Applicability of the Act

Applicability to Private Security Agencies

The PSARA Act, 2005 applies to all Private Security Agencies (PSAs) that provide services of security guards, supervisors, or training institutes for security personnel. These agencies may serve corporates, banks, residential societies, malls, industrial units, events, or even cash management operations. Regardless of the size or form of business sole proprietorship, partnership, LLP, or company every entity engaged in offering such services must obtain a PSARA License before starting operations. This licensing ensures that agencies operate within a regulated structure, maintaining professionalism and accountability.

Exemptions from Applicability

The Act specifically exempts certain organizations from its ambit. It does not apply to government security forces, such as the armed forces, paramilitary forces, state police departments, or agencies directly controlled by state or central governments. These institutions function under separate laws and frameworks. The exemption creates a clear boundary: while law enforcement and government-controlled security bodies remain outside the Act’s scope, the private security industry is strictly regulated under PSARA to ensure lawful and disciplined functioning.

Appointment of Controlling Authority

Under Section 4 of the PSARA Act, 2005, each State Government is required to appoint a Controlling Authority to regulate and supervise the functioning of private security agencies within its jurisdiction. Usually, this responsibility is vested in a senior officer from the Home Department, such as a Secretary or Director-level officer, to ensure effective oversight. The authority acts as the nodal body for implementing the provisions of the Act at the State level.

Key Responsibilities of Controlling Authority

• Granting and Renewing Licenses: The Controlling Authority processes applications for grant and renewal of PSARA licenses. It ensures that applicants fulfill eligibility criteria, background verification, training requirements, and other conditions prescribed under the Act and State Rules. Licenses are issued for a period of five years (or as notified) and can be renewed upon compliance.

• Monitoring Compliance: The Authority monitors whether private security agencies are functioning in accordance with the Act, Rules, and conditions of the license. This includes oversight on the appointment of supervisors, proper training of guards, maintenance of registers, issuance of identity cards, and adherence to uniform guidelines.

• Conducting Inspections and Maintaining Records: To ensure transparency and accountability, the Controlling Authority is empowered to inspect offices, records, and activities of agencies. It maintains a database of licensed agencies, ensures timely renewal, and initiates action in case of violations such as suspension or cancellation of licenses.

Eligibility for PSARA License

To operate as a private security agency in India, an applicant must meet the conditions laid down under the Private Security Agencies (Regulation) Act, 2005 (PSARA). These include disqualifications under Sections 5–6 and certain positive requirements to ensure transparency, credibility, and national security.

Disqualifications (Sections 5–6)

The Act restricts the grant of a PSARA License to individuals or entities who fall under specific disqualifications:

Conviction for Offences Involving Moral Turpitude

The Act prohibits granting a PSARA license to any person or entity whose promoters, partners, or directors have been convicted of offences involving moral turpitude. Crimes such as fraud, theft, assault, or offences under criminal law reflect dishonesty and risk, making such individuals unfit to run a security agency. Since PSAs handle sensitive duties like guarding property, cash-in-transit, and access control, integrity of management is paramount.

Dismissal from Government Service for Misconduct

Individuals who have been dismissed or removed from government service on grounds of misconduct are also disqualified. The rationale is that those who have shown indiscipline or misuse of authority in public service should not be entrusted with managing private security, which is a matter of public trust and safety.

Non-Citizens of India

The PSARA Act mandates that only Indian citizens can own or operate a private security agency. Foreign nationals, or entities directly or indirectly controlled by them, cannot apply for a license. This provision safeguards national security by ensuring that sensitive security services remain under domestic control. However, the Central Government retains discretionary power to grant exceptions in rare and justified cases.

Entities Not Registered in India or Controlled by Non-Citizens

The Act also disqualifies companies or organizations that are not registered in India, or those in which foreign control exists. This ensures that ownership, decision-making, and accountability of private security agencies remain within the jurisdiction of Indian laws. It further minimizes risks of misuse of security infrastructure by foreign elements.

These disqualifications ensure that only trustworthy and law-abiding entities can operate in the sensitive field of private security.

Positive Requirements

In addition to the absence of disqualifications, certain affirmative conditions must be fulfilled:

Legal Registration

Before applying for a PSARA License, the applicant must be a legally recognized business entity in India. This can be in the form of a Private Limited Company or Public Company under the Companies Act, 2013, a Limited Liability Partnership (LLP) under the LLP Act, 2008, a Partnership Firm under the Indian Partnership Act, 1932, or even a Sole Proprietorship. Legal registration ensures that the agency is accountable under Indian law, can be regulated effectively, and operates with proper corporate governance. It also establishes the entity’s legitimacy, making it easier to enter into contracts and earn client trust.

Financial Soundness

The promoters, partners, or directors of the security agency must demonstrate sound financial standing. This means they should not have a record of insolvency, bankruptcy, or fraudulent activities. Financial stability is vital because a private security agency has to invest in training, equipment, uniforms, and timely payment of salaries to guards and supervisors. A clean financial record builds confidence with both the Controlling Authority and clients, ensuring that the agency will operate reliably and sustainably.

Training Tie-up

One of the most important conditions for obtaining a PSARA License is the requirement of a training arrangement. Every agency must either:

• Enter into a formal tie-up with a recognized training institute, or

• Set up its own in-house training facilities approved by the Controlling Authority.

This requirement is aligned with the Private Security Agencies Central Model Rules, 2020, which specify minimum training hours, physical fitness standards, and syllabus based on the National Skill Qualification Framework (NSQF). Through this, guards and supervisors are trained in areas like physical fitness, security duties, handling emergencies, fire safety, and legal awareness. This standardization ensures professionalism, discipline, and quality service delivery across the industry.

Application Process (Section 7)

Filing of Application

The process begins with the submission of an application in Form-I, as prescribed under the respective State’s PSARA Rules. Along with the form, the applicant must submit an affidavit confirming compliance with key provisions of the Act, namely:

• Section 6: ensuring that the applicant does not fall under any disqualification.

• Section 9(2): relating to the mandatory appointment of supervisors within a prescribed time.

• Section 11: ensuring adherence to license conditions and standards.
  This affidavit acts as a declaration of good conduct and compliance readiness.

Police Verification

After receiving the application, the Controlling Authority forwards it to the concerned police department for antecedent verification of the applicant, its promoters, partners, or directors. The police conduct a background check to confirm there are no criminal cases, disqualifications, or security risks associated with the applicant. A Police No Objection Certificate (NOC) is mandatory for the grant of a license.

Licence Fees

The applicant must pay the prescribed license fees, which vary depending on the geographical scope of operation:

• ₹5,000: for operating in one district.

• ₹10,000: for operating in up to five districts.

• ₹25,000: for operating across the entire State.
  This structure ensures that smaller agencies are not overburdened while statewide operators contribute proportionally.

Grant of Licence

Once the police verification is complete, the Controlling Authority evaluates the application. As per the Act, the decision to grant or reject the license must be made within 60 days of submission. If approved, the license is valid for five years, after which it can be renewed following the same process.

For agencies wishing to operate abroad, the law requires specific approval from the Central Government in consultation with the State, as cross-border operations involve higher security implications.

Renewal of Licence

The PSARA License granted to a private security agency is valid for a period of five years (or as notified by the State). To ensure continuity of operations, the Act provides a structured process for renewal.

Application Timeline

The agency must apply for renewal at least 45 days before the expiry of the existing licence. This advance timeline ensures that the Controlling Authority has sufficient time to verify compliance with all conditions, including training obligations, maintenance of registers, and proper functioning of the agency.

Decision by Controlling Authority

Once the renewal application is filed, the Controlling Authority is required to make a decision within 30 days. The renewal is granted only if the agency has maintained compliance with the provisions of the Act and Rules, has no disqualifications under Sections 5–6, and continues to meet training and operational requirements.

Compliance Requirements

Once a PSARA License is granted, the licensee must fulfill several statutory compliance obligations to maintain validity and avoid penalties. These requirements ensure that private security agencies operate lawfully, professionally, and in line with national security interests.

Commencement of Business

After receiving the license, the agency must commence its operations within six months. This provision prevents agencies from holding licenses without actually engaging in business and ensures that the license is used only by active, functioning security service providers. Failure to start operations within this period may result in suspension or cancellation of the licence by the Controlling Authority.

Supervisors (Section 9)

The Act requires every private security agency to appoint supervisors within 60 days of commencing operations. Supervisors are responsible for monitoring the performance and discipline of guards, ensuring they follow training and professional standards.

• Preference in appointment is given to ex-servicemen, former police personnel, and home guards, considering their experience, discipline, and background in security services.

• The number of supervisors to be appointed is determined by the Controlling Authority, depending on the size and scope of the agency’s operations.

Guards (Section 10)

The eligibility conditions for security guards are specifically outlined to maintain integrity and fitness in the profession:

• Citizenship: Guards must be Indian citizens, unless the government issues a specific notification allowing otherwise.

• Age Criteria: Guards must be between 18 and 65 years of age at the time of appointment. This ensures both maturity and physical ability.

• Police Verification: Every guard must pass antecedent verification by the police to rule out criminal history or security risks.

• Training Requirements: Guards must undergo mandatory training as prescribed under the Act and Model Rules, 2020, covering fitness, emergency handling, legal awareness, and fire safety.

• Physical Standards: Guards must meet the prescribed health, medical fitness, and endurance standards, ensuring they are capable of handling demanding security tasks.

Duties and Obligations

The PSARA Act, 2005 imposes clear duties on both private security agencies and security guards to ensure accountability, transparency, and discipline. These obligations are crucial for protecting clients, safeguarding public interest, and maintaining the integrity of the security sector.

Duties of Agencies

• Display of Licence (Section 12): Every private security agency that has been granted a PSARA licence must display it prominently at its business premises. This requirement assures clients and the general public that the agency is legally authorized to operate. It also reflects compliance with the law and builds trust in the agency’s credibility.

• Maintenance of Registers (Section 15): Agencies are required to maintain proper registers in the prescribed format. These registers must contain details of the management team, supervisors, and security guards, including photographs, residential addresses, and wages. A separate register of clients must also be kept, recording details of agreements and services provided. These records ensure transparency, accountability, and allow the Controlling Authority to inspect operations whenever required.

Duties of Guards

• Carrying Identity Card: Each security guard engaged by the agency must be issued a photo identity card, which he is required to carry at all times while on duty. This provision ensures easy identification of guards, prevents impersonation, and reassures clients that only authorized personnel are deployed for their safety.

• Maintain Confidentiality: Security guards are legally bound to maintain confidentiality about the client’s property, security arrangements, or any sensitive information they come across while performing duties. Breach of confidentiality not only attracts penalties but may also lead to cancellation of the agency’s licence. This safeguard protects the client’s trust and maintains professional standards.

• Aid Police and Investigations: The Act places an obligation on guards to extend cooperation to the police or other law enforcement authorities whenever required. They may be asked to assist during emergencies, provide details for investigations, or support law enforcement in preventing or addressing security threats. This duty emphasizes their role as responsible stakeholders in public safety.

• Report Unlawful Activities: It's responsibility of every security guard is to report suspicious or unlawful activities noticed while on duty. Such reporting may be made to their supervisor or directly to the police, depending on the situation. This obligation ensures that private security staff contribute not only to the protection of private property but also to the maintenance of law and order in society.

Suspension and Cancellation (Section 13–14)

False Representation in Application

If an agency is found to have furnished false or misleading information while applying for the PSARA licence, the Controlling Authority may cancel the licence. Since licensing is based on credibility and trust, misrepresentation at the initial stage undermines the legal validity of the licence itself.

Breach of Conditions of Licence

A licence under PSARA comes with mandatory conditions such as maintaining registers, ensuring training, and employing supervisors within stipulated timelines. Any breach of these licence conditions is considered a violation of statutory obligations and can result in suspension or cancellation by the Controlling Authority.

Engaging Unqualified Personnel

Employing unverified or untrained guards or those who do not meet the prescribed age, fitness, and citizenship requirements is a direct violation of Sections 9 and 10. Since security staff are the backbone of a private agency, engaging unqualified personnel compromises public safety and leads to strict action.

Failing to Commence Business within Six Months

Once a licence is granted, the agency is required to start operations within six months. If it fails to do so, the Controlling Authority may cancel the licence on the grounds of non-usage. This ensures that licences are not kept dormant or misused for purposes other than genuine security services.

Acting Prejudicially to National Security or Public Order

Perhaps the most serious ground is when an agency or its personnel act in a way that is harmful to national security, sovereignty, or public order. Activities such as misuse of firearms, collusion in unlawful acts, or posing risks to national integrity are dealt with strictly, leading to immediate cancellation.

Appeals to the State Home Secretary

To ensure fairness, the PSARA Act provides a right of appeal. If an agency’s licence is suspended or cancelled, it may file an appeal before the State Home Secretary within 60 days. The appellate authority reviews the facts, hears the agency, and has the power to uphold, modify, or reverse the Controlling Authority’s order.

Penalties (Sections 20–22)

Unlicensed Operation

Under Section 20, if any private security agency operates without obtaining a valid PSARA licence, it is a punishable offence. Such agencies may face imprisonment, monetary fines, or both. This provision ensures that only licensed and verified agencies, subject to regulatory oversight, provide security services to the public.

Violation of Training, Eligibility, or Display Provisions

If a licensed agency violates mandatory requirements such as providing training to guards and supervisors, engaging only eligible personnel, or failing to display the licence at its business premises (as required under Section 12), it may be subjected to financial penalties. Repeated or serious violations can even lead to suspension or cancellation of the licence by the Controlling Authority.

Offences by Companies

Where an offence under PSARA is committed by a company, the Act extends liability to the directors, partners, or officers in charge of its management. However, such individuals can escape liability if they can prove that the offence occurred without their knowledge or that they exercised due diligence to prevent it. This balances accountability with fairness by punishing negligence but protecting those who acted responsibly.

Prohibition on Uniforms Resembling Police or Armed Forces

Section 22 prohibits private security guards from wearing uniforms that resemble those of the police, armed forces, or paramilitary forces. The purpose is to prevent confusion, impersonation, and misuse of authority by private guards. Agencies must ensure that their uniforms are distinct in design and color to avoid misleading the public or undermining the authority of official forces.

Training Requirements

The PSARA Act, 2005, together with the Private Security Agencies Central Model Rules, 2020, makes training a mandatory prerequisite for security personnel. The aim is to ensure that private security guards and supervisors possess the skills, discipline, and fitness needed to discharge their duties effectively and professionally.

Central Model Rules, 2020

The Central Government introduced the Model Rules in 2020 to bring uniformity in training standards across all States and Union Territories. These rules mandate that the training syllabus be aligned with the National Skill Qualification Framework (NSQF) to ensure nationally recognized skill development.

Under the rules, every trainee must undergo a minimum of 100 hours of classroom training and 60 hours of field training spread over at least 20 working days. The syllabus covers areas such as physical fitness, fire safety, first aid, crowd control, handling of emergencies, and understanding basic legal provisions. Supervisors are required to undergo higher-level training that equips them with leadership skills, monitoring responsibilities, and advanced operational knowledge.

This structured training system ensures that guards and supervisors are not only capable of protecting property but also prepared to handle critical situations with professionalism.

Fitness Standards

In addition to theoretical and practical training, guards must meet prescribed fitness standards. These include medical checks, vision requirements, and endurance tests to ensure that security personnel are physically and mentally fit to perform their duties. Guards with serious health issues, poor eyesight, or inability to meet endurance benchmarks may be disqualified from service.

By enforcing strict fitness criteria, the Act ensures that security guards can withstand the physical demands of long working hours, emergency responses, and situations requiring alertness and stamina. This also assures clients that personnel deployed for their protection are both capable and dependable.

Record-Keeping and Inspections

The PSARA Act, 2005 imposes strict record-keeping obligations on private security agencies to ensure transparency and accountability. It also empowers the Controlling Authority to carry out inspections, including surprise checks, to verify compliance.

Registers to be Maintained

Every private security agency must maintain prescribed registers at its business premises. These registers contain details of:

• The management team (owners, partners, directors).

• Supervisors and guards, along with their photographs, addresses, wages, and service details.

• Clients and contracts, including the nature and duration of services provided.

Such documentation provides a ready record for verification and helps the Controlling Authority monitor compliance effectively.

Inspection Powers of Controlling Authority (Sections 15–16)

The Act empowers the Controlling Authority to inspect the premises, registers, and records of a private security agency at any reasonable time. Importantly, it also authorizes surprise checks to ensure agencies are not engaging in malpractices, employing unqualified guards, or breaching licence conditions. These powers act as a deterrent against negligence or misconduct.

Consequences of Non-Compliance

If an agency fails to maintain proper registers or obstructs inspection, it can face suspension of licence or financial penalties. In serious cases, the Controlling Authority may also proceed with cancellation of licence. This ensures that agencies remain diligent in their record-keeping and adhere to the highest standards of transparency.

Recent Updates

The regulatory framework under the Private Security Agencies (Regulation) Act, 2005 has seen several important updates in recent years. These reforms are aimed at improving efficiency, standardizing practices, and making compliance more technology-driven.

• PSARA Licensing Portal: The government has launched the PSARA Licensing Portal as a centralized online platform for filing licence applications, renewals, and compliance submissions. Earlier, the process varied from state to state and often involved manual paperwork. The online portal brings uniformity, transparency, and convenience, allowing applicants to track the status of their licence digitally and reducing delays caused by administrative bottlenecks.

• Model Rules 2020: The Private Security Agencies Central Model Rules, 2020 were introduced to standardize key compliance requirements across all States. These rules provide uniform formats for training syllabi, maintenance of registers, and issuance of identity cards to guards. They also align training with the National Skill Qualification Framework (NSQF), ensuring that security personnel meet nationally recognized competency levels. This harmonization has reduced inconsistencies between States and raised the professional standards of the private security industry.

• MHA SOPs (2023): In May 2023, the Ministry of Home Affairs (MHA) issued Standard Operating Procedures (SOPs) to streamline the recognition and renewal of security training institutes and to simplify the licence processing workflow. These SOPs ensure faster decision-making, clarity in procedural requirements, and accountability of both the Controlling Authorities and training providers. This step has further strengthened the quality control mechanism in the sector.

• Shift Towards Online Licensing and Renewals: A significant trend is the transition from offline to online licensing and renewals at the State level. Several States have now adopted digital processes, reducing the need for physical visits to government offices. This shift has not only improved ease of doing business for private security agencies but has also ensured better monitoring of compliance by authorities.

Conclusion

The PSARA licence is not just a legal requirement but a safeguard for the private security industry in India. It ensures that only qualified, law-abiding, and accountable agencies are allowed to provide security services, thereby maintaining professionalism and discipline in a sensitive sector linked to public safety.

The process of obtaining a licence involves filing an application with the State Controlling Authority, undergoing police verification, paying the prescribed fee, and meeting obligations such as training, supervisor appointments, and proper record-keeping. These steps ensure that security agencies function transparently and maintain high service standards.

With reforms like the Model Rules, 2020 and the PSARA Licensing Portal, licensing has become more uniform and efficient. Agencies must strictly comply with the Act to avoid penalties, preserve credibility, and build lasting trust with clients and regulators. 

Frequently Asked Questions (FAQs)

Q1. What is a PSARA License and why is it required?

Ans. A PSARA (Private Security Agencies Regulation Act) License is mandatory for operating a private security agency in India. It ensures professionalism, accountability, and compliance with national security standards. Without this licence, agencies cannot legally provide security guards or related services.

Q2. Who issues the PSARA License?

Ans. The licence is issued by the State Controlling Authority appointed under Section 4 of the PSARA Act, 2005. Each State has its own authority to regulate and monitor private security agencies within its jurisdiction.

Q3. What are the eligibility conditions for obtaining a PSARA License?

Ans. Applicants must be registered as a business entity (company, LLP, partnership, or proprietorship), have a sound financial background, and enter into a tie-up with a recognized training institute. Entities controlled by non-citizens or those convicted of offences are disqualified.

Q4. What documents are required for PSARA License application?

Ans. Key documents include PAN, registration certificates, address proof of business premises, details of directors/partners, affidavits of compliance, and proof of training tie-up. Police verification forms for promoters are also mandatory.

Q5. What are the compliance requirements after obtaining a PSARA License?

Ans. Agencies must start operations within six months, appoint supervisors within 60 days, employ only verified and trained guards, maintain statutory registers, display the licence, and issue photo ID cards to guards.

Q6. What recent updates have been made to the PSARA framework?

Ans. Recent reforms include the PSARA Licensing Portal for online applications, the Model Rules 2020 standardizing training and compliance, and MHA SOPs 2023 for streamlined licence processing and training institute recognition.