Private security agencies regulation act, also known as PSARA, is an act by the government of India to regulate the private security agencies. The private security agency means a business that provides security guards or any other related services as an alternative to the police.
The operations are governed by private security agencies regulation act,2005. All security agencies must obtain PSARA License.
What are the benefits of obtaining a PSARA License?
The benefits of obtaining a license are as follows-
Empowers the training company
Attracts more customers
Avoid denial of rights and services
Helps in gaining the trust of potential customer
Increases credibility of the agency
Ensures the smooth functioning of the organization
What are the eligibility criteria for obtaining a PSARA license?
Over the years, the demand for private security has increased due to an increase in private firms hiring their security guards.
The eligibility criteria are-
1. Who Can Apply for PSARA?
2. Name and Object of Applicant
3. Eligibility of Directors
4. MOU with Training Institute
5. National Interest Clause
6. Restriction of Foreign Investment
Details regarding the criteria are as follows-
v Who can apply for PSARA?
Any individual, firm who is willing to start a security-related business in India can apply for PSARA to the competent authority of the concerned state.
v Name and object of applicant
The name of the firm should contain the word Security Services which represents the objective of the company
v Eligibility of directors
The directors should be resident of India having sound knowledge related to financial understanding.
v MOU with the training institute
The applicant should have entered into Memorandum of Understanding with the training institute. There is a relaxation for ex-servicemen in training requirements.
v National interest clause
The PSARA license is not granted to a person who has any connection with the organizations and associations banned by the government.
v Restriction of foreign investment
Under section 6(2) of the Private Security Agencies Regulation Act,2005, states that the PSARA license will not be granted if it is not registered in India.
What are the eligibility criteria for Security Guard?
Any person can be employed as a private security guard when fulfilling the following criteria-
Is a Citizen of India;
Has attained the age of majority that is eighteen years, but has not crossed the age sixty-five years;
A person who can satisfy the agency about the character in a way prescribed by the Act;
A person who has effectively completed his security training;
Completely fulfills such physical standards as required to be a security guard; and
The person cannot be appointed as a security guard who has been convicted by a competent court or has been dismissed or removed on the grounds of misconduct during his Government Service tenure.
Every private security agency while employing a person as a private security guard, should give first preference to the person who is from the background of;
Army;
Navy;
Air Force;
Any other armed forces of the Union;
Police including armed constabularies of States;
Home Guards.
What are the documents required for PSARA License?
The document required for PSARA License are-
§ Certificate of Incorporation;
§ Proof of Registered Office;
§ Signed MOU with the training institute;
§ Documents of security guards;
§ Pan card of each promoter;
§ Identity proof of directors;
§ ITR of each director;
§ ESI allotment;
§ PF registered;
§ Registration under shops and establishment act;
§ Registration under the contract of labor act;
§ Affidavit as per PSARA act;
§ Uniform pattern;
§ Logo for the agency;
§ Identity cards of all the employees;
§ Details of the armed license;
§ Character certificate of the employees;
How to apply for a PSARA license?
Step-1
Filing of application along with the relevant documents
Step-2
Obtaining of Memorandum of Association with the recognized training institute
Step-3
Police verification
Step-4
Verification of application
Step-5
Issuance of PSARA license
Step-6
Start working complying with all the guidelines of PSARA
What are the fees for the PSARA license?
The fees for obtaining the license for the security agency, operating at a different level are provided below-
INR 5,000 for running in 1 district
INR 10,000 for operating in five district
INR 25,000 for operating in the entire state
What is the guideline for the renewal of the PSARA license?
The license has to be renewed after its expiry, following steps needs to be taken-
§ Apply for the license not less than 90 days before the expiry of the license.
§ The application has to be submitted along with the documents specified under sections 6, 7, and 11 of the PSARA along with prescribed fees.
What is the validity of the PSARA license in India?
The validity of PSARA license under the Private Security Agencies Regulation Act, 2005, is valid for five years in most of the states. While in the states like Chhattisgarh or Uttarakhand, the validity is for one year.
What are the compliances followed by the security agency?
§ The agencies need to appoint a supervisor to supervise the security guards;
§ The agency needs to trains its security guards;
§ Ex-defense candidate with a minimum of three years should be given priority;
§ The security agency needs to follow the guidelines by the PSARA;
§ The uniform policy by the PSARA needs to follow by the security guards.
What are the standards for the disqualification of the PSARA license?
§ If the government thinks that it is unfit for the citizen of India.
§ The person forming the company should not be convicted with the crime whose punishment is imprisonment, not less than two years;
§ If the applicant is keeping the link with the organization banned by the government;
On the grounds of misconduct;
§ Association or firm not registered in India or has a shareholder, partner, or director who is not a citizen of India, will not be considered for the issuance of the license under the PSARA.
Conclusion
Nowadays, the growing tendency of hiring security guards from private sources has led to the form of a large number of private security agencies. These private security agencies help meeting the security requirements of the private sector; on the other hand, there is a concern about how these agencies work. These private security agencies should obtain PSARA licenses for their smooth functioning, and the licensee should commence operation within six months of receiving the permit. In case of any query, contact Corpbiz.
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