Why PSARA license is important in India?

The relation between crime and India is deep-rooted. As per the National Bureau of crime record NCRB, In India .the crime rate rose steadily by 3% in 2017-2019. As per International Crime indexing, In 2021 the crime rate ranking of India is not only below the US, UK but also below Afghanistan. In such a situation crime and terror prevention is critical to maintaining the security of the populace regardless of where they live or work. Security is now a prime necessity for improved conditions of living.

Appointing security guards at your premises serves as a barrier to potential lawbreakers whether it is public or private, retail or wholesale building. Trusted security that too from a private agency (PSARA licensed) can be very dependable.

So, With the Increasing demand of private security agencies In India, the License under PSARA (Private Security Agencies Regulation Act, 2005,) is a mandatory requirement, that is permission given by Government for an agency to place security guards and engage in security-related services or business.

What is PSARA?

Private Security Agencies Regulation Act, 2005 (PSARA) manages the Private Security Industry in India. This Act controls the functioning of the private security agencies through Controlling Authorities which are appointed by State Governments. The Ministry of Home Affairs administers this Act.

That means, the concerned state government or Union Territory in which private security agency is situated will have the power to regulate their affairs, and appoint its controlling authority, and may also formulate rules in respect of it. No private security agency can start a business or provide a security guard without holding a license under PSARA.

According to PSARA, all Private security agencies are required to appoint supervisors (controlling authority) to supervise the work of security guards. While engaging a supervisor, a person from the army, navy, or air force with at least 3 years of experience should be given preference. The agencies should provide the necessary training and skills to the supervisors. The Act also specifies the criteria for the qualification and disqualification for a security guard, the health condition as well as the uniform of the security guards.

Business Related to PSARA

A private security agency means a person or a body other than a Government organization, agency, or department committed to the business of providing security services privately. These services include:

  1. Training of security guards
  2. Training of supervisors
  3. Selecting and Recruiting Personal security guards
  4. Placing Private Security guards to any commercial industry, business establishment. The person or any private property.

Benefits of PSARA:

PSARA license is permission directly from Government to provide security services. This license provides the following benefits to both the customers and agencies

  1. Trust-ability: This certification for a private security agency is a trust symbol that yes they are the ones who will give the best security and are dependable. They are managed by an organization and have verified security guards. Therefore the license also attracts potential customers.
  2. Training center Empowerment: Training center for security guards and supervisor gets business and accreditations.
  3. Recruitment centers Empowerment: Manpower supply businesses and Recruitment centers for guards also gets business and validity.
  4. Avoid denial of rights:

Certain rights like sue or being sued which apply to a registered company or organization are denied to a private security agency that is not licensed. Thus having a PSARA license also gives power to the security agents.

Monthly and quarterly compliances after PSARA

PSARA License holder has to be Partnership firm, Association of person, One Person Company, Sole Proprietorship, Private Limited Company or a Limited Liability Partnership before applying for PSARA license and thus 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.

Role of Tax Return Wala (TRW) in PSARA license services

At Taxreturnwala.com we assist in obtaining a PSARA license and future relating compliances.

Compliances before PSARA license

  • Complete Documentation & Consultancy regarding PSARA
  • Preparation of Complete File For PSARA License
  • Filing of File in Department on behalf You
  • Starting to End Follow Up with State PSARA Department
  • Representation before PSARA Department

Compliances after PSARA license

All compliances under Profession Tax, Provident Fund, ESIC, payroll, accounting, GST & Income-tax Act. Renewal of PSARA license.

For further prerequisite information about the PSARA license please visit


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