How to Start a Private Agency in India?

    Security is an important aspect and is a major requirement at every stage. Security provided by specialized individuals and well-trained professionals help individuals to safeguard their establishments/property or their valuable resources. An individual requires security for himself too. A Private Security Agency is an establishment which provides armed and unarmed security services and expertise to various clients. This is an act established by the Government of India; it lays down rules and regulations for different private security agencies. PSARA Registration is an integral part in the online private security agency incorporation. In this article, we will talk more about different elements that revolves around establishing an agency which provides security services.

    The business activities of private agencies are governed by Private Securities Agencies Regulation Act (2005) or PSARA act.

    Basics about PSARA Registration

    License acquired from PSARA is a permit which allows individuals to start a security agency. In order to obtain license from PSARA, the individual must apply for registration.Different states in India have specified different rules which are required to be followed by individuals who are interested in security agency establishment in a particular state. For instance, in order to start an agency in Delhi, Delhi Private Security Agencies Act must be followed by individuals.

    Forms which must be filled to obtain license from PSARA are as follows –

    Form IVerification of Character and Antecedents of Applicant
    Form IIForm for Verification of Character as well as Antecedents of Security Guards and Supervisors
    Form IIICharacter and Antecedents Certificate
    Form IVTraining Certificate
    Form VApplication for New License or Renewal of License to engage in Business of Private Security Agency
    Form VILicense to undertake business activities in Private Security Agency
    Form VIIForm for Appeal
    Form VIIIRegister of Particulars
    Form IXPhoto ID Card for Private Security Guard/ Supervisor

    What are the benefits of Private Security Agency License?

    The Government has made it mandatory to obtain Private Security Agencylicense to all individuals who wish to start a security agency. Once the license is acquired, it provides many benefits, which will be talked about in this section –

    • It empowers the training company
    • It provides security to their rights
    • It attracts the right customers

    A private agency can be started once it is registered under the right circumstances as per rules and regulations mentioned in the PSARA act.

    Eligibility Criteria to obtain Private Security Agency License

    Before applying for Private Security AgencyLicense, individuals must ensure that they fall under the category of the eligible criteria.

    Eligibility criteria for Companies

    Following types of companies are eligible to register for Private Security Agency License:

    • Sole proprietorship
    • Limited Liability Partnership
    • One Person Company
    • Private Limited Company
    • Partnership Company

    Eligibility Criteria for Director / Principal Officer

    • The individual must hold an Indian citizenship
    • The individual must be financially sound
    • The individual must not be involved in any criminal activity
    • The individual must not be involved in any criminal offence

    Eligibility criteria for security guard

    • The individual must be an Indian citizen
    • The age limit of the individual must be between 18 to65
    • The individual must have an adequate amount of training

    What is the PSARARegistration process?

    In this section, we will talk about the process required in the registration of a private security agency:

    Collection of all important documents

    Preparation of all required documents is important. Thus, individuals involved in the establishment of theprivate security agency must arrange all documents that is required to be submitted to the authority.

    Memorandum of Understanding with Training Institute

    The security guards and other security personal who are appointed by the agency must be trained in an appropriate manner. Thus, the agency must enter into a Memorandum of Association (MOU) with an institute to train personal.

    Police verification

    An application for police verification is filed in Form -I by the applicant, and in case the applicant is a firm, company or any association of person, separate verification form shall be filed for every, partner or directors.

    File an application to the controlling authority

    An application must be filed to the authority with regards to the license. All documents must be submitted along with the application form.

    Application review by the authority

    After all the documents are submitted along with the form, the authority hold a verification to ensure that all information filled is true and accurate.

    Issuance of Non-Objection Certificate (NOC)

    The process of issuance of NOC takes around 60 days. After proper verification of all details provided by the applicant, the police authority and controlling authority issues a non-objection certificate.

    Documents required to obtain License from PSARA

    Below mentioned are documents which isan essential aspect in the PSARA registration:

    Identity proof

    It is mandatory for the applicant to provide relevant details which proves his identity; the proof can be of any type.

    Address proof

    Proper proof of address is important for the applicant. Thus, he must provide proper documents to fulfill the necessary requirements.


    Affidavit is a written statement confirmed by an affirmation, for use as evidence in court.

    Agency logo

    The agency must decide on a logo and submit it to the authority.

    PAN card of the promoters

    PAN card serves as an identity proof and thus it must be submitted by the company.

    Photographs of promoters

    The individuals must also provide latest photographs to the authority.

    ESI Registration

    Employee State Insurance (ESI) is a self-financing social security and health insurance scheme. Documents required for ESI registration are Copy of pan of company or partnership, Copy of Certificate of Incorporation or Registration certificate, Copy of Bank Statement, Copy of all licenses issued in the name of establishment and a Copy of electricity bill.

    Proof of Provident fund registration

    Provident fund registration is a mandatory step in thePSARA registration process.

    Details of individuals involved in the agency

    The details of all the individuals who will be working in the agency must be provided to the company.

    Memorandum of Association

    MOA is a document that contains details regarding the company. Thus, all details must be mentioned and submitted.

    Armed license

    It is essential for an individual/company to acquire an arms license for the manufacture, acquisition, possession of firearms.

    Other documents required are as follows:

    • Certificate under Shops and Establishment Act
    • Affidavit of the security training


    Acquiring PSARA Registration involves a step by step procedure which is required to be followed by individuals who want to start a private agency. These steps are followed by individuals in a proper manner. Following all rules and guidelines is mandatory for individuals and thus it must be followed in an appropriate manner.

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