Starting a security guard service business is a promising venture in today’s security-conscious world. With urbanization and the rise of commercial complexes, the demand for security services is soaring. In this guide, we’ll explore the essentials of starting such a business, including licenses, registrations, and key considerations for success. Whether you’re an aspiring entrepreneur or concerned about safety in your community.
Here are some key points to consider:
- Choice of Business Entity: Opt for a Private Limited Company or a Limited Liability Partnership (LLP) to mitigate risks and enjoy benefits such as limited liability protection and continuity of existence.
- Tax Registration: If your security guard service business crosses an annual turnover of Rs. 9 lakhs, you must obtain service tax registration. Service tax of 12.36% needs to be added to client bills after crossing Rs. 10 lakhs turnover annually.
- ESI & PF Registration: Ensure registration with the Employees’ State Insurance (ESI) and Provident Fund (PF) authorities if employing over 10 or 20 people respectively.
- Security Agency License: Obtain a license under the Private Security Agencies Act, 2005, from the Controlling Authority, usually the Police Department or Home Department of the state. Licenses are provided for operating in 1 district, 2-5 districts, or throughout the state, valid for 5 years and renewable.
