Private Security Agency Licensing in India
The Private Security Agencies Regulation Act (PSARA), 2005 is a comprehensive legislation aimed at regulating private security services across India. Its core objective is to ensure professional, accountable, and legally compliant security agencies operate within the country.
A PSARA license is mandatory for any private security agency intending to provide services like armed/unarmed guards, event security, surveillance, or residential/commercial security. Operating without a license can lead to heavy penalties, legal action, and closure of business operations.
By obtaining a PSARA license, agencies ensure they are aligned with Indian security standards, provide trained and verified personnel, and maintain professional credibility with clients and regulatory authorities.
Legal Mandate: PSARA licensing is not optional—it's a legal requirement for all private security service providers in India.
Who Requires a Private Security Agency License?
Private security licenses are not just formalities—they are legal necessities for anyone offering private security services. The following entities are required to obtain a PSARA license:
Manned Guarding Services
Private security agencies offering manned guarding services.
Armed/Unarmed Guards
Companies providing armed or unarmed security guards.
Event & Corporate Security
Firms engaged in event management security, corporate office protection, or residential security solutions.
Escort & Transport Security
Agencies offering escort services, transport security, and cash-in-transit services.
Security Consultancy
Individuals or organizations supplying security consultancy services that involve personnel deployment.
Note: Even if an agency is small or unregistered under other acts, providing security services without a PSARA license is illegal.
Why a PSARA License is Crucial for Your Security Agency
Obtaining a PSARA license offers multiple benefits, ensuring legal compliance and business growth:
Legal Recognition
Establishes your agency as a legally compliant entity in India.
Client Confidence
Clients prefer licensed agencies for professional reliability and verified personnel.
Insurance Eligibility
Licensed agencies can easily obtain liability and employee insurance.
Training Standardization
Security guards receive government-recognized training, improving service quality.
Government Contracts
Only licensed agencies can bid for government tenders requiring certified security services.
Employee Welfare
Ensures employees are protected under labor laws and eligible for statutory benefits like PF, ESI, etc.
Eligibility Criteria for Directors and Security Personnel
Requirements for Principal Officers / Directors
To become a director or principal officer of a PSARA-licensed agency:
- Must be Indian citizens.
- Should be at least 18 years old.
- Must not have any criminal convictions.
- Should have sufficient financial resources to run the agency.
- Must be capable of overseeing operations, ensuring compliance with PSARA regulations.
Requirements for Security Guards
Security personnel employed under a licensed agency must:
- Be Indian citizens aged 18-65 years.
- Meet physical and medical standards set by PSARA rules.
- Have completed mandatory training from recognized institutes.
- Maintain a clean criminal record and character verification.
- Not have been dismissed from government service previously.
Eligible Business Structures for Security Agencies
PSARA allows different types of entities to apply:
Sole Proprietorship
Individual ownership with full control and liability
Partnership Firms
Two or more partners sharing profits and responsibilities
Private Limited Company
Corporate structure with limited liability protection
One Person Company (OPC)
Single person ownership with corporate benefits
Limited Liability Partnership (LLP)
Partnership with limited liability for partners
Association of Persons (AOP)
Group of individuals coming together for business
Essential Documents for PSARA License Application
To apply, agencies must submit a robust set of documents to ensure smooth verification:
Mandatory Documents:
- PAN Card of the company or individual applicant.
- Proof of registered office (rental agreement or ownership documents).
- GST registration certificate.
- Income Tax Returns of directors/partners.
- Registration under the Contract Labour Act, 1970.
- Employees' State Insurance (ESI) registration.
- Shops & Establishment Act registration (state-specific).
- Certificate of incorporation (for companies).
- Provident Fund (PF) registration documents.
- Affidavit declaring clean criminal record on non-judicial stamp paper.
- Passport-sized photographs of directors and key personnel.
Optional but Recommended:
- Security guard training certificates.
- Board resolution approving agency registration.
State-Specific PSARA Guidelines Across India
Each state in India can have additional requirements or modifications to the central PSARA Act:
| State/Region | Special Requirements |
|---|---|
| Delhi & NCR | Police verification is stricter, requiring local and central verification of directors. |
| Maharashtra | Must undergo state-level security training institute approvals. |
| Karnataka | Fire license mandatory for all armed security agencies. |
| Bihar | Police verification of all directors and security personnel is strictly enforced. |
| Tamil Nadu & Kerala | Additional compliance with ESI and PF registration before license approval. |
Mundra Legal ensures state-wise compliance, streamlining the application process for clients across India.
Step-by-Step Guide to Register Your Security Agency Under PSARA
Step 1: Expert Consultation & Document Preparation
Consult our team of legal experts to:
- Compile all required documents.
- Verify eligibility of directors and employees.
- Provide guidance on legal and compliance standards.
Step 2: Security Training Institute MOU
Sign a Memorandum of Understanding (MOU) with a recognized training institute. Ensure security guards receive mandatory PSARA-compliant training.
Step 3: Police Verification & Background Checks
- Police verification for directors and key personnel.
- Character verification for all security personnel.
- Check for criminal history and past employment issues.
Step 4: Application Filing & Submission
- Fill out Form I and other required forms.
- Submit documents to the Controlling Authority in the respective state.
- Track application progress online.
Step 5: State Verification & Office Inspection
- Physical verification of the registered office by state authorities.
- Inspect training facilities and security systems.
Step 6: PSARA License Approval & Issuance
License issued after all checks are completed. Validity: 5 years, with mandatory renewal before expiry.
Additional Regulatory Requirements for Security Agencies
Apart from PSARA, agencies may need:
Company Registration
Pvt Ltd, LLP, OPC, or Partnership registration
GST Registration
Goods and Services Tax registration for tax compliance
Shop & Establishment
License as per state Shop & Establishment Act
Police Clearance
PCC for directors and key management personnel
Fire License & NOC
Fire safety clearance for office premises
Professional Tax
State-specific professional tax registration
EPF & ESI
Employee Provident Fund and State Insurance registration
Gun License
If armed security services are provided
ISO Certification
For professional credibility and quality assurance
Pollution Control
PCC if applicable to business operations
Advantages of Registering Through Mundra Legal
Expert Guidance
PSARA experts simplify the application process with years of experience.
State-Wise Compliance
All state-specific requirements handled professionally.
Time-Saving
We manage documentation, verifications, and follow-ups efficiently.
Assured Accuracy
Reduce risk of rejection with thorough pre-submission checks.
End-to-End Support
Training, verification, license application, and renewal assistance.
Frequently Asked Questions About PSARA License in India
Q1: How long does it take to get a PSARA license?
Usually 60–90 days, depending on state verification and police checks.
Q2: Can a PSARA license be renewed?
Yes, before expiry; typically five-year validity.
Q3: What happens if a security agency operates without a PSARA license?
Heavy fines, legal action, and potential business closure.
Q4: Is training mandatory for security guards?
Yes, all personnel must complete PSARA-approved training.
Q5: Are there state-specific variations?
Yes, police verification, office inspection, and additional licenses vary by state.
Q6: Who can apply for a PSARA license?
Any Indian citizen or registered entity providing private security services, including Pvt Ltd, LLP, OPC, partnership, and AOP.
Get Your PSARA License Today
Start your private security agency with complete legal compliance. Contact Mundra Legal for expert assistance with PSARA license registration, documentation, and state-wise compliance.