Introduction

The term "private" has multiple senses, but it refers to "provided by an individual or organization
or a private entity, and not by a governmental organism or coordinated by the state". In the same
sense, of a special importance is also who pays for a certain service, because there can be
ambiguities regarded by the situation in which the government is the one that pays for certain
services provided by private entities. It is also interesting to analyse the situation in which a
policeman or other type of employee in the security domain runs activities after finishing his
program in the service of the state, case in which we are obviously dealing with a type of private
service.
The term "security" has a broad sense and it can be defined in multiple forms. Nevertheless, from
the security refers to precaution measures taken for preventing certain unwanted events. Another
definition of security refers to that state of fact in which individuals or groups can run the activity
without external interventions and without the fear of losses or other type of harm of integrity or
interests. From the point of view of the sense of the concept of security for an organization, this
implies the capacity of the institution to be able to run continuously its activities without being
affected by criminal threats or natural disasters. In analogous manner, the security services, or
otherwise said; private providers of such services have to do with the protection of properties, of
persons or that of information. Moreover, from the definitions presented results the fact that
security has three possible basic elements: either individuals, groups, or an organization.1

The Private Security Agencies (Regulations) Act, 2005 was introduced for a person or body of
persons other than a government agency, department or organization who is engaged in the
business of providing private security services, including training to private security guards or their
supervisor or providing private security guards to any industrial or business undertaking or a
company or any other person or property.2

Private Security Agencies Act 2005 How It Works, It's Functions.

The Private Security Agencies Act, 2005 regulates all aspects of the operation of 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.The main purpose of the Private Security Agencies
Act is to standardize the rights and duties of private security agencies and other issues in
connection therewith.3

Private security agency is silently protecting our society when government agencies and
mechanisms put by them fail to do so. Private security guards are present almost everywhere these

1
Alexandru Anastasescu; Georgia Voicu, Conceptual Approaches regarding Private Security Companies, 2016 Eur.
J. Pub. Ord. & Nat'l Sec. 23 (2016)
2
www.lexisnexis.com

3
legaladda.myonlineca.in
days from malls, societies to companies and schools. There’s no place which could function
without a security guard, the rapid increase is often due to the increasing crime in the society.In
this, article we will tell you procedure and steps to get Private Security Agency License in India.4

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 Formation and Running of a private security agency, in India Falls under
the Domain of The Private Security Agencies Regulation Act, 2005.

The act is a state-specific act and gives power to 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.The Controlling Authority for the State is responsible for the issuance of private security
agency license, renewal and regulation of the operation of private security agencies.The Act
empowers the Central Government to appoint an officer of the Home Department equivalent to
the Joint Secretary of the State to act as the Controlling authority. A person with similar rank shall
also be appointed by the Government.5

The companies which are based in India or whose majority shareholders are Indian nationals are
eligible for security agency license. In addition to the above condition, some category of people
are eligible for obtaining a license for a private security company which is: The person or company
who is not 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 should not be held by a competent court for any
offence.

The person or company is required not to have any links with any organization or association
which is banned under any law on account of their activities which pose threat to national security
or public order.

The person cannot be prohibited or terminated from Government service on grounds of misconduct
or moral turpitude.6
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/-

4
http://ficci.in/SEDocument/20263/Discussion-Paper-on-PSAR-Act-2005.pdf

5
www.capsi.in

6
http://gtw3.grantthornton.in
Private security agency operating in entire state: Rs.25000/-

A private security agency is required to provide training to all the security guards in assigned
training institute as may be prescribed by the controlling authority. The agency is also required to
ensure that the security guards meet the standard of physical fitness given in Private Security
Agencies (Regulation) Act, 2005.

Grant of licence, condition for licence, offences and penalties: Once the application is filed and
verified by the controlling authority, a licence can be granted to the private security agency to
start functioning. A prescribed amount of fees has to be paid to get the licence. The licensee is
required to inform the controlling authority regarding any change in the address of persons
forming the agency and change of management within seven days of such change. The fee paid
for the grant of licence is non-refundable.
Renewal, cancellation and suspension of licence and appeals: Every agency is required to apply
to the controlling authority for the renewal of licence. The application form and the fee
chargeable for the renewal of licence will be the same as stated for the grant of original licence.
The agency is required to maintain a register with all the details of the agency and that of its
employed private security guards. The agency also has to issue a photo identity card to all the
security guards that would have their details. There are various reasons through which a licence
can be cancelled or suspended by the controlling authority.7
Historical Background And Impact In Modern Society

Due to increase in the number of business establishments and increasing demands for security.
There has been a proliferation of private security agencies in the recent years. The growing
tendency to hire security guards from private sources by an industrial or business undertaking has
led to coming up to of large number of private security agencies all over the country. Through this
private security agencies have helped in meeting the security needs of business establishments.
There has been a growing concern about the manner of functioning of these agencies. Many of
which seems to conduct their operations without private security guards.

the concept of private security is often considered to be a relatively modern phenomenon, the
reality is that some form of private security has existed for centuries. Whether it is the invention
of locks, or the design of ancient forts and battlements, or the provision of different people-related
services, the concept of private security has existed for much longer than the modern security
guard. This chapter will look at examples of early security and follow the gradual emergence of
the private security industry (PSI) and what we find today. While it would be impossible in one

7
http://legislative.gov.in/actsofparliamentfromtheyear/private-security-agencies-regulation-act-2005
chapter to cover the entire vast history of the industry, we have selected examples that, as we
believe, show the broad spectrum within the PSI and some of the key points in the industry’s
history. In looking at some of the earliest forms of private security, we will also be able to draw
parallels with the industry that exists today.8

8
link.springer.com