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Private security agencies (manned guarding, executive protection, event security) in India operate under the PSARA Act 2005 — mandatory state licence. FilingLab handles end-to-end security agency compliance — PSARA registration, GST (18% on security services), TDS u/s 194C on contracts, PF / ESI for guards (mandatory 20+ employees), and payroll processing. Reverse charge GST applies for unregistered security agencies supplying to registered businesses (Notification 13/2017-CT).

Tax angle for you

PSARA licence: state-issued, valid 5 years, ₹25,000-1,00,000 fees varying by state. GST: 18% on security services. Reverse charge applies if agency is unregistered + recipient is registered. PF + ESI mandatory for 20+ employees / 10+ employees respectively.

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FAQ

Security Agencies — frequently asked

What is PSARA and is it mandatory?

Private Security Agencies Regulation Act 2005. Mandatory state-level licence for any security agency supplying manpower. ₹25k-1L state fees + 5-year validity.

GST on security services — reverse charge?

18% normal rate. If your agency is unregistered + customer is GST-registered, reverse charge applies (customer pays GST). Once you cross ₹20 lakh, register and bill normally.

Are PF / ESI mandatory for guards?

PF: mandatory if 20+ employees. ESI: 10+ employees with salary ≤ ₹21,000. Most security agencies cross both thresholds quickly.

Where Security Agencies concentrate

Top cities for Security Agencies