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Set Up Your Security Agency in Hong Kong: The Essential Guide to Licensing and Operations

Set Up Your Security Agency in Hong Kong: The Essential Guide to Licensing and Operations | Bestar
Set Up Your Security Agency in Hong Kong: The Essential Guide to Licensing and Operations | Bestar

Hong Kong Security Agency Licensing Guide



Set Up Your Security Agency in Hong Kong: The Essential Guide to Licensing and Operations


Setting up a security agency in Hong Kong is a strategic move, given the city's status as a global business hub with a constant demand for professional security services. However, this is a highly regulated sector. Success depends on rigorous adherence to the Security and Guarding Services Ordinance (Cap. 460) and the strict licensing requirements set by the Security and Guarding Services Industry Authority (SGSIA).


This comprehensive guide breaks down the critical steps, from initial registration to securing the mandatory Security Company Licence, ensuring your venture is set up for compliance and long-term success.



Phase 1: Establish Your Business Entity in Hong Kong


The first step for any business in Hong Kong is formal registration. A security agency must be set up as a company to be eligible for the Security Company Licence.



1. Company Incorporation


  • Legal Structure: Your company should be incorporated, typically as a Limited Liability Company (LLC), with the Companies Registry (CR).


  • One-Stop Registration: Hong Kong offers a 'one-stop' service where you simultaneously apply for company incorporation and business registration.


  • Documentation: You will receive the Certificate of Incorporation (CI) and the Business Registration Certificate (BRC).



2. General Business Requirements


  • Registered Office: Secure a suitable place of business. For security companies, the premises may be subject to inspection by the Police's Security Companies Inspection Unit (SCIU).


  • Financial Standing: Prepare appropriate financial references from a Hong Kong bank to demonstrate a sound financial background, a key requirement for the licence application.

  • Personnel Vetting: The controller(s), directors, and executives of the company must be of good character, often requiring criminal record checks.



Phase 2: Obtain the Mandatory Security Company Licence


To legally supply individuals to perform security work for reward in Hong Kong, your company must hold a valid Security Company Licence issued by the Security and Guarding Services Industry Authority (SGSIA).



1. Define Your Security Work Type


The Security and Guarding Services Ordinance defines "security work" and categorises the licence required. Your application will need to specify the type(s) of security work you intend to provide:


  • Type I: Provision of security guarding services (e.g., watchman, patrol, static guard).


  • Type II: Provision of armoured transportation services (e.g., cash-in-transit).


  • Type III: Installation, maintenance, or repairing of a security device and/or designing a security system.



2. Key Licence Requirements for Type I (Guarding Services)


The SGSIA has stringent requirements, particularly for guarding services (Type I). Your company must satisfy the Authority on matters including:

Requirement Area

Key Details for Compliance

Corporate Status

Must be a company registered in Hong Kong (CI & BRC required).

Financial Health

Sound financial background; often requires a bank reference.

Insurance

Mandatory Public Liability Insurance with a minimum coverage of HK$10 million per incident. Employee Compensation Insurance is also required by law.

Key Personnel

Directors and executives must meet 'fit and proper' criteria (good character, no significant criminal record).

Premises & Facilities

Place of business must be commensurate with the scale of operations. For some services, a secure Control Room meeting specific construction and operational standards is required.

Personnel Vetting

The company must have a formal Employment Vetting process for all personnel, including employment history, reference checks, and residential address checks.

Training

All operational employees must undergo and pass an initial basic training course of at least 16 hours (if they do not hold a valid, recent training certificate accepted by the Authority). Training facilities must be suitable.



3. Application Process


  • Application Form: Complete the Application for a Security Company Licence (SGS 6), obtainable from the SGSIA or the Police Licensing Office (PLO).


  • Submission: Submit the completed form and supporting documents to the SGSIA Secretariat. E-submission may be available.


  • Inspection: The Security Companies Inspection Unit (SCIU) of the Hong Kong Police Force will conduct a thorough background check and a detailed physical inspection of your place of business and facilities (e.g., control rooms, armoured vehicles).


  • Authority Review: The SGSIA will review the application and the SCIU's report before deciding whether to issue the licence.



Phase 3: Personnel Licensing (Security Personnel Permit)


Crucially, every individual performing security work for reward in Hong Kong must hold a valid Security Personnel Permit (SPP), issued by the Commissioner of Police.


Personnel Type

Requirement

Security Guard

Must possess a valid SPP for the relevant category of work (e.g., Type A for guarding domestic/industrial/commercial premises, Type B for 'single-block' domestic).

Employment

Your company, as the employer, must notify the Commissioner of Police within 14 days of the commencement and termination of employment of any SPP holder.



Key Requirements for Security Personnel



To hold an SPP, an individual must:


  • Be a permanent Hong Kong resident or a person permitted to work in Hong Kong.


  • Be aged 18 or above (age limit for Type A and B is 65, with mandatory bi-annual medical checks for those aged 65 and above).


  • Pass a criminal background check.


  • Complete the mandatory basic security training and obtain a recognised certificate.



Phase 4: Operational Compliance and Maintenance


Holding a licence is not the end; your company must maintain compliance. The SCIU conducts regular inspections to ensure standards are upheld.


  • Continuous Compliance: Continuously adhere to the licence conditions, including maintaining the minimum insurance coverage, proper control room operation, and employee vetting procedures.


  • Renewal: The Security Company Licence requires periodic renewal. The renewal process is as rigorous as the initial application, requiring a full review of company suitability and operational standards.


  • Data Protection: If your services involve surveillance or handling client data (especially with Type III security systems), ensure strict adherence to the Personal Data (Privacy) Ordinance (Cap. 486).



Summary of Key Licensing Authorities


Authority

Role

Key Licence/Permit

Companies Registry (CR)

Company registration and maintenance.

Certificate of Incorporation

Inland Revenue Department (IRD)

Tax and business registration.

Business Registration Certificate

Security and Guarding Services Industry Authority (SGSIA)

Licensing of security companies.

Security Company Licence (SCL)

Commissioner of Police (through Police Licensing Office)

Licensing of individual security personnel.

Security Personnel Permit (SPP)


This article provides a general overview for informational purposes. The requirements for establishing a security agency in Hong Kong are complex and subject to change under the Security and Guarding Services Ordinance (Cap. 460). Prospective applicants should always consult the most current guidelines and application forms provided by the Security and Guarding Services Industry Authority (SGSIA) and seek professional corporate advisory assistance to ensure full compliance.



Seamless Security: How Bestar Hong Kong Simplifies Your Security Agency Setup and Licensing

Set Up Your Security Agency in Hong Kong: The Essential Guide to Licensing and Operations


Launching a security agency in Hong Kong is an ambitious venture in a demanding, regulated market. The process involves more than just registering a company—it requires navigating the rigorous compliance framework of the Security and Guarding Services Ordinance (Cap. 460) and securing the mandatory Security Company Licence (SCL) from the Security and Guarding Services Industry Authority (SGSIA).


Attempting this complex process alone can lead to costly delays or outright rejection. This is where partnering with a corporate service provider like Bestar Hong Kong becomes your strategic advantage, ensuring compliance from day one.



Phase 1: Foundation – Company Incorporation & Compliance


The SCL is only issued to a company that is properly registered in Hong Kong and adheres to all statutory corporate obligations. Bestar streamlines this initial, crucial step.


Bestar's Expert Services:


Service Provided

Benefit for Your Security Agency Setup

Limited Company Incorporation

Handles the entire process with the Companies Registry and Inland Revenue Department (IRD), securing your Certificate of Incorporation and Business Registration Certificate promptly.

Mandatory Company Secretary

Appoints a qualified, local company secretary (a legal requirement in Hong Kong) to manage ongoing statutory compliance, maintaining company registers and filing annual returns.

Registered Office Address

Provides a professional, registered address in Hong Kong, satisfying the legal requirement and establishing a credible presence for authority inspection.

Bank Account Opening Assistance

Navigates the often-challenging process of opening a corporate bank account, which is vital for demonstrating the "sound financial background" required by the SGSIA.

Director & Shareholder Structuring

Advises on the optimal corporate structure, ensuring your directors and controllers meet the "fit and proper" person criteria required for the SCL application.



Phase 2: The Critical Step – Securing the Security Company Licence (SCL)


The application for the Security Company Licence (SGS 6) is the most meticulous part of the setup. It requires extensive documentation to prove your company is capable, financially sound, and compliant with operational standards (Type I, II, or III security work).



How Bestar Maximizes Your SCL Success Rate:


SCL Requirement Area

Bestar's Value-Added Support

Pre-Compliance Auditing

Assesses your business plan, operational readiness, and premises to proactively identify and rectify any gaps before submitting the SGS 6 form.

Documentation Preparation

Compiles the vast array of required documents, including business records, controller details, and financial evidence, in the precise format required by the SGSIA.

Financial Proof & Insurance

Assists in structuring the required bank reference and advises on securing the mandatory Public Liability Insurance (minimum HK$10 million per incident) and Employee Compensation Insurance.

Premises & Inspection Readiness

Though you secure the physical location, Bestar guides you on the specific requirements for your office or Control Room (if applicable), preparing you for the stringent inspection by the Police's Security Companies Inspection Unit (SCIU).

Application Submission & Liaison

Submits the completed application (SGS 6) to the SGSIA Secretariat and acts as a professional intermediary, handling official queries and follow-up to expedite the approval process.

Personnel Vetting Guidance

Provides clear guidelines on the company's internal Employment Vetting procedures for security guards, ensuring compliance with SGSIA's requirements for background checks and employment history.



Phase 3: Operational Compliance and Ongoing Support


Once your SCL is secured, ongoing maintenance and compliance are mandatory to keep the licence valid and avoid heavy penalties.


  • Ongoing Corporate Compliance: Bestar ensures timely filing of Annual Returns, renewal of the Business Registration Certificate, and maintenance of all statutory records.


  • Licence Renewal Management: The SCL requires periodic renewal, which involves another comprehensive review. Bestar manages this entire renewal process, ensuring you are prepared well in advance to maintain uninterrupted operations.


  • Accounting and Tax Services: Bestar offers full-suite accounting, bookkeeping, and tax filing services, guaranteeing that your financial records are accurate and transparent—a key factor for demonstrating a "sound financial background" during licence inspections and renewals.



Why Choose Bestar Hong Kong?


Starting a security agency is a specialized investment. By leveraging Bestar Hong Kong’s expertise, you move from complex regulatory hurdles to confident market entry:


  1. Compliance Assurance: Mitigate the risk of licence rejection or revocation due to technical non-compliance.


  2. Time Efficiency: Dramatically reduce the time spent on administrative and regulatory paperwork, allowing you to focus on recruitment and business development.


  3. Holistic Expertise: Benefit from a single partner handling your corporate setup, mandated compliance, and specialized SCL application requirements.


Don't let the complexity of the Security Company Licence delay your launch. Partner with Bestar Hong Kong to lay a robust, compliant foundation for your security agency and establish your business in one of Asia's most dynamic markets.




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