If you want to start your own security company in South Africa, there are a number of requirements you need to satisfy before you can start your security guard business.
The most important requirements are that you need to be compliant and that you need to be registered at PSIRA as a B-graded security person to be able to be an owner or director of a security company in South Africa. (Download button at the bottom of this page.)
To be B Graded, you need to pass the requirements of grades C – E.
What you need to register a security company in South Africa:
- Decide which security services your security company will provide.
- Register a company at the Companies and Intellectual Property Commission (CIPC).
- Register for all taxes at SARS (SARS Tax Clearance Certificate, VAT Registration Number, PAYE Number).
- Unemployment Insurance Fund (UIF) and Compensation for Occupational Injuries and Diseases (COID) registration.
- One-year business plan.
- Declaration that your business will be able to operate for the next year.
- Office location that is permanent (fixed and immovable)
- B-BBEE Affidavit for companies with a turnover of less than R10 million. Download an example.
- B-BBEE Certificate for companies with a turnover of more than R10 million. Download the steps you must follow.
- A Letter of Good Standing issued by SARS which confirms that you are registered where you need to be registered.
- You must be able to prove to PSIRA that you do not have a criminal record.
- PSIRA will test your competency by way of an exam. Fees change annually, so check beforehand what you need to pay.
What to know when you start your own security company
Security services according to the Private Security Industry Regulation Act includes the protection, safeguarding and reactive response for the purposes of safeguarding (protection) of persons and property in any manner.
You must know the security business to offer a reliable and popular security service to your clients, so it is advisable to first work at a security company to learn the trade if you do not have security experience.
You will need to know enough about security services to give informed advice to clients. You will also have to know about running a business because the security industry is a competitive industry and you need to know how to manage people and money effectively.
Homeowners who need security services are much more price-sensitive than business owners who must use security services to protect their livelihood and can claim it from tax.
Once you have been registered, you can put your business marketing plan into action and start looking for clients.
Hopefully, you will already know:
- Which security services you will offer.
- What your competitive advantage is.
- How to promote yourself.
- How to promote your services.
- How to network.
When you have your security company up and running, you will need to start employing security staff.
To do this, you will need help with appointing the right people. You can find help here.
Non-compulsory voluntary security associations
Membership of these organisations is not compulsory, but membership has many benefits and lends credibility to your business.
- SASA – Security Association of South Africa
- SASSETA – Safety & Security Sector Education & Training Authority
- SANSEA – South African National Security Employers Association
- SAIDSA – South African Intruder Detection Services Association (specifically for alarm monitoring and armed response services)
- ESDA – Electronic Security Distributors Association (This specifically for electronic security equipment)
Download PSIRA Registration Form
Once you have your security guard company up and running you need to set up an office and buy security accessories
Tax and Insurance in South Africa: What You Need to Know in 2025
In South Africa, understanding the relationship between tax and insurance is essential for protecting your financial future and making the most of available tax benefits. Whether you're an individual, a freelancer, or a business owner, the smart use of insurance can help you reduce your tax liability and safeguard your assets.
Why Insurance Matters for Tax in South Africa
Insurance is more than just a safety net—it can also have a direct impact on your tax situation. From medical insurance to business insurance, certain premiums and policies may qualify for deductions or influence how you declare your income and expenses to SARS (the South African Revenue Service).
- Tax Deductions: Certain insurance premiums, especially related to medical schemes and business cover, may offer tax advantages.
- Asset Protection: Insurance helps manage risk, ensuring you’re financially secure when unexpected events occur.
- Estate Planning: Life insurance can play a key role in reducing estate duty and ensuring a smooth transfer of wealth.
Types of Insurance and Their Tax Implications
1. Medical Insurance (Medical Schemes)
If you're contributing to a registered medical aid, you're entitled to a Medical Scheme Fees Tax Credit (MTC). This credit is a fixed amount per month for you and your dependents and reduces your overall tax liability.
2. Life Insurance
While life insurance pay-outs (on death) are generally not subject to income tax, they can be considered when calculating estate duty. Policies structured under a trust or with specific beneficiaries may help reduce the overall tax burden on your estate.
3. Short-Term Insurance (Vehicle, Home, Contents)
Personal short-term insurance is not tax-deductible for individuals. However, if you use part of your home or vehicle for business, the portion of insurance premiums related to business use may be claimed as a business expense.
4. Business Insurance
For companies and self-employed individuals, business insurance premiums—such as professional indemnity, commercial property cover, or key person insurance—are usually tax-deductible as operating expenses.
5. Disability and Income Protection Insurance
The tax treatment of disability insurance changed in recent years. Payouts from income protection insurance are now generally taxed as income, but premiums are not tax-deductible. Understanding this shift is important when planning your cover.
Tax Tips to Maximise Your Insurance Benefits
- Keep Detailed Records: Always keep documentation of insurance premiums, especially those linked to business or medical expenses.
- Consult a Tax Practitioner: SARS regulations around insurance and tax can be complex. A registered tax advisor can help ensure you claim all available deductions correctly.
- Review Policies Annually: Update your insurance portfolio regularly to ensure your cover aligns with your income, expenses, and current tax laws.
- Use Structuring Wisely: For high-net-worth individuals, structuring life insurance policies within a trust can reduce estate duty exposure.
Frequently Asked Questions: Tax and Insurance in South Africa
Q: Can I deduct life insurance premiums from my South African taxes?
A: No, life insurance premiums are generally not deductible. However, they may play a key role in estate planning.
Q: Are medical aid contributions tax-deductible?
A: Not exactly. Instead, you receive a Medical Tax Credit—a fixed monthly rebate that reduces your tax payable.
Q: Can I claim car insurance as a tax deduction?
A: Only if the vehicle is used for business purposes. You can claim the business-use portion of your vehicle insurance.
Q: Is business insurance tax-deductible in South Africa?
A: Yes. Business insurance premiums related to company operations are generally tax-deductible.
Final Thoughts
In South Africa, insurance isn't just about protection—it's a strategic tool for managing your tax liability, preserving wealth, and supporting long-term financial stability. Whether you’re reviewing your medical insurance, planning your estate, or choosing the right business insurance, it’s essential to understand how these choices affect your tax outcomes.
With the right advice and a well-structured insurance portfolio, you can reduce your tax bill while ensuring comprehensive protection for yourself, your family, or your business.