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Pasara License

How To Obtain a Pasara License?

INTRODUCTION:

The world we live in today is one where many individuals are starting their own businesses or establishing their own establishments. This meteoric rise in the commercial space of small businesses has also resulted in the need for safety and protection. Security agencies are companies that focus on training and providing security services. Currently, there are various private secret services founded to cater to the security needs of people and companies alike. The Private Security Agencies (Regulation) Act, 2005 governs all activities and operations of the various private security agencies in India (PSARA).

Private Security Agencies (Regulation) Act (PSARA) of 2005:

  • The Private Security Agencies (Regulation) Act (PSARA) of 2005 governs the operations of Private Security Agencies in India.
  • The purpose of this act was to guarantee that these security agencies function within a legal framework and are responsible for a regulatory system.
  • In India, anyone who wants to start a security agency must first obtain a PASARA licence at the state level.
  • Similarly, in order to provide assistance outside of India, permission must be obtained from the Controlling Authority, which must advise the Central Government before approval.

Private Security Agency

  • Private security agencies (agencies) are for-profit businesses that provide security services to businesses in a variety of industries, such as banking, information systems, finance, and manufacturing.
  • PSARA, 2005 was enacted to establish a level of professionalism in the field of intelligence agencies.
  • Without a PASARA licence, agencies cannot legally exist. Such agencies not only provide security agencies, but also train potential candidates for security-related careers.

PSARA Eligibility Criteria

In terms of business organisation type

The following are able to register and obtain a PSARA licence under the PSARA, 2005:

  • Sole Proprietorship, 
  • Partnership Firm,
  • LLP,
  • Association of Persons, and
  • Private Limited Company.

In terms of a Director/Principal Officer’s role

The requirement to be a Director/Principal Officer is not open to everyone. There are particular requirements that must be fulfilled in order to qualify. –

  • Indian citizenship is required.
  • The applicant must be at least 18 years old.
  • Must have sufficient financial resources to cover business expenses.
  • He or She must not have any offences against him.

In terms of a Security Guard’s role

Obtaining the position of security guard is possible if the following criteria are met:

  • Indian citizenship is required.
  • You must be between the ages of 18 and 65.
  • Prior experience is required.
  • In any case, must not be discharged from any government service.
  • Must possess all of the desired physical characteristics.
  • It is necessary to provide assurance about the individual’s character.

Documents Required to Obtain a PSARA License

The following registration certificates are available:

  1. PAN GSTIN Registration of Provident Funds
  2. ESIC (Employees State Insurance Corporation) (Employees State Insurance Corporation) Registration
  3. Registration under the Shops and Commercial Establishments Act and the Labour Act
  4. Identification of the directors and employees,
  5. Copies of the Directors’ Income Tax Returns
  6. Two passport-sized photos of the promoters, as well as their PANs
  7. Proof of Agency Office Address
  8. Affidavit in accordance with Section 7 (2) of the PSARA, 2005 Security training affidavit
  9. Incorporation Certificate
  10. A Memorandum of Understanding (MOU) was signed with the training institute.

FDI IN PSARA:

The PSARA Licence will not be issued if the applicant is not registered in India or has a proprietor, majority shareholder, partner, or director who is not a citizen of India, according to Section 6(2) of The Private Security Agencies (Regulation) Act, 2005. Under the approval route, foreign direct investment in a Private Security Agency business is permitted up to 49% in a Company or LLP.

The implementation for FDI is managed by the union government’s Ministry of Home Affairs. As a result, written consent of the FDI is required before a company with foreign investment submits a proposal for a grant of PSARA License or permit. All relevant reports, such as the FC-GPR, have been filed and approved.

PROCESS FOR APPLICATION:

Step 1: Gather all necessary documents.

When applying for a PASARA licence under the Private Security Agency Regulation Act of 2005, the applicant must attach the following documents to the PSARA login portal:

  • GST registration certificate for PAN Card
  • Letter of Registration for Employees State Insurance (ESI)
  • Registration letter for the Shops and Establishment Act Registration letter for the Provident Fund (PF)
  • Contractual Labour Act registration letter
  • Directors’ Income Tax Returns
  • Certificate of Incorporation of a Company.

Step 2: Sign a Memorandum of Understanding (MOU) with a government-approved training facility:

To train their security guards and supervisors, the applicant must sign an MOU with a Government-Authorized Training Institute.

Step 3: Verification by the police:

The applicant must file Form-I to request police verification.

If the claimant is a Company, Firm, or Association of Persons (AOP), each director/partner must submit separate verification forms. Note: As per the amendments made in 2019 in the PSARA Act 2005, there is no longer a requirement for manual police confirmation of details of Directors/Partners/Proprietor at the time they apply for the licence.

PSARA License Validity and Renewal

A PSARA License is only valid for 5 years from the date it is issued. However, in Uttarakhand, Madhya Pradesh, and Chhattisgarh, the licence is only valid for one year. Once the licence has expired, it can be easily renewed by submitting a renewal application 90 days before its expiry date, along with the renewal fee.

PSARA Regulations

According to the Private Security Agencies Regulation Act (PSARA), 2005, the Private Security Agency (PSA) must follow the following guidelines:

  • A private security company should hire managers to oversee the work of the organization’s guards.
  • The assigned security guards must be trained by Private Security Agencies (PSA).
  • Applicants with three years of experience in the military will be given preference for the role of supervisor.
  • PSA security guards must adhere to the company’s uniform policy.

When you have everything in order, applying for the license makes everything easier. Legalite has you guarded throughout every step of the way. Contact us and we will guide you throughout the procedure for obtaining the license in the most hassle – free way.

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