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Friday, 31 July 2015

How to start a private security guard business

Last year March we moved from our flat to another one within the community. I went to my neighbour’s place to inform her that we are moving. My neighbour is a teacher in a girls’ school nearby.

While talking I told her ‘you are so lucky to be in the teaching field. You will get respect from everybody you meet.’ But her reply was ‘yes I do get lot of respect, but money is very low. My sister is in Mumbai and she is running a security guard business from home. She is earning more money than anyone else in the family.’ I was dumbstruck!

That was the first time that I heard about such a business. Yes, I have seen security guys with their uniform displaying company name before. But, I never thought that this is a business opportunity. Especially for ladies like me and you!


I always wanted to make it big in my life and was seeking for the best opportunity. So I asked her more details about how to run a private security agency.  


How to start a security guard providing agency?


Her answer was very simple. ‘Find a bunch of people who are ready to work as security personnels. Just manage them.  And this can be done from home.’ I became more inquisitive. But the time was running short, so I parked my research on the web.

What I learnt about security industry is that it is a growing sector - over 20% year on year. More and more people are hiring security for better safety - be it an independent house, an independent building, your corporate office or a shopping mall. A company that provides reliable, security guys are very much in demand these days.

So, how to get started with security guard services?

To start a security agency, you don’t need any prior requirement. If you know of a set of people looking for job (even two persons is good enough to start off) you can apply for a license for the same.

How to apply for a license for a security provider business?


To start of a security business legally, you need permission from the law and order department of the state. You need to obtain a license for the same.

There is an Act passed in the year of 2005, Private Security Agencies Regulations Act, 2005(PSAR) and all registered security business should get license from them.You can apply for the license with the local PSAR  governing body. It could be the local police station or home affairs department of the state you wish to start the agency.

The License is available in 3 possible ways -

(1) as license to run business in just one district, (approx. Rs.5000)
(2) as license to run business in 2-5 districts (approx. Rs.10000)
(3) as license to run business in the whole state.(approx. Rs.25000)

Please be ready to visit the local police station if you wish to get started with this money spinning business. Also do check out the regulations in your state before you get ready with the paper work.

The details of formalities for different states are available on the web:

  1. Mumbai
  2. Delhi
  3. Tamil Nadu
  4. Rajasthan
  5. Haryana
  6. Karnataka
  7. Orissa
  8. Uttar Pradesh
  9. Kerala
  10. Punjab

Please refer the web for other states..


But how to find security guard candidates?



Yes, it always looks easier to talk than actually do it. Of course you may find a couple or peoplew ho are ready to work as security guards. But if you want to really make it a big business, you need to have more employees. You can post ads in local newspapers, yellowpages or Just Dial.

You can also look at the option of getting into your network or friends' network to find ex-service men who are willing to work with you. Just ensure that the security candidate qualify the following criteria:
  1. be ready to work round the clock and different shifts
  2. be healthy and well built
  3. is looking for a job
  4. has no criminal background
  5. good conduct
Once you feel this guy is suitable, do a background check on him. Collect his id card and contact details-address and phone number. Do maintain a couple of copies of the documents he provides.
You can give them rigorous training. This includes punctuality, managing legible visitors list, maintenance people, unauthorised visitors, regularly checking the premises, identifying suspects etc.

Nowadays security is incomplete with CCTV survellaince, x-ray scanning and metal detections. If possible, look for ways to train them with these state of art security tools. 

PSAR Act puts it mandatory that every security personnel should attend 160 hours of training - 100 hours of classroom training and 60 hours of on-the-job training.

How much should you pay a security guard?


The average salary of a security guard is 1.1 Lakhs per annum across India. The salary actually varies on the location and risk involved. 

The security guards are eligible for bonus and insurance coverage. If there is more than 20 employees in your agency you have to contribute for their PF as well. 

You can also check out more details on websites of industry biggies like SIS and G4S security services. 

What are the risks with a Private Security Service company?


Security business is a very sensitive business and involves interaction with law and order authorities of that place.

In case of some crime happening, you need to sort it out with the local police. Similarly, if the back ground check of that person is not done properly and if he ends up in any trouble, it will affect the reputation of your service.

If a theft or burglary happens, you will be responsible for sorting out the issue with the people involved.

Moreover, please note that a security guard is eligible for 1.8 weeks of annual leave. So you need to have sufficient number of employees to provide uninterrupted service for your clients. Also this is a field where there is not much growth for the employees, so retention rate in the industry is very low and you have to really be innovative to retain your best employees. 

To know further about the Private Security Industry in India, more details are available at FICCI.

Get started!


This is a business which requires lot of management skills. But the effort will pay off manifold eventually. Security Business is indeed a money spinning business if started with utmost care and implemented in perfection. You provide employment for many people who are in BPL and are unskilled otherwise. What a better way to boost the Indian economy?

The private security guard service is a 40,000 crore industry according to the recent estimates. An industry that is experiencing a growth of over 20% year on year even in economic downtimes. If there is a business woman in you, you see this as a perfect opportunity. Go ahead. Let's get started and make it big! Start living life Queen Size!