Registering a private security company is the easy part. The harder part is the ongoing regulation and cost that come with running one, which catch out many new owners who priced their first contracts too low. This guide covers what to plan for after registration. For the registration steps themselves, see our guide on how to start a security company in South Africa.
PSIRA compliance never stops
The Private Security Industry Regulatory Authority (PSIRA) regulates the whole industry. Both the business and every security officer it deploys must be registered, and registrations must be kept current. The business pays PSIRA annual fees, which depend on how many officers it employs, and the fees are revised every April. Deploying an unregistered officer is an offence and can cost you your registration.
Wages are set for the sector
Minimum wages for security officers are not a matter of negotiation with each employee. They are set in the main agreement of the National Bargaining Council for the Private Security Sector and differ by grade and area, alongside contributions to the sector’s benefit funds. Your contract prices must cover these costs in full, plus UIF, COIDA and leave.
Price contracts on real costs
Price every guarding contract from the cost of the hours required, not from what a competitor charges. A 24-hour post needs several officers to cover shifts, leave and sick days. Add supervision, uniforms, equipment, vehicles, insurance, PSIRA fees and overheads, then your margin. Contracts priced below the legal wage cost are a common reason security businesses fail or fall foul of the law.
Firearms add a separate layer
If your officers will be armed, the business and each officer need the relevant competency certificates and licences under the Firearms Control Act, with firearms stored and recorded as the law requires. The SAPS firearms licensing guidance sets out the process, which takes time to complete.
Insurance is part of the product
Clients will often require public liability cover and proof of it before signing. Consider liability, vehicle and equipment cover as core costs, not optional extras.
Training and grades
Officers are graded from E to A, with each grade tied to training and responsibilities. Higher grades command higher wages and are needed for supervisory and specialised roles, so plan training into your costs as the business grows.
Frequently asked questions
Do I have to register every guard with PSIRA?
Yes. Every officer you deploy must be registered with PSIRA, as must the business.
Can I pay security officers less than the sector minimum?
No. Sector minimum wages are legally binding.
How are PSIRA annual fees calculated?
By the number of officers employed. PSIRA revises the fees every April.
Do I need armed officers to win contracts?
Not for many contracts. Unarmed guarding and access control make up a large share of the market.
Why do new security companies struggle financially?
Most often because contracts were priced below the real cost of wages, benefits and cover.
Originally published in July 2024. Updated September 2026.
