A business rendering security services for reward must be registered with the Private Security Industry Regulatory Authority as a security business. That is separate from the registration of the individuals who work for it, and both are required.
This page sets out what registering a security business involves and the obligations that follow it.
Business Requirements at a Glance
What registering a security business generally requires.
- A registered entity — a company, close corporation or registered sole proprietorship
- Registration of the business with PSIRA under the Private Security Industry Regulation Act 56 of 2001
- Every director, member or partner registered as a security service provider
- South African citizenship or permanent residence for the required persons
- No disqualifying criminal convictions for the business or its principals
- Police clearance certificates and fingerprints for every principal
- Proof of business premises and infrastructure
- Payment of the prescribed registration and annual fees
- Compliance with the industry code of conduct and reporting obligations
Registration and Legal Requirements
Confirm the current requirements, categories and fees with PSIRA directly. Registration categories, the requirements for a security business and the annual fees are set by the Authority and revised, and PSIRA is the only authoritative source.
Two registrations are required. The business registers as a security business, and every person rendering security services — including the directors — registers as an individual security service provider at the applicable grade. One without the other is not compliance.
Directors must be individually registered and must meet the Act’s requirements, including on criminal record. A single disqualified director can prevent the business from registering.
Every employee must be registered and trained. Employing an unregistered person to render security services is an offence for the business, and PSIRA inspects for it.
Training must be at accredited providers. Verify any training provider with PSIRA before paying for staff training, because unaccredited security training is a persistent problem in this sector.
Firearms add another layer. Where the business provides armed services, the Firearms Control Act 60 of 2000 applies — the business needs the appropriate firearm licences and every armed officer needs a competency certificate and the associated training. Confirm the requirements with SAPS.
Documents and Ownership Information Required
What is needed to register the business.
- CIPC registration documents, company profile and memorandum of incorporation
- Certified ID copies for every director, member or partner
- Beneficial ownership information as filed with the CIPC
- Proof of the business physical address
- A SARS tax compliance status PIN
- A business bank account in the entity’s name
- Annual financial statements or management accounts
- A valid B-BBEE certificate or sworn affidavit
- Sector licences and permits, where applicable
- PSIRA business registration application in the current form
- Police clearance certificates and fingerprints for every director, member or partner
- Proof of individual PSIRA registration for every principal
- Proof of business premises and infrastructure
- Proof of payment of the prescribed fees
- Firearm licence documentation, where armed services are provided
Tax, Licence and Compliance Requirements
Employment conditions are governed by a sectoral determination alongside the Basic Conditions of Employment Act 75 of 1997, setting minimum wages and conditions for the private security sector. Confirm the current position with the Department of Employment and Labour, because underpayment in this sector is a common enforcement issue.
UIF and COIDA registration are compulsory for the business as an employer, and a current COIDA letter of good standing is required by nearly every client before officers are placed on site.
PSIRA levies and annual fees apply to the business and to each registered employee. Budget them and pay them — lapsed registration means the business cannot lawfully operate.
Reporting obligations continue after registration, including reporting on employees and on the business’s operations as the Authority requires. Failing to report is a contravention.
PSIRA has disciplinary jurisdiction over registered businesses and individuals and can withdraw registration for breaches of the code of conduct.
Clients check registration. Corporate clients, tender authorities and body corporates verify a security business’s PSIRA registration and its COIDA letter of good standing before appointing it, and a lapse costs contracts.
For public sector work, register on the Central Supplier Database and keep tax compliance and B-BBEE documents current alongside the PSIRA registration.
Process, Deadlines and Ongoing Obligations
Register the individuals first, then the business, through PSIRA’s process, with police clearances obtained early since they are the longest lead item.
Budget the full compliance cost before starting — business registration, individual registrations for every officer, training at accredited providers, uniforms and equipment, UIF and COIDA, and the sectoral minimum wage. Security businesses that underprice contracts because they did not cost compliance end up underpaying staff, which is where the sector’s enforcement problems come from.
Never employ unregistered officers, and never deploy an officer whose registration has lapsed. It is an offence, it voids your position with clients, and it is what inspections find.
Never pay anyone to expedite a PSIRA registration. The process and fees are published, and anyone offering to accelerate an official decision for payment is soliciting a bribe.
- Confirm current requirements and fees with PSIRA directly
- Register the individuals and the business — both are required
- Ensure every director meets the Act’s requirements
- Obtain police clearances early — they are the longest lead item
- Verify every training provider with PSIRA before paying
- Register for UIF and COIDA and keep the letter of good standing current
- Budget the sectoral minimum wage into every contract price
- Never employ or deploy an unregistered officer
- Keep PSIRA levies and annual fees paid
- Register on the Central Supplier Database for public sector work
Frequently Asked Questions
Do I register the business or myself?
Both. The business registers as a security business and every person rendering security services, including directors, registers as an individual service provider at the applicable grade.
Can I employ officers who are not registered?
No. Employing an unregistered person to render security services is an offence for the business, and PSIRA inspects for it.
What about armed services?
The Firearms Control Act applies. The business needs the appropriate firearm licences and every armed officer needs a competency certificate and the associated training. Confirm with SAPS.
Why do security businesses underpay staff?
Usually because they underpriced contracts without costing compliance — registrations, training, UIF, COIDA and the sectoral minimum wage. Budget those before quoting.
Registration categories, requirements, fees, levies and employment conditions are set by PSIRA, SAPS and the Department of Employment and Labour, and are revised. Confirm current requirements with PSIRA before applying.