Starting your own security company in South Africa requires meeting certain key requirements and regulations, especially compliance with PSIRA (Private Security Industry Regulatory Authority). Here’s a step-by-step overview of what you need to know and do.
Key Requirement: PSIRA Registration
To own or be a director of a security company in South Africa, you must be registered with PSIRA as at least a B-graded security officer. Achieving a B grade means you have passed all the necessary requirements from grades C to E.
What You Need to Register a Security Company
- Decide Your Security Services
Determine the specific security services your company will offer, such as guarding, alarm response, or event security. - Register Your Company
Register your business with the Companies and Intellectual Property Commission (CIPC). - Register for Taxes
Obtain all necessary tax registrations with the South African Revenue Service (SARS), including:- Tax Clearance Certificate
- VAT Registration Number
- PAYE Number
- Register for UIF and COID
Register with the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases (COID) if applicable. - Prepare a One-Year Business Plan
Draft a business plan that outlines your company’s objectives and operations for the first year. - Submit a Declaration
Provide a declaration that your business will be operational for the coming year. - Establish a Permanent Office Location
Your business must have a fixed and immovable office location. - B-BBEE Compliance
- For companies with turnover less than R10 million: Submit a B-BBEE affidavit.
- For companies with turnover above R10 million: Obtain a formal B-BBEE certificate.
- Letter of Good Standing from SARS
A letter confirming your compliance with SARS registration requirements. - Clear Criminal Record
You must prove to PSIRA that you do not have a criminal record. - Competency Examination
PSIRA requires you to pass a competency test. Fees vary, so check the current cost before applying.
Important Considerations Before Starting
- Understand the Security Industry
Security services include the protection, safeguarding, and reactive response for persons and property. If you don’t have experience, it’s advisable to work at a security company first to learn the trade. - Know Your Business
You need to be knowledgeable about both security services and business management, including how to manage staff and finances in a competitive industry. - Client Segmentation
Homeowners are generally more price-sensitive, while businesses prioritize security as essential and may claim costs as tax deductions.
After Registration
Once registered, you can launch your marketing efforts to attract clients. Be clear about:
- Which services you offer
- Your competitive advantages
- Your promotional strategies
- How you plan to network and grow your business
Employing Security Staff
When your company is operational, you will need to hire qualified security personnel. Seek assistance with recruitment to appoint the right people.
Voluntary Security Associations (Not Mandatory but Recommended)
Joining these organizations can add credibility and provide valuable resources for your business:
- SASA (Security Association of South Africa)
- SASSETA (Safety & Security Sector Education & Training Authority)
- SANSEA (South African National Security Employers Association)
- SAIDSA (South African Intruder Detection Services Association) – for alarm monitoring and armed response services
- ESDA (Electronic Security Distributors Association) – for electronic security equipment providers
Starting a security company involves careful preparation, compliance with regulatory bodies, and solid business planning. Make sure to do thorough research and prepare accordingly to increase your chances of success.