How to start a security company - useful tips
A license to conduct such activities is required to open a security agency. But these are not the only formalities related to it - read our guide and you will learn how to set up a security company.
General characteristics of a security company
The security company deals with the implementation of direct physical protection of persons and property in the form of permanent or ad hoc. The tasks of such activities may also include:
supervision of signals transmitted, collected and processed in electronic devices and alarm systems, which are then used in protected property.
transportation (escorting) of money, valuable or dangerous items
installation of alarm systems, their maintenance and repair
installing devices and means of mechanical protection.
These two segments of security activity (physical protection and technical protection) do not have to be combined and may be the subject of the provision of separate services.
How to set up a security company - prerequisites
Establishing a security company requires obtaining a license that will define the scope and form of the service provided. However, if the entrepreneur decided to carry out property protection activities in the field of technical security (only), he does not have to apply for a license. In such a case, his company should not concern areas, facilities and devices important for the defense, economic interest of the state, public safety and other important interests of the state, are subject to mandatory protection by specialized armed security formations - otherwise, the concession is binding for him.
Who can apply for a license? It can be obtained by an entrepreneur (natural person) or a company member who appears on the list of qualified physical security personnel or qualified technical security personnel. The concession authority is the minister responsible for internal affairs.
Qualified physical security worker
A qualified physical security officer may be a person who:
1) has Polish citizenship
2) is over 21 years of age;
3) graduated from at least junior high school;
4) has full legal capacity;
5) has not been convicted by a final judgment for an intentional crime and there are no criminal proceedings pending against her for such an offense;
6) has an impeccable opinion issued by the poviat (district, municipal) police commander competent for her place of residence;
7) has the physical and mental capacity to perform tasks, confirmed by medical and psychological certificates, the validity of which has not expired;
8) has theoretical and practical preparation in the field of shooting training, self-defense, intervention techniques and knowledge of the law related to the protection of persons and property.
Qualified employee of technical security
On the other hand, the list of qualified technical security employees includes a person who:
1) is over 18 years of age;
2) meets the requirements regarding no criminal record and positive environmental opinion;
3) has physical and mental capacity to work, confirmed by a medical certificate issued by a doctor authorized to conduct the examinations referred to in the regulations issued on the basis of art. 229 § 8 of the Act of June 26, 1974 - Labor Code (Journal of Laws of 1998, No. 21, item 94, as amended).
4) has at least vocational technical education, specializing in electronic, electrical, communication, mechanical, IT, or has completed a technical security worker course or has been trained for the above-mentioned professions.
A security company may employ people with the qualifications of qualified physical security or technical security personnel, as well as other security personnel. Each of them, regardless of their qualifications, should have a clear criminal record for intentional crimes or intentional fiscal crimes.
As of January 1, 2014, the obligation to obtain licenses by security staff ceased.
What is the procedure for obtaining a license?
Pursuant to the provisions of the Act on the freedom of economic activity, granting, refusing to grant, changing and revoking a concession or limiting its scope in relation to the application is made by way of an administrative decision.
Before making a decision to grant or amend a concession, the concession authority may:
summon the applicant to complete the missing documentation confirming that he meets the conditions set out by law required to perform a specific business activity, under pain of leaving the application without consideration,
check the facts specified in the application in order to determine whether the entrepreneur meets the conditions for the performance of the business activity covered by the concession and whether it guarantees the proper performance of this activity.
The concession is granted for a fixed period of not less than five years and not more than 50 years, unless the entrepreneur applies for a concession for a shorter period.
The minister of internal affairs and administration may inspect the entrepreneur in the following areas:
compliance of the activities performed with the granted concession,
compliance with the conditions for conducting business activity,
state defense or security, protection of the security or personal rights of citizens.
The minister may authorize the chief police officer to carry out control activities, and the latter has the right to entrust provincial police commanders with control.
The person authorized by the concession authority to perform the inspection has the right to:
enter the premises of the real estate, facility, premises or part thereof, where the economic activity covered by the concession is carried out, on the days and hours when this activity is performed or should be performed,
request oral or written explanations, presentation of documents or other information carriers and access to data related to the subject of the inspection.
Acceptable forms of running a security company
After meeting the expected conditions, the future entrepreneur may decide to set up a company in the form of any (except partner companies) activity. Most often, these people decide to run a sole proprietorship, which requires the submission of the CEIDG-1 form and registration in the Central Register and Information on Economic Activity.Also, when deciding to run a business in a civil partnership, you must register in the same way as in the case of sole proprietorship. However, in the case of commercial companies, an entry in the National Court Register is required.
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How to set up a security company?
Security company - sole proprietorship
This form of business is one of the most popular in Poland. The rules for establishing and running such a company are set out in the Freedom of Economic Activity Act and the Civil Code. This type of business assumes a single owner, but the name is not a restriction on the number of employees employed.
A sole proprietorship is an idea designed for a small enterprise with one owner. It will work if the founder of a security company is an active, goal-oriented person, has his own opinion and does not like to comply.
When setting up a sole proprietorship, you do not need to keep full accounting. For such companies, it is possible to keep simplified accounting until the turnover does not exceed EUR 1,200,000. Such facilitation and the possibility to choose the forms of calculating income tax turn out to be a very attractive form of running a business.
Security company - civil partnership
The civil partnership is the only one that does not require an entry in the National Court Register. He also has no personality and legal capacity, and is based on the provisions contained in the Civil Code.
This activity is easy to register and to run, based on an agreement between partners who declare the pursuit of one specific economic goal. A civil law partnership is a good solution for small businesses, especially family ones.
It is not suitable for building large enterprises as its partners are responsible for all their assets, which can create enormous risks. Also in this form of business, simplified accounting can be used and the entrepreneur is not required to have initial capital.
PKD designation for a security company
The basic PKD codes describing economic activity in the field of providing physical and technical protection services are:
8010Z security activities, excluding the operation of security systems. This code includes:
- security activities in the field of transport by armored vehicles,
- service activities in the field of personal protection,
- lie detector service activities,
- service activities related to the collection and identification of fingerprints,
- other security activities, excluding the operation of security systems.
8020Z security activities in the field of security systems operation. This code includes:
- operation and monitoring of electronic security systems, such as burglar and fire alarms, including their installation and maintenance,
- installation, repair, reconstruction and adjustment of mechanical or electronic locking devices, safes and vaults in connection with subsequent monitoring.
The best form of taxation for a security company
A security company cannot be taxed in a flat rate. Therefore, a lump sum settlement on recorded revenues and with a tax card is excluded. Income tax on services provided in the field of protection of persons or property by natural persons or partnerships may be paid only on general principles according to the tax scale or on a straight-line basis at the rate of 19%.
Security company - taxation on general terms
General rules are the basic form of income taxation that does not require additional declarations. It allows you to pay tax in the amount of 18% after reducing it by the tax-free amount of PLN 556.02 and at the rate of 32% on the surplus over PLN 85,528 of the tax base.
The tax amount can be reduced by the allowances and deductions provided for in the Income Tax Act. In addition, it is possible to deduct from the tax base the amount of insurance premiums paid and the amount of health insurance premiums paid from the tax amount.
Security company - flat taxation
Taxation of income with a flat 19% tax requires the submission of a written declaration to the competent head of the tax office by January 20 of the tax year on the choice of this method of taxation, and if the taxpayer starts conducting non-agricultural economic activity during the tax year - by the day preceding the day of commencement of this activity, not later, however, than on the day of obtaining the first income.
The downside of taxation in this form is, above all, the need to resign from tax reliefs and the inability to settle accounts jointly with the spouse.
Security company with or without VAT
Security guard as an active VAT payer
Security guards who intend to perform activities for other VAT payers or plan to achieve high turnover from business activities should decide to register themselves as an active VAT payer. In such a case, being a taxable person is associated with the benefits of the possibility of deducting VAT on issued invoices.
Due to the fact that the activity is taxed at a rate below 23%, it is worth paying special attention to remaining an active VAT payer. To become one, you must submit the VAT-R registration form.
Provision of property protection services is taxed at 23% VAT.
Security guard exempt from VAT
The choice of VAT exemption is advantageous in a situation where the recipients of goods or services will also be entities exempt from VAT (e.g. in retail trade).
Taxpayers whose value of taxable sales did not exceed the total of PLN 150,000 in the previous tax year are exempt from VAT. zloty. The amount of tax is not included in the sales value. However, in the case of running a security company, it is better to decide to stay active
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ZUS contributions - a security company
Application for insurance
A security guard who starts running a business reports it on the CEIDG-1 form. Then the application with a copy of the CEIDG entry is sent to ZUS. The latter prepares a declaration of the contribution payer on the ZUS ZFA form.
Nevertheless, the entrepreneur has to register for social security and health insurance on his own. The entrepreneur has 7 days from the date of commencement of business activity to apply for insurance. To do this, fill in the form:
ZUS ZUA - if the security guard is subject to social and health insurance,
ZUS ZZA - if the entrepreneur is subject only to health insurance (social insurance is covered by full-time work or other activities).
Sickness insurance is voluntary for the entrepreneur. ZUS covers him with this benefit upon his application. It is submitted on the ZUS ZUA form, along with registration for compulsory social security and health insurance.
Security guard and preferential ZUS contributions
A security guard who starts his business may take advantage of preferential ZUS contributions, which cover a period of 24 full months.
Business account for a security company
The future bodyguard is not required to set up a separate company account. May use a private account for business purposes. However, it must remember that the account must have one owner (couples with a joint account cannot use it for corporate purposes).
Making or receiving payments related to the performed business activity should be carried out via the entrepreneur's bank account whenever:
another entrepreneur is a party to the transaction from which the payment results;
the one-off transaction value, regardless of the number of payments resulting therefrom, exceeds the equivalent of EUR 15,000 converted into zlotys at the average exchange rate of foreign currencies announced by the National Bank of Poland on the last day of the month preceding the month in which the transaction was made.
Marketing for a security company
Potential customers can be divided into five groups and, depending on the selected target group, decide on marketing conducted for a specific social group or institution.
1. Individual client - is looking for services from the company in the field of protection of a flat or a place of sole proprietorship. Most often, he cares about monitoring the facility and, if necessary, the arrival of an intervention group.
2. Business client - these are industrial plants, logistic centers and office buildings. This contractor will require from the security company not only monitoring, but also physical security personnel.
3. Corporate client - foreign concerns, international corporations - these clients will seek physical protection of security, monitoring and intervention group employees along with the escort service.
4. Budget units - these are tax offices, water companies, state-owned enterprises, and military units. Most often, they require similar services from a security company as corporate clients. However, it is different when hiring a property security company - these are concluded in the form of tenders under the Public Procurement Act.
5. Banks - they are looking for security companies, in particular in terms of monitoring and escorting cash values, but most often the cash processing service is provided for these clients.
After selecting the target group, you can proceed to the preparation of the marketing strategy. The use of social media tools will be the basis in this industry, but nothing will be better advertising your company than good opinions and customer satisfaction. For this purpose, it is worth using word of mouth marketing to get your first customers who will recommend the service to their friends or other entrepreneurs in the future.