How To Set Up a Private Security Company In Nigeria

The private security guard companies are supervised by the Nigerian Security and the Civil Defense Corps (NSCDC). The procedure for how to register a security guard company in Nigeria must be commenced with the registration of a private limited liability company.

Most individuals and corporate organizations now require the services of private security companies in addition to the public security services provided by the Nigerian Police Force and the Nigerian Security and the Civil Defense Corps.

Private security companies are non- governmental owned companies which provide security and protection to individuals and organizations who employ their services.

Two Important Steps for Setting Up Private Security Companies in Nigeria:

To commence a private security company in Nigeria, a company with a minimum of N10,000,000 (Ten Million Naira) authorized share capital must be registered with the Corporate Affairs Commission (CAC).
The NSCDC is charged with the responsibility of licensing, monitoring and the supervision of private securities companies in Nigeria according to Section 3 of the Nigeria Security and Civil Defense Corp Act No. 2 of 2003.

Requirements for the registration of a private security company with the CAC:

The proposed name of the private security company (2 names must be submitted)
The address of the private security company
The objectives of the private security company.
Particulars of the 2 directors and shareholders of the company ( this include copies of their identification card, which could be National passport/National Identity card/Driver’s license or voters card)
Phone numbers, email address and residential address of the 2 directors and shareholders.

Requirements for obtaining a Private Security License from NSCDC:

Application for private guard license addressed to the Commandant General
Evidence of company registration with a minimum of N10,000,000 authorized share capital and a minimum of 3 directors. One of the directors must be a retired military officer.
CTC of Memorandum and Article of Association (2 copies)
Photocopies of certificates of incorporation (2 copies)
Payment of prescribed fees
Tax Clearance Certificate
Statement of account
Letter from a legal adviser
Letter from an auditor
Proposed training program
Proposed salary structure
Veterinary certificate (optional)
Personal History Statement (PHS) forms at One Hundred Thousand Naira (N100,000) only. All directors must obtain one.
Credentials of directors (2 copies) to be attached with PHS form.
Letter from bankers
Eight (8) passport photographs for each of the Directors
Eight (8) full photographs (postcard 5 x7 inches) of each of the Directors with a white background, with five fingers print and signature signed at the back of the postcard (photograph) in the presence of Nigeria Security and Civil Defence Corps Officers.
Photocopy of the signature page of the Directors in the 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 by the Directors stating Nil or Not Applicable to portions they do not have answers to and no column should be left unfiled.
Attestation letters from referees for each Directors
One uniform sample with a photograph of a guard in Uniform (2 copies). All uniforms and accoutrement must not have the semblance of any government agency or similar to any other PGCs.
Application fee of N500,000 (Five Hundred Thousand Naira)
Application fee of N500,000 (Five Hundred Thousand Naira)
Licensing Category and Fees– there are two categories of license. separate licensing applicable for the categories are as follows:

For category A, you can have more than 3,000 guards. But apart from the application, you shall also pay N3,000,000 (Three Million Naira) license fee
For category B, you cannot have more than 3,000 guards. The license fee is the sum of N2,500,000 (Two Million Five Hundred Thousand Naira).

It is worthy of note to state that until a license is granted by the NSDC, a private security company cannot begin operations and before any license can be granted by the NSCDC, the company must first be registered by the Corporate Affairs Commission.

Furthermore, the minimum authorized share capital for a private security company/ consultant must not be less than N10 Million authorized share capital.

RENEWAL OF A LICENCE

After the initial issuance of a licence to the security company, the company will be required to renew the licence three months before the expiration of the licence. (Section 11 of the PGC Act).

Section 11 (2) provides that “where the holder of a licence fails to renew such licence within the specified period, the licence shall stand revoked upon its expiry and such holder shall thereupon cease to operate as a private guard company”.

Requirements of renewal

The requirements for the renewal of a licence are as follows:

Application Letter for Renewal of Operational Licence.
Last letter of Renewal or Copy of Licence.
Annual Performance Report (Report of activities of Company in the immediate preceding year).
Staff Return (Staff list, Designation and Salaries).
Current Tax Clearance Certificate.
Current Statement of Audited Account of the Company.
Evidence of Payment for renewal of the licence. The payment must be made into a designated Bank Account.

REGULATORY COMPLIANCE ISSUES FOR PRIVATE SECURITY COMPANIES

By the provisions of the PGC Act, private security companies are expected to comply strictly with all requirements of the law or risk revocation/withdrawal of their licence.

The following are expected of all private security guard companies:

Renewal of licence: Licence to operate a private security company must be renewed promptly. It is prohibited for a Company to operate with an expired licence.
Control and Administration: Part 2 of the PGC Act provides that every company shall keep complete records of its activities including all persons employed from time to time in carrying on the business of the company and make such records available to the regulatory authority whenever requested by the Ministry for inspection. Also, it prohibits private security companies and their personnel from bearing firearms or ammunition in the course of their duties and insists that their training syllabus and instructions must be approved for use by the Minister.
Prohibited activities and offences: Part 3 of the PGC Act provides a list of prohibited activities for PSCs. The prohibited activities include:
Acting as debt collectors, police officers, or “private detectives”.
Divulging to outsiders, any information acquired in the course of duty.
Providing false information for the purpose of securing approval.
Acting as employee of any company that has not been licensed.
Improper dressing. Failure to carry identity card while on duty or wearing, carrying, or bearing any article that is prohibited is an offence.
Advertising business without specifying the name and address of the company as appearing in the licence.
Selling, disposing or renting the company’s licence, approval or identity cards.
Unlawful entry into any premises by employees of the company.
Misrepresentation of facts, inducement or representation of false, misleading and deceptive statements.
It is prohibited for a private security company to evade tax. Before a licence is renewed, the Company must present their current tax clearance certificate.

CONCLUSION

Registering and running a private security company in Nigeria demands strict compliance with the laid down rules and regulations. The slightest departure from the established regulations could lead to the deregistration of the company or revocation of licence to operate. Therefore, it is strongly advisable for such companies to retain the services of a legal practitioner to assist them with issues of regulatory compliance and filling of annual returns/report with the appropriate agencies.