A licence registration for one region, five regions, or the entire region can be submitted. Each legal system has its own process.


Therefore, if you’re a business owner who finds it difficult to comply with these procedures and requirements, don’t worry, Contact our professionals at Online Legal India for hassle-free and stress-free paperwork and application procedure for obtaining a Private Security Agency licence.

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