PSARA Licence for private security agencies
No private security agency can legally operate in India without a licence under the Private Security Agencies (Regulation) Act, 2005. We prepare the file properly the first time — training MoU, affidavits, antecedent verification and the state controlling authority follow-up.
What the engagement includes
- Eligibility and structure review
- MoU with a state-recognised training institute
- Drafting of Form I, II and III
- Affidavit under Section 7(2)
- Coordination of police verification
- Uniform and logo approval papers
- Filing with the State Controlling Authority
- Query response until the licence is granted
Get a fixed quote
Government fees and our fee, itemised — before you commit.
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One of our consultants will call you on the number you provided, usually within one working day.
What a PSARA licence is
The Private Security Agencies (Regulation) Act, 2005 — usually shortened to PSARA — is the central law that governs private security agencies in India. It came into force on 15 March 2006 and makes it an offence to run a security agency, or to supply security guards, without a valid licence.
Although the Act is central legislation, the licence itself is issued by the State Controlling Authority of the state you operate in, under that state's own PSARA rules. This is the single most important thing to understand about PSARA: the documents, fee schedule and even the forms differ meaningfully between Maharashtra, Uttar Pradesh, Haryana, Delhi and the rest. A file prepared to a generic national checklist is very often returned.
A PSARA licence is granted for a defined geography — a single district, a group of districts, or the whole state — and the fee scales accordingly. Agencies that want to operate nationally apply state by state.
Who needs one
- Any business that supplies security guards, bouncers or armed personnel to clients
- Agencies providing cash-in-transit or escort services
- Facility management companies whose scope includes manned guarding
- Businesses training security personnel and placing them with clients
Why the licence matters commercially
Beyond the fact that operating without one is illegal, a PSARA licence is what makes a security agency contractable.
Legal to operate
Running an agency without a licence attracts penalties and closure under the Act. The licence is the baseline requirement, not an optional credential.
Corporate contracts
Banks, IT parks, hospitals, malls and industrial clients will not empanel an unlicensed agency. Most tender documents ask for the licence number up front.
Government tenders
Public sector guarding contracts require a valid PSARA licence for the state in which the site is located.
Trained workforce
The mandatory training MoU raises the standard of your guards, which directly affects client retention and the rates you can charge.
Eligibility criteria
For the agency and its promoters
- The applicant must be a company, firm or association of persons registered in India
- Directors, partners or proprietors must be Indian citizens — foreign nationals cannot hold a directorship or majority stake
- No promoter may have been convicted of an offence involving moral turpitude, or of an offence under the Act
- No promoter may have been dismissed from government service on grounds of misconduct
- The agency must have an MoU with a training institute recognised by the state
- EPF and ESIC registrations must be in place, since the agency will employ guards
- A proper office premises with address proof is required
- The agency must be financially capable of meeting wage and statutory obligations
For the security guards you employ
- Indian citizen, aged between 18 and 65
- Meets the prescribed physical standards
- Has completed the prescribed training (ex-servicemen are exempt from parts of it)
- Holds a character certificate and has cleared antecedent verification
- Has not been dismissed from government or police service on disciplinary grounds
Documents required
The exact list is set by your state's PSARA rules. The following is required almost everywhere:
| Document | Notes |
|---|---|
| Certificate of Incorporation / partnership deed | Objects clause should cover security services |
| MoA and AoA | For companies |
| PAN of the entity | Plus PAN of every director or partner |
| Identity and address proof of promoters | Aadhaar, passport or voter ID |
| Passport-size photographs | Two per promoter, recent |
| Office address proof | Rent agreement or ownership document plus a utility bill |
| GST registration certificate | Where applicable |
| EPF and ESIC registration | Employer codes for the entity |
| Shops & Establishment / Labour Act registration | State dependent |
| Income tax returns of directors | Usually the last two or three years |
| MoU with a recognised training institute | Institute must appear on the state's approved list |
| Affidavit under Section 7(2) of PSARA | On stamp paper of the value your state prescribes |
| Logo and uniform pattern | Must not resemble police or armed forces uniform |
| Character / police clearance certificates | For directors and key management |
Step-by-step process
- Structure and eligibility checkWe confirm your entity type, objects clause and promoter eligibility, and identify anything that would cause a rejection later.
- Supporting registrationsWhere EPF, ESIC or GST are missing, we obtain them first — PSARA cannot be filed without them.
- Training MoUWe arrange a memorandum of understanding with a training institute recognised by your state's controlling authority.
- DraftingForm I (application), Form II (antecedent verification particulars) and the Form III affidavit are drafted, along with the uniform and logo documentation.
- Filing with the Controlling AuthorityThe complete set is submitted to the State Controlling Authority with the prescribed fee for your chosen area of operation.
- Police verificationThe authority refers the file for antecedent verification of the promoters. We coordinate with you and the local police station through this stage.
- Queries and grantWe respond to any objection raised. On satisfaction, the Controlling Authority grants the licence.
Fees, area of operation and validity
The government fee depends on how much territory you want to cover. The figures below follow the model rules under the Act and are the most common structure, but your state may prescribe different amounts — we confirm the exact number before you pay anything.
| Area of operation | Indicative government fee | Best for |
|---|---|---|
| One district | ₹5,000 | A new agency serving a single city |
| Up to five districts | ₹10,000 | Regional agencies with a few client sites |
| Entire state | ₹25,000 | Agencies bidding for state-wide contracts |
A PSARA licence is ordinarily valid for five years and is renewable. Renewal must be applied for before expiry — a lapsed licence means your agency is operating unlawfully, and clients with compliance teams will notice. We diarise the date and contact you well ahead of it.
Operating in more than one state means a separate application to each State Controlling Authority. There is no single national PSARA licence.
Frequently asked questions
Short answers to what clients ask most often about PSARA Licence.
No. PSARA is administered state by state. A licence issued by the Maharashtra Controlling Authority permits you to operate in the districts of Maharashtra covered by that licence. To operate in another state you must apply to that state separately, meeting its own rules and fee schedule.
Between 45 and 90 days in most states, assuming your documents are complete. The Act contemplates a decision within 60 days of a complete application, but the police antecedent verification stage frequently adds time. Where supporting registrations such as EPF or ESIC are still pending, add those timelines at the front.
Most states expect a registered entity — a private limited company, LLP or registered partnership firm — because the Act contemplates directors, partners and antecedent verification of each of them. A sole proprietorship is accepted in some states but limits you commercially, since corporate clients almost always contract with a company. We advise on the right structure before you incorporate.
The Act requires an agency to ensure its guards are properly trained. In practice this is evidenced by a memorandum of understanding with a training institute that your state recognises. Filing an MoU with an institute that is not on the state list is one of the most common causes of rejection, which is why we arrange it rather than leaving it to you.
No. The Act requires the agency to be owned and controlled by Indian citizens. A foreign national or a foreign-controlled company cannot hold a directorship or a controlling stake in a private security agency in India.
Most rejections are procedural — a defective affidavit, an unrecognised training institute, a mismatch between the MoA objects and the licence category. We respond to the objection and refile at no additional professional fee, provided the issue did not arise from information misrepresented to us.
In practice, yes. Because a security agency employs guards, the controlling authority expects employer registrations under the EPF and ESI Acts to already be in place. We usually obtain these in parallel with incorporation so they are ready when the PSARA file goes in.
Start your security agency the right way
PSARA files fail on details — the wrong stamp value, an unrecognised training institute, a mismatch with your MoA objects. Let us check yours before it is filed.