Starting a Security Company in the UK involves navigating through a series of legal and administrative steps to get the company registered with the Government. Here’s how you can navigate the company registration process, which is often the preferred structure for its liability protections and tax benefits.
As businesses, government organisations and individuals seek professional protection services, the demand for security companies continues to grow. In 2024 there are 10, 676 security businesses in the UK, the majority are businesses that employ fewer than five people.
So, before you grab that walkie talkie, we can guide you through the maze of paperwork and registration.
1: Choose Your Company Name
- Only You: Choose a name that is related to you and your business and is memorable for your potential customers. Remember to steer well clear of similar sounding names so confusion does not occur with other companies.
You can check this through the name checking tools throughout our website.
- Finally: Your company name must end with ‘Limited’ or ‘Ltd’.
2: Registering a Domain Name and Obtaining an Email Address
In today’s digital age, an online presence is crucial for any business, including construction companies. After setting up your legal entity:
- Domain Name: Choose a domain name that reflects your business identity. It’s often beneficial to align it closely with your company name for brand consistency. Use our domain registration service.
Use our domain name search tool to find available names for your business.Protect your Company Domain Name
- Email Address: Once you have your domain, set up a professional email address. We have “no technical skills required” email setup to allow you to create email addresses like info@yoursecuritycompany.co.uk. It looks professional and also helps in keeping business communications separate from personal emails.
3: Determine the Company Structure
- Shareholders: Decide who will own company shares. You must have at least one shareholder to form a limited company, they are very important people.
- Directors: You must appoint at least one director (aged 16 or over).
- Company Secretary: This role is optional since the Companies Act 2006.
4: Prepare Your Company Documents
- Memorandum of Association: The subscribers are the people who will be shareholders in your business.
Using our service, we can prepare this electronically on your behalf for Companies House.
- Articles of Association: Defines how your company will run. Most companies use the “model articles” described in the Companies Act. We can prepare this document for you and send this to Companies House.
5: Register Your Business
Once you’ve chosen your business structure, it’s time to register your security company.
Limited Companies: You must register your company with Companies House, which is the official UK government body that incorporates companies. You’ll also need to have a registered office address.
- Online Registration: The easiest method is via our easy to use online Company Formation Service or the more complex Companies House service.
- Documents: Submit the Memorandum and Articles of Association.
- Information: Provide details like company name, registered office address, SIC code (Standard Industrial Classification for construction), director(s) details, PSC (Person with Significant Control) details and shareholder information.
- Fee: There’s a government fee for registration, currently £50 for an online application.
- Post: Or, you can send the documents, (form IN01) by post, but this takes longer.
6: Get Your Company Number and Certificate
- Upon successful registration, Companies House will issue:
- Company Number: A one-off identifier for your business.
- Certificate of Incorporation: This is your legal proof of being a limited company. It is the birth certificate of your new company.
7: Registering for Corporation Tax
- HMRC: HMRC will obtain your company registration details from Companies House and will send you a letter around 2-3 weeks later. This is actually a notice to file a CT600 corporation tax return.
When you register with us we provide full guidance on this, answering any questions you have.
8: Set Up PAYE if Employing Staff
If your company will employ staff, whether it’s 1 or 100, you must register for PAYE (Pay As You Earn). This handles income tax and National Insurance contributions for employees.
LaunchList® has detailed tutorials to help show you how to do this yourself, or you can request our help.
9: Consider VAT Registration
- Turnover: If your expected turnover exceeds £90,000 per year, you must register for VAT. Otherwise, voluntary registration can be beneficial for reclaiming VAT on purchases.
- LaunchList® has detailed tutorials that can help show you how to register for VAT yourself, or you can request our help.
10: Obtain Insurance
In the security business, protecting your company against risks is crucial. Insurance will help safeguard your business, your employees, and your clients.
Some essential types of insurance for a security company include:
- Public Liability Insurance: This covers any damage to property or injury to individuals as a result of your company’s actions.
- Employers’ Liability Insurance: A legal requirement if you have employees, this insurance covers accidents or illnesses sustained by employees during the course of their work.
- Professional Indemnity Insurance: This protects your business from claims of negligence, errors, or omissions in your services.
- Vehicle Insurance: If your security company uses vehicles for transporting staff or equipment, ensure you have appropriate vehicle insurance.
11: Comply with Industry Regulations
Licensing with the Security Industry Authority (SIA)
The most important regulatory body for security companies in the UK is the Security Industry Authority (SIA). All employees working in the security industry (such as security guards, door supervisors, close protection officers, etc.) must hold an SIA license.
To get your company licensed, you’ll need to ensure:
- Your employees hold valid SIA licenses: The SIA licenses are issued after a thorough background check and relevant training. Without these licenses, your employees cannot legally perform security services.
- Your company is compliant with SIA standards: This includes adhering to rules on staffing, health and safety, and customer service. You will also need to ensure that your employees are trained in relevant skills (such as first aid or conflict resolution).
12: Regular Compliance
- Annual Confirmation Statement: This needs to be filed annually to update company details with Companies House.
- Accounts: File annual accounts. Dormant companies have simpler requirements.
LaunchList® contains self-help tutorials to show you how to manage filing your confirmation statement.
You can reach out to us for support and for accountancy recommendations via the MYCW client dashboard.
By following these steps and seeking advice from industry experts, including your accountant and insurance provider, you can launch a reputable security company that provides excellent services and complies with all relevant laws.
The key to longevity in this competitive field lies in the ability to adapt to market changes, maintain exceptional customer relations, hire exceptional employees and continually upgrade your skills and equipment.
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