PSARA (Private Security Agencies Regulation Act, 2005) governs India's private security industry. This Act establishes Controlling Authorities, which are appointed by state governments, to oversee the operation of private security firms. This Act is overseen by the Ministry of Home Affairs. States create their own rules under the PSARA Act of 2005, which are in line with the Private Security Agencies Central Model Rules of 2006.

Private security agencies are businesses that specialize in providing protection services to any property or person, including security guard training. Without a proper license, no company or individual can start a business or perform security guard services. It is necessary to obtain a license from the relevant state authority. Even though the Ministry of Home Affairs is in charge of PSARA, the ability to issue licenses has been transferred to the state governments.

ELIGIBITY 
All Indian nationals are eligible for a PSARA license as an individual, firm, or company, except for those who fall under the following categories:-
•    Convicted of a crime involving the marketing or creation of a business. 
•    Convicted by a court for an offense that carries a minimum sentence of two years in jail.
•    Maintaining ties with any organization or association that is prohibited by law because of acts that endanger national security or public order, or if there is knowledge about such a person.
•    Removed or dismissed from government service due to misbehaviour or illegal behaviour.
•    If a corporation, firm, or association of persons is not registered in India or has a proprietor, majority shareholder, partner, or director who is not a citizen of India, it will not be considered for issuance of a license under this Act.

REQUIREMENTS 
•    In PSARA, foreign direct investment is prohibited.
•    Prior to applying for a license, the applicant should have an office. It can be rented, leased, or bought outright. If it is rented, the rent agreement may be registered or unregistered, and the owner of the premises must provide a No Objection Certificate (NOC).
•    In some states, the applicant must be financially stable, as evidenced by its income tax return.
•    There is no requirement for a minimum educational qualification.

VALIDITY OF PSARA LICENSE
PSARA licenses are valid for 5 years from the date they are granted. After completing it, the applicant must renew it for the next five years by paying the specified fee. Renewal applications must be submitted 45 days before the license's expiration date.