A security business in South Africa must be registered with the Private Security Industry Regulatory Authority before it renders any security service. That registration sits on top of the ordinary company registration, and neither substitutes for the other.
This page sets out both layers and the ongoing obligations that follow, which are heavier in this industry than in most.
Business Requirements at a Glance
What starting a security business generally requires.
- A registered legal entity, or registration as a sole proprietor where permitted
- Registration of the business with PSIRA before rendering any security service
- Every director, member or partner registered with PSIRA in their own capacity
- All security officers individually registered with PSIRA
- South African citizenship or permanent residence for the responsible persons
- No disqualifying criminal record for the business or its responsible persons
- A registered business address and infrastructure the Authority requires
- Registration with SARS for income tax, PAYE and, where applicable, VAT
- UIF and COIDA registration as an employer
Registration and Legal Requirements
PSIRA registration is compulsory and comes first in practice. Under the Private Security Industry Regulation Act 56 of 2001, no person may render a security service for reward without being registered, and that applies to the business as well as to each officer. Operating unregistered is an offence.
Register the company with the CIPC under the Companies Act 71 of 2008, or as another appropriate entity. The Memorandum of Incorporation, the directors and the registered address are all part of the record, and PSIRA will look at them.
Directors and members must themselves be registered with PSIRA, not merely the entity. Each is screened, and a disqualifying record in one responsible person can block the business.
Firearms are a separate regime entirely. A security business that uses firearms needs the relevant licences and competency under the Firearms Control Act 60 of 2000, including for the business as an entity where applicable. Do not assume PSIRA registration covers it.
Wages are set by a sectoral determination. Private security wages, hours and conditions are prescribed, and underpaying is a straightforward and frequently prosecuted breach. Build the prescribed cost into your pricing before you tender for anything.
You are responsible for your officers’ registration status. Employing an unregistered person as a security officer is an offence for the employer. Verify each officer’s registration and keep it current.
Documents and Ownership Information Required
What is generally required.
- CIPC registration documents for the entity, including the registration certificate
- Certified copies of the ID of every director, member or partner
- Fingerprints and criminal record checks for each responsible person
- Proof of the business address
- A tax number and, where required, a tax clearance status
- Bank account details in the business’s name
- The prescribed PSIRA application forms in their current version
- Proof of payment of the prescribed fees
- UIF and COIDA registration confirmation
Tax, Licence and Compliance Requirements
Register as an employer from the start. PAYE with SARS, UIF under the Unemployment Insurance Act 63 of 2001, and COIDA under the Compensation for Occupational Injuries and Diseases Act 130 of 1993. COIDA matters enormously here, because security work carries a real risk of injury and death, and an employer without cover is personally exposed.
Get a letter of good standing from the Compensation Fund and keep it current. Clients and tenders require it, and it is evidence that your COIDA obligations are met.
Occupational health and safety obligations apply under the Occupational Health and Safety Act 85 of 1993 — risk assessments for each site, protective equipment, and reporting of incidents. In an industry where officers are exposed to armed attack, these are not paperwork.
B-BBEE status matters commercially. Most corporate and public sector clients require it. Note that fronting is a criminal offence under the B-BBEE Act 53 of 2003, with serious penalties, and it is actively prosecuted.
Public sector work requires more. Registration on the Central Supplier Database, tax compliance status, and a valid PSIRA certificate are standard requirements for any security tender.
Insurance is essential — public liability, and cover appropriate to the services offered. Clients will ask, and an uninsured incident can end the business.
Process, Deadlines and Ongoing Obligations
Sequence it properly: register the entity with the CIPC, register with SARS, register as an employer for PAYE, UIF and COIDA, then apply to PSIRA for the business and for each responsible person, and register every officer before they work.
Confirm the current requirements and fees with PSIRA directly, since they are revised.
Annual renewal applies. PSIRA registration is maintained by annual fees and returns. Lapsing means operating unlawfully, and clients check.
Keep records the Authority requires — officer registrations, training records, deployment records and incident reports. PSIRA inspects, and records are what an inspection turns on.
Price the work honestly. The prescribed wage, UIF, COIDA, training, uniforms, equipment and insurance are the real cost per officer. Underpricing a contract in this industry ends in underpaying officers, which is both unlawful and the reason many operators fail.
Do not use unregistered subcontractors. The obligation follows the work, and using an unregistered provider exposes you as well.
Free help exists. The Small Enterprise Development Agency assists with business registration and compliance at no cost, and SARS and the Department of Employment and Labour both publish guidance.
If you are approached to lend your name to someone else’s security operation, or to front a B-BBEE structure, refuse. Both create personal criminal liability for you and neither is worth it.
Frequently Asked Questions
Do I need PSIRA registration as well as a company?
Yes. Company registration with the CIPC and PSIRA registration of the business are separate, and neither substitutes for the other. Directors must also be registered in their own capacity.
Can I employ an officer who is not yet registered?
No. Employing an unregistered person as a security officer is an offence for the employer. Verify each officer’s registration and keep it current.
What does a security employer owe its officers?
The prescribed sectoral wage and conditions, UIF and COIDA registration, occupational health and safety measures, and the equipment the risk assessment requires.
Do I need firearm licences?
Only if the business uses firearms, and that is a separate regime under the Firearms Control Act 60 of 2000. PSIRA registration does not cover it.
Registration requirements, fees, renewal obligations and sectoral wage determinations are set by PSIRA, the CIPC, SARS and the Department of Employment and Labour and are revised. Confirm current requirements with each authority before trading.