Security · South Africa

How to start a security company in South Africa

By Uminathi Business Start-Up ServicesPublished Updated 5 min read

Quick answer

To start a security company in South Africa, register a company with CIPC and register for tax, then register the business with the Private Security Industry Regulatory Authority (PSIRA). PSIRA requires the security business and every person who provides security services, including directors, to be registered. Before you sign contracts, plan for the industry's wage and labour rules, COIDA and UIF, uniforms, communication, insurance and, if you will use firearms, the separate licensing rules under the Firearms Control Act.

Read the complete guide below.

At a glance

Business typeGuarding, armed response, event security, alarm monitoring, installations, consulting
RegulatorPrivate Security Industry Regulatory Authority (PSIRA)
Who must register with PSIRAThe security business, its directors and every security officer
Other key registrationsCIPC, SARS, UIF, COIDA, CSD; firearm licences if applicable
Typical customersEstates, businesses, schools, events, construction sites, government
Biggest riskLabour costs and compliance, which are high and closely checked

What kind of security business can I start?

  • Guarding: placing officers at sites such as offices, estates, schools and construction sites
  • Armed response: responding to alarms, which needs vehicles, control rooms and firearm compliance
  • Event security: crowd control at concerts, sports and private events
  • Electronic security: installing alarms, CCTV, access control and electric fencing
  • Monitoring and consulting: control rooms, risk assessments and training

Each type has different compliance needs. Electronic installers who only install equipment may face different requirements from guarding companies, so confirm with PSIRA which apply to your services.

How do I start a security company in South Africa?

  1. Choose your services and the area you will serve
  2. Register a private company with CIPC and register for tax with SARS
  3. Make sure directors and officers meet PSIRA's requirements and are registered
  4. Register the business with PSIRA
  5. Register with UIF and COIDA, and set up payroll that follows the sector's wage rules
  6. Get uniforms, communication equipment, insurance and, if needed, compliant firearm licences
  7. Register on CSD, prepare a company profile and start approaching clients

What is PSIRA and who must register?

PSIRA regulates the private security industry under the Private Security Industry Regulation Act. Anyone who provides a security service for reward must be registered: the business itself, every security officer, and the people who manage or control the business, such as directors. Officers must complete accredited training for their grade before they register.

What do I need to register a security business with PSIRA?

Requirements are set by PSIRA and can change, so check the current list before applying. Typically you need:

  • Company registration documents and the directors' details
  • PSIRA registration of the directors and of the people managing the business
  • Proof of business premises and infrastructure suited to your services
  • Tax compliance and other supporting documents PSIRA requests
  • Payment of the registration and annual fees

What labour rules apply to security companies?

The private security sector has its own minimum wages and conditions of employment, set through sector-specific agreements and determinations that can be higher than the national minimum wage. These rules cover pay, overtime, night shifts and allowances. Build them into your prices from day one, because underpaying officers can lead to claims, PSIRA action and lost contracts. Register for UIF and COIDA as an employer; security has a higher risk rating for COIDA. See COIDA registration.

Do I need firearm licences?

Only if your officers will carry firearms. The business must comply with the Firearms Control Act: the business needs the correct firearm licences, officers need competency certificates, and firearms must be stored and controlled properly. This takes time and costs money, so many new companies start with unarmed guarding.

How much does it cost to start a security company?

Cost itemNotes
RegistrationsCIPC, PSIRA business and individual registrations, annual fees
TrainingAccredited training for officers at the required grades
Uniforms and equipmentUniforms, radios or phones, torches, batons, two-way communication
VehiclesSupervisor and response vehicles where needed
InsurancePublic liability and other cover clients ask for
Payroll bufferAt least one month of wages before the first client pays

How do I price security contracts?

Price per officer per shift from the full cost of each officer under the sector's wage rules: wages, overtime, night and public-holiday premiums, UIF, COIDA, leave cover, uniforms, supervision, transport and administration, then add your margin. Don't undercut the legal wage costs; buyers and PSIRA check. See how to price your services.

How do I find security clients?

Customer typeHow to reach them
Residential estates and body corporatesCompany profile, references, site risk assessment
Businesses and retailApproach managers with a tailored proposal
Construction sitesPartner with contractors for site security
EventsRelationships with event organisers and venues
Government and schoolsCSD registration and tenders

How do I get government security tenders?

Government buys guarding services through tenders that check PSIRA registration, wage compliance, COIDA, tax status and experience closely. Register on CSD, keep every document current, and price according to the sector's wage rules. See how to get government tenders.

What are the common mistakes?

  • Pricing below the legal wage cost to win a contract
  • Using officers whose PSIRA registration has lapsed
  • Starting armed services before firearm compliance is complete
  • Not paying PSIRA annual fees on time
  • No cash buffer for the first month's wages

How can Uminathi help?

You can do these steps yourself. Uminathi can register your company and handle tax, CSD, COIDA and B-BBEE paperwork, and prepare your company profile and tender documents. PSIRA registration is done with PSIRA directly.

Step by step

  1. Choose your services. Decide on guarding, response, events or electronic security, and your area.
  2. Register your company and tax. Register a private company with CIPC and register with SARS.
  3. Register people with PSIRA. Make sure directors and officers are trained and registered with PSIRA.
  4. Register the business with PSIRA. Apply for business registration and pay the required fees.
  5. Set up as an employer. Register for UIF and COIDA and set up payroll according to the sector's wage rules.
  6. Equip and insure. Get uniforms, communication, vehicles and insurance; arrange firearm compliance only if needed.
  7. Win clients. Register on CSD, prepare a company profile and approach estates, businesses and government.

Frequently asked questions

Do I need PSIRA to start a security company?

Yes. The security business, its directors and every security officer must be registered with PSIRA.

Can I start a security company without firearms?

Yes. Many companies start with unarmed guarding. Armed services require separate firearm licensing and competency.

How long does PSIRA registration take?

It depends on PSIRA's processing and whether your application is complete. Apply early and check the current requirements on PSIRA's website.

What is the minimum wage for security guards?

The private security sector has its own minimum wages and conditions, which can be higher than the national minimum wage. Check the current sector rates before pricing contracts.

Can a security company get government tenders?

Yes, with PSIRA registration, CSD registration, a compliant tax status, a COIDA letter of good standing and proof of wage compliance.

Official sources

Uminathi Business Start-Up Services is a private company. We are not part of, or acting for, CIPC, SARS, National Treasury (CSD), CIDB, the Department of Employment and Labour or any other government body. Requirements change, so always confirm with the official source.

Written by: Uminathi Business Start-Up Services
Reviewed by: Uminathi Business Start-Up Services
Last reviewed: