Obtaining PSARA 2005 License for Jai Ambe Private Security Agency

With concerns about crime and terrorism on the rise, the demand for private security services is rising steadily to protect against robberies, violence and other forms of crime. As both businesses and consumers are increasingly more aware of their need for security, knowing how to start a security company can be a viable business opportunity for entrepreneurs. However, starting a security company requires the correct training and licensing, as well as a sound understanding of business management and networking.

My main objective through this article is to address the legal aspect of this business which happens to be one of the most challenging obstacle to cross over.

The legal aspect of Private Security Agency Business is governed by “Private Security Agency Regulation Act, 2005” in short called as ‘PSARA’.

All the private Security agencies must obtain license under PSARA 2005 to operate in this business.

However first thing is first, the parties have to decide upon the model of their business organisation which depends upon various factors like Scale, finance, Liabilities, Control, etc.

Depending upon the suitability of the parties the model can be one of the following:

a)     Sole proprietorship

b)    Partnership Firm

c)     LLP

d)    Pvt. Ltd.  Or  Ltd. Company

e)     NGO

After the suitable model has been decided then parties can proceed with the obtaining the license under PSARA for which they need to refer PSARA 2005, with the rules laid by their respective state in the province of which business operation is to be conducted.

While filing the application for PSARA 2005, copies of registration certificate under various other Acts and Several other compliance documents is required to be annexed with the application form.

That means registration under PSARA calls for many other prior registrations and compliance.

Let’s take a look at those prior Registrations and Compliance:

Requirements for Registration

• Allocation of PAN
• Service tax registration
• Provident fund registration
• ESI registration
• Registration under Shops & Establishment Act
• Registration under Contractual labour Act