What is PSARA license and Why it’s important in India(2022)?

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What is PSARA license and Why it’s important in India?

The Private Security Agencies are being rooted all over the globe because of the commendable services they offer. They have made a difference when it comes to calling for threat protection services. Their rapid growth in the security field has ensured that they are going to be adopted more than security agencies and thus, need a statutory binding to maintain and protect the people and the employees. But before we dig deeper into the study of this Act and its implementation, it is necessary to have a clarified understanding of the term. Personnel offering CA services for businesses can assist in the same. 

What are Private Security Agencies?

A security agency is a government-owned agency in India and other countries that functions for security and protection of the residents of that country. The national interest is their prime aspect of consideration and they don’t compromise it for anything.
A private security agency, on the other hand, is a privately established business. The aim of this business is to provide first class security service along with making profit from the same. This is the foremost difference between the two. A national security agency is set up for social interest while private agencies don’t overlook profit for doing the same job.

To elaborate further, the activities that security agents undertake are different from that which private security agents undertake. They have to work for the protection of all the country people and remain on surveillance 24*7. Some of the activities that they undertake are as follows –

  1. Implementing Rules and Regulation – The foremost task of the security agents is to enforce and implement rules and regulations in the areas assigned to them. Every country has a code of conduct for their national security which cannot be compromised upon on any circumstance and should be abided by duly. These security agents have to ensure the same.
  2. Immediate action on Threat calls The agents should be ready to combat any threat or emergency at a given point of time. They are not to be callous with their judgement and work and should improve their timing to remove every innocent person from the scene of danger.
  3. Monitoring Camera Footages – The agents deployed for the monitoring of CCTV cameras and footages should be alert and scrutinizing persons through these cameras. Any suspicious behavior is reported immediately to not let the danger grow and curb it at its origin. The footage is important at the time any mishap or criminal incident takes place as it helps in capturing and identifying the faces at the given hour of the day.
  4. Security Checks – The agents have the authority to conduct security checks if they receive intel on any abnormality in order to take proper precautions. Areas of high traffic can also be included in these checks in order to ensure everything is running smoothly. 

As discussed above, the security agents have the responsibility of billions on their shoulder. But this doesn’t render the work done by private agents less tedious. The growth over the years in the demand for these securities was noted at 20%, with a lot of potential markets left untapped. The Private Security agencies also provide different types of security on the basis of where it is required, and the period for which it is required. There are contracts signed for the same, be it outside an ATM, or transportation of valuables or events for powerful business persons. Some of the examples of the same are – 

  • Personal Security – This type of security is witnessed when security is assigned to an individual or group of persons for reasons personal to them. Bodyguards undertake these kinds of security services. Many famous celebrities as well as politicians require personal security because of the mass following and public dealing they indulge in. 
  • Home Security – Whether you live in an apartment flat or residence bungalow, there is a requirement of a security guard to make sure that the premises are safe in the presence and absence of the residents. This can be done either manually by the guards. For large premises, monitors and CCTVs are installed in order to secure and look after the property. The security of office buildings or personal setups like at offices of persons offering CA services for business, rented showrooms in a mall etc. also require to be taken care of. 
  • Event Security – The nightclubs that permit drinking and events hosted by famous personalities or government officials can often be seen guarded by bouncers. This is done to ensure that no undesired person enters the event. It ensures safety to the people inside the event and protects any mishaps.
  • Aviation Security – The trained staff at airports have to be vigilant and look after the safe boarding and entry of passengers, in the airport as well as the aircraft. A proper check on luggage and any suspicious behavior is necessary to ensure that there is no danger surrounding the huge crowds present there.

What is PSARA Act?

An increase in the number of private security agencies has been witnessed due to the increase in rates of crime and terrorism. The Private Security Agencies Regulation Act (2005) was implemented by the government in order to govern the working and management of these agencies operating privately as a business establishment. The private agencies, since private businesses, could make their own rules and regulations and govern by them. Hence it has now become mandatory for a private security agency to hold the license under PSARA if they wish to indulge in the practice of deploying agents for security business.

The PSARA act dictates that it is mandatory for agencies to employ supervisors to supervise over security guards. Preference for the post of the supervisor should be given to a person from the army, navy or air force or having at least 3 years of experience in the field of security management. It gives the instructions specifying the prerequisites to be met for qualification and disqualification for the post of security guard along with the color of their uniform as well as the health conditions of the candidate. The firms of accountants offering CA services for tax and business, warehouses of government or private builders are also required to see that the security services they are employing are licensed to avoid being sued. These regulations have to be met with seriously in order to get a license for security services. 

Some of the predetermined criteria for the eligibility of the Private Security Agency License are –

  • Any India company, firm or association is eligible for procuring the license under PSARA. If the agency acquiring the license is a company then most of its shareholders must be Indian. Apart from these terms, there are other conditions that need to be satisfied in order to obtain a license.
  • The company or association of persons cannot be convicted of any offence in the management or formation of the agency or company.
  • The company or association of persons cannot be convicted for a crime the punishment for which is imprisonment of not less than two years.
  • The company or association of persons cannot be linked to any organization the working of which has been banned by law or poses a threat to the national security of public order.
  • The person cannot be dismissed or expelled by any government service on grounds of misconduct or moral turpitude.


The parties have to decide on a form of the organization before they register for getting a license under PSARA. The type of organization will be dependent on the scale, assets, liability and control. The model of business organization can either be a sole proprietorship, partnership firm, LLP, NPO or NGO an or a Private listed company. After deciding the same, personnel can issue the registration for the Private Security Agency License. The application can be made for a district, or 5 districts or a state. The process of application will vary with the license area. 


Private security is needed for every organization. This meant an increase in the number of security agents of privately established businesses getting access to security briefs and technology of other organizations. The government of India approved the requirement and founding of such agencies but also sought a measure to overlook the working of organizations that recruit the personnel for jobs. Some of the reasons why the act and licensing under it is important are –

  1. Training Institutes gain Empowerment – 

The license is a basic requirement for the private security agencies. The training agencies will be free to provide the services for security once the license is obtained. This means that the license empowers them to recruit candidates for the job following the eligibility criteria and enjoy the benefits of providing security to businessmen, CA firms for better services as well as persons. The license is required to be renewed after 5 years. The company or persons can then secure their rights and obligations which are not available without license.

  1. No Denial of Rights –

The rights which are granted to a public company or organization which is registered may not be available to an agency which is not licensed. These rights include the right to sue and be sued. The license empowers the training agency to continue provision of security services. The type of work that human labor employed has to do requires a license. Thus, the right to be considered by law is only granted to private security agencies having license under PSARA.

  1. Selection of Candidates – 

The license is granted to any private security agency approximately 6 months after the application is submitted for the same. The recruiting and training of candidates begins during this period. The agency has the authority to select which candidate they prefer to train. The only thing that has to be kept in mind is the eligibility criteria of the PSARA. Enlisting a competent and qualified person will be the right choice as he/she has to go on working for certified organizations. The motive of the recruitment is to find able personnel who can handle the wrongdoings and mishaps that take place in today’s times. Agencies provide the training for various types of business setups like LLP or NGO to facilitate security services all over with trained professionals.


The Private Security Agency License is a mandatory document in the eyes of law that all the security agencies must abide by if they want to flourish in the field hassle-free. The license comes with its own rights and benefits, so one should not wait for any mishap before getting the license. The license is applied differently in different areas and the operations of the agency must commence 6 months after procurement of the license. 


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