The Private Security Agencies Regulation Act (PSARA) is a significant piece of legislation in India that was enacted to govern and supervise the functioning of private security agencies operating within the country. These agencies perform a crucial role in offering a wide array of security services, encompassing the deployment of well-trained security personnel to protect various organisations, residential complexes, and individuals. The primary aim of the act is to ensure that private security agencies operate within a legal framework, adhere to specific standards and norms, and contribute to the overall safety and security of the public. By regulating these agencies, the act seeks to elevate the quality, professionalism, and dependability of the security services they provide, thus making a positive impact on public safety.
What is a PSARA licence?
The full form of PSARA is the Private Security Agency (Regulation) Act, 2005, a comprehensive law designed to regulate the operations of private security agency businesses in India. The PSARA License is issued under this Act to legally authorise the operation of such agencies in the country.
Benefits of PSARA license
- Empowers the training company: The PSARA License enhances the legitimacy and authority of training providers in the security sector.
- Builds customer trust: Holding a PSARA License helps establish credibility, fostering trust among potential clients.
- Increases agency credibility: A licensed agency gains recognition for operating within the legal framework, boosting its reputation.
- Attracts more clients: With legal recognition, agencies can appeal to a broader customer base, leading to increased business opportunities.
- Ensures smooth operations: The license ensures that the agency adheres to established norms, enabling efficient and compliant operations.
- Prevents denial of rights and services: PSARA ensures agencies operate within the law, preventing legal disputes and ensuring entitlement to services and rights.
Eligibility criteria under PSARA
To be eligible for a PSARA registration, applicants must meet specific criteria, including:
| Criteria | Requirements |
| Company Registration | Must be registered under the Companies Act, 2013. |
| Director’s Qualifications | Must have a clean criminal record and proper education. |
| Financial Stability | Demonstrated financial stability and solvency. |
| Training Facilities | Must provide adequate training facilities for guards. |
Steps to apply for PSARA license
To obtain a PSARA licence, apply online and follow these simple steps:
- Fill out the application form and submit it along with the required documents to the designated authority.
- The relevant authorities will verify the details provided in the application.
- Obtain a No Objection Certificate (NOC) from the local police department. This may involve a background check or inspection of the premises, depending on the specific requirements in your area.
- Once the application is approved and all necessary checks are completed, the final approval will be granted, and the PSARA licence will be issued to you.
Documents required for PSARA licence
To apply for a PSARA licence, you will need to provide the following documents and certificates:
- Company registration documents, including the certificate of incorporation, memorandum of association, articles of association, and any other relevant registration papers.
- Proof of address and identity for all directors, such as government-issued IDs like passports, driver's licence, Aadhar cards, and recent utility bills.
- An affidavit of compliance with PSARA norms, attested by a notary public or other authorised official, affirming that the company meets all the necessary requirements and standards set forth by PSARA.
- Training certificates for all security personnel employed by the company, demonstrating that they have completed the required PSARA training program, including details of the training program, duration, and the name and credentials of the training provider.
PSARA licence cost and timeline
The timeline for obtaining the PSARA License can vary by state and is also dependent on the completion of required documentation and police antecedent verification. As a result, it's difficult to provide an exact duration. On average, it takes around 90 to 120 days from the date of application to receive the PSARA license. The application can be submitted for a single district, up to five districts, or an entire state. However, for multiple states, separate applications must be filed following distinct procedures.
The total cost of obtaining a PSARA License is made up of three key components:
- Professional fee: We offer a competitive and transparent fee structure for the PSARA License application. Please reach out to us for an estimate based on your specific needs.
- Training costs: Expenses for training security guards and supervisors at your agency will also factor into the overall cost. Consider partnering with a cost-effective Security Training Institute to reduce these expenses.
- Government fee: The government fee for the PSARA License depends on the area of operation. The fee structure is as follows:
- For One District: Rs. 5,000/-
- For Up to Five Districts: Rs. 10,000/-
- For More than Five Districts: Rs. 25,000/-
- For Entire State: Rs. 25,000/-
- Out-of-pocket expenses: Additional costs such as travel and lodging may arise when following up on your application with various government departments and police stations. The exact amount will depend on the specific circumstances of your case.
Conclusion
Obtaining a PSARA license is essential for private security agencies to operate legally and gain trust in the market. The process involves meeting specific eligibility criteria, submitting necessary documents, and undergoing verification. While the cost and timeline for obtaining the licence can vary, it ultimately ensures that the agency adheres to regulatory standards and provides reliable security services. For further expansion and operational needs, securing a business loan can provide the necessary financial support to your security services business.
Some of the key features of our business loan are:
- No collateral required: You do not have to pledge any collateral to get our business loan, which is beneficial for small businesses without substantial assets.
- Competitive interest rates: The interest rates for our business loans range from 14 to 26 per annum.
- Flexible repayment schedules: Repayment terms can be tailored to align with the business's cash flow, helping manage finances without strain. You can choose a tenure ranging from 12 months to 96 months.
These features and benefits of business loans make them a highly accessible and practical financial tool for starting your cold storage business.
