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PSARA License | Private Security Agencies license

PSARA License|Private Security Agencies license

PASARA stands for Private Security Agencies Regulation Act, 2005. Any person who want to start Private Security Business in India need this license. As per The Private Security Agencies (Regulation) Act, 2005 registration is issued and all activities are monitored. As per Section 4 of Act Persons or Private Security Agency not to engage or provide private security guard without PASARA licence.

PASARA License is issued by state Controlling Authority. This license can be taken for one state or for and district , government fees differs in both cases. In interest of Nation the Private Security Agencies Regulation Act, 2005 was introduced to monitor , administer and issue licenses to security Guard business. Any company / Partnership Firm / LLP is eligible to apply for PASARA License.

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Important Points About PSARA License

  1. License Valid for 5 Years
  2. Can be Applied for District or State
  3. Manual Registration
  4. MOU with Training Institute Required
  5. Police clearance certificate required

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Eligibility to Apply for PSARA license/ Private Security Agency License

  1. Registered Business
  2. Name & Object Clause
  3. Eligibility of Director / Partner / Proprietor
  4. MOU with Training Institute
  5. National Interest Clause
  6. Restriction of Foreign Investment

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Government Fees for PSARA license/ Private Security Agency License

  • 5000 For One District
  • 10,000 For 2 to 5 District
  • 25000 For One State

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Documents to Maintain by/Private Security Agency

Every private security agency shall maintain below list of documents

  • the names and addresses of the persons managing the private security agency;
  • the names, addresses, photographs and salaries of the private security guards and supervisors under its control;
  • the names and addresses of the persons whom it had provided private security guards or
  • services; and such other particulars as may be prescribed.

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List of Documents for PSARA license/ Private Security Agency License

List of documents for PSARA / Private Security license is different from state to state. Also as per status of security agency Like Propriety firm , Partnership firm , Private Limited company documents changes.

  • Certificate of incorporation of company or LLP or Proprietary firm
  • The MOA and AOA of the company or partnership deed or such other agreement document.
  • Details of the directors ( PAN , Adhar Card , Photo , Cell No. & Mail ID )
  • Past 3 Years ITR Copies
  • Logo for the security agency
  • The armed used or to be used details and the licenses obtained by them if any
  • Identify card and such proof of employees. (PAN & Adhar Card )
  • The uniform pattern or dress code of such deputing security agents
  • The character and background verification certificate for the employees.
  • The board resolution
  • Affidavits as stated in PSARA act.
  • The tie-up may be in the form of MOU with the security training institute.
  • Address proof of the place of the business

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Procedure to Apply PSARA license/ Private Security Agency License

  • Company Registration ( Pvt Ltd or LLP or Partnership or Proprietorship )
  • Registration with GST
  • Registration of establishment under Shops & Establishment
  • Registration under the Contractual labour Act
  • Provident fund (PF) registration
  • Employees State Insurance (ESI) registration
  • MOU with Training Institute
  • MOU with Hospital For Medical Check-up
  • Verification by Local Police Department
  • Followup for Registration with department & Registration 

Procedure to Apply PSARA license

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Penalty Fine Under PSARA license/Private Security Agency License

S.No.  Offence Penalty
1 Penalty for Fail to obtain PASARA License Imprisonment upto 1 year or  fine upto Rs. 25000/- or both
2  Penalty for unauthorized use of certain uniform Imprisonment upto 1 year or  fine upto Rs. 25000/- or both
3 Fail to comply provisions of sections 9, 10 and 12 of
the Act
Fine upto Rs. 25000/- in addition to suspension or cancellation of the license

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Renewal of PSARA license/ Private Security Agency License

Submit application for Renewal of PSARA license/ Private Security Agency License to Controlling Authority, not less than forty-five days before the date of expiry of the period of validity.

  • Submit Renewal Application before 45 days of expiry
  • Submit prescribed forms
  • Pay Filing fees

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Compliance’s After PSARA license/ Private Security Agency Registration

PSARA License holder need to follow below monthly , quarterly and annual compliance’s under Profession Tax , PF , ESIC , GST & Income tax Act. For non filing penalty & fine applicable.

S.No. Complainces Due Dates
1 Professional Tax Monthly 
2 Provident Fund Monthly 
3 ESIC Monthly 
4 GST  Monthly 
5 Income Tax Filing Annually
6 TDS Filing  Quarterly 
7 GST Audit Annually

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CA Amit Bhutada
Reviewed By

CA Amit Bhutada

CA Amit Bhutada is a Chartered Accountant with over 10 years of professional experience in taxation, accounting, audit, corporate compliance, and business advisory. As the Founder of A N Bhutada & Co., he assists startups, SMEs, established businesses, and international clients in setting up and managing their operations in India while ensuring compliance with the Income-tax Act, GST laws, the Companies Act, and other regulatory requirements.

He has advised businesses across diverse industries on company incorporation, GST, ROC compliance, accounting systems, tax planning, and regulatory matters. His practical, solution-oriented approach enables entrepreneurs and business owners to make informed decisions and stay compliant throughout every stage of their business lifecycle.

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