Today Only in India Security service Sector valued approximately 40.000 crores and has over 15,000 security services entities and it is has stretched to over 500 districts in India.
Private security agencies are those firms concerned in giving security services which includes training of security guards towards any industrial or commercial undertaking or a corporation or any other individual or property. The roles of a private security agency are administered in India by the “The Private Security Agencies (Regulation) Act, 2005.
To run a security business, it is compulsory to register a private limited company or a Limited liability partnership (LLP). Furthermore, the corporation must obtain the GST registration as well.
Applying for PSARA License
Private Security Agencies Regulation Act 2005 known as PSARA license is issued towards the private security companies engaged in the activity of presenting services of the security guard to associations, firms, malls, etc. No individual or company could begin their business without having the PSARA license under PSARA.
Eligibility for PSARA license in India
Only an Indian Company, Firm or Association of Persons is eligible for a security agency license. Furthermore, if the agency is a company, then the majority shareholder should be an Indian. Furthermore to the above condition, the following conditions should also be satisfied:
- The individual or corporation cannot be convicted of an offense in connection with promotion, formation or management of a corporation (any fraud or misfeasance committed by him concerning the company), which includes an undercharged insolvent.
- The individual or corporation cannot be convicted through a competent court for an offense, the prescribed punishment for which is imprisonment of not less than 2 years.
- The individual or corporation cannot be keeping links with any organization or association which is banned under any law due to their activities which pose a threat towards national security or public order.
- The individual cannot be terminated or removed from Government service due to misconduct or moral turpitude.
Documents required for PSARA license:
The documents required for PSARA license are:
- Certificate of Incorporation of company or LLP.
- Detailed armed License.
- MOA and AOA of the partnership deed.
- Affidavit as per PSARA act.
- Ownership proof for a place of business.
- Identity card for all employees.
- Character certification of all employees.
- Logo for a security agency.
Application for grant of license
The application for grant of License would be made towards the Controlling Authority in the form prescribed state wise, and include a specific form to be filled accordingly. The applicant must submit an affidavit stating the information like name, address detail, or any previously opened security agency or any criminal matters pending against the applicant.
Fees for Private Security Agency License
The government fee for getting security agency license for Private security agency operating in-
- one district: Rs.5000/-
- one to five districts: Rs.10000/-
- entire state: Rs.25000/-
The application for security agency license, the authority must process the application as well as grant/refuse the license in 60 days from the date of receipt of the application. Once issued, the security agency license would be valid for 5 years and could be renewed for another 5 years by payment of the prescribed fees.
The services given by a security guard service are taxable under the Service Tax Act and therefore, security guard services that cross an annual turnover of over Rs.9 lakhs should obtain service tax registration. Depending on the choice of entity, the Service Tax payment should either be deposited with the government every quarter or monthly basis.
ESI and PF Registration
The security guard agencies should be registered with ESI and PF authorities. ESI registration is required for an association engaging over 10 people and PF registration is required for an association engaging over 20 people.
1. What is the function of the Private Security Agencies (Regulation) Act, 2005?
The Private Security Agencies Act, 2005 controls all aspects of operation of private security agency commerce in India. The Act extends towards the whole of India except the State of Jammu and Kashmir and is in existence from June 2005.
2. Is it necessary to obtain a Private Security Agency License?
As per the Act, no individual shall operate or start a private security agency business, unless a private security agency license is acquired. Also, no private security agency could offer private security out of India without getting consent of the Controlling Authority, which should consult the Central Government before such permission. Thus, any individual wishing to begin a security agency business should be licensed in India.
3. When can a corporation or firm commence the operation of the private Security Business?
On getting the security agency license, the corporation or firm is required to begin operations within 6 months of obtaining the license. The security agency would be responsible for conveying training and skill development towards security guards. Also, adequate number of supervisors is required to be employed by the agency as per the Act.
4. Who are qualified to become security guards or security guard supervisor?
- Indian Citizen or a citizen of other nation as the Central Government might, through notification in the Official Gazette, identify.
- Individuals who have completed 18 years of age but have not attained the age of 65 years.
- Individuals who satisfy the agency about his character as well as antecedents.
- Individuals who have completed the security training successfully.
- Individuals who fulfill certain physical standards.