How to Get Private Security Agency License

Private security agencies are those organizations involved in providing security services including training of security guards to any industrial or business undertaking or a company or any other person or property. The operations of a private security agency are governed in India by the “The Private Security Agencies (Regulation) Act, 2005. In the article “How to start a security guard service business“, the procedure for starting a security agency is covered. In this article, we look at the procedure for obtaining a Private Security Agency License in detail.

The Private Security Agencies (Regulation) Act, 2005

The Private Security Agencies Act, 2005 regulates all aspects of the operation of a private security agency business in India. The Act extends to the whole of India except the State of Jammu and Kashmir and is in existence since June 2005.

Appointment of Controlling Authority by State Government

The Act provides for each of the State Government to designate an officer, not below the rank of a Joint Secretary in the Home Department of the State or an equivalent officer to be the Controlling Authority for the State. The Controlling Authority for the State is responsible for issuance of private security agency license, renewal and regulation of operation of private security agencies.

In addition, the Act also empowers the State Government to make rules for carrying out the provisions of this Act. Therefore, many of the States have implemented Private Security Agencies Rules to effectively discharge the responsibilities of the State Government under the Act.

Obtaining Private Security Agency License

As per the Act, no person shall operate or start a private security agency business, unless getting a private security agency license. In addition, no private security agency can provide private security outside of India without obtaining permission of the Controlling Authority, which shall consult the Central Government before according to such permission. Therefore, any person wishing to commence a security agency business must be licensed in India.

Eligibility for Private Security Agency License

Only an Indian Company, Firm or Association of Persons are eligible for a security agency license. Further, if the agency is a company, then the majority shareholder must be an Indian. In addition to the above condition, the following conditions must also be satisfied:

• The person or company cannot be convicted of an offence in connection with promotion, formation or management of a company (any fraud or misfeasance committed by him in relation to the company), including an undischarged insolvent;
• The person or company cannot be convicted by a competent court for an offence, the prescribed punishment for which is imprisonment of not less than two years;
• The person or company cannot be keeping links with any organisation or association which is banned under any law on account of their activities which pose a threat to national security or public order.
• The person cannot be dismissed or removed from Government service on grounds of misconduct or moral turpitude.

Fee for Private Security Agency License

The government fee for obtaining security agency license is as follows:

• Private security agency operating in one district: Rs.5000/-
• Private security agency operating in one to five districts: Rs.10000/-
• Private security agency operating in the entire state: Rs.25000/-

On making an application for grant of security agency license, it requires the Controlling Authority to process the application and grant/refuse the license within a period of sixty days from the date of receipt of the application. Once issued, the security agency license will be valid for five years and can be renewed for another 5 years by payment of the prescribed fees.

Operating Private Security Business

On obtaining the security agency license, the company or firm is required to commence operations within six months of obtaining the license. The security agency will be responsible for imparting training and skill development to security guards. In addition to the security guards, the adequate number of supervisors will also have to be employed by the agency as per the Act.

The following persons are eligible to become security guards or security guard supervisors:

1. Citizen of India or a citizen of such other country as the Central Government may, by notification in the Official Gazette, specify;
2. Persons who have completed eighteen years of age but has not attained the age of sixty-five years;
3. Persons who satisfy the agency about his character and antecedents.
4. Persons who have completed the security training successfully;
5. Persons who fulfil certain physical standards;
6. Persons who are NOT convicted by a competent court or who has been dismissed or removed on grounds of misconduct or moral turpitude while serving in any of the armed forces of the Union, State Police Organisations, Central or State Governments or in any private security agency.

While selecting private security guards, all private security agencies are required to provide preferences for persons who have served as a member in one of the following forces:

• Army
• Navy
• Air Force
• Any other armed forces of the Union
• Police, including armed constabularies of States
• Home Guards

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