PSARA LICENSE GUIDE FOR EX-AGNIVEERS: START A PRIVATE SECURITY AGENCY

October 23, 2026

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Source: MHA

Imagine you are 23, you have your Seva Nidhi in the bank, and a local factory owner asks you to arrange guards for his gate. You could take a job with an agency. Or you could start your own. Running your own agency needs a PSARA license, and the law is stricter than most people think. This PSARA license guide explains it in simple words, and it also shows what your service really gives you.

What the PSARA license is

PSARA stands for the Private Security Agencies (Regulation) Act, 2005. It says no one may run a private security agency without a license. The punishment for running without one can be jail up to one year, a fine up to Rs. 25,000, or both. The Act is central, but each state names a Controlling Authority that handles your application. You can see the Act and the model rules on the Ministry of Home Affairs page.

Who can apply

You do not need to be an ex-serviceman to get a PSARA license. This is a common myth. A company, firm or association must be registered in India. Its owner, majority shareholder, partners or directors must be Indian citizens. The Act also asks for a check of your background before it will consider your application.

You cannot get a PSARA license in these cases.

You were convicted of a company-related fraud, or you are an undischarged insolvent.
You were convicted of an offence that carries at least two years in prison.
You have links to a banned organisation, or you act against national security or public order.
You were dismissed or removed from government service for misconduct or moral turpitude.

PSARA license fees and validity

The fee depends on how many districts you will work in.

Area of work	Application fee
One district	Rs. 5,000
More than one, up to five districts	Rs. 10,000
Whole state	Rs. 25,000

The Act says a license is valid for five years. You can renew it for another five. The renewal application must reach the Controlling Authority at least 45 days before expiry. A few states may set shorter terms in their own rules. Some websites say Uttarakhand and Chhattisgarh give only one year, and others add Madhya Pradesh. Because sources disagree, check the rules of your own state before you plan.

Rules after you get the license

A PSARA license is only the start. The Act sets duties that you must follow every day.

Start work within six months of getting the license.
Hire supervisors within sixty days.
Train your guards and supervisors as the rules say.
Keep a register of guards and clients, and give each guard a photo ID card.
Show your license in a visible place at your office.

The model rules of 2020 set the training time, and a Home Ministry order on training institutes repeats the numbers. Training institutes also need recognition from the Controlling Authority, for five years at a time. A new guard needs 100 hours of classroom work and 60 hours of field training over at least 20 working days.

The owners of the agency also have to complete six working days of training. A secondary source says there must be one supervisor for every 15 guards. Check this with your state authority.

What your service really gives you

Many people say ex-servicemen get special benefits. The truth is more precise, so read it carefully.

Training: ex-servicemen guards need only a short course of 40 hours in class and 16 hours in the field, over at least seven working days.
Supervisors: when an agency hires a supervisor, it must give preference to a person with at least three years in the Army, Navy, Air Force, other Union armed forces, State Police or Home Guards (Section 9(5)).
Guards: an agency may give preference to people who served in these forces (Section 10(3)).

A completed Agniveer term is four years, so it clears the three-year bar. The Act does not say whether Agniveers are covered in the same way as other ex-servicemen, so ask your Controlling Authority if you plan to claim a special rule. Ex-Agniveers also do not receive ex-servicemen status after a four-year term.

Steps to get a PSARA license

Decide your business form, such as a company or a firm, and your area of work.
Collect your papers, and make sure there is no case against you.
Choose a training institute recognised by your state for your own training.
Fill in the application on the state or central PSARA portal, and pay the fee.
Wait for police inquiry. The Controlling Authority must decide within sixty days of getting a complete application.
Start work within six months, and hire and train your staff.

Costs beyond the license fee

The government fee is small when you compare it with the real costs. You must pay guards on time, even when a client is late. You also need an office, uniforms, ID cards, record books and money for training. Labour law rules such as provident fund and insurance may apply to your staff, so talk to an accountant early. Write a simple budget for six months before you apply for the PSARA license. If you cannot cover six months of wages from your own money, start smaller or work for an agency first.

Is it right for you?

A security agency looks simple, but it is a people business. You pay guards every month, even when a client pays late. You must also follow labour laws. Many ex-servicemen begin by working in an agency for a year to learn the business first. Read our guide on security and facility management jobs to compare working for others with owning an agency.