HOW TO REGISTER A SECURITY FIRM AND OBTAIN NSCDC LICENSE IN NIGERIA

Introduction

A private security company in Nigeria is considered a booming business because demand for private security services from individuals, properties, and assets is rising.

The majority of individuals, such as affluent people, self-employed individuals, and private businesses, organizations, government personnel, and bodies, engage the services of a security company on a contractual basis for a fee to provide security and guarding services.

Depending on the situation, these security companies may provide either armed or unarmed security services for their clients. Generally, security companies are not owned by the government but are employed by both private individuals and corporate bodies for security services. 

However, in Nigeria, a private security firm must register with the Corporate Affairs Commission and obtain a mandatory license from the Nigeria Security and Civil Defense Corps (NSCDC) to operate legally.  Thus, where a security firm fails to comply with these strict requirements, it will be exposed to legal penalties and treated as an illegal business.

Hence, this article will look at the requirements for registering a security company. It also provides steps for obtaining a license from the Nigeria Security and Civil Defense Corps (NSCDC) to operate legally in Nigeria.

HOW TO START A PRIVATE SECURITY COMPANY IN NIGERIA

Requirements for Registration of a Private Security Company

Generally, there are two important requirements for registering a security company;

i.              Registration with the Corporate Affairs Commission and

ii.             Obtaining a license from the Nigeria Security and Civil Defense Corps (NSCDC).

In Nigeria, security firms are regarded as private security companies (PSC) or private guard companies. These security companies are regulated and licensed by the Nigeria Security and Civil Defense Corps (NSCDC) through the Private Guard Companies Act.

The NSCDC is a regulatory body established to regulate the activities of private security companies and ensures that these companies are duly registered with the appropriate authority before commencement of operations, according to Section 3 of the Nigeria Security and Civil Defense Corp Act No 2 of 2003.

 The following are the requirements for Registration of a Private Security Company in Nigeria:

1.    Minimum of 2 proposed names for reservation

2.    Nature of business of the company

3.    It must have an authorized share capital of at least 10 million naira.

4.    Valid government-issued ID cards of directors and shareholders

5. Signatures of all directors and shareholders

6.    Personal and contact details of the directors and shareholders of the company, such as residential address, email, phone number, etc.

7.    Registered address of the company

The following are the requirements for obtaining a security license from the NSCDC:

1. Application for a private security license.

2. Evidence of certificate of incorporation with a minimum authorized share capital of 10 million naira and at least 3 directors. One of the directors must be a retired military officer.

3. Two copies of the CTC of the Memorandum and Article of Association

4. Two Photocopies of certificates of incorporation

5. Evidence of payment of prescribed fees

6. Tax Clearance Certificate

7. Statement of account

8. Letter from an auditor

9. Proposed training program

10. Proposed salary structure

11. Veterinary certificate (optional)

12. Personal History Statement (PHS) forms obtained by all directors of the company.

13. Two credentials of directors to be attached with PHS form.

14. Letter from bankers

15. Eight (8) passport photographs for each of the Directors

16. Eight (8) full photographs (postcard 5 x7 inches) of each of the Directors with a white background, with five-fingerprints and signature signed at the back of the postcard (photograph) in the presence of Nigeria Security and Civil Defense Corps Officers.

17. 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.,

18. 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.

19. Attestation letters from referees for each Directors

20. One uniform sample with a photograph of a guard in Uniform (2 copies). All uniforms and accoutrements must not have the semblance of any government agency or similar to any other PGCs.

Licensing Category and Fees

There are two categories of license. Each license has different requirements, which is stated as follows:

i. The first category can have above 3,000 guards and is required to pay a license fee of N3,000,000 (Three Million Naira) aside from the application fee.

ii. The second category is not required to have more than 3,000 guards and must pay a license fee of N2,500,000 (Two Million Five Hundred Thousand Naira).

Conclusion

Registration with the Corporate Affairs Commission (CAC) and obtaining a license from the Nigeria Security and Civil Defense Corps (NSCDC) are key requirements for the commencement of operations by private security companies in Nigeria. Failure to comply with these provisions, the company will be exposed to heavy fines and sanctions. It is important to adhere to these provisions before commencing a private security company.

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