Security business is a service that involves providing security personnel, equipment, and solutions to various clients such as individuals, organizations, or events. Security business requires expertise, training, and professionalism to ensure the safety and satisfaction of the clients and the security staff. However, before starting a security business in Hyderabad, you need to obtain various registrations and licenses from different authorities to ensure compliance with the legal and regulatory requirements. In this article, we will discuss the main legal requirements for starting a security business in Hyderabad.

Company Registration from Ministry of Corporate Affairs (MCA)

Company registration is the first and foremost step to start a security business in Hyderabad. Company registration involves registering your business entity with the Ministry of Corporate Affairs (MCA), the central authority that regulates and governs the corporate affairs in India. Company registration provides legal recognition, protection, and benefits to your business. There are various types of company structures that you can choose from, such as:

• Sole Proprietorship: A sole proprietorship is the simplest and most common form of business entity, where you are the sole owner and operator of your business. A sole proprietorship does not require any formal registration, but you may need to obtain a trade license, GST registration, and other licenses depending on your business activity and turnover.
• Partnership Firm: A partnership firm is a business entity where two or more persons agree to share the profits and losses of a common business. A partnership firm can be registered under the Indian Partnership Act, 1932, or the Limited Liability Partnership Act, 2008. A partnership firm registration helps establish the rights, duties, and liabilities of the partners and ensures smooth operations.
• Private Limited Company: A private limited company is a business entity where the ownership is limited to a maximum of 200 shareholders and the shares are not publicly traded. A private limited company is the most preferred choice for security businesses, as it offers limited liability, perpetual succession, easy transferability, and access to funding. A private limited company registration can be done online through the MCA portal, by filing the required forms and documents¹.
• One Person Company: A one person company is a business entity where there is only one person as the owner and director of the company. A one person company is a hybrid of a sole proprietorship and a private limited company, as it offers limited liability, perpetual succession, and easy compliance. A one person company registration can also be done online through the MCA portal, by filing the required forms and documents¹.

GST Registration from Goods and Services Tax Network (GSTN)

GST registration is another essential requirement to start a security business in Hyderabad. GST registration involves registering your business entity with the Goods and Services Tax Network (GSTN), the online portal that administers and facilitates the GST system in India. GST registration enables you to collect and remit GST to the government and ensures compliance with the tax regulations. GST is a comprehensive indirect tax levied on the supply of goods and services in India. GST registration is mandatory for security businesses with annual turnover more than ₹20 lakhs (₹10 lakhs for special category states). GST registration can be done online through the GST portal, by filing the required forms and documents².

Security Agency License from Controlling Authority

Security agency license is a permission granted by the controlling authority, which is the Commissioner of Police or the District Magistrate, to operate a security agency in a specific area. Security agency license is required for security businesses that provide security personnel, equipment, or solutions to any client. Security agency license is granted under the Private Security Agencies (Regulation) Act, 2005, and the Private Security Agencies (Regulation) Rules, 2006. Security agency license is subject to various conditions and restrictions such as the eligibility criteria, the training standards, the verification process, the uniform code, etc. Security agency license is valid for five years and must be renewed thereafter. Security agency license ensures that the security business complies with the norms and standards prescribed by the act and the rules³.