How to start a Security Agency | Small Business Guide

Are you looking for how to start a security agency?

 

The adverse increase in the crime rate of India has made everyone think about their security even more now. No place can operate without security services these days. Be it schools, offices, malls, banks and even religious places. 

 

The rapid growth of this sector has turned out to be a lucrative option for youngsters and retired military personnel too.

 

Luckily, I did some research on it and got all the information you need. 

 

6 Steps to Start a Security Agency

 

1. Business Planning
2. Register your Business
3. Location of the Headquarters
4. Acquire Mandatory License and Certificates
5. Get the Equipment
6. Hire the Force

 

1) Business Planning

 

Like all businesses, starting a security agency also needs a proper business plan to execute.

 

In fact, it is most crucial because the security of a thousand things depends on it. 

 

A business plan includes everything about your business that you need to start. 

 

For example, Name of the Directors, Name of the Business, Summary of the Business, List of Shareholders, Initial Investments, Location of the Headoffice, Marketing Strategies, Vision and Mission, Target Market, Type of Agency, Services and Competitors are the most crucial aspects.

 

Types of Security Agency:

 

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

 

You can also get the contracts to provide the following services on a large scale through:

 

• Government Contracts and Tenders
• Contract with Multinational Companies for In House Services
• Other Contracts with Schools, Banks, Hotel Chains etc.

 

Besides, a good business plan helps in the easy execution of the idea. 

 

2) Register your Business

 

The next step for bringing the security agency into existence is getting it registered.

 

For this purpose, fill out the form on the right for Private Limited Company Registration Online and get a free consultation from the experts. 

 

Here is a list of documents required for Company Registration.

 

FOR DIRECTORS/SHAREHOLDERS 

 

• Passport Size Photograph of all Directors (Scan Copy)
• PAN Card Copy (Mandatory)
• Proof of Identity of all directors (Any one of below)

~Passport     

~Voter ID

~Driving License

• Proof of Residence of all directors NOT OLDER THAN 2 MONTHS (Any one of below)

~Bank Statement        

~Telephone/ Mobile Bill       

~Internet Bill

~Electricity Bill

• Aadhar card of all directors (MANDATORY)

 

FOR PROPOSED COMPANY

 

• Address Proof of Company NOT OLDER THAN 2 MONTHS

~Electricity bill 

~Telephone/Mobile bill

~Internet / Broadband/ Wi-fi/ Fiber bill

~Any Other Government Utility Bill

 

You can also decide from any of the following structures to register your security agency:

 

• Sole Proprietorship
• Partnership
• One Person Company (in case of a single director)
• Limited Liability Partnership

 

The decision of choosing the right business structure might confuse you initially. 

 

But don't worry, you can change your business structure in the future if you want to after a specific time. 

 

For example, you can convert a one-person company into a private limited company only after 2 years of incorporation.

 

In fact, you can register your security agency in just four simple steps without any hassle or running here and there.

 

We at StartEazy work hard so that you can start easy.

 

3) Location of the Headquarters

 

The minimum required space is 1000 sq. ft. for a small office.

 

However, there are several things to keep in mind and analyse before deciding on the perfect location for your head office. 

 

If you will operate within a city, locate your office in the centre that is accessible to all. 

 

Above all, make sure your office is visible so that people can get in touch with you. 

 

On the other hand, if you will be operating in more than 2 to 5 cities, you will need to decide on an easily approachable city.

 

The space required to set up your office may vary as per the scale of your business. 

 

4) Acquire Mandatory License and Certificates

 

When starting a security agency, get the necessary license and certificates to avoid legal conflicts or tax defaults later.

 

With this in mind, I have listed below all the licenses and certificates you need for a security agency.

 

• GST Certificate
• Shop and Establishment Act License
• PSARA License ( Validity: 5 years extendable up to 1 year)
• ISO License 18788:2015
• ESI Registration (If employing over 10 people)
• PF Registration (If employing over 20 people)

 

PSARA License - Private Security Agencies Regulation Act is for the companies providing private security services in India. It is a must for starting a security agency.

 

The fee for the PSARA license is: 

• Rs. 5000 to serve in one district.
• Rs. 10000 to function in more than one but up to 5 districts within a state.
• Rs. 25000 to operate in the whole state.

 

5) Get the Equipment

 

For starting a security agency in India, there are a variety of tools, kits and gears you require for operations.

 

List of Basic Equipment

 

• Uniforms
• Walkie-Talkie
• Flashlights / Penlights
• Guns
• Pepper Sprays
• Batons
• CCTV Cameras
• Digital Cameras
• Notepads and Pen 
• Badges
• Identity Cards

 

However, that depends on the type of agency and services you will be providing. 

 

Keeping this in mind, here is a list of services that a security agency can provide:

 

• Cybersecurity Services
• Home Security
• Security Guard Services for school, office, banks and colleges.
• Patrolling Services
• CCTV Monitoring
• Responding to Threat and Emergencies
• Conducting Security Checks

 

6) Hire the Force

 

It is the most crucial and final step for starting a security agency. Therefore, ensure that the people you hire are fit and athletic. 

 

List of Job Positions with Average Salaries in a Security Agency

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

 

Also, they should not have any criminal background. After that, you may have to give the defence and attack training.

 

It is also advisable to hire a female force too. As they are some occasions that demand female guards.

 

Moreover, it will also enhance the reputation and reliability of your company.

 

Launch the Security Agency Business

 

You are now all set to kickstart your business.

 

So, decide on a good day for the grand opening and invite a High-Rank Officer like Retired General of the Army or Police Officer as chief guest.

 

Also, you can distribute pamphlets and advertise in newspapers to spread awareness about your business. Moreover, you can have a discount program on the inaugural day or week.

 

It will help you in attracting more clients on the first day itself.

 

Investment Required to Start a Security Agency

 

The initial investment required in this case is around Rs. 2,00,000 to Rs, 5,00,000.

 

You can rent a place for around Rs.7,000 to Rs. 15,000 to set up the office. After that, you will have to train your employees in training.

 

The cost of that could range around Rs. 40,000 depending on the number of people. Further, you will need funds for utility bills, purchase of arms and ammunition, logistics, salaries and other investments.

 

However, it depends on various factors, for example, the type of services you are providing, the equipment you are using and the scale of your operations.

 

Important Tips for Starting a Security Agency

 

• While hiring the employees, make sure they sign the term contracts. It will help you with reducing the time and money for rehiring. Also, it would stop the employees from breaching the loyalty contract and being hired by your clients.
• Do not invest in designing your infrastructure. You do not need a charming atmosphere in this business.
• Verify and assess the training provided to your security team regularly. 
• Motivate your employees every day and keep them updated about their progress. 
• Have a group meeting and discuss the daily tasks in the first 15 minutes of the day.
• Be honest and work with integrity because people trust the security services with their lives.
• You indeed need to be strict when running a security agency but do not forget that your teammates are humans. Therefore, be empathetic towards them.

 

Conclusion

 

Security is not an option. It has become an essential service for everyone, whether it is an individual, office, bank, school, hospital or even data. 

 

To sum up, the crime rate is increasing rapidly, resulting in an elevated need for security. Therefore, learning how to start a security agency at this time will not only benefit you but will also be helpful for society.