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How to Start a Security Service Business in India?

calendar28 Nov, 2022
timeReading Time: 4 Minutes
How to Start a Security Service Business in India?

The crime rate in India, especially in metropolitan areas, is increasing rapidly every passing year. This has led to the growth of private security services nationwide. There is a great demand for private security guards in places like schools, malls, offices, healthcare facilities, and so on. If you are eyeing this as an opportunity to set up a security service business in India, you have made a great decision. All you need is to get aware of the legalities around this business so that you do not have a tough time starting this venture. Let’s go through the following sections in this blog one by one to learn everything about this viable business venture.

Key Facts around Security Service Business in India

Following are some important facts around Security Service Business in India:

  • Make a thorough background check in view of the governing legislation to select legally-viable candidates.
  • Training is an important part of compliance for a security agency business in India. Hence, make sure to abide by such norms and facilitate proper training for guards to stay compliant.
  • The way selected guards perform their duties, wear their uniform, and follow the timing has everything to do with the business reputation and compliance requirements.
  • Return filing is another important aspect that requires the undue attention of the business owner.

Procedure for starting a security service business in India 

Here is the step-by-step blueprint for establishing a legally-viable security service business in India:

1.   Create a Business Plan

Starting your business quest without an explicit plan can be an uphill task. When you know what your goal is and how you are going to achieve it, things will become simpler for you. But what does a business plan[1] mean?

A business plan consolidates all possible elements that affect your proposed business in one way or another. It may include information about;

  • Proposed budget
  • Space requirement
  • Mission and Vision
  • Target market
  • Management hierarchy
  • Legal structure
  • Competitor analysis
  • Compliances
  • Taxation

Remember, it is not an exhaustive list. Depending on the nature of your business and budgetary requirement, the list may go on and on. With a clear business plan, you can have at least a rough idea about how things will fare when you start a new venture.

A Business plan may also include the scope of business you wish to engage with. Some of these include;

  • Personal Security
  • Automobile Security
  • Home Security
  • Event Security
  • Data Security
  • Aviation Security
  • Unarmed Security
  • Technical Security
  • Armed Security
  • Video Surveillance Operator
  • Bodyguards
  • Patrolling Security Services

2. Register your security service business

Registration is a way of legalizing the business structure. Before doing so, you must choose a viable business structure from the following based on compliances, taxation, nature of business, the scope of operation, and so on.

Take note that each business structure attracts different paperwork and compliances. Therefore, take an effort to drill down the regulatory requirements of each structure before approaching authority for approval. 

3) Secure Mandatory Licenses and Permits

Registering your business structure is not enough to kick start your business journey legally. You have to secure the following permits and licenses to make your private security business legally enforceable.

  • GST Certificate
  • PSARA License
  • Shop and Establishment Act License
  • PF Registration (If employing over 20 people)
  • ISO License 18788:2015
  • ESI Registration (If employing over 10 people)

PSARA LicensePSARA license is a fundamental legal permit for starting a private security business in India.

PSARA license falls under the Private Security Agencies Regulation Act that governs key areas like infrastructural requirements, guard training, code of conduct, and so on. The fee for this license varies as per the scope of operation. Here‘s what the fee structure for the PSARA license looks like;

  • Rs. 5000 (for opening a business in one district)
  • Rs. 10000 (for opening an agency in more than one and up to 5 districts)
  • Rs. 25000 (to operate in the entire state)

4) Hire the required staff

Once you secure the PSARA license, you can hire security guards as per the directions of the governing legislation. The table below reflects the salary structure of different personnel serving a private security business in India.

Position Salary (Per Month) – Rs
Security Guards (Male and Female) 12,000 – 25,000
Human Resource Manager 40,000 – 60,000
Trainers 18,000 – 25,000
Accountant 13,000/ – 20,000/
Manager 40,000/ – 70,000/
Sales Person 10,000/ – 20,000/ + Incentives
Receptionist 8,000/ – 18,000/
CCTV Screener 15,000/ – 36,000/
Surveillance Officer 20,000/ – 30,000/
Patrol Officer 13,000/ – 18,000/
Security Specialist 20,000/ -50,000/

5) Sign MoU with the Accredited Training Institution

Post guards’ and staff appointment, your next step will be to sign an MoU (Memorandum of Understanding) with the accredited training institute. The institute will take care of the guards’ training by rendering apt skill and physical training as per the PSARA Act. Post guards’ training, you will become qualified to commence a private security business in India, legally.

Conclusion

Ever increasing population rate and unemployment are the two main drivers of crime in India. The rate at which crime is committed in India is touching an alarming height. Although the government has responded to this situation by strengthening the local police authorities, the impact does not seems to be as significant as expected. This is where the security service business comes in. With better training and rampant availability, private security has become synonymous with safety in India.

Read Our Article:Business structures in India: Types and Benefits

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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