Introduction
If you plan to register a private security company in Nigeria, then it is important you read this detailed article on how to set up a private security company.
In this article, we would show you who is eligible to register a private security company, the requirements for registration and also the procedure for obtaining the license to set up and run the business in Nigeria.
If you have any question, please feel free to contact us or leave a comment and be sure your questions would be answered.
Definition of a Private Security Company
The law that provides for the registration and regulation of the private security industry in Nigeria is the Private Guard Companies Act of 1986.
The Ministry of Interior is the main government regulator of the industry. The minister or anyone designated by him is empowered to issue licenses to qualified applicant companies.
In furtherance to the power to regulate private security companies in Nigeria, the Nigeria Security and Civil Defence Corps Act No. 2 of 2003 and Amendment Act of 2007 created the Nigeria Security and Civil Defence Corps (NSCDC) which has been designated with the power of licensing, operations and monitoring of Private security business in Nigeria.
What this means is that the NSCDC acting under the ministry of interior is empowered to recommend applicants for the issuance of a license to operate. The NSCDC also maintains a list of licensed private security companies in Nigeria.
Procedure To Register A Private Security Company
A private security company can either be registered as a private limited company or a public limited company. However, the preferred choice for registration would be to register as a private limited company.
The minimum share capital for a private security business is N10 Million Naira. Hence a company that wants to be registered as a private security company must first be registered with that amount of share capital.
Types of Private Security Companies
A Private Guard Company
A private Guard Company (PGC) provides services such as watching, guarding, patrolling, protection of money in transit and escort services.
PGCs provide their services to private and public individuals and companies.
A Private Security Support Company
This type of company only provides support services including training, consulting, sales and supply of security equipment, capacity development, IT infrastructure, quality assurance and control among other services.
A private security company can be registered as either of the two companies or both as one.
Restrictions on Registration of A Private Security Company
Under the Private Guard Companies Act of 1986 and the Private Guard Companies Regulation of 2018, foreigners are completely excluded from participating in Private Security Business of any type in Nigeria.
This means that a foreigner cannot be a director or shareholder in a private security company neither can a wholly-owned foreign company participate in the registration or operation of a private security company in Nigeria.
Furthermore, at least one of the directors must be a retired commission officer of either the Nigeria Police Force, the Armed Forces or any other military or paramilitary agency within Nigeria.
Step 1: Company Registration
As stated earlier, before starting a private security company, it is advisable to register as a private limited company. A private limited company is the most preferred choice for a business start-up due to the ease of registration in terms of costs and requirements.
The minimum share capital threshold of a private security company is N10million (Ten Million Naira).
Step2: Application for a license to operate
An application for registration of a private security company must be made to the NSDC. The NSDC has the power to recommend for license, supervise and monitor the activities of Private Security Companies. During the licensing period, the NSDC must inspect the premises to be used by the Private Security Company.
Furthermore, the security personnel to be engaged by the company must undergo training either by the NSDC or a training institute that is accredited by the NSDC.
During the application process, the following documents are to be submitted as the application documents:
- An application for private guard license addressed to the Commandant General of the NSCDC.
- Two Certified True Copies of the Memorandum and Article of Association of the Company.
- Two photocopies of the Certificate of Incorporation.
- Payment of N500,000 (Five Hundred Thousand Naira).
- Tax Clearance Certificate.
- Statement of Account.
- Letter from a Legal Adviser.
- Letter from an Auditor
- Proposed salary structure
- Veterinary certificate (Optional)
- Personal History Statement (PHS) forms at One Hundred Thousand (100,000.00) only. All directors must obtain one.
- Two copies of the Directors credentials to be attached with PHS forms.
- Letter from bankers.
- Eight copies of the passport photographs of the directors.
- Eight full photographs of each of the Directors with a white background, with five fingers and signature signed at the back of the photograph in the presence of officers of the Nigerian Security and Civil Defence Corps.
- Photocopy of the signature page of the Directors’ International passport or National ID Card or Driver’s License and this should be stapled at the back cover of the file jacket.
- PHS form must be adequately filled to reflect Nil or Not Applicable to portions of the form that the Directors intend not to answer, as no column should be left unfiled.
- Attestation letters from the referees for each director
- One uniform sample with two photographs of a guard in the uniform. The uniform and accoutrement must not have a semblance of any government agency or any Private Guards Company.
Renewal of License
Renewal of license requires membership of the Association of Licensed Private Security Practitioners of Nigeria.
