The Private Security Agencies (Regulation) Act, 2005 - PSARA - is not paperwork. It is the line between a vendor whose liabilities stay with them and one whose liabilities become yours.
What PSARA actually requires
Any agency supplying security personnel in India must hold a licence issued by the Controlling Authority of the state it operates in. The licence is state-specific: an agency licensed in West Bengal cannot legally deploy in Maharashtra without a separate licence or an approved arrangement.
The five-minute verification
- Ask for the licence certificate - not a number typed in an email. The certificate carries the issuing state, validity dates and the licensee name.
- Match the entity name to the company that will actually raise your invoice. Group companies frequently differ.
- Check the validity date. PSARA licences run five years and lapse quietly.
- Confirm the states listed. Every location you need covered must appear.
- Ask for the training tie-up. PSARA requires a recognised training arrangement; agencies without one are non-compliant even if licensed.
Beyond the licence
A licence is the floor, not the ceiling. Also verify PF and ESIC registration numbers, current monthly challans, police verification records for deployed staff, and public liability insurance cover. Ask to see last month's PF challan - a compliant agency produces it in minutes, and a non-compliant one produces excuses.
Why it lands on you
Under the Contract Labour Act, the principal employer carries responsibility when a contractor defaults on statutory dues. If your agency skips PF for two years and gets caught, the recovery notice can reach your desk. Compliance is not their problem you are being generous about - it is your exposure.
