PSARA licence: process, documents and fees for a new security agency
Anyone who runs a private security agency in India needs a PSARA licence from their state's Controlling Authority. You apply in Form I with a police-verified background, an affidavit and the fee: ₹5,000 for one district, ₹10,000 for up to five districts, ₹25,000 for the whole state. The licence lasts five years. The authority has 60 days to decide once your application is complete.
Part of our guide: Compliance checklist for labour contractors in India
By HaazriPro Team · Last updated
What is PSARA and who needs the licence?
PSARA is the Private Security Agencies (Regulation) Act, 2005. Section 4 says no one may "carry on or commence the business of private security agency" without a licence under the Act. That covers supplying security staff to a business, a housing society or any other client, and also training security staff as a business.
Each state runs its own licensing. The Act makes the state government name a Controlling Authority, an officer not below Joint Secretary rank in the state Home Department. A licence covers the districts or the state it was issued for. To work in another state you need that state's licence too.
Who can apply?
An individual, a partnership firm or a company can apply. The Act sets out who cannot get a licence (section 6):
- someone convicted of an offence punishable with imprisonment of two years or more;
- someone convicted of fraud or misfeasance in running a company, or an undischarged insolvent;
- someone linked to a banned organisation or to activity against national security or public order;
- someone dismissed from government service for misconduct or moral turpitude;
- a company or firm not registered in India, or whose proprietor, majority shareholder, partner or director is not an Indian citizen.
The Central Model Rules, 2020 also require the licensee to complete a training course of at least six working days set by the Controlling Authority, unless the agency already holds a licence in another state.
Which documents do you need?
The application has three forms: Form I (the application), Form II (background verification, filled for every proprietor, majority shareholder, partner or director) and Form III (an affidavit). Form I asks for these attachments:
| Document | Notes |
|---|---|
| Photograph of the agency's office | The police also verify the premises. |
| Identity proof of all management | With DIN for company directors. |
| Training arrangement | Whether you train in-house or through a recognised training agency, with its recognition details. |
| Colour photograph of your uniform | It must not look like a police or armed forces uniform. |
| Registration numbers | CIN, EPF, ESI, GST and labour licence or registration, where they apply. |
| Income tax clearance | Form II also asks each person for the last three years' income tax returns, PAN and Aadhaar. |
| Affidavit (Form III) | Covers eligibility, that training will be available for your staff, and any police or court cases. |
Rules differ slightly by state. Maharashtra, for example, has its own Private Security Agencies (Regulation) Rules, 2022. Read your state's rules (linked from psara.gov.in) before you apply.
How do you apply?
- Set up the business: register the firm or company, take GST, EPF and ESI registrations, and rent an office.
- Arrange training for your staff, either your own course or a tie-up with a recognised training agency.
- Fill Form I, Form II for each person, and the Form III affidavit. Many states take applications online on the national PSARA portal (psara.gov.in): you create an agency login, upload documents as PDF or JPEG and pay online.
- The Controlling Authority sends your papers for police verification of your background and your office.
- The authority must grant or refuse the licence within 60 days of a complete application with the fee. A refusal needs a hearing and written reasons.
How much does the licence cost?
| Area of operation | Licence fee (section 7(3)) |
|---|---|
| One district | ₹5,000 |
| More than one and up to five districts | ₹10,000 |
| The whole state | ₹25,000 |
The fee is not refunded if the application is refused. Budget separately for company registration, the office, uniforms and training, which usually cost far more than the fee. Some states may add processing charges; check your state's portal.
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How long is it valid, and how do you renew it?
A licence is valid for five years. Apply for renewal at least 45 days before it expires; the renewal fee is the same as the original fee. Under the Central Model Rules, an application made after that point is not processed for renewal, and once the licence expires you are treated as unlicensed and must apply afresh. Put the deadline in your calendar the day the licence arrives.
What must you do after you get the licence?
- Start work within six months (section 9(1)): set up the office and engage supervisors.
- Engage supervisors within 60 days. The model rules set one supervisor for every 15 security staff. The Act asks you to prefer people with three years' service in the armed forces, the police or the other uniformed services it lists.
- Hire only eligible staff (section 10): Indian citizens aged 18 to under 65, background-checked, trained and meeting the physical standards. The model rules set 100 hours of classroom and 60 hours of field training over at least 20 working days, with a shorter course for ex-servicemen and former police.
- Keep the register (section 15): your managers, every staff member and supervisor with photograph and salary, and your clients. The model rules require it electronically, in Form X.
- Issue photo identity cards (section 17) that staff wear and show on demand.
- Keep the uniform distinct. Wearing anything that looks like a police or armed forces uniform can mean up to one year's imprisonment or a fine, for the wearer and for the agency owner (section 21).
- Follow the labour laws. Breaking the wage, PF, ESI, bonus or contract labour laws is a ground for cancelling the licence (section 13).
- Display the licence at your office, as the state rules require.
What has changed recently?
The Jan Vishwas (Amendment of Provisions) Act, 2026 removed section 12 of PSARA (exhibiting the licence) and section 20(2) (a fine for breaking sections 9, 10 and 12), from 15 May 2026. The rules still ask you to display the licence, and section 20(1) still applies. Running an agency without a licence can mean up to one year's imprisonment, a fine of up to ₹25,000, or both. Older articles online may not reflect these changes.
Worked example: what a new agency in one district pays and plans
A new agency planning to supply 30 security staff in one district pays the ₹5,000 licence fee. Once licensed, it has six months to start. At one supervisor per 15 staff, it needs two supervisors within 60 days. Every new hire needs the 160-hour training before deployment. The register in Form X must list all 32 people with photographs and salaries. Each month, the attendance and salary of those 30 staff feed the wage register the labour laws expect, which is where a clean attendance record starts to matter.
Sources
- Private Security Agencies (Regulation) Act, 2005, as amended (India Code)
- Private Security Agencies Central Model Rules, 2020 (psara.gov.in)
- Maharashtra Private Security Agencies (Regulation) Rules, 2022 (psara.gov.in)
- State and UT rules and Controlling Authorities (psara.gov.in)
- PSARA portal FAQ (psara.gov.in)
- Jan Vishwas (Amendment of Provisions) Act, 2026, gazette of 8 April 2026
- S.O. 2180(E), 30 April 2026: PSARA amendments in force from 15 May 2026
This guide explains the rules in plain language. It is not legal or tax advice. Laws and rates change, so check your state's rules and confirm with your lawyer before you act on it.
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