Introduction
In India, crime prevention is nothing short of an unmanageable undertaking for the police authorities. The establishments like residential societies, commercial outlets, offices, malls, and others, seek additional security to keep safe from prominent and criminal elements. This is where the PSARA Act of 2005 plays a vital role. It is not only catering to the ever-increasing security requirements of different establishments but also the burden of the police authorities is lessening. The main aim of the PSARA Act of 2005 is for the comprehensive development of the unorganized private security sector in India. Now, as many as 16453 PSAs have been registered under the PSARA Act, 2005. In India, Entrepreneurs looking to start their business journey as a private security agency and who are liable to secure a PSARA license in the first place.
PSARA License
The Private Security Agencies take permission to do the business of providing services related to the security guards and also the assent for giving training to them is called PSARA License. We can also say that to legalize the businesses of Private Security Guard, permission is given by the government, and that permission is known as a PSARA License.
Private Security Agencies
Private Security Agencies means those agencies that provide security guards. If anyone wants to hire a security guard for their businesses or any individual then he or she can take the help of Private Security Agencies. They not only provide the service that is related to guards but also gives training to the people who want to become a security guard.
Eligibility Criteria to obtain PSARA License
Business Organizations that are eligible for obtaining PSARA Licenses are given below-
Sole Proprietorship Businesses
One Person Company
Partnership firms and Limited Liability Partnership companies or firms
Various Associations
Private Limited Company etc.
Eligibility criteria for the role of Director and principal officers are as follow
He must be an India Citizen.
He must be a major or attained the age of majority
He must have sufficient financial resources to run the business
He must have a clean-handed or innocent track record
Eligibility Criteria for the role of a security guard are given the following
He must have an India Nationality
He must be a major or attained the age of majority but not crossed the age of 65 years yet.
He must have competent training
He must have an excellent track record
He must have the good physical strength
He must have a character certificate from where he had worked before any firm or company.
Documents Required for the PSARA License
The list of documents for the PSARA License and PSARA License Renewal is given below. Both the PSARA License and Renewal of PSARA License documents are almost the same.
Incorporation Certificate of the Company.
Memorandum of Understanding which is signed.
Id Proof of all the Security guards, Directors, and employees.
Address Proof of the Registered Office
An affidavit is getting under the Private Security Agencies (Regulation) Act, 2005.
PAN detail about the Promoters
Logo of the Private Security Company
States Insurance Registration of the Employees
Documentary proof about the Security training or an affidavit can work here.
Provident Fund Documents.
Two photos from each promoter.
One Copy of the ITR of every Director.
Detailed character certificates of all the employees
Procedure to get PSARA License
Every Private Security Agency has necessarily required a PSARA License. Hence, knowing the process of obtaining a PSARA License is very important. Some step-by-step guides to obtaining the PSARA License are mentioned below:
An application for a grant of license shall be made on behalf of the Private Security Agency to the Controlling Authority.
An Applicant shall submit an affidavit that relates to the details which are mentioned under Section 6 of the Private Security Agencies (Regulation) Act, 2005.
To ensure the essential requirements of section 9(2) of the Private Security Agencies (Regulation) Act, 2005, regarding the training of the security guards and supervisors.
To fulfill all the necessary conditions of Section 11 regarding the pending cases of the applicant either before the police or a Court of Law.
Upon receipt of the application Controlling Authority will do the verification. With inquiry, NOC of police is also needed in written form.
After the due process Controlling Authority either grants or refuses the license and after receiving the application this process is to be completed within 60 days after.
If refused then, a reasonable opportunity of being heard will be provided to the applicant.
The granted license will be valid for 5 years unless it is saved from cancelation under Section 13(1) of the Private Security Agencies (Regulation) Act, 2005.
Fees for PSARA License
The fees payable can be divided into some categories which are given following:
For one district — Rs. 5,000/-
For 2 to 5 districts in a state — Rs. 10,000/-.
For the entire state — Rs. 25,000/-.
The above-mentioned fees for PSARA License are identical throughout India, but in Karnataka, the government fee for the entire state is Rs. 50,000/-. The government fee can be paid through Demand Draft or cash, or challan at designated banks.
Renewal of PSARA License
From time to time PSARA License Renewal is very important for Private Companies that provide security guards. It is not a one-time license. It has been granted for 5 years and after that the renewal of the PSARA License is compulsory. Renewal of the PSARA License will be for the next 5 years only. After that, if any company wants to continue the business then they have to repeat the same process for renewal of the PSARA License for the next 5 years. There is no alternative for the renewal of the PSARA License. Some of the steps are given following for PSARA License Renewal-
Application for the renewal of the PSARA License shall be made to the Controlling Authority and it must be made before 45 days of the expiry period.
An application must fulfill all the conformity of Sections 6, 7, and 11 of the PSARA Act, 2005.
After receiving the renewal application, the Controlling Authority has to pass an order about the renewal of the PSARA License within 30 days and on receipt of the application Controlling Authority will do the verification.
After the due process Controlling Authority either grants or refuses the Renewal of the PSARA License.
If refused then, a reasonable opportunity of being heard will be provided to the applicant. Also, the refusal order should be the speaking order.
If the application for renewal of the PSARA License is accepted then the license will be renewed for further 5 years.
Conclusion
It concluded that the main aim of the PSARA Act of 2005 is for the comprehensive development of the unorganized private security sector in India. Now, as many as 16453 PSAs have been registered under the PSARA Act, 2005. In India, Entrepreneurs looking to start their business journey as a private security agency and who are liable to secure a PSARA license in the first place.
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