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To register a Security Company in South Africa you must first Register a Company, preferably with one or more business partner(s) who has Individual PSIRA Grading (we can assist).
After Security Company Registration you’ll need various compliance documents (we can assist); and only then register with the Private Security Regulatory Authority (PSIRA). This includes paying registration fees and writing an exam – which will enable you to apply for Security Contracts and Tenders. Apply on this page below or call us Toll Free for consultation.
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If you are an Entrepreneur who is serious about making a success and working hard to get there, then a Security Company is a good option for you. You will need to invest a large amount of time and money when you are considering a Security business. This is a successful industry if you are willing to work hard and put in the time as an entrepreneur. Let’s dive into this guide on how to Register a Security Company in South Africa.
To trade as any of these types of Security Companies, you will need to have PSIRA grading. The grading for an individual will consist of a PSIRA Grading test and you will need to follow the correct PSIRA Grading procedures. Our PSIRA Grading Partner is fully accredited with both PSIRA and SASSETA and can provide all the training and courses you need. They can also assist with recruitment and criminal checks.
Contact Us Toll Free on 0800 007 269 during office hours (free to dial from Cell phones and Landlines).
The Private Security Industry Regulatory Authority, also known as PSIRA, is the Governing Body who regulates all security related industries in South Africa. It is compulsory for your Security Company to be PSIRA accredited should you wish to trade in this industry.
We can assist you by facilitating the entire PSIRA Registration process – setting up the application; communicating with PSIRA and ensuring that your Security Company is fully compliant for all Security Tenders and Contracts. Once the registration of your security company is completed you will also get listed at PSIRA as a Registered Security Company and this may help to find more clients.
Contact Us Toll Free on 0800 007 269 (free to dial from Cell phones and Landlines).
In this guide, we will discuss the company documents you will need to start your own Security Company in South Africa, as well as other contributing factors to having a successful Security Company.
For more info on these specific compliance documents, simply scroll down to the relevant section below.
• B-BBEE Affidavit or Certificate
• A valid and updated Letter of Good Standing from the DOL
• VAT Registration in South Africa
• Other Security Associations in South Africa (like SASA)
For more info on these specific compliance documents, simply scroll down to the relevant section below.
In order to register your company as a security company, you will need to first formally Register a Company at CIPC.
We assist with fast and easy Pty Company Registration at CIPC.
The answer is simple, Tenders and Contracts. Your company will not be considered for any tenders or contracts should you not have a company registration number with CIPC. People want to work with established entities, and registering your company is the first step to achieve this.
Registration of a security company also removes you from liability, by ensuring that you and your business are not seen as one. In other words, trading as a sole proprietor is a scenario where your taxes are combined. Trading as a sole proprietor increases the financial risks of a company and an individual. Registering the company will separate the company financials and your personal financials.
As a collective whole, having a registration number reflects positively on the company, and the company will be taken more seriously by prospective clients.
Registering a business is a simple and inexpensive task if you follow the steps outlined. The first step is to become registered as a CIPC customer. However, it brings with it certain responsibilities, irrespective of whether the company is trading. Businesses that wish to transact with government and formal sectors, or those who wish to access certain types of government support, are generally required to be registered with the CIPC.
As mentioned in our expert tip, the fastest and easiest way may be to work through us. However, you can also visit the CIPC’s eServices Portal and do it yourself. You can learn more about our services here: CIPC Pty Company Registrations.
You are required to register as an employer at SARS as stipulated in the Tax Act of South Africa. This registration is referred to as PAYE. In additional to PAYE, you may also need to register at the UIF office as an employer and be liable for SDL payments.
Anyone who has employed someone for more than 24 hours per week, is required by law to registered for PAYE and UIF. Even more so for those in security, as compliance is required when registering with PSIRA.
The UIF fund, or otherwise known as Unemployment Insurance Fund, is a fund where employees and employers make monthly contributions – 1% from the employee’s salary which the employer will then match, making the overall contribution 2%. These contributions may then be utilised should the employee become unemployed. This registration is usually paired with a PAYE and SDL number at SARS. SDL (Skills Development Levy) only applies to employers who pay R500 000 or more in salary costs over 12 months.
Therefore, UIF is seen as a safeguard for employees should the unforeseen take place, and SDL is there to aid in the training to improve their skills.
The first step for an employer is to register for PAYE/UIF/SDL at SARS and then thereafter register for UIF at Department of Labour. As mentioned in our expert tip, we can assist you with PAYE/UIF/SDL Registration as well as UIF Registration. This is the fastest and easiest way, as our team of specialist have a lot of experience in dealing with both SARS and UIF offices. You can also visit SARS’s website and work through the registration process by yourself. Here are some helpful links below.
A COIDA Letter of Good Standing is an official document that proves that you are in good standing with the Workman’s Compensation Fund. You can get a Letter of Good Standing by registering for COID and making sure all your payments are up to date.
Most Companies or clients want to work with Security Companies who’s employees are protected, as they do not want to be held accountable for your employees when they sub-contract or hire you. For this, a Security Company will need to be registered with COIDA (Compensation of Occupational Injuries and Diseases Act) and obtain a Letter of Good Standing as proof that their employees are covered.
A Letter of Good Standing is a requirement for almost all Tender or Contracts – in both the private and government sectors. This is to ensure that an employer’s employee’s livelihoods are protected by providing a form of “insurance pay out” if the employee is injured on duty or even if he/she acquires a disease at the workplace.
Attaining a COIDA Letter of Good Standing at the Compensation Fund means that you are compliant, by being up to date with your assessment fees. This also ensures that you will be financially compensated should you find yourself in a position where you need to submit a COIDA claim. In the case of work-related harm or injury, the Workman’s Compensation fund will assist financially with any medical or remuneration to your employee – or their family members.
The COIDA registration process can be broken down into 3 steps:
The first step is to register for COIDA. If you employ one or more employees, then you will need to register at the Compensation Fund. Note that if you are a working Director, you are considered an employee of the company and still need to register.
Once the registration process has been concluded, you will receive your CF/EE registration number, that starts with 99, and your assessment fee. Once you make payment of the assessment fee, you can claim your valid COIDA Letter of Good Standing.
The Letter of Good Standing acts as proof that you are registered and compliant with the Compensation for Occupational Injuries and dieses Act. Now that you are compliant with the Compensation Fund, you are able to apply for Tenders and Contracts.
PSIRA requires all participants (i.e. the Directors) of a company to be registered for PSIRA and be PSIRA graded to some degree. This is to ensure that the standards across the sector are maintained with competent persons of interest. This includes your staff, your members, your director, your trustees, your managers and your partners.
Expert tip: The list of PSIRA requirements is quite long. Get fast and effective guidance and use our PSIRA Registration Services.
To regulate the standards, quality and safety of the sector, South African Law on security companies requires all security companies to be PSIRA registered and be compliant to ensure that all operational security companies abide by the rules set out.
They are responsible for the training involved for security services to make sure the safety standards are adhered to. The tight regulation and training requirements make sure there are no fly-by-night companies that can easily set up and offer unsafe or subpar security products or services.
You will first need to meet the basic requirements of PRISA, which would be the company registration and PSIRA Grading. Once this has been done, your company will undergo a site survey.
You can either user our PSIRA Registration service, as the list of requirements is really long to ensure registration is done correctly, or you can do it yourself by submitting your PSIRA application form and required documents directly to PSIRA.
PSIRA Registration requires your security business to undergo a registration and investigation process. This includes security grading for you and the people involved in your security business.
Here’s a list of the documentation you need before your business is eligible for PSIRA Registration:
1. A Security Grade B or higher of your staff, members, directors, partners, trustees, and managers. They will need to undergo a PSIRA Grading.
(We’re placing a list below for what these individuals need to qualify for security grading)
2. Proof of your Company Registration
3. A Tax Clearance Certificate
4. UIF and COID Registration (if applicable)
5. Security Business Plan. A declaration declaring that your business will be able to operate for at least the next year.
6. Immovable office location
Here’s a list of the documentation you need as an individual to be eligible for PSIRA’s individual security registration:
The individual must:
1. Be at least 18 years old.
2. Be a permanent South African resident.
3. Not have a criminal record, specifically related to the scheduled criminal offenses listed in the Private Security Industry Regulation Act
4. Have completed the PSIRA training at an accredited training centre.
5. Not be a part of the military, the police force, or any intelligence force. Former members need a clearance certificate.
6. Pay the registration fee.
Note that Security Officers need higher grading. You can read more about that on the PSIRA Website.
To increase your chance of being awarded a Tender or Contract in the Security Industry, becoming a member of the below associations will be to your advantage:
SASA, SASSETA, SANSEA, SANSEA or ESDA
The intent of becoming a member is to ensure and allow members to stay up to date with new innovations, networking and training and laws within the Security Industry. Among this, being a member will significantly increase your chances at being awarded a Tender or Contract.
Depending on your annual Income/turnover, you will be required to obtain a B-BBEE Affidavit or a B-BBEE certificate. Many small start-up businesses will require just a B-BBEE Affidavit.
Expert tip: We can assist with a FREE B-BBEE affidavit with any new company registration.
Essentially, it’s a prerequisite if you’re interested in South African Tenders, Contracts or RFQ’s in any industry.
A B-BBEE Affidavit or BEE Certificate is usually a requirement when you apply for private or government Security Tenders, Contracts or RFQ’s in South Africa, because it confirms what your level of Black Economic Empowerment is in terms of its ownership.
You need a B-BEE Affidavit if:
• Your annual turnover is LESS than R10 million. Most small and medium companies fall within this category.
A B-BEE Affidavit is:
• A simple document that states what your level of Black Ownership is. You can simply fill out a free B-BEE Affidavit template accurately and then have it signed and stamped by an official Commissioner of Oath. Once officiated this will serve as your official B-BEE Certificate until you hit the R10 million mark of annual turnover. Then it’s compulsory for you to get an official B-BEE Certificate.
You need a B-BEE Certificate if:
• Your annual turnover (sales) is MORE than R10 million.
A B-BEE Certificate is:
• A document you need if your company turnover is R10 million or more per year. If you annual turnover is above R 10 million per year and you therefor require a BEE certificate, please visit our BEE certificate page here.
Useful BEE links:
You need to register for VAT (Value-added Tax) at SARS. It’s not compulsory unless you earn more than R1 million in 12 months, but you can also apply for a voluntary VAT Registration if you can provide the necessary invoices or purchase orders to prove that you are trading.
Expert tip: We can assist you with compulsory and voluntary VAT registration right away.
Being VAT registered is always beneficial to any company but will become mandatory once the company exceeds an annual turnover of R1 Million. A company that is VAT registered will be favoured in any Tender or Contract bid. Therefore, being VAT registered as a security company will be beneficial in the long term, as other companies or clients often partner with other VAT Registered businesses for the sake of their taxes.
As mentioned above, the fastest way to register for VAT would be to use our services, however, you can also do it yourself, directly to SARS.
To apply for your PSIRA Registration, you will need a Comprehensive Security Business Plan that includes in-depth Industry Analysis, Competitor Analysis, Customer Segment Research and Macro Environment Research. This is also required for any Security Tenders, Contracts or Funding applications.