29 Feb 2020Posted By: Mudit Handa

How to start a Private Security Agency in India?

Running a Private security agency is indeed a very lucrative business idea that involves thorough planning and organizing. If you are planning to begin a security agency, you must not overlook the potential risks associated with the workforce i.e. security staff employed. Hence, providing assistance to the workforce is undoubtfully beneficial for your business concern and in turn favorable for the potential clients. 

So to fulfill this aspect, it is important to follow different legal compliances such as ESI & PF registration as well as ISO certification.


1. An overview of the Indian private security businesses

The private security business has its underlying foundations in the mid-1960s in India. Till at that point, such entities were bound to just some specific foundations, for example, luxury inns, government offices, banks, and palatial houses. 

In today’s era, it has become a preferred business plan for many start-up aspirants, owing to the rising demand for security services. This industry is currently holding a dominant share of the economy, which is to the tune of INR 40,000 Crores or $6 billion as per the FY 2015-16 data.

2. Necessary legal compliances involved in the private security business

A private security firm needs a careful strategy. It essentially requires some necessary legal compliances. These include ESI registration and PF registration, in order to assure that the entire security staff is covered under ESI and PF.

3. PSARA license for a private security agency

All the private security agencies require to obtain a Security Agency License, which is known as the PSARA license. The security agencies are covered under the Private Security Agencies Regulation Act (PSARA) 2005. Hence, the private security firms are required to get a permit under the PSARA Act 2005.

4. How to obtain a PSARA license for a private security agency?

PSARA License is categorized as under:-

  • Permit to Security Agency in a single district,

  • Permit to Security Agency in 2 to 5 Districts 

  • Permit to Security Agency in the entire State.

The application for the PSARA License has to be submitted to the PSARA Controlling Authority. After a successful inspection, the permit will be granted to operate the security agency. 

5. The validity of PSARA License

PSARA License is valid for a period of 5 years. However, the validity of this license is extendable to one more year.

Apart from these 2 essential legal compliances, it is crucial to obtain some other certifications, such as ISO certification in India. 

6. What is the role of ISO certification for private security firms?

The most crucial aspects involved in private security are reliability and consistent efficiency. Hence, like other businesses, private security agencies also need to fulfill certain Global benchmarks. Therefore, private security firms must get ISO certification in India in order to assure the reliability and efficiency of their services.

7. Which ISO standard is applicable to security agencies?

ISO has framed a separate Security Operations Management System (SOMS) standard applicable to the private security agencies. This is known as the ISO 18788:2015.

These are the important things to know while starting a private security business.



If you require any further assistance regarding the process of  ESI registrationPF registration, PSARA license or ISO certification in India, please feel free to contact our business advisors at 8881-069-069.

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