How to start a UK security company: costs, licences and more

The UK security market is booming. Whether you’re planning to install CCTV for businesses or run a team of guards, you’re stepping into a resilient industry that’s in high demand.

For context, in 2025, there are over 11,000 security and investigation businesses in the UK. Licensing plays a huge role in this industry, and it’s important that, as a new business owner, you understand and stay on top of your business’s legal and safety responsibilities. 

Don’t worry, though, we’re here to help. In this guide, we’ll walk you through how to start a security company in the UK, from the licences you need to the kit you’ll have to buy.

In this article:

• What are the different types of security companies?
• How to start a security company in the UK
• How much does it cost to start a security company?
• How much can I charge?
• What equipment do I need?
• What insurance do I need for my security company?
• What licences do I need to start a security company?
• Other legal requirements
• Your security startup

In the security industry, you don’t need to be a giant to compete. Most of the 11,000+ security firms in the UK are small businesses with fewer than five employees. Only 90 companies in the sector employ 250 or more people.  

You can absolutely thrive as a small security business; you just need to decide on what kind of security company you want to start.

This is a very important first step, as it influences your startup costs, the licences you need and your potential income.Here’s an overview of the main types of security businesses within the field:

• Manned guarding and static security: This is what usually comes to mind when most people think of security businesses. It involves providing physical Security Industry Authority (SIA)-licensed security guards for shops, events, construction sites, or nightclubs (like door supervisors)
• Mobile patrols and key holding: This is where security officers check buildings during the day and at night, respond to alarms, and hold the master keys for a business
• CCTV and alarm installation/monitoring: If you are tech-savvy, you might want to start a home security company that focuses on designing, installing, and managing physical security systems like cameras, alarms, and access control centres
• Close protection: This is where you provide personal security services (like bodyguards) for celebrities, high-net-worth individuals, or people at risk, like politicians 

Each field has its pros and cons. Let’s look at them now. 

Security company type	Pros	Cons
Manned guarding	Stable contracts and predictable income	High initial cost due to staff wages. If you hire staff, managing and monitoring staff schedules creates extra admin
Mobile patrols and key holding	Lower staff costs per officer and better profit margins, as one officer can cover many sites	Requires reliable, branded vehicles, and your team needs excellent knowledge of the local area
CCTV and alarm installation and monitoring	Big, high-value fees for installation, plus stable income from monthly monitoring contracts	You’ll need specialist technical certifications (more than just SIA training) and higher equipment costs
Close protection	Very high day rates for specialist work — this has the highest earning potential in the industry	It’s highly specialised and requires the highest level of insurance due to increased risk

In the security industry today, a key trend is the merging of physical and cyber security systems. This is where a security company provides protection against cyber-physical risks — when cyber attacks have real-world impacts, such as operational shutdowns or safety hazards. 

For example, if there was a cyber attack on a bank’s digital database, this could lead to a breach where a bank’s physical premises are broken into. But if the bank has a unified approach to cyber-physical risks, a security team could immediately respond to both attacks. 

If you can offer a unified approach to security, like CCTV monitoring and manned guards, you could be onto a winner. 

Whatever field you choose, the steps for starting a security company are straightforward. We’ve broken down the process for you below. 

Creating a business plan forces you to consider all the different elements of your business, including profitability, licences, logistics, and staffing, before spending a penny.  

It gives you a better understanding of whether or not your business is likely to succeed, and lets you make any adjustments before getting off the ground.

Generally, your business plan should include the following information: 

• The product or service your business provides: Clearly define this
• Aims and objectives: Define your vision, mission and what you want your company to be known for 
• Location: State where your business will be located
• Target market: Do some research and define who your customers are 
• Pricing strategy: State whether you’ll charge hourly or per day, and how you plan to cover costs like staff wages
• Licensing: How many SIA-licensed staff will you need? 
• Compliance: What non-SIA certifications (like CCTV installation standards) will you need?
• Contingency: What is your plan for sick cover or sudden contract loss?
• Insurance: Research the type of insurance you need to get for your field
• Marketing: Think about the four Ps (product, price, place and promotion)

Choosing a company name is fun, but it needs to be professional, trustworthy and available. 

Consider what makes a good name for a security company. Look at others in the market and what makes those names sound reliable and authoritative. As a general rule, it’s good to avoid anything too casual e.g. Martin’s Guarding Services. Once you have a few ideas, use a company name availability checker to make sure your preferred name is free and available to register.

Most people starting a security company choose between being a sole trader and setting up a limited company. For a security business, your choice of structure is particularly important because there is liability (risk) involved. 

Let’s look at the key differences between a sole trader and a limited company:

• Sole trader: Quick and simple to set up — you just need to register for self-assessment with HMRC. However, you and your business are legally the same here, meaning if the business runs into financial trouble, your personal assets, like your home and car, are at risk
• Limited company: Registering a limited company makes you and your business separate legal entities. It offers limited liability, which protects your personal assets from any business debts 

A limited company offers more protection if your business runs into challenging circumstances. Let’s look at a few other differences between the two structures in more detail.

Feature	Sole trader	Limited company
Liability	Personal (unlimited). You’re personally responsible for all business debts	Limited. The business is a separate legal entity, protecting your personal assets
Tax	You pay Income Tax and National Insurance on all business profits via Self Assessment	You pay Corporation Tax on profits, and you pay Income Tax and National Insurance on what you take out of the business (salary/dividends)
Financial privacy	High. Your financial details remain private, filed only with HMRC	Low. Your company accounts are publicly available on the Companies House website
Growth and perception	Often perceived as smaller and less formal by large clients	Perceived as more professional and established, making it easier to attract investment or large contracts
Set up	Simple and fast. Just notify HMRC that you’re self-employed	Requires registration at Companies House and ongoing filing

Once you’ve picked your name and company structure, it’s time to register your security company and make things official! Here’s how:

• Sole traders: You simply register with HMRC for self-assessment
• Limited company founders: You’ll need to register your security company with Companies House. 

You can do this yourself on the Companies House website (there’s a £50 fee) or you can use an official company formation provider like Countingup to handle the application for you. Our company registration service is quick and easy, costs just £12, and you’ll be ready to trade within 24 hours. 

When you set up a limited company, you need to provide details like your full name and date of birth, and information about your company like its name, registered office address, business type, and details of at least one director and shareholder (this can be you). 

Don’t worry. Terms like shareholder might sound complicated, but the process is straightforward and, if you choose to use Countingup, we’re here to help every step of the way.

In the UK, the security industry is regulated by the Security Industry Authority (SIA). This means you and your employees must be licensed by the Security Industry Authority (SIA) to carry out any ‘licensable activity’.

You can apply for the appropriate SIA licences based on the specific services you want to offer. This may include:

• Security Guard licence: For general guarding duties like patrolling buildings, managing access points, and monitoring for suspicious activity
• Door Supervisor licence: Allows individuals to work in licensed premises (e.g. bars and clubs) and events where alcohol is served
• Public Space Surveillance (CCTV) licence: Required for individuals operating CCTV equipment to monitor public spaces 
• Close Protection licence: For bodyguards and operatives providing personal security to individuals at risk or high-profile clients like celebrities 
• Cash and Valuables in Transit licence: For guarding property against theft while it is being transported in a secure vehicle
• Key Holding licence: For those who hold keys to clients’ premises and who respond to alarm activations

We cover these different licences in more detail a little later.

Your equipment needs to reflect the professionalism and reliability of the services you’re selling. Whether it’s high-vis vests or high-spec cameras, you need the right gear, and this depends on what kind of security business you want to start. 

For example, if you want to start a security guard company, you should focus on uniforms and communications. But if you want to get into CCTV installation, you should focus on vans and drills. Here’s a list of common equipment security companies need: 

• Uniforms
• High-vis and protective clothing
• Reliable, secure communication systems (radios and encrypted phones)
• Body-worn cameras (essential for gathering evidence and protecting staff)
• Logbooks
• Patrol management software

With your company registration and licences sorted, it’s time to open for business. There are a few other things to bear in mind as you start trading, to make sure things run as smoothly as possible. For example, using contract templates and having an invoicing system. 

It’s also important to have your business current account set up. Keeping your business and personal money separate is a legal requirement if you set up a limited company. It also makes tax and financial reporting a lot easier. 

What it costs to start a security company depends on your chosen field, your operations and whether you plan to hire staff. 

Typically, you should budget anywhere between £2,000 and £50,000. A significant amount of that money is for your first few payrolls.

Other key costs include licensing, insurance, equipment and operating expenses like rent and marketing. Here’s a breakdown with more detail:

Cost category	Ballpark cost in the UK	Details
Company registration	£12 – £50	Fee to register a limited company with Companies House
SIA licence initial fee	There’s a £184 fee per licence	Non-refundable fee for each individual licence (valid for 3 years)
SIA licence training course	£150 – £500	Costs differ by role and provider. Security guard training is anywhere between £150 – 300, whereas close protection courses are between £1,000 – £3,000
Insurance (annual)	£350 – £800+	This covers public liability and professional indemnity insurance, with policies varying depending on your business needs
Uniforms and ID	£100 – £200 per staff member	High-quality branded shirts, trousers, boots, and ID badges
Essential equipment	£300 – £800	Radios, a good body camera, and mobile devices for patrol logging
Staffing	£20,000 – £35,000 per year	This is the average salary for a security guard in the UK, with experienced guards reaching £35,000
Marketing	£500 – £5,000	Activities may include website, social media, SEO,  and business cards

If you’re running your business by yourself, you could potentially get up and running for under £1,500. But costs begin to increase immediately once you hire staff.

Your rates depend on your chosen field, location (London and major cities are always higher), and the level of risk you’re taking on. Remember, in this business, clients are paying for peace of mind, so always price based on the value you deliver, not just the hours you spend.

Here are typical hourly rates clients pay across the UK, plus some additional pricing structures for context:

Service type	Typical client rate	Additional pricing info
Manned guarding (retail and corporate businesses)	£18 – £28 per hour	This is often negotiated down to £15 – £20 per hour for long-term contracts
Event security (door supervisor)	£25 – £30 per hour	You can charge a higher rate for weekend and night shifts, and high-risk events
Mobile patrols (per visit)	£35 – £50 per visit	This is a per-visit fee for alarm response, often structured as a monthly retainer (for example, £20-80 per month + the per visit fee)
Key holding and alarm response	£20 – £80 per month retainer	This type of security service is a way to make stable recurring revenue, and you’ll often charge clients per building/site
Close protection	£40 – £80 per hour	This is often priced as a day rate, typically ranging from £500 to £1,000+ depending on the client’s profile and risk
Security dog units	£35 – £45 per hour	Businesses that want to protect industrial estates and large, restricted areas are generally interested in dog security

Most security firms aim for 5% to 15% profit margin on a contract, so make sure your fees cover non-billable time like staff training and sales. 

Now, let’s look at some of the equipment different security companies need in more detail. Overall, it’s important to look professional and have the right kit to do the job. 

For manned guarding:

• Uniforms and ID: High-quality, branded polo shirts, professional trousers, high-vis vests, and sturdy, slip-resistant boots. 

• Communication: Reliable two-way radios or mobile devices with secure communication apps are essential for coordination and requesting backup.
• Body-worn cameras: These are quickly becoming the norm because they protect your staff and provide incident evidence
• Patrol management systems: These are software or devices like NFC tags or QR codes that log when a guard checks a specific checkpoint, proving they completed their route
• Safety gear: First aid kits, powerful torches like flashlights, and appropriate weather clothing

For mobile patrols and key holding:

• Vehicles: Reliable, clearly branded, and well-maintained vans or cars that are equipped with GPS tracking
• Key security: A highly secure, lockable system for storing client keys in a vehicle or in a secure hub
• Alarm response gear: Tools and instructions for safely isolating alarms and resetting systems at different sites
• Tech: You’ll need to run special apps for patrol scheduling, incident reporting, and real-time GPS staff tracking 

For CCTV and alarm installation:

• Specialist tools: This includes drills, ladders, cable testers, multi-meters, and diagnostic equipment for fault-finding
• Vehicles: Reliable vans with appropriate storage racks for ladders, tools, and valuable CCTV equipment
• Equipment: A supply of cameras, sensors, cabling, DVRs (digital video recorders), and alarm panels 
• Software licences: You often need specific software and a CCTV licence to correctly install and maintain alarm and CCTV systems

Remember, in the security industry, safety is incredibly important. You have a legal duty of care to all your staff, so it’s a good idea to consider investing in high-quality items like stab-proof vests and dedicated lone worker alarm devices, particularly if your staff work in risky or remote locations.

In the security industry, you’ll find that insurance is often a legal or contractual requirement, so without the right cover, you may find it tricky getting clients to sign on the dotted line.

The cover you need is dependent on your field, but there are core liability protections specific to the security industry, and optional policies based on your services. Let’s look at a few of them now.

Public liability insurance
Responsibility level: Essential 

This protects you if a third party (like a client or member of the public) is injured or has their property damaged because of your business activities. For example, if a security barrier you installed falls over, or your guard accidentally damages a client’s door.

Employers’ liability insurance 
Responsibility level: Legal requirement 

In the UK, the moment you hire your first employee (even part-time), you must get employers’ liability insurance. It covers you if an employee becomes ill or is injured as a result of working for you.

Professional indemnity insurance
Responsibility level: Recommended

This insurance is recommended if you offer high-level security advice (like risk assessments or designing security protocols). It protects you against claims of negligence or bad advice that leads to a client’s financial loss.

Inefficacy and contractual liability insurance
Responsibility level: Recommended

This is specific to security. It covers you if the security measure you put in place fails to prevent a crime (e.g. a burglar gets past a guard, and the client sues you for failing to uphold the contract). There are also many types of field-specific security insurance that you may find helpful. Let’s look at a few of the common options now. 

Commercial vehicle insurance
Responsibility level: Essential

If you use vehicles for mobile patrols, alarm responses, or transporting equipment, you need this cover.

Cyber insurance
Responsibility level: Essential 

If you handle sensitive client data or manage online security networks (like CCTV or alarms), this insurance protects against data breaches and cyber attacks. 

Wrongful arrest insurance
Responsibility level: Recommended

This protects you against legal action if a member of the public is wrongfully arrested or detained by one of your employees. 

The UK private security industry is regulated by the Security Industry Authority (SIA). This means that if you plan to start a security business, you need two different SIA- approved licences:

1. Front-line licence 

Every single person who carries out a ‘licensable activity’ must hold a valid front-line SIA licence. This includes you, if you’re working the doors, watching the CCTV, or patrolling.

Front-line licences are specific to the job role, but common ones include:

• Security Guarding Licence: For manned guarding and mobile patrols
• Door Supervision Licence: For security at licensed premises (e.g. pubs, clubs, venues)
• Public Space Surveillance (CCTV) Licence: For monitoring CCTV in public spaces
• Cash and Valuables in Transit Licence: For transporting cash and high-value goods

A fee of £184 is paid per person, per licence to the Security Industry Authority (SIA).

To recap: every individual who carries out a licensable activity must have their own front-line licence.

If one person carries out two different licensable activities (e.g. they work as a door supervisor and as a manned guard), they must hold the relevant front-line licence for each activity, though the SIA does offer a discount if you apply for multiple licences at the same time.

2. Non-front-line licence

If you’re a director of a limited company or a manager, and you don’t personally engage in licensable activities (i.e. you handle the admin, finance, and scheduling instead), you generally just need a non-front-line licence. 

This covers those who manage, supervise, and employ security staff but don’t carry out the duties themselves.

Strictly speaking, you don’t need professional certifications to start your security business, but they help you win big contracts. 

Professional certifications can help you build trust and credibility with clients, too, which is incredibly valuable in the security world.

If you’re interested in getting a professional certification, here are a few popular options:

• Approved Contractor Scheme (ACS): This is run by the SIA itself and is a voluntary quality check. Passing the ACS tells big clients you meet the highest standards for performance and rules compliance. It’s a huge badge of honour that often leads to scoring bigger contracts 

• BSIA (British Security Industry Association): Becoming a member of the BSIA shows you’re serious about following industry best practices. It’s also a great way to access useful resources and network with other successful companies

• NSI (National Security Inspectorate): If your business installs alarms and CCTV, this certification is very much encouraged. Gaining NSI approval tells potential clients that your technical work is top quality and meets the toughest industry installation standards

Beyond the applicable licences, your security company has to comply with a few other regulations, too. These extra responsibilities are essential safety measures that protect your clients and your business. 

Here are a few common legal requirements that every security business should consider:

• Data protection (GDPR): If you use CCTV, you’re handling people’s personal data. This means you must register with the Information Commissioner’s Office (ICO). You also need clear, written rules for how you store, use, and delete CCTV footage

• Lone worker safety: If your staff work alone (which is common on night shifts or mobile patrols), you have a legal duty of care to keep them safe. You need reliable systems — like mandatory check-in calls, GPS monitoring apps, or dedicated lone worker alarms — to ensure their safety at all times

• Use of force: Your staff must be certain about what they can and can’t do if an incident happens. Security staff have the same powers to make a citizen’s arrest as any member of the public. However, they can only use ‘reasonable force’ to defend themselves or make that arrest. Regular, professional training on this topic is essential to shield your business from legal trouble

• Employment law: This applies to all security companies that employ staff. Generally, security has a reputation for long hours, so make sure you’re following the official Working Time Regulations and putting the right employee protections in place 

Starting a security company isn’t easy, but the reassurance you provide to business owners and residents that their property and loved ones are safe is worth the setup, licence applications, and compliance. Once you get those boxes ticked,  you open the door to high-value, long-term contracts. 

While you’re getting your security business up and running, we can help with your company admin. When you’ve registered your company, you need a safe place to keep your money. Our business current account is built for small limited companies and sole traders — it simplifies tax, invoicing and financial reporting so you can build a secure financial future for your company. 

In the meantime, good luck with your security business. You’ve got this!

The UK security and investigation activities sector is wide-ranging, with almost 11,000 registered security companies operating across the country. The market is incredibly dynamic, ranging from huge global firms to small, specialist local operations.

This depends! The security sector is highly regulated, which means professionalism and compliance are expected at all times. If you’ve got the expertise and are willing to invest in strict training, licensing, and insurance, you could thrive in a very strong market. However, if you’re not prepared to adhere to strict regulations, this probably isn’t the sector for you. 

You don’t need a front-line SIA licence to own a security company, but you will need one if you personally engage in any licensable activities (like guarding or CCTV operation). If you’re a director of a limited company with licensed staff, you will usually need a non-front-line SIA licence.