Private security companies supply guards to homes, banks, factories, offices and housing societies across Lahore. Many smaller firms operate from older neighbourhoods such as Sanda, where they recruit guards. It's a labour-intensive, licensed business: almost all revenue goes on guards' wages, and clients deduct tax from what they pay.
Licensing
Private security companies require licensing and approvals from the relevant government departments, and guards must meet training and verification requirements. Unlicensed operation is a legal risk and makes contracts with banks and companies impossible.
Income and withholding
| Client | Arrangement |
|---|---|
| Banks, factories, offices | Monthly invoice; tax withheld |
| Housing societies | Contract; withholding likely |
| Individual homes | Monthly payment, often by bank |
Corporate clients usually withhold income tax on security services. Collect certificates; they can cover much of your tax.
Sales tax on security services
Security services are within Punjab's sales tax on services, administered by PRA. Registered security companies charge sales tax on invoices and file monthly. Most corporate clients require it.
Guards' wages and labour law
Guards' salaries are the bulk of costs. Pay through the bank, keep payroll records, and comply with minimum wage. EOBI and Punjab social security registration and contributions are required once thresholds are met. Clients increasingly audit their security vendors' labour compliance.
Equipment
Weapons (licensed), uniforms, wireless sets, vehicles — capital assets or costs, with licences and records for weapons.
Thin margins
Security contracts are competitive; margins over wages are small. Accurate payroll records show the real margin and support your return if minimum-tax provisions apply to turnover.
A guard roster per client per month — names, shifts, days — matches your invoice to your payroll. Clients and auditors both ask for it.
Escort, event and cash-transit security
Some companies also provide escort services, event security and guards for cash transport. Each service has its own contracts and invoices. Event security is short-term and often paid in full in advance — treat advances as deposits until the event.
Guard deposits and uniforms
Some companies deduct uniform deposits or security deposits from guards' wages, refundable when they leave. Amounts held are liabilities owed to guards; amounts kept under the contract are income or reduce costs. Keep a record per guard.
Clients' audits
Banks and multinationals audit security vendors for payroll, EOBI, social security and licensing. The same records also support your tax return.
Sanda — questions we get asked
Got a deadline or a notice?
Tell us the date on the notice or the deadline you are facing — we prioritise time-bound work the same day.