Security services are becoming more and more important. Security is no longer the preserve of rich and wealthy people trying to protect their lives and property. These days criminals are less selective, and so they will steal from, and threaten even ordinary people as well. This makes the security services industry more in demand than ever before, and this means that there is so much potential in the security industry, not just now but also in the future.
While other industries are busy replacing their workers with robots and computers, the security industry continues to need more hands-on deck. Yes, crime is not going away; and so people will always need security services, especially in countries like South Africa.
This post is going to be your guide on how to start a security company in South Africa, from here you will gain tips on how to go about opening your own security company, including necessary documentation, and tips on how to successfully operate it. Yes, opening a security company can be a very rewarding venture; aside from the financial reward, you can get to provide employment opportunities and provide real value to society.
How To Start A Security Company in South Africa
Get a business Premises suitable for your business.
Register your business with the CIPC (it will only cost you R175)
Go to the PSIRA to register Yourself as a Grade B security provider.
Get a Tax Clearance Certificate
Go back to the PSIRA to register your business with the Authority.
Train your workforce
How To Register With Private Security Regulator Authority (PSIRA)
Your first step is to register with the PSIRA before starting your security company. The PSIRA stands for the Private Security Regulatory Authority. The company is located at 420 Witch-Hazel Ave, Highveld, Centurion, 0157, South Africa. You can contact them by phone via: +27 86 107 7472.
The primary objective of the Authority is to regulate the private security industry and to ensure that the companies that are involved in the industry are stable, and viable, and operated by trustworthy people. The requirements that the PSIRA have are not insurmountable, but they are rigid. This is a good thing because if the security industry was unregulated it would soon become fraudulent, and then new entrants such as yourself would not find it attractive.
Required documents for registration
Requirements To Start A Security Companies In South Africa
Documents supporting Company registration with the Companies and Intellectual Property Commission (CIPC)
Member’s (Director(s), Partner(s), Trustee(s), and Managers of your company must show that they are registered as security service providers (Grade B)
Tax Clearance Certificate, VAT Registration Number, PAYE Number (From SARS) are also required in order to register.
U.I.F documents to ensure that you have the welfare of your employees in mind.
You have to present your Business Plan for 1 year.
You must provide a declaration of your business’s capability to operate for the next year.
You should also have office premises.
How much Does it Cost to Start a Security Company in South Africa?
You Need to Lease a Premises. That may cost around R180 per square metre for stand-alone premises.
You will need to apply to the CIPC with R125.
You will apply to the PSIRA with a fee of R2,280 and then sit a written exam.
You will pay an assessment fee of R1,710 to PSIRA.
When you have been duly certified then you can go about the business of bidding for contracts to provide security services to residences and office complexes. With the registration and documentation that you have, you need not worry about any harassment from any quarter.
That is how you register a security business in South Africa. However, in order to successfully operate the business, you need more than just papers. For one thing, you will need workers. No successful security company just hires untrained persons and puts them on clients’ property.
You need to train your workforce.
Requirements for training centre
In order to have a training center, you need a couple of certifications. These include safety certifications, as well as evidence of association with the regulatory authority. The requirements are not difficult to meet. The following are the requirements for opening a training center.
PSIRA Accreditation Application form (PSiRA 47 A).
Proof of registration with PSiRA. Please also attach a copy of your CIPC Registration Certificate.
Proof of Payment of the prescribed accreditation fee to the PSIRA. (Please attach receipt you were issued.)
Evidence of settlement of Annual fees. (Please add receipt of settlement for annual fees)
Copy of the lease agreement of the facility you want to use for training. The Lease agreement should be at least for a six (6) month period.
A letter from the Fire Department, or an affidavit.
Signed confirmation letter, or a signed employment contract engaging a contractor.
The policy of the management and administration of training, as well as enrolment policy, assessment, and certification policy.
Proof of telephone line, and Proof of fax line.
Please note: You need a registration fee of R2 280. Furthermore, it usually takes around 12 days for your application to be approved. You will also need to renew your business certificate every 12 months.
Important Factors that can determine your Success Of Security Companies in South Africa
Branding is all about building an identity for your business; it is all about creating an image that will come to mind immediately anybody thinks of your business. Therefore, you need to spend some money creating a logo (including an emblem for your uniform) and a catchphrase that will go along with your logo. Your logo should be something attractive and mature. Make sure that you engage the services of a professional.
Marketing is an essential part of running any business. It is all about getting more people to see your business. You need to get the word out about your security company because that is the only way to get clients. The best way to market a security company is by using most of the traditional marketing platforms; you need to make flyers; which you would now distribute to offices, residences, and even on cars.
Another form of marketing is billboards. You can use billboards in prominent places to advertise your security services. This is a good use of available funds because every eye passing that route will see the Billboards, and then it would be a good way to get a strong foothold in the market share of a particular area. If you can do this, you will likely get a lot of business in a particular area.
Another trick that you could consider is putting adverts in the newspapers. This will get a lot of eyes on your brand, however, it may not be very localized. Your business may be located in Johannesburg, but you may receive enquires from Durban or other distant parts of the country.
Build a website
A website for your company could be a great investment because people are getting more and more of the information they use online. It is not too expensive; you can get a quality website in South Africa for just R1 200.
When you build a website, the next thing is to drive attention to the website. You will do that by running digital ads on places like Facebook, Google, and Twitter. This will give you an edge over your competition. It will make people see you as a modern security company with modern features.
Of course, you may need a consultant to help you carry out these digital marketing activities successfully.
Networking is very important and will get you most of your first clients. This also involves getting yourself and your company familiarized with the security architecture of the city. Go to police stations and familiarize yourself with the top officers. Network with businesspeople, get them to use your security services to safeguard their operating premises.
Go out to high-profile events and take the opportunity to tell people about your business. Distribute your business cards wherever you go, and reach out to speak and lecture on security events. That is how you can network and position your business to be in the top spot to get security contracts in your area.
Hopefully, you are ready for what it takes on how to start a Security Company in South Africa. We chose to leave out the fact that you need branded uniforms and vehicles. We have seen that some security outfits choose not to wear military-style clothing, perhaps for the reason that they do not want to attract too much attention to themselves, or for whatever reason.
Branded vehicles for your security company will also help you to seem more professional, besides, a vehicle or two will help you respond to any challenges or emergency developments.
You also need to draw up a business plan that involves recruitment, training, and the day-to-day running of the business for at least one year, even in unfavorable business conditions.