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Security Company Licence

Updated: Jul 30





Security Company


A security company is a business entity that provides security services and expertise to clients in the private or public sectors. These services can include:


  • Manned guarding: Security guards are stationed at a client's property to deter crime,  monitor activity, and enforce security policies.

  • Electronic security: Security companies can install and monitor security systems, such as alarms, CCTV cameras, and access control systems.

  • Cash in transit: Security companies transport cash and other valuables between locations securely.

  • Bodyguarding: Security companies provide personal protection services to individuals.

  • Investigations: Security companies can conduct investigations into criminal activity, fraud, or other security breaches.


Security companies can be large and international, or small and local. They can specialize in a particular type of security service, or offer a wide range of services.


Here are some of the benefits of using a security company:


  • Improved security: Security companies can help to deter crime, protect property, and keep people safe.

  • Peace of mind: Security companies can give you peace of mind knowing that your property and people are being protected.

  • Expertise: Security companies have the expertise and experience to develop and implement effective security measures.

  • Cost-effectiveness: Hiring a security company can be more cost-effective than hiring your own security personnel.


Security Company Licence


To obtain a Security Company Licence in Hong Kong, you will need to apply through the Security and Guarding Services Industry Authority (SGSIA). They are the licensing authority for approving Security Company Licences.


Here's a summary of the process:


Matters for Determining a Security Company Licence in Hong Kong


The Security and Guarding Services Industry Authority (SGSIA) in Hong Kong considers several key factors when evaluating an application for a security company licence. These factors are outlined in the "Matters to which the Security and Guarding Services Industry Authority shall have regard when determining an application for a Security Company Licence".   


Eligibility


  • Your company must be registered in Hong Kong.

  • You will need to demonstrate a sound financial background with a financial reference from a Hong Kong bank or similar institution.

  • The company directors and executives must be of good character.


Key Factors Considered by SGSIA


1. Company Background:


  • Legal structure and registration in Hong Kong.

  • Financial stability and ability to sustain operations.

  • Character and background of company controllers, directors, and executives.


2. Premises:


  • Suitable office space for operations.

  • Adequate facilities for training and administration.


3. Staffing:


  • Sufficient number of qualified and trained personnel.

  • Clear management structure and responsibilities.

  • Robust recruitment and vetting procedures.



  • Adequate insurance coverage for liabilities arising from business operations.


5. Security Equipment:


  • Appropriate equipment for the type of security services offered.


6. Operational Procedures:


  • Clear and effective procedures for managing security operations.

  • Compliance with industry standards and regulations.


7. Security Guard Training:


  • Comprehensive training programs for security guards.

  • Ongoing professional development opportunities.


8. Client Contracts:


  • Clear and enforceable contracts with clients.

  • Effective service delivery and complaint handling mechanisms.


9. Financial Management:


  • Sound financial practices and controls.

  • Ability to meet financial obligations.


Additional Considerations


  • Nature of Security Services: The type of security services offered (e.g., guarding, armored transportation, security systems installation) will influence the specific requirements.

  • Criminal Records: Background checks of company personnel and potential employees.

  • Public Interest: The potential impact of the security company on public safety and security.


Importance of Compliance


Adhering to these matters is crucial for obtaining and maintaining a security company licence in Hong Kong. Failure to comply with the regulations can result in licence suspension or revocation.


Requirements for Different Types of Security Services in Hong Kong


The specific requirements for a security company licence in Hong Kong will vary depending on the types of security services you intend to offer. Here's a breakdown of some common security services and potential requirements:


Security Company Licence - Three types of security work

Type I

security work

Type II

security work

Type III

security work

Provision of security guarding services

Provision of armoured transportation services

Installation, maintenance and/or repairing of a security device and/or designing (for any particular premises or place) a security system incorporating a security device


1. Security Guarding Services


  • Basic requirements:

    • Sufficient number of trained security guards.

    • Effective recruitment and vetting procedures.

    • Clear operational procedures for guarding duties.

    • Adequate insurance coverage.

  • Additional requirements (depending on the site):

    • Specific training for handling crowds, VIP protection, or specialized equipment.

    • Licensing for carrying restricted items (e.g., radios, batons).

    • Compliance with industry-specific regulations (e.g., aviation, healthcare).


2. Armored Car Services


  • Stricter requirements due to high-risk nature:

    • Specialized training for guards and drivers.

    • Secure vehicle fleet with advanced security features.

    • Robust security protocols for cash handling and transportation.

    • Compliance with transportation regulations.

    • Licensing for carrying firearms (if applicable).


3. Security Systems Installation and Maintenance


  • Technical expertise:

    • Qualified technicians for installation, maintenance, and repair.

    • Knowledge of various security systems (CCTV, alarms, access control).

    • Compliance with industry standards and regulations.

  • Licensing:

    • May require specific licenses for handling certain types of equipment (e.g., alarm systems).


General Requirements for All Security Services


  • Financial stability: Demonstrating the ability to sustain operations.

  • Suitable premises: Adequate office space for administration and training.

  • Insurance coverage: Protecting the company from liabilities.

  • Compliance with SGSIA regulations: Adhering to all applicable laws and regulations.


Application Process for a Security Company Licence in Hong Kong


The application process for a security company licence in Hong Kong can be complex. It involves multiple steps and requires the submission of various documents.


Key Steps Involved:


1. Meet Eligibility Criteria: Ensure your company meets the basic requirements for a security company licence, such as being registered in Hong Kong, having sufficient financial resources, and qualified personnel.


2. Prepare Required Documents: Gather all necessary documents, including:


  • Company registration certificate

  • Business registration certificate

  • Financial statements

  • Details of company directors and shareholders

  • Information about premises and facilities

  • Details of security personnel

  • Insurance certificates

  • Operational plans

  • Other relevant documents as specified by SGSIA


3. Submit Application: Submit the completed application form and supporting documents to the Security and Guarding Services Industry Authority (SGSIA). This can be done either online or in person.


4. Application Assessment: SGSIA will review your application and conduct inspections of your premises and operations if necessary.


5. Licensing Decision: Based on the assessment, SGSIA will either grant or reject your application. If granted, you will receive a security company licence.


Online Application:


To streamline the application process, the SGSIA has introduced an online application system called "e-Licence". This platform allows you to submit your application electronically and track its progress.


Important Considerations:


  • Compliance: Ensure your company adheres to all relevant laws and regulations.

  • Timeframe: The application process can be time-consuming, so plan accordingly.


Additional Tips:


  • Prepare a detailed business plan outlining your company's objectives and strategies.

  • Demonstrate a strong commitment to security and safety standards.

  • Be prepared to provide additional information or documentation if requested by SGSIA.


For the most accurate and up-to-date information, please refer to the official SGSIA website: https://www.sb.gov.hk/eng/links/sgsia/scl.html


How to Apply for a Security Company Licence in Hong Kong


Key Steps:


1. Meet Eligibility Criteria:


  • Ensure your company meets the basic requirements, such as being registered in Hong Kong, having sufficient financial resources, and qualified personnel.


2. Prepare Required Documents:


  • Gather all necessary documents, including:

  • Company registration certificate

  • Business registration certificate

  • Financial statements

  • Details of company directors and shareholders

  • Information about premises and facilities

  • Details of security personnel

  • Insurance certificates

  • Operational plans

  • Other relevant documents as specified by SGSIA


3. Submit Application:


  • Submit the completed application form and supporting documents to the SGSIA. This can be done online or in person.

  • The SGSIA has introduced an online application system called "e-Licence" for a more efficient process. The application process is now done electronically through the SGSIA website [e-form for Security Company Licence].


4. Application Assessment:


  • SGSIA will review your application and conduct inspections of your premises and operations if necessary.


5. Licensing Decision:


  • Based on the assessment, SGSIA will either grant or reject your application. If granted, you will receive a security company licence.


Additional Tips:


  • Timeframe: The application process can be time-consuming, so plan accordingly.

  • Compliance: Ensure your company adheres to all relevant laws and regulations.

  • Detailed Business Plan: Prepare a comprehensive business plan outlining your company's objectives and strategies.

  • Strong Commitment: Demonstrate a strong commitment to security and safety standards.


By following these steps and carefully preparing your application, you can increase your chances of obtaining a security company licence in Hong Kong.


Additional Information


The Security and Guarding Services Ordinance (SGSO) also requires security guards to hold a Security Personnel Permit (SPP) issued by the Hong Kong Police Force.


Processing Time for a Security Company Licence in Hong Kong


Breakdown of the Process


The processing time for a security company licence in Hong Kong can be divided into two main stages:


1. Police Investigation:


  • Maximum of 60 days for the Commissioner of Police to submit the investigation results to the Security and Guarding Services Industry Authority (SGSIA).

  • This period can be extended twice, by a maximum of 30 days each time, if necessary.


2. SGSIA Processing:


  • Maximum of 28 days after the completion of the police investigation (the "material date") if no hearing is required.

  • If a hearing is necessary due to police objections or a member of the Authority requesting one, the processing time will be extended until the hearing is concluded.


Total Processing Time


While it's difficult to provide a definitive timeframe due to potential extensions and hearings, the minimum processing time would be:


  • 60 days (police investigation) + 28 days (SGSIA processing) = 88 days


However, it's essential to consider that this is the shortest possible timeframe and the actual processing time could be significantly longer.


Factors Affecting Processing Time


Several factors can influence the processing time:


  • Complexity of the Application: Applications with extensive details or requiring in-depth investigation may take longer.

  • Police Investigation Findings: If the police find issues during their investigation, the process could be delayed.

  • Need for a Hearing: A hearing adds time to the overall process.

  • Submission of Complete Information: Providing all required information upfront can expedite the process.


Important Considerations


  • Extensions: Both the police and the SGSIA have the power to extend the processing time under certain circumstances.

  • Hearing: If a hearing is required, it can significantly delay the decision-making process.

  • Complete Information: Providing all necessary information accurately and promptly is crucial to avoid delays.


Security Company Licence Fees in Hong Kong


Fees for a Security Company Licence in Hong Kong


The fees for a Security Company Licence in Hong Kong are typically structured as follows:



The exact amount of these fees can vary based on:


  • Type of Security Services Offered: Different types of security services (e.g., guarding, armored car, security systems installation and maintenance) may have different fee structures.



$

I.

Application fee for new issue of a licence

3,500

II.

Annual fee payable upon actual issue of a licence for:


(a)

security work type I

14,650

(b)

security work type II

27,950

(c)

security work type III

14,650

(d)

security work types I and II

 32,350

(e)

security work types I and III

19,050

(f)

security work types II and III

32,350

(g)

security work types I, II and III

41,200


Helpful Resources:


Here are some resources that you may find helpful:



How Bestar can Help


Bestar specializes in accounting services for businesses operating in Hong Kong, particularly those with foreign investors. Here's how we can help:


  • Company Formation: Bestar can assist with incorporating a business in Hong Kong. This includes navigating the process of choosing a business structure, registering your company, and obtaining any necessary licenses and permits.

  • Secretarial Services: We can provide ongoing secretarial services to ensure your company complies with legal requirements, such as filing annual returns.

  • Accounting and Tax Services: Bestar can handle your bookkeeping, tax filing, and other accounting needs. This can be especially helpful for foreign investors who may not be familiar with Hong Kong's tax system.

  • Business Advice: We also offer general business advice relevant to Hong Kong, helping you understand the local business environment and regulations.


If you're considering establishing a business in Hong Kong, especially as a foreign investor, then Bestar's services could be valuable in navigating the process and ensuring you comply with regulations.


Consult with Bestar to discuss your specific needs and see how we can assist you.






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