Complete Explanation: The Types of PSARA Security Licenses in India

With the rapid growth of the sector owing to the ever-increasing demand for professional protection services for Residential, Commercial, Industrial, and Public Sectors, the Private Security Agencies (Regulation) Act, 2005 (“PSARA”) was developed as a way to regulate this new, growing industry and ensure it is an Industry of high-quality security services. Under this Act, all private security agencies must obtain a valid license (PSARA) prior to commencing business as a security provider; however, most people only understand that there is a requirement to hold this license but do not understand that the Act also specifies several distinct types of PSARA Security Licenses with a defined Operational Area, Scope of Operations, and Compliance Requirements for all such licenses.

This blog provides a complete and simplified explanation of all PSARA license types in India, helping security agency owners, entrepreneurs, and consultants understand which category fits their business model.

1. What Is a PSARA Security License?

• A PSARA License is an official government document that allows the operation of a private security agency by providing the framework under which each Agency will meet the minimum requirements regarding training, recruiting, character verification, uniform, reporting, oversight, and the welfare of Guards. Given that the Private Security Industry handles a broad range of activities related to security, such as deploying Guards at times of emergency, safeguarding people and property, and protecting sensitive areas, the government mandates compliance with a set of standards defined by the PSARA Norms by ensuring that each Agency is appropriately monitored by the PSARA. The primary goals of the License are to:
• To provide: professionally trained security personnel
• To eliminate improper use of uniforms, weapons, and identification;
• To regulate the multi-state and international expansion of Agencies;
• To provide accountability and transparency;
• To increase public safety and trust.

2. Why Are There Different Types of PSARA Licenses?

While PSARA establishes the rules and regulations for licensing within the security industry at the federal level, individual State Governments are responsible for regulating their own Licensing Programs. As a result, there are discrepancies between the jurisdictional boundaries and permissions granted by each State. Depending on where a Security Company is located, they can legally provide services and operate within One District, Several Districts throughout One State, One State, or Several States.

Each of these operational levels requires different types of licenses, and understanding what type of License you will need to comply with the Regulatory Authorities will help reduce the risk of being out of compliance while helping your Agency grow and expand.

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3. Types of PSARA Security Licenses in India

There are Three Types of PSARA Licences, primarily based on where they will operate and the size of their business, which are defined by the following criteria:

A. District-based licence:

In many states, licences are available as District-based licences, which are typically granted to businesses that wish to operate in a specific District, generally for a Small-scale Security Agency.

Features of District-based Licences 

– You may only use Security Guards in your licensed District.

– You may only have a small-scale Agency that operates on a District level.

– The process of applying for a District-based licence is less time-consuming than other types of licences.

– You will need less documentation and fewer compliance processes to obtain a District-based licence than another type of licence.

Ideal for:

– New Security Agencies

– Small Security Agencies that operate on a local level or employ small numbers of employees.

– Agencies serving specific clientele within a limited service area.

The ease of obtaining and pricing of District-based licences may not be the best option for Security Agencies wanting to expand their operations into more than one District. Separate applications must be made for each additional District.

B. Licences for Security Agencies (State-Wise)

This type of licence is very popular and is the most commonly used. It allows an agency to carry out its business in all areas of a state under one licence.

Key Characteristics

Ability to operate throughout all counties/districts in the state

Single application to be submitted

Must have a written training agreement with an approved training provider

Detailed record-keeping, background checking, and verification of all key employees

Best Suited for

Growing agencies

Agencies working with an industrial base

Agencies wishing to expand into multiple districts

A state-wise licence provides the best combination of scalability and flexibility regarding regulation and compliance, so it is the most common form of professional security agency licence used by all professional security agencies.

C. Multi-State PSARA Operations (Separate State Licenses Required) According to most people, the “All India” PSARA License does not exist.

To operate as a security agency in multiple states, a company needs to get a separate PSARA License from each State where it will provide security services to customers.

How it works: Each State has a different Licensing Authority

An application must be submitted to each State for a new license.

Every State’s regulations may vary slightly.

Every State has its own requirements for compliance and training.

Advantages: The ability to expand into states that are in high demand.

Ability to provide national-level services to clients.

Stronger presence in business and greater revenue.

Challenges: More time is required to get licensed in each State.

Every license will require a renewal and an inspection by the licensing authority for every State.

Becoming compliant with all the different requirements of the State will increase the burden on most Security Agencies. The Multi-State PSARA License is ideally suited for larger Agencies, Companies with corporate clients, and Businesses providing security services throughout the nation.

D. Different types of PSARA Licenses are available depending on the organization (what type of security guard will be working in each location)

All states have different PSARA licenses based on where they are deployed, but also depend on what type of security personnel they are.

The most common PSARA license types are:

1. Unarmed Guards – This allows the organization to provide the following:

– Watchman

– Supervisor

– Surveillance Officer

– Patrol Staff

Since the training costs for these services are lower than armed security services, most organizations provide only unarmed security services initially.

2. Armed Guards – This license allows an organization to deploy guards who carry firearms. The organization must comply with additional requirements, which include:

– Valid Arms License

– Police Investigation

– Strict Safety and Training Issues

Most organizations use this license to provide security for: Banks, ATMs, Cash vans, High-value buildings, and VIP areas.

3. Event security – some states now have a method for granting temporary authorization to place security personnel for specific kinds of functions, such as:

– Corporate events

– Concerts

– Fairs/Exhibitions/Sports Events

A new license is now being used to simplify the process and get approvals quicker in urban areas for their events that only last a short period of time.

4. How to Choose the Right Type of PSARA License?

Before making an application, you must assess the following considerations to successfully obtain a PSARA license:

1. District, State, or Multiple State Jurisdictional Scope:
2. Type of Guard Service Provider:
3. Scale and size of Business & Budget Allocated to Obtain            
4. Types of Clients (Corporate versus Local):

5. In conclusion, 

The PSARA Security License is a critical component for lawful private security businesses operating in India. Selecting the appropriate type of licence based on district, state-wide, multi-state, or deployment-based criteria can help frame the strategy for your business and comply with the law, as well as provide you with options for future growth. If you are starting a new security agency or you are growing an existing agency, understanding the different types of PSARA licence categories will allow you to effectively plan your business economically and reduce the chances of running into problems with the law.

Due to increased demand for professional security throughout all sectors of the economy, the PSARA framework assures agencies are capable of providing a safe, trained, and dependable security service to every area of the country.