As the economy flourishes in Karnataka, businesses have started to grow along with the threat of crimes. This has led to growing security and safety concerns among individuals and businesses alike. However, it is impossible for the authorities to ensure personalized security to so many commercial enterprises and establishments, and hence the need arose for private security companies. On 14th March 2006, India enforced the Private Security Agencies (Regulation) Act, 2005 (PSARA) to regulate the creation and regulation of security agencies operating in the subcontinent. Thereafter, the Private Security Agencies Central Model Rules, 2006 was passed to establish the guidelines for its implementation. The Act provides that the apex controlling authority for such security agencies in each state will be an officer, not below the rank of the Joint Secretary.
What is a PSARA License?
A private security agency is a company that provides private security solutions and security personnel to protect offices, banks, malls, business establishments, etc. apart from the state security authorities. Every private security agency has to mandatorily obtain a PSARA license prior to commencing operations in India. In India, the said PSARA license is provided by the State. Obtaining the said license involves certain steps and we, at Adviso, have prepared a comprehensive roadmap to provide a holistic view of the entire procedure of private security agency licensing in the state of Karnataka.
What are the Advantages of a PSARA License?
The essential task before applying for a PSARA License is to understand if it is beneficial for your business. So, apart from the fact that it is mandatory for operating, let us understand the additional advantages of obtaining a PSARA License –
- A PSARA license brings government-certified credibility to your security agency.
- It will help protect your business from any unnecessary legal issues.
- It will ensure that the staff you employ will be professionally trained and certified.
- A licensed security agency will also attract more customers.
Who is Eligible for a PSARA License?
A PSARA license can be obtained by any private limited company, limited liability partnership, one-person company, sole proprietorship, or partnership firm. Further, to be eligible for a PSARA license in Karnataka, the following criteria have to be met by the applicant –
- The applicant has to be a citizen of India and must be over 18 years of age.
- The applicant cannot be convicted of any offense relating to the formation, promotion, or management of a company, or any other offense with a minimum imprisonment of two years.
- The applicant should not be associated with organizations that are banned for threats to national security.
- The applicant should also not have been dismissed or expelled from government service for misconduct or moral turpitude.
- The organization of the applicant should be registered in India and must not have a partner or director from outside the country.
What are the Documents Required for a PSARA License?
For obtaining a PSARA License in Karnataka, the applicant has to provide the following documents to the Governing Authority –
- The following registrations –
- PAN
- GSTIN
- Provident Fund Registration
- ESIC (Employees State Insurance Corporation) Registration
- Registration under the Shops and Commercial Establishments Act
- Registration under the Labour Act
- Proof of identity of the directors and the employees
- Copies of the Income Tax Returns of the Directors
- Two passport-size photographs of the promoters along with their PANs
- Proof of address of the Agency Office
- Rental agreement, NOC from Owner, and Utility Bills of the premises
- Affidavit as under Section 7 (2) of PSARA, 2005[1]
- Security training affidavit
- Certificate of Incorporation
- Signed Memorandum of Understanding (MOU) with a government-approved training institute
The Governing Authority may also ask for the following licenses –
- Establishment’s photograph (Exterior and Interior)
- Professional Tax Enrolment (PTEC) (if applicable)
- 3-Year ITR (5 years in the Case of Madhya Pradesh)
- Character Certificate of Employees
- EPFO Registration Certificate (if applicable)
- ESIC Registration Certificate (if applicable)
- GST Certificate (if obtained)
- Udyam Certificate (if obtained)
What is the Fee for Obtaining a PSARA License?
Since the PSARA license is compulsory for starting a private security agency in India, it is important to know the fee you will have to pay to the Government for obtaining the said PSARA registration. The PSARA license has to be obtained from the controlling authority of each state the private security agency will operate in and the fee varies with the number of districts that you want your security agency to operate. The fee structure for a private security agency registration is as follows –
- One District – The fee for private security agencies to operate in a single district is Rs.5000/- and is appropriate if you want to operate in a local area or a single city or district.
- Up to 5 Districts – If your private security agency has a wider operational area that involves up to 5 districts, the license fee will be Rs.10,000/-.
- More than 5 districts – If the area of operation of your security agency spans across a larger geographical area involving more than five districts, the license fee is Rs. 25,000/-. It is more suitable for established private security agencies which offer their services in multiple cities and regions.
What is the Validity and Renewal Process of PSARA License?
Usually, a PSARA license has a validity of up to 5 years in most states including Karnataka, allowing private security to legally operate their services to the specified areas. However, certain states such as Madhya Pradesh, Chhattisgarh, and Uttarakhand offer a PSARA license with a validity of only one year. So, it is important to check the validity that the concerned state you want to operate in offers for a PSARA license.
In order to ensure that there is continuous compliance with the PSARA regulations, it is always better to apply for a renewal before the existing license expires.
The law allows active license holders to apply for a renewal 45 days prior to the date of expiry of the present license along with the requisite documents and prescribed renewal fees. Once the application is received, the controlling authority shall verify the documents and if all the compliance are met, the license shall be renewed within 30 days from the date of submission.
How to Get a PSARA License in Karnataka?
Getting a PSARA license in Karnataka involves several steps that the applicant needs to adhere to to ensure a smooth registration process. They are as follows –
- Checking the Eligibility – The first step of the registration process to getting a PSARA license is to ensure that you meet the eligibility requirements before you apply for it, as your application will be rejected if you fail to meet the same.
- MOU with Training Institute – For a PSARA license, the private security agency needs to enter into a Memorandum of Understanding (MoU) with a training institute to provide professional training to the security guards they employ. The MoU can only be signed with the certified training institutes that are listed on the Official PSARA website to be eligible for a PSARA license.
- Application Form and Documentation – The next step is to obtain application Form 1, fill in the relevant details, and submit it to your jurisdictional controlling officer along with the applicable fee. If you are an individual service provider, you have to personally sign the form, but if the applicant is a business, it has to be signed by the Authorized Representative (AR). You would also file the requisite documents along with the application form.
- Processing and Inspection – Thereafter, the form shall be processed and the documents will be scrutinized by the controlling authority and shall have to undergo a police verification by submitting Form 1 to the local police. In the case of a business having multiple directors, each director will have to file an individual request for police verification.
- Grant of License – If all the requirements are met, the Controlling Authority will grant the license within 60 days from the date of submission of the application and the applicant will be able to commence the operations of his private security agency in Karnataka.
What are the Grounds for Cancellation of the PSARA License?
As per the PSARA regulations, the Controlling Authority can cancel or suspend an active PSARA license vide a written order citing the reasons on the following grounds –
- On account of fraudulent details or forged documents being submitted by the applicant about the security agency.
- If the security agency violated any provisions of the PSARA, 2005.
- If the private security agency acts against the interest of the nation and poses a threat to the security and integrity of the nation.
- If the security agency is involved in any act which is in violation to the law of the nation. If the license holder is not satisfied with the reasons on the basis of which the PSARA license was canceled by the Controlling Authority, an appeal can be filed with the Home Secretary of the concerned State Government. The Home Secretary will only dispose of the appeal once the license holder is given an adequate opportunity to be heard.
Why Is It Mandatory For Security Agencies?
For India, national security and the security of its citizens is of paramount importance. A security agency involves several trained security personnel and some of them are even armed, which means they can be a potent force. The PSARA License allows the controlling authority to regulate and keep track of the private security agencies functioning in the state. The license also allows the authorities to ensure that the security personnel employed by these security agencies are well-trained and capable of appropriately reacting to any security situation that may arise in the course of employment. Thus, these requirements make the PSARA license a mandatory and non-negotiable requirement for the functioning of private security agencies in the state.
Why Adviso?
Getting a PSARA License in Karnataka requires you to comply with several steps involving various documentation and legal requirements. While it is not impossible for you to obtain a PSARA license for your private security company on your own, the entire process is very cumbersome and will take a long time. So, our team of experienced legal professionals at Adviso can help you in obtaining your PSARA license in a seamless and hassle-free manner by ensuring that all the requisite documents are filed and all the legal compliances are met efficiently. So, all you need is to give our professional team a call and we will be happy to help you resolve any query that you might have.
Summing Up
With businesses flourishing in the State, getting a private security agency registration in Bangalore and similar growing cities can indeed be a lucrative opportunity. So, if you intend to start a private security company in Bangalore or any other city in Karnataka, obtaining a PSARA license is mandatory for your agency to commence operations.
The entire process involves several steps which may take considerable time and a certain amount of money based on the region you want to operate in. Further, non-compliance with the PSARA regulations can invite severe penalties for you and your agency. So, it is important to plan it out properly to make sure that the entire registration is hassle-free.
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