Common Challenges In PSARA License Application And Solutions

PSARA License, an abbreviation of the Private Security Agencies Regulation Act, is a mandatory certification for private security agencies to legally operate in India. The license validates the legal existence of such security agencies and demonstrates their compliance with government-established standards. An entity or individual who is planning to establish a venture in the security sector must obtain a PSARA license to avoid any legal repercussions.

The PSARA license application process commences with filing an application form (Form-1) with the respective state authority (Controlling Authority). In the meantime, the agency is also mandated to enter into an MOU with recognized training institutes. The authority then reviews the submitted application and send a copy of this to local police department for character and antecedent verification. The department issues an NOC in case of no adverse reports found and clean records. Lastly, authorities grant the PSARA license, a green signal to commence operations.

However, the licensing process is not as simple as it appears to be. Numerous challenges arise throughout the process, which seek detailed explanation and thorough guidance. Keep reading to find out which hurdles may arise in the PSARA license registration and how they can be tackled to ensure seamless procurement of authorization.

What are the Challenges in PSARA License Registration?

Obtaining a PSARA Certificate for Security Agency can be a cumbersome process, owing to the numerous challenges it presents along the registration process journey. These Legal and Operational Hurdles in PSARA License Applications involve overwhelming paperwork, verification delays, and time-consuming procedures, among others, which deter applicants from obtaining licenses in a timely and seamless manner. These hurdles are as follows:

• Extensive Paperwork: The Controlling Authority can reject an application or revoke the license in case of inaccurate or incomplete information furnished to the authorities. In addition, the applicants have to submit a significant amount of paperwork such as a Certificate of Incorporation, MOU (with a training institute), ESIC registration certificate, PAN, GSTIN, Income Tax Returns (ITR) of directors, etc.
• Police Verification: Under the PSARA Act 2005, obtaining a No Objection Certification (NOC) from the police department is a crucial step in PSARA registration. Agencies are mandated to conduct verification on their security personnel. Similarly, upon receiving the application, the Controlling authority sends a copy of the application to district police to verify the records and background of applicants. Often this acts as a bureaucratic hurdle which is time-consuming, and any adverse report can even cause rejection of the application.
• Variations in Guidelines: The PSARA licensing process differs extensively across the states. Police and public order are state subjects, whereas the central government is responsible for maintaining internal security. Thus, although the central authorities enforce and regulate the PSARA regulations, state governments are the ones who designate a Controlling Authority not below the rank of Joint Secretary. As a result, certain variations arise in PSARA rules across all the states, which further poses a challenge if the applicant wishes to operate the agency in multiple jurisdictions.
• Compliances: Under the PSARA Act 2005, no individual can operate a private security agency without obtaining a PSARA license. Agencies are also required to conduct antecedent verification and background checks to scrutinize whether any security guard or supervisor has any criminal records or has been dismissed for misconduct. Compliances with the PSARA regulations are mandatory to avoid severe penalties, including penalties and license suspension.
• Inadequate Funds: As a necessary condition, it is pivotal for the applicant to possess and showcase that they own sufficient financial resources to operate a private security agency and can pay salaries to its personnel promptly. By Understanding the Costs of Maintaining a PSARA License, an applicant can mitigate financial challenges and reduce their overall costs, including expenses incurred in licensing across states, training charges, etc.
• Inadequate Training: PSARA rules mandate that the licensee must undergo training within the prescribed time frame fixed by the Controlling Authority. The licensee shall be trained on various security aspects such as VIP security, institutional security, internal security, fire-fighting, disaster and emergency management protocol, explosives, IEDs, security-related equipment, etc. In addition, security guards and supervisors are also mandated to obtain the necessary skills and training to effectively perform their jobs. However, inadequate training can compromise security, give rise to legal repercussions, and cause severe damage to reputation.
• Background Check: While obtaining a PSARA Certificate for Security Agency, every applicant is required to submit Form 1 specifying details on antecedent verification. Not only the security guard and supervisor, but also directors, majority shareholders, partners, and proprietors are also required to undergo verification. The stringent background check requirement and the need for comprehensive verification increase the license obtainment timeline, chances of rejection, and associated costs.

Solutions to Mitigate PSARA License Challenges

To mitigate the challenges, including legal and operational hurdles, applicants can consider the following suggestions:

• Familiarizing with Eligibility Criteria: It is essential to understand the complex regulatory requirements within PSARA to avoid any obstacles while procuring the license. Analyse beforehand which documents are needed, within which timeframe a company must commence operations, how antecedent verification must be conducted, variations under PSARA within each state, and other compliance requirements to seamlessly obtain the PSARA license.
• Compliance Management System: Private security agencies must implement an effective compliance management system by setting up a dedicated team to monitor statutory requirements, stay updated on any amendments, and maintain registers as stipulated under the PSARA law.
• Technology Integration: Private security agencies can leverage the Benefits of Cloud-Based Security for PSARA Agencies. By integrating technology into the day-to-day operations of the business, agencies can store their compiled data in a convenient and secure space, safeguard collected information from unauthorized access, quickly scale up their operations, and enhance compliance with the help of technological tools and controls.
• Training and Certification: Since training is a statutory requirement, security agencies must ensure that security personnel undergo proper formal training. For this, agencies can establish in-house training programs and facilities or collaborate with recognized training institutes through an MOU.
• Consult Legal Experts: An applicant can also seek guidance from professional legal experts to navigate through the complex PSARA registration process, understand eligibility norms, and verify the accuracy and completeness of the documents submitted to the Controlling Authority.

Who is not Eligible to Obtain a PSARA License?

An applicant will not be considered eligible for the PSARA Certificate for Security Agency if he/she has been:

• Found convict of an offense in case any fraud is committed by the person in relation to the company. It includes undischarged insolvent.
• A court has convicted the person for an offense where he/she has been prescribed punishment of imprisonment of a minimum of two years.
• If the person is linked with an association or organization that is banned due to their activities that pose a threat to public order or national security.
• In case the person is removed or dismissed from government services due to moral turpitude or misconduct.
• A company will not be considered eligible for a PSARA license if it is not registered in India and has a majority shareholder, director, partner, or proprietor who is not an Indian citizen.

Important Aspects of PSARA License Registration

Building Trust for Security Agency with a PSARA License is pivotal for building confidence and trust among the users, demonstrating the adoption of best practices and compliance, and upholding professionalism in its day-to-day operations. For this, an applicant must be aware of the following important regulations stipulated under the PSARA Act 2005.

• To obtain a PSARA License, a private security agency shall submit the application form to the Controlling Agency along with the prescribed fee.
• Every applicant has to submit a Form-1 for verification of antecedents.
• No person can be employed as a security guard unless he/she fulfills character and antecedent requirements.
• Police (Deputy Commissioner or Superintendent of Police or authorized police officer) will conduct verification of licensee and security personnel by enquiring from residents in the person’s locality, visiting the residence, examining police records, finding out their means of livelihood, etc.
• The antecedent verification certificate will be graded as a confidential document and remain valid for three years.
• For the training of guards and supervisors, the Controlling Authority will frame the training syllabus.
• The training must contain theoretical instruction of a minimum of 100 hours and a minimum of 60 hours of practical training, spanning over at least 21 days.
• The training will cover subjects like correct wearing of uniform, crowd control, disaster management, physical fitness training, first-aid, defensive driving, fire-fighting, identification of explosive devices, etc.
• Security guards are required to fulfill certain physical standards. For instance, an ideal height for a male guard is 160 cm and 150 cm for females. The guards must have 6/6 eyesight and must be free from color blindness.
• A security guard must not be suffering from any disease, deformity, physical handicap, knock knee, flat foot, or any other aspect that acts as an obstacle in executing duties as a security guard.
• Private security agencies are required to appoint a supervisor (s), which must be in the ratio 1:15, which means that there must be one supervisor over not more than fifteen guards.
• The Controlling Authority cannot refuse to grant a license to the applicants unless it provides a reasonable opportunity to present their clarification.
• Any private security cannot use words like ‘National’ or ‘Indian’ or any other similar words in its name.
• Application for renewing the PSARA license must be made not less than 90 days before the license expiry date.
• It is necessary to issue an identity card to every supervisor and security guard, containing their full-face colored picture, name of the guard/supervisor, name of the agency, identification number, and designation.

Final Thoughts

Under the PSARA rules, a private security agency refers to a person or a group of people other than a government agency, organization, or department engaged in security business. These businesses are primarily involved in providing security services to residential complexes, businesses, or industrial undertakings. Within each state, a Controlling Authority is appointed to regulate private security agencies within their jurisdiction.

PSARA Certificate for Security Agency generally remains valid for 5 years, except those issued by the Controlling Authority of Uttarakhand and West Bengal whose validity is 1 year. Once an applicant secures a PSARA license, it becomes mandatory to commence operations within 6 months. Further, the agency has to adhere to the strict standards of hiring guards and supervisors. These personnel must undergo character and antecedent verification along with training that helps them maintain good performance while executing their duties. An agency is also required to maintain registers containing essential information regarding the name and address of the company’s personnel, security guards, etc. The regulations are endless and so does the compliances post-PSARA registration. Connect with Legal Raasta Private Limited to receive thorough guidance and support throughout the PSARA license registration process.