A PSARA licence is the licence a private security agency must obtain under the Private Security Agencies (Regulation) Act, 2005 before it can supply security guards or provide private security services. If you plan to start a security guard agency, or you already deploy guards without a licence, you need the licence from the Controlling Authority of the state where you operate.
What is a PSARA licence?
The Private Security Agencies (Regulation) Act, 2005 regulates the private security industry. It defines a private security agency as a person or body of persons, other than a government agency, engaged in providing private security services, including training guards or supplying guards to other persons. Section 4 prohibits carrying on or starting the business without a licence.
The licence is granted by the state's Controlling Authority, and it is state-specific. If you want to supply guards in Delhi, Uttar Pradesh and Haryana, you apply to the respective Controlling Authority in each state. Under the Act, the licence is valid for five years and can be renewed for further five-year periods, and a renewal application must be made at least forty-five days before expiry.
Beyond the licence, PSARA places direct obligations on the agency. It must start operations within six months of licensing, train guards and supervisors as prescribed, and employ supervisors within a period set in the Act. Guards must be Indian citizens aged between 18 and 65 years, with verified character, prescribed training and physical standards. Individuals convicted by a court or dismissed for misconduct cannot be engaged as guards or supervisors.
Who can own an agency is also regulated. Companies, firms and associations must be registered in India, and they cannot have a non-citizen as proprietor, majority shareholder, partner or director. The Controlling Authority considers an application only after verifying the antecedents of the applicant, so police verification of the promoters is a central part of the process.
Who needs a PSARA licence?
Any entity that provides guards or private security services for a fee must be licensed in each state where it operates. Typical cases:
- New security guard agencies run as a proprietorship, partnership, LLP or company
- Facility management companies that supply security guards as part of their service
- Existing manpower suppliers who deploy guards at factories, offices, malls, schools, hospitals or residential societies
- Agencies that train security guards and supply them to clients
- Security agencies expanding into a new state or a larger set of districts
- Agencies renewing an expiring licence or amending the area of operation
Benefits of PSARA Licence (Private Security Agency)
Legal right to supply guards
Operating without a licence is an offence under Section 20. A valid licence lets you take contracts from corporates, government bodies and housing societies that insist on it.
Tender and client eligibility
Most large clients and tenders ask for a valid PSARA licence along with PF, ESIC and GST registrations as a basic condition.
Structured workforce
The licence conditions on training, verification and supervisors lead to a documented, better-trained guard force.
Protection of promoters
The Act allows directors and managers to be held liable for offences by the company, so compliance protects the people running the business.
Eligibility and applicability
Sections 5 and 6 of the Act set the eligibility conditions, and the state rules add procedural requirements:
- The applicant can be an individual, company, firm or association, but companies, firms and associations must be registered in India
- A company, firm or association cannot have a non-citizen as proprietor, majority shareholder, partner or director
- Persons convicted of certain offences with imprisonment of at least two years, those with links to banned organisations, and those dismissed from government service for misconduct or moral turpitude cannot be considered
- The Controlling Authority considers an application only after due verification of antecedents, which in practice is done through the police
- You must have an office address and the means to train guards, typically through a recognised training institute
- A separate licence is needed for each state where you operate, and the licence is for the area of operation stated in it
Documents required
Entity and promoter documents
- Certificate of incorporation, LLP agreement, partnership deed or proprietorship proof
- PAN, identity and address proof, and photographs of the proprietor, partners or directors
- GST registration certificate
- Affidavit of non-conviction and other declarations in the form prescribed by the state rules
Office and operational documents
- Proof of office address with landlord NOC if rented
- Logo and uniform details, as required by the state rules
- Details of area of operation, such as districts or whole state
- Arms licence details, if the agency will deploy armed guards
Training and staff documents
- MOU with a training institute recognised or approved in the state, as secondary guides indicate
- Details of guards and supervisors, with character verification and training certificates as the rules require
- Fee receipt for the application, based on the area of operation
Step-by-step PSARA licence process
Steps and forms differ slightly by state. The sequence below follows the Act and commonly reported practice.
Set up the entity and office
Register the business as a company, LLP, partnership or proprietorship, with a real office address. Check that no promoter fails the eligibility rules in Section 6.
Tie up with a training institute
Sign an MOU with a training institute recognised in your state so that guards can be trained as the Act requires.
Prepare the application and affidavits
Fill the application in the prescribed form with the affidavit, and assemble identity, entity, office and area-of-operation documents.
File with the Controlling Authority
Submit the application to the state's Controlling Authority through the state's online system or office, and pay the fee, which depends on the area covered.
Police verification
Antecedents of the promoters are verified through the state police, and the report goes to the Controlling Authority. Respond to the police and the authority promptly.
Decision and licence
The Act directs the authority to decide within sixty days and to refuse only after a hearing and with recorded grounds. On approval you receive the licence.
Start operations and comply with conditions
Begin operations within six months, train guards, appoint supervisors and file reports as per the state rules.
Renew on time
File the renewal application at least forty-five days before expiry. The authority is required to decide within thirty days of a renewal application.
Government fees
Under the Act, the fee depends on the area covered by the agency, and the state rules set the exact amounts. A secondary guide reports Rs 5,000 for a single district, Rs 10,000 for up to five districts and Rs 25,000 for the entire state. We could not confirm this from the official text, so verify with your state's rules before paying.
| Item | Amount | Note |
|---|---|---|
| Application fee for one district | Rs 5,000 (reported) | From a secondary guide; confirm with the state authority |
| Application fee for up to five districts | Rs 10,000 (reported) | From a secondary guide; confirm with the state authority |
| Application fee for the whole state | Rs 25,000 (reported) | From a secondary guide; confirm with the state authority |
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority.
How long does it take?
The Act says the Controlling Authority must decide within sixty days of receiving the application. In practice, the time depends on police verification and state processing, and secondary guides mention anything from about two months to several months. A complete file with clean antecedent declarations and an early training tie-up shortens the process.
Validity and renewal
Section 7(5) provides that a licence is valid for five years unless cancelled, and it can be renewed for further periods of five years. Under Section 8, the renewal application must be filed at least forty-five days before expiry, and the authority should decide within thirty days. Secondary guides note that a few states may issue shorter licences, so check the period on your licence. The licence is state-specific and non-transferable. Appeals against refusal or cancellation lie to the State Home Secretary within sixty days.
Compliance after licensing
- Start operations within six months of getting the licence, or risk cancellation
- Train guards and supervisors as prescribed and keep training records
- Verify the character and antecedents of every guard, and engage only guards between 18 and 65 years who meet the prescribed standards
- Employ supervisors as the Act and rules require; secondary guides mention one supervisor for every fifteen guards, which should be checked against your state rules
- Do not use uniforms that resemble those of the police or armed forces; unauthorised uniform use is an offence under Section 21
- Pay guards at least the applicable minimum wages and register the agency under PF and ESIC as required. See our PF registration and ESIC registration pages
- Keep GST and labour law compliances current, and apply for renewal at least forty-five days before expiry
Common mistakes and rejection reasons
Promoters who fail the eligibility test
A non-citizen director or a promoter with a disqualifying history can lead to refusal or later cancellation. Check this before incorporation.
Filing in one state and operating in another
The licence is state-specific. Deploying guards in a new state without a licence there is an offence.
No real training arrangement
Authorities expect a genuine tie-up with a recognised institute. A weak or unverifiable arrangement delays the file.
Late renewal
The Act requires renewal at least forty-five days before expiry. Filing late risks a gap in the licence period.
Ignoring labour compliance
Clients and authorities check PF, ESIC and minimum wage compliance. Poor compliance can lead to show-cause notices or cancellation.
Penalties for non-compliance
Section 20 of the Act punishes operating a private security agency without a licence with imprisonment up to one year, a fine up to twenty-five thousand rupees, or both. Contravening Sections 9, 10 or 12, which cover operational obligations, guard eligibility and related duties, attracts a fine up to twenty-five thousand rupees and possible suspension or cancellation of the licence. Section 21 covers unauthorised use of uniforms. Persons in charge of a company's business can be held liable for company offences under Section 22 unless they show lack of knowledge or due diligence.
| Default | Consequence | Provision |
|---|---|---|
| Carrying on business without a licence | Imprisonment up to 1 year, fine up to Rs 25,000, or both | Section 20(1) read with Section 4 |
| Contravening Sections 9, 10 or 12 (operations, guard eligibility, related duties) | Fine up to Rs 25,000, plus possible suspension or cancellation of licence | Section 20(2) |
| Unauthorised use of uniform | Imprisonment up to 1 year, fine up to Rs 5,000, or both | Section 21 |
Practitioner tips
- Check the state's own Private Security Agencies Rules before you plan the office and the training tie-up. States differ on details such as training duration, supervisor ratio and uniform approval.
- Brief all promoters about the antecedent verification early. A pending case or a mismatch in an affidavit is the quickest route to a long delay.
- Decide the area of operation carefully. The fee depends on the number of districts, and expanding later requires an amendment or a fresh process.
- Build PF, ESIC and minimum wage compliance into your pricing from day one. Clients check these, and agencies that underprice often struggle to renew.
How Lawgical Guru helps
Eligibility and structure review
We review the promoters, entity type and area of operation against Sections 5 and 6 before you file.
Application and affidavit drafting
We prepare the application, affidavits and supporting documents as per your state's format.
Filing and follow-up
We file with the Controlling Authority, coordinate responses to police verification and query letters, and track the file.
Registrations that go with the licence
We assist with GST registration, PF registration, ESIC registration and contract labour licence where relevant to your guard deployment.
Renewal management
We track the renewal window so the application goes in at least forty-five days before expiry.
PSARA Licence (Private Security Agency): frequently asked questions
Is a PSARA licence mandatory for a security agency?
Yes. Section 4 of the Private Security Agencies (Regulation) Act, 2005 says no person shall carry on or commence the business of a private security agency without a licence. Operating without it is punishable under Section 20 with imprisonment, fine or both.
Who issues the PSARA licence?
The Controlling Authority designated by the State Government under Section 3, an officer not below the rank of Joint Secretary in the State Home Department or an equivalent officer. You apply in the state where your agency will operate.
What is the validity of a PSARA licence?
Section 7(5) makes the licence valid for five years and renewable for further five-year periods. A renewal application must be filed at least forty-five days before expiry. Check your own licence, as secondary guides mention a few states issue shorter periods.
Can one PSARA licence be used in several states?
No. The licence is issued by the state's Controlling Authority and is state-specific. An agency that wants to supply guards in Delhi, Uttar Pradesh and Haryana generally needs a licence from each state concerned.
What are the eligibility conditions for a security guard?
Section 10 requires Indian citizenship, age between 18 and 65 years, verified character, prescribed training and physical standards. Persons convicted by a court or dismissed for misconduct or moral turpitude cannot be engaged as guards or supervisors.
Can a foreign national or NRI be a director of a security agency?
Section 6(2) says a company, firm or association cannot have a non-citizen as proprietor, majority shareholder, partner or director. Applications that fail this condition are not considered, so settle the ownership structure before incorporation.
What is the PSARA licence fee?
The fee depends on the area covered and is set by the state rules. A secondary guide reports Rs 5,000 for one district, Rs 10,000 for up to five districts and Rs 25,000 for the whole state. Confirm the current amount with your state's Controlling Authority.
How long does PSARA licence approval take?
The Act directs the Controlling Authority to decide within sixty days of the application and to give a hearing before refusal. Real time depends on police verification and state processing, so plan for some delay and keep the file complete.
What happens if I operate without starting within six months?
Section 9 requires the agency to start operations within six months of licensing. Failure to start in time is a ground for cancellation of the licence under Section 13. If you are delayed, speak to the Controlling Authority early rather than waiting for a notice.
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.