Starting a security company UK is one of the most promising business decisions you can make in 2026. In 2026, there were about 432,000 active SIA licences in the UK, with demand rising rapidly across manned guarding, mobile patrol, events, and corporate security sectors. New legislation, including Martyn’s Law, is also driving fresh demand for professional security services across venues, events, and public spaces. But getting into this industry correctly requires clear planning, the right licences, and a solid compliance foundation. This guide explains every legal requirement you need to know before starting a security company in the UK.
Is It Legal to Start a Security Company UK Without a Licence?
This is the first question every aspiring security business owner must understand clearly. The honest answer is: you can register a security company without personally holding a licence, but you cannot legally operate one without meeting strict individual and company-level compliance requirements.
To operate legally in the UK, your company and staff must be licensed by the Security Industry Authority. Each service area requires a specific licence type.
If you provide services such as manned guarding, CCTV monitoring, door supervision, or close protection, your staff must hold valid SIA licences. Failing to meet SIA requirements can lead to contract termination, fines, or even criminal charges.
This distinction is important. There is no single “security company licence” you apply for as a business. But the legal obligations around individual licences, staff screening, insurance, and compliance are substantial and must be in place before any work begins.
What Is the SIA and Why Does It Matter?
The Security Industry Authority is the official government body that regulates the private security industry across England, Scotland, and Wales. It was established under the Private Security Industry Act 2001 and has two core functions that directly affect every security company UK.
First, the SIA issues individual licences to security professionals. Anyone working in a frontline security role in the UK must hold a valid SIA licence. Working without one is a criminal offence and can lead to fines or legal action.
Second, the SIA operates the Approved Contractor Scheme, which is a company-level quality standard assessed against 78 achievement indicators. This covers staff management, training, vetting, operational procedures, health and safety, and financial stability.
Understanding both functions is essential because both affect your legal position and commercial opportunities in different but equally important ways. Individual licences keep your staff legal. ACS approval keeps your business competitive.
Licences Required to Start a Security Company UK
SIA Frontline Licence for Directors
If you, as the director or owner, plan to carry out any licensable security work yourself alongside your staff, you must hold a valid SIA frontline licence. The type depends on the role you will be performing.
Common frontline licences include:
- Security Guard licence
- Door Supervisor licence
- Close Protection licence
- CCTV Operator licence
- Key Holder licence
In the UK, most frontline private security roles are legally required to hold a valid SIA licence. This includes door supervisors, CCTV public space surveillance operators, and security guards. Some non-frontline managerial or supervisory roles may require a different licence type.
Each licence requires completing an accredited training course, passing examinations, and clearing identity and criminal record checks. The Door Supervisor licence is the most versatile option, as it covers both door supervision and security guarding roles in a single licence, making it the most popular choice among new business owners who plan to work on the front line.
Getting a frontline licence requires the following steps in order:
- Complete an Emergency First Aid at Work certificate
- Enrol on an approved SIA training course for your chosen licence type
- Pass written exams and practical assessments
- Create an SIA online account on GOV.UK
- Submit your application with all required identity documents
- Pass identity verification and DBS criminal record checks
- Receive your licence card once approved
SIA Non-Frontline Licence
If you plan to manage or supervise security staff without personally carrying out frontline security activities, you may need a non-frontline licence instead. This covers individuals who oversee operations, manage contracts, or hold a controlling interest in a security business without working directly on guarding sites.
All controlling minds of a security company, including executive and non-executive directors, must hold a valid SIA licence before the company can apply for ACS approval. This rule applies even to directors who never personally carry out licensable security work. If you plan to apply for ACS approval, every director must be licensed before the application can proceed.
SIA Approved Contractor Scheme
The SIA Approved Contractor Scheme is a company-level accreditation, not an individual licence. It is voluntary in a strict legal sense, but commercially it has become a necessity for any security company UK that wants to win serious contracts.
ACS approval requires a company to demonstrate competence across 78 achievement indicators covering:
- Staff vetting through BS 7858 screening
- Training and competence records
- Health and safety management systems
- Financial management and stability
- Operational policies and procedures
- Customer service and complaint handling
- Management review and continuous improvement
Once approved, the company appears on the SIA Register of Approved Contractors. Buyers, procurement teams, and large clients check this register before awarding security contracts. Without it, your business is excluded from many of the most valuable opportunities in the UK market before the conversation even begins.
Do You Need to Register Your Security Company UK with Companies House?
Yes. Before anything else, you need to legally establish your business. Most security companies in the UK register as a private limited company through Companies House. This creates a separate legal entity from the business owner, protects personal assets, gives the business a more professional appearance to clients, and is required before opening a business bank account or applying for most compliance schemes.
The registration process involves:
- Choosing a unique company name that is not already registered
- Providing a registered office address in the UK
- Appointing at least one director
- Filing a memorandum and articles of association
- Registering for Corporation Tax with HMRC within three months of starting to trade
- Registering for VAT if expected annual turnover exceeds the current threshold
You will receive a Companies House registration number, which you will need for SIA ACS applications, insurance, contracts, and most other business activities. Keep this number accessible, as it comes up constantly throughout the compliance process.
Essential Compliance Requirements for a Security Company UK
Beyond individual SIA licences, a security company UK must meet several other legal and compliance obligations.
BS 7858 Staff Screening
Every member of staff deployed in a security role must be screened to BS 7858, the British Standard for screening individuals in a security environment. This is a five-year employment history check combined with identity verification, financial probity checks, and criminal record checks.
BS 7858 screening is not optional. It is embedded in SIA ACS requirements, virtually every client contract, and most insurance policies. Deploying staff who have not been properly screened creates serious legal exposure. Clients can and do terminate contracts immediately if they discover unscreened staff has been placed on their sites.
The screening process must be documented carefully. Records of every check carried out must be maintained and made available to auditors during ACS assessments or HSE inspections.
Public Liability and Employers Liability Insurance
Every security company UK must hold valid employers’ liability insurance before taking on any staff. This covers disputes arising from employment contracts and injuries sustained by employees during the course of their work.
The minimum level of employers’ liability cover required by law is £5 million, though most insurers offer a minimum of £10 million as standard. Operating without this insurance is a criminal offence under the Employers Liability (Compulsory Insurance) Act 1969 and can result in fines of up to £2,500 per day.
Public liability insurance is not legally required in the same direct way, but it is contractually required by virtually every client, procurement framework, and tender you will encounter. It protects your business if a third party claims injury or property damage as a result of your operations. Most clients require a minimum of £5 million in public liability cover, with many large contracts requiring £10 million or more.
Without both policies in place from day one, your security company UK cannot legally employ staff, will not pass client due diligence checks, and will be excluded from tender processes immediately.
Health and Safety Obligations
As an employer, your security company UK must comply with the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999. This means:
- Carrying out risk assessments for all significant work activities
- Having a written health and safety policy if you employ five or more people
- Appointing a competent person to help manage health and safety
- Providing appropriate training and information to all staff
- Reporting certain workplace accidents and incidents under RIDDOR
Many security companies also pursue formal health and safety accreditations such as CHAS or SafeContractor as part of their wider compliance portfolio. These are increasingly required by clients and procurement teams and help demonstrate that your health and safety management is independently verified rather than self-declared.
ICO Registration for Data Protection
GDPR applies when security companies collect or use personal data through CCTV, access systems, or records. They must have a clear reason, keep data secure, limit access, and not retain it longer than needed.
Any security company UK that processes personal data must register with the Information Commissioner’s Office under the Data Protection Act 2018. This applies to virtually every security business since staff records, incident reports, CCTV footage, and access control logs all constitute personal data.
Registration with the ICO must be renewed annually. Failing to register when required is a criminal offence. For security companies operating CCTV systems or handling significant personal data, a clear data retention policy and a privacy notice for clients must also be in place.
Why SIA ACS Approval Matters for a Security Company UK
SIA ACS approval is one of the most commercially significant steps any new security company UK can take. Obtaining professional accreditations can significantly boost your credibility and help you win larger, more lucrative contracts. In the security industry, these certifications demonstrate that you operate safely, legally, and to a high standard.
Public sector bodies, NHS trusts, local authorities, housing associations, and large private sector clients all check ACS status as part of their supplier approval processes. Many specify it as a mandatory requirement in tender documents, which means non-approved businesses are excluded before their service quality is ever considered.
ACS approval also gives your business independent, third-party credibility that no amount of marketing can replicate. It tells serious buyers that an independent assessor has verified your company and found it meets recognised national standards. For a new security company UK, this trust signal is enormously valuable in a market where established competitors already have long track records.
The most strategic approach is to pursue ACS approval as early as possible. Building your management systems, vetting procedures, and operational policies correctly from the start is far more efficient than trying to retrofit compliance around an already-running business.
Common Legal Mistakes New Security Companies Make
Many new security companies make avoidable legal and compliance mistakes in their early months. Understanding these in advance prevents expensive and time-consuming problems.
Common mistakes include:
- Deploying staff before their SIA licence application is fully approved and the physical card received
- Failing to carry out BS 7858 screening before placing staff on client sites
- Operating without valid employers’ liability insurance from day one
- Not registering with the ICO before handling personal data
- Directors failing to obtain SIA licences before applying for ACS approval
- Treating health and safety risk assessments as optional rather than legally required
- Using subcontractors without verifying their SIA licence status and screening records
- Not keeping adequate records of staff training, licences, and vetting for audit purposes
Each mistake is avoidable with proper planning. The cost of fixing compliance problems after they arise is almost always greater than the investment in getting things right from the beginning.
Steps to Legally Set Up a Security Company UK
Here is a clear, practical checklist for setting up your security company correctly from the very beginning:
- Register your business as a limited company through Companies House
- Open a dedicated business bank account
- Register for Corporation Tax and VAT if applicable
- Register with the ICO for data protection compliance
- Obtain valid employers’ liability and public liability insurance from day one
- Ensure all directors obtain the appropriate SIA licence
- Implement BS 7858 screening processes for all operational staff before deployment
- Ensure all frontline staff hold valid, active SIA licences before any work begins
- Develop a written health and safety policy and carry out risk assessments
- Build operational policies, procedures, and staff management systems
- Pursue SIA ACS approval to open access to the widest range of contract opportunities
- Consider ISO 9001, ISO 14001, and ISO 45001 certification for additional credibility with large clients
How BizGrow Holdings Helps New Security Companies Stay Compliant
BizGrow Holdings supports new and growing security companies across the UK in building the compliance foundations they need to operate legally, win better contracts, and grow with confidence.
The BizGrow Holdings team guides security businesses through SIA ACS approval from initial gap analysis and documentation preparation through to internal audit support and assessment day readiness. With over 100 successful audits and a 99% pass rate, BizGrow Holdings has one of the strongest track records of any compliance consultancy serving the UK security industry.
BizGrow Holdings also supports security companies with ISO 9001, ISO 14001, ISO 45001, Cyber Essentials, CHAS, and SafeContractor accreditation, giving new businesses the ability to build a complete, joined-up compliance portfolio through one trusted partner from the very beginning.
Whether you are setting up your first security company UK or strengthening the compliance of an existing business, BizGrow Holdings offers practical, results-driven support tailored to exactly where your business is right now and where you want it to go next.
Conclusion
Starting a security company UK in 2026 offers real commercial opportunity, but only if you build your business on the right legal foundations from day one. Individual SIA licences, BS 7858 screening, valid insurance, ICO registration, health and safety compliance, and SIA ACS approval are not optional extras. They are the infrastructure that allows your business to operate legally, win contracts, and grow sustainably.
Getting these foundations right from the start is far easier and more efficient than fixing compliance gaps once the business is already running. With expert support from BizGrow Holdings, new security companies across the UK can build a legally compliant, professionally credible operation that is positioned to grow from the moment it opens its doors.
Frequently Asked Questions
Can I run a security company UK without an SIA licence?
You can register a security company without personally holding an SIA licence, but all staff carrying out licensable security work must hold valid licences. Deploying unlicensed staff is a criminal offence. Directors also need SIA licences to apply for ACS approval.
Do all directors of a security company need an SIA licence?
Yes, all controlling minds, including executive and non-executive directors, must hold a valid SIA licence for the company to apply for SIA ACS approval. The SIA checks all directors during the ACS application process. This applies regardless of whether the director personally carries out security work.
Is SIA ACS approval mandatory for a security company UK?
It is not a legal requirement to operate, but most serious clients and public sector buyers require it before awarding contracts. Without it, your company will be excluded from many of the most valuable tender opportunities. Most new security companies should pursue it as early as possible.
What insurance does a security company UK need?
Employers’ liability insurance is a legal requirement for any business with staff, with a minimum cover of five million pounds. Public liability insurance is required by virtually all clients and procurement frameworks. Both must be in place before you begin trading and deploying staff.
How long does it take to set up a compliant security company UK?
Registering with Companies House takes a few days. Obtaining SIA licences, insurance, and building compliant systems typically takes several weeks to a few months. Pursuing SIA ACS approval can add further time depending on your current compliance level. Starting with expert support significantly speeds up the process.