Private Security Agency (Regulation) Act, 2005 (“known as PASARA“), the legislation made for the entities which provide security services including training of security guards and related services.
From the date of commencement of this Act, it is mandatory for each private security agency to obtain a PASARA license from the state controlling authority which is authorized under the Act. Entities shall start the business within 6 months of holding of PASARA license. Without holding license any entity or the agency cannot provide security services.
Applicability of PASARA
According to the Private Security Agency Act, 2005 any company who wants to register under the PSARA License needs to register itself as any of the following:
- Partnership firm
- Association of person
- One Person Company
- Sole Proprietorship
- Private Limited Company
- Limited Liability Partnership
Eligibility for the PASARA License
The following conditions must be satisfied such as:-
- Any entity or person who is related to security services should not be convicted of an offense in connection with the affairs of management of the company or any other type of entity.
- The entity should not be convicted of an offense or punished imprisonment of not more than 2 years.
- The person or entity should not harm national security or work against the law.
- The person or entity should not be convicted on the ground of misconduct or the moral turpitude.
- An Indian Company, Partnership Firm or the Association of Person is eligible for the Private Security License. If the agency is a company, the majority of shareholders should be Indian.
Every entity or the agency is required to fill the application form for license and submit an application form to the State Controlling Authority on the respective online portal. It is mandatory for the private security agency to get a license before starting the business after that such a private security agency is eligible to provide a security-related service.
Documents required for registration
Following documents required for registration follows:-
- Certificate of incorporation in the case of the company.
- Memorandum of Association (“MOA”) and Article of Association (“AOA”) in case of the company.
- Identity proofs of all directors and regular employees of the company.
- Two photographs and copies of the income tax return of every director.
- Identity or the address proof of the person who is engaging as guards with the entity or the private security agency.
- Logo of the security agency.
- Uniform pattern of the employees.
- Proof of the principal place of business.
Procedure for taking PASARA License
Following is the procedure for taking PSARA license:-
- Visit on the portal of Government.
- Download and fill the required application Form
- Attach the documents as prescribed.
- On successful registration, State Controlling Authority shall issue the PASARA License to the applicant.
Pre- Requisites for taking PASARA License
- GST Registration.
- Employee State Insurance (“ESI”) and Employee Provident Fund (“EPF”) account details.
- Documents of registration under Shops and Establishment.
- Registration documents of Micro, Small and Medium Enterprises (“MSME”).
- Copy of PAN
- Labour License
Validity and renewal of the license
The PSARA License is valid for the 5 years, whereas the application for renewal of the license is to be made after completion of 5 years on the payment of the prescribed fees under the PSARA Act, 2005. The applicant needs to make an application not less than 90 days prior to the license expiry date.
Fee for PSARA License
- For one state or district – Rs. 5000/-
- For the five states or districts – Rs. 10,000/-
- For every state or district – Rs. 25000/-
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Also Read: Filing Income Tax Returns for Minors