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Overview for PSARA License

Due to economic growth, innovation & industrialization, there has been a tremendous growth in the number of private corporations signalling the desire among people to start their own businesses. However, there have been equally rising cases of security breaches & notorious crimes in the major cities, fuelling the need for a strong security maintenance system for businesses. Irrespective of the key operations of the business either private corporations to banks, hospitals, malls to showrooms, there is an immense requirement for adequate protection to prevent notorious elements from disturbing peace and well-being of the society including businesses.
 
The private security sector in India holds the global record for its size and has experienced remarkable expansion over recent years. Its influence extends beyond the corporate realm, extending into real estate complexes, establishing itself as a top-ranking field requiring private security staff. Presently, a multitude of private security firms have emerged to address the security requisites of both individuals and enterprises. Consequently, anyone aspiring to initiate a private security agency to supply security personnel must secure a license for operations under the Private Security Agencies Regulation Act, 2005, more commonly known as the PASARA License.

What is a Private Security Agency?

Private security agencies are commercial enterprises established to provide security solutions to diverse industries, encompassing sectors like banking, information technology, finance, and manufacturing, among others. The enactment of the Act was driven by the aim to establish directives for the training of security staff and to uphold a uniform standard of professionalism within the realm of security services.
 

The enactment of the Private Security Agencies (Regulation) Act, 2005 serves the purpose of overseeing the functioning of private security firms, ensuring their compliance within a lawful structure. This act holds significant importance in India for the regulation of such entities. Additionally, there are accompanying directives, known as the Private Security Agencies Central Model Rules, 2006, that offer guidance for the practical implementation of the act. In each state, a designated officer, holding a position not lower than that of a Joint Secretary, assumes the role of the controlling authority responsible for overseeing private security agencies. Not only does it facilitate the provision of security services but also presents the opportunity to train prospective individuals for careers centered around security roles.


Eligibility for obtaining PASARA License

Any entity, regardless of whether it's an individual or a business, possesses the eligibility to request the PSARA License. The suggestive list of eligible applicants includes:
 
 Private Limited Company
 
 Limited Liability Partnership (LLP)
 
 Partnership Firms
 
 Proprietorship Firm (Individual)
 
 One Person Company (OPC)

Benefits of PASARA License

Allows Legal Permission to Commence Security Services:
Acquiring a PASARA license is essential for any private business entity that intends to initiate its business activities. Consequently, a business entity possessing this license is granted the authority to recruit and engage personnel to address the security requirements of private security establishments.

 

Increases Business Credibility:
Obtaining a PASARA license is crucial not only for commencing operations as a private security agency but also signifies that the recruited personnel possess sufficient training and expertise in their field. This aspect assists the security agency in fostering consumer confidence, consequently enhancing its overall credibility.

 

Adherence to Legal Compliance: A private security agency that possesses a PASARA License is required to undergo registration and meet specific obligations. Failure to accomplish these tasks could result in penalties or even the revocation or temporary suspension of the license. Consequently, such a private security agency demonstrates adherence to legal regulations.

 

Enhances Operational Efficiency:
A private security business entity with a PASARA license gains legal safeguards against unfounded allegations or legal complications.

Pre-Requisites for PASARA

Before commencing business or making an application for a PASARA license, the applicant entity must fulfil the following requisites:
 
Security Service: The private security agency must include the term "Security Services" or a similar word connected to the objective of providing "Security services." Additionally, this purpose should be incorporated into the Memorandum of Association (MOA) or established as the primary aims of the business entity.
 
Qualifications for a Director/Principal Officer: An individual being considered for appointment as a director of the enterprise should fulfil the subsequent business prerequisites:
 
 Must hold Indian citizenship.
 
 Must be an adult above the age of 21.
 
 Should be a financial solvent.
 
 Should not have any prior convictions under legal jurisdictions related to instances of ethical impropriety on moral grounds.
 
Financial Stability of the Agency: The private security agency is required to possess a favourable financial status and sufficient capital to sustain its operations. For this, the applicant is required to attach copies of the ITRs of the previous years.

Absence of Prior Criminal Offenses: The principal individuals associated with the business establishment, including the business owner, must not have any previous criminal records. This will be confirmed through a police verification process conducted by law enforcement officers.

Holding Specific Qualifications: All directors, as well as the employer, are mandated to undergo compulsory specialized training related to the management of a private security agency. This training should be acquired from an accredited training institute.
 
Upholding of National Interest: If an applicant is found to have connections, affiliations, or associations with any individual or entity that might be engaged with organizations or persons prohibited within India or pursued under legal mandates to uphold the nation's safety and security, they are disqualified from submitting an application or acquiring a PSARA License.



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