Do you want to start a Security Company in South Africa? We can Register a Security Company for you to apply for Tenders and Contracts ASAP. All according to PSIRA's Requirements. Apply below or call us toll free now.
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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To register a Security Company in South Africa, you will be required to invest a lot of cash and time into your new business. Those who do make it are normally very successful. Be sure that you are an Entrepreneur who is serious about making a success and working hard to get there, before you consider the security industry.
Types of Security Companies in South Africa. You are defined by what you offer:
- Security services;
- Security products;
- A mix of security services and products.
We also assist with PSIRA Grading for Individual Security Officers, if required. To get Graded as an individual you will need to prepare for the Registration Tests at PSIRA and then follow PSIRA’s procedures. We can assist – our Partner is fully accredited with both PSIRA and SASSETA and can provide all courses for you. They can also assist with recruitment and criminal checks. Call us Toll Free on 0800 007 269 during office hours (free to dial from Cellphones and Landlines).
Why Register with PSIRA?
We can register you with PSIRA South Africa. The Private Security Industry Regulatory Authority (PSIRA) is the Governing Body and Regulatory Authority for the private security industry. Should you wish to start a Security Company, it is mandatory that you are registered with PSIRA. We can assist you by facilitating the entire process – setting up the application; communicating with PSIRA and ensuring that your Security Company is fully compliant for all Security Tenders and Contracts. Once your Security Company is registered you can get listed at PSIRA and find some clients. Contact Us Toll Free on 0800 007 269 (free to dial from Cellphones and Landlines).
The documents you need to register a Security Company in South Africa (including PSIRA Registration)
In this post, we discuss exactly what documents you need to start and grow a legal security company in South Africa.
This post is for you: If you want to start your own security company in South Africa or if you want to get your existing security company’s compliance documentation in order to apply for Tenders, Contracts or RFQ’s.
We won’t be zooming in on the daily workings of a Security Company in South Africa, but rather what the essential documents are that contribute to having a successful security company in South Africa that’s eligible for Tenders and Contracts.
Here’s what you’ll find in our article on starting a security company in South Africa:
- A list of specific documents needed to register a legal company in South Africa;
- A list of Tender-specific documents needed for a Tender-ready security company in South Africa;
- Explanations on why you need these specific documents in South Africa and for Tenders or Contracts.
- A step-by-step guide on where and how you can get these security company documents in South Africa.
In this article we show you what documents you need to register a legal Security Company in South Africa that’s specifically ready for Tenders, RFQ’s and Contracts.
Starting a Security Company in South Africa
As the amount of paperwork you need is quite significant in total, we’ve split this guide into two parts. The first part discusses general documents every South African business needs to be compliant with SARS and to have employees.
The second part pertains specifically to the documents that security companies in South Africa need to have. The second part also specifically touches on the vital documents needed in either private or government Tender or Contract applications in South Africa – in the security industry sector.
Kindly note that we’ve tried our best to list the most vital documents, but as every business – and its needs – differ you need to keep in mind that your situation is unique and that you need to do extensive research.
The documents you need to start a Security Company in South Africa:
Part 1: The Basic documents most South African businesses and companies need
- Company Registration
- Employer Tax Registration
Part 2: The Security or Tenders documents you need for South African Security Tenders or Contracts
- Letter of Good Standing
- Other Security Associations in South Africa (like SASA)
- B-BBEE Affidavit or Certificate
- VAT Registration
You also have the option of a FREE consultation call with our Security Company Experts. To claim yours, just call our Toll-Free number at the top of this page.
Part 1: The Basic documents most South African businesses need
You have to register your new security business as a company at the CIPC.
Expert tip: We assist with fast and easy CIPC Pty Company Registrations.
Why do you need Company Registration for a Security Company in South Africa?
The first reason relates to part 2 of this article: Tender and Contract application. You usually have to submit a company registration number with your application, which requires you to formally register, for example, a Pty company at the CIPC. You can opt for other structures, but a Pty works best for most South African businesses and entrepreneurs.
You need a company registration number for both private and government contracts.
The second reason relates to financial security. If you do not register your business, you’re considered a Sole Proprietor in the eyes of South African law. This implies that your personal finances and your business finances, risks and debt are one and the same. It’s better to separate your personal finances, in terms of liability and tax submissions, and that requires you to formally register your business as a company at the CIPC.
Thirdly, having a company registration number may help you appear more credible and established helping you win over more clients and possibly contracts.
How to get a Company Registration for your South African Security Company
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 have to register as an employer at SARS – and you may also need to register at the UIF office as an employer and be liable for SDL payments. We’ll explain exactly what all three these registrations mean and if they apply to you.
Why do you need Employer Tax Registration or UIF for a Security Company in South Africa?
If you need to employ at least one person for more than 24 hours a week, you have to register as an employer. This applies to almost every employer in almost every capacity – including when you want to run or register a security company in South Africa.
UIF (the South African Unemployment Insurance Fund) and SDL Skills Levy Development applies to specific employers – it usually includes employers. Most employers need to contribute something called UIF for every employee they appoint permanently or on a contract basis, while SDL only applies to employers who pay R500 000 or more in salary costs over 12 months.
In short, UIF will help your employees financially if they lose their work and SDL will help train them further in the specific field they are working in.
Don’t worry too much about UIF contributions, it’s really a tiny amount as a minute percentage of your employees’ salary that you need to contribute. The most important thing is to figure out whether or not you should register for UIF, so the UIF Office can assist you with the contribution calculations.
How to do Employer Tax Registration or UIF for your South African Security Company
The first step is the Employer Tax Registration. As mentioned in our expert tip, we can assist you with UIF Registration and also with TAX Registration. This is most likely the fastest and easiest way to get it done because our team specialises in this kind of documentation. However, you can also visit SARS’s website and work through the registration process by yourself. We’ve posted some helpful links below.
- Our UIF Registration Service
- Our TAX Registration Service
- More info by SARS’s on Employer Registration
- Info by SARS on who needs to register for UIF
Part 2: The Security or Tenders documents you need for South African Security Tenders or Contract
You need a Letter of Good Standing which you can attain by registering for COID and making sure all your payments are up to date.
Why do you need a Letter of Good Standing for a Security Company in South Africa?
You need a Letter of Good Standing to apply to any legitimate security tenders or contracts – in both the private and the government sector because it essentially offers proof that your employees are covered in the case of work-related harm or injuries.
If you get a Letter of Good Standing that means you’re registered with the Workman’s Compensation fund and that all your payments are up-to-date. This also means, 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.
Companies or institutions want to ensure that they are not going to be held accountable for your employees when they sub-contract or hire you and that’s why this document is a requirement on contract applications.
How can you get a Letter of Good Standing for your South African Security Company?
A Letter of Good Standing is a letter issued by the Compensation Commissioner that states that you are registered with the Workman’s Compensation Fund and that all your payments are up to date.
This implies that the first step is registering with the Workman’s Compensation Fund, also known as COID, at the Labour Department. After registering and submitting your employee information, you’ll receive the details on what you owe COID to help cover your employees if they ever get harmed in a work-related event. The fastest way to get everything you need is by using our COID Registration Services, however, you can also do it yourself by going to the Labour Department and thereafter making all your payments for your COID-issued Letter of Good Standing.
Only once you’ve made the payment, you are eligible for a Letter of Good Standing. Please note that yearly payments are more effective than month-to-month payments because this gives you access to a Letter of Good Standing that’s valid for a year. Month-to-month payments imply a Letter of Good Standing that’s only valid for that month.
Also, if your payments are not up-to-date at the Workman’s Compensation Fund, your employees aren’t covered at all, making you fully financially responsible in the case of a work-related injury or accident.
You have to register your security company, yourself and almost everyone who’s connected to your business with PSIRA, the Private Security Industry Regulatory Authority in South Africa. This implies 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 requirement service.
Why do you need PSIRA Membership to register a Security Company in South Africa?
PSIRA is a regulatory organization that, according to South African law on security companies (specifically the South African Security Industry Regulation Act 56 of 2001), makes sure there are standards, laws and safety or quality assurance that every functioning Security Company in South Africa abides by.
The organisation also plays a significant role in training everyone involved in offering security services – as an industry that’s directly connected to increased safety risks – whether that’s directly or indirectly.
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.
How do you get PSIRA registration for a Security Company in South Africa?
As mentioned above, the first step is having everyone involved in your business undergo PSIRA examination. Secondly your premises and business will undergo an investigative process.
As mentioned above you can either opt for our assistance, as the list of requirements is really long to ensure registration, or you can do it yourself.
If you want to take on this process by yourself, here’s what you need:
- A CIPC Registered Company
- A Tax Clearance Certificate,
- VAT Registration Number
- PAYE Number
- UIF and COID Registration (if applicable)
- A fixed, immovable office location
- A 1-year business plan
- A declaration stating that your security company can operate for the next year
- At least a B Security Grading (there’s also A, B, C and D security grades for all security providers) for:
Security Officers need higher grading. You can read more about that on the PSIRA Website.
You can register as a member of any security association, like SASA, SASSETA, SANSEA, SANSEA or ESDA, that relates to your area of business in security. It’s not compulsory, but it can be really advantageous in the Tender or Contract application process.
Why do you need to become a member of relevant Security Organisations in South Africa?
The most significant reason is that it both increases your credibility with Tenders, Contracts and clients, but it also keeps you up-to-date on new innovation, networking opportunities, training and laws in the security industry.
All-in-all joining organisations that relate to what you do within the security industry will increase the know-how of your industry, strengthening your business. You can do your own research on which one will offer you the most value in terms of your specific security company.
How do you sign up to a South African Security Association like ASA, SASSETA, SANSEA, SANSEA or ESDA?
You can simply follow the helpful links posted below.
- ESDA – Electronic Security Distributors Association
- SASA – Security Association of South Africa
- SAIDSA – South African Intruder Detection Services Association
- SANSEA – South African National Security Employers Association
- SASSETA– Safety & Security Sector Education & Training Authority
You need to get either a B-BBEE Affidavit or B-BBEE Certificate. This depends on what your annual income (sales) is. Most startups or small to medium businesses just need a B-BBEE Affidavit.
Expert tip: We can assist you with a FREE B-BBEE affidavit with any new company registration.
Why do you need a B-BBEE Affidavit or BEE Certificate for your Security Company in South Africa?
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. Essentially it’s a prerequisite if you’re interested in South African Tenders, Contracts or RFQ’s.
Here’s the difference between a B-BBEE Affidavit or B-BBEE Certificate and which one you’d need:
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 levels 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:
- The document you need if your company earns (it’s sales are) 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.
Helpful BEE links:
- Get a FREE B-BBEE affidavit form
- The CIPC website’s specifications on B-BBEE
- Sales more than R10 million per year.
You need to register for VAT at SARS. It’s not compulsory unless you earn more than R1 million in 12 months, but you can do a voluntary VAT registration.
Expert tip: We can assist you with compulsory and voluntary VAT registration right away.
Why do you need VAT Registration for a Security Company in South Africa?
If you’re still under the R1 million mark in terms of income over the last 12 months, you don’t need to register, but it could be beneficial to opt for voluntary registration. It can benefit you when working with large VAT registered companies as they often partner with other VAT Registered businesses for the sake of their taxes.
How can you register for VAT in South African?
As mentioned above, the fastest way to get VAT Registration would be to use our services, however, you can go directly to SARS and do it yourself as well.