HOW TO REGISTER A PRIVATE SECURITY COMPANY IN NIGERIA.

A private security company is a business entity that provides armed and unarmed security services to private and public clients. It is an organization incorporated for the sole purpose of protecting lives and properties. It is a business corporation that provides armed and unarmed security services to private and public clients. In a bid to enhance the safety of lives and properties in Nigeria, private security companies have played an active role over the years. This sector has also been a major player in the provision of job opportunities for Nigerians. In the 2019 Private Security Guards Data, The National Bureau of Statistics recorded that 1,110 registered private security companies employed at least 828,502 people in Nigeria from 2013 to 2018. This data was supplied by the Nigeria Security and Civil Defence Corps (NSCDC), the agency authorized by law to supervise private security guard companies in Nigeria. The law that provides for the registration and regulation of the private security industry in Nigeria is the Private Guard Companies Act of 1986. 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.

The Ministry of Interior is the main government regulator of private security companies. The minister or anyone so designated by him is empowered to issue licenses to qualified applicant companies. The Nigeria Security and Civil Defence Corps (NSCDC) which was created by virtue of the Nigeria Security and Civil Defence Corps Act No. 2 of 2003 and the Nigeria Security and Civil Defence Corps (Amendment) Act of 2007 has been designated with the power of licensing, operations and monitoring of Private security business in Nigeria. In other words, the NSCDC acting under the Ministry of Interior is empowered to recommend applicants for the issuance of a license to operate. The NSCDC also compiles and maintains a list of licensed private security companies in Nigeria.

HOW TO REGISTER A SECURITY COMPANY IN NIGERIA.

There are generally two steps in registering a private security company in Nigeria: registration with the corporate Affairs Commission and registration with the NSCDC. The two broad stages are outlined below:

REGISTRATION OF THE COMPANY WITH THE CORPORATE AFFAIR COMMISSION (CAC):

A private security guard company must be registered at the Corporate Affairs Commission (CAC) as a limited liability company. The company should have a minimum share capital of Ten Million Naira and the object must be the provision of private security services.

REQUIREMENTS FOR THE REGISTRATION AT THE CORPORATE AFFAIRS COMMISSION.

1. AVAILABILITY OF NAME SEARCH This is the first stage to having a security company recognized private security company in Nigeria. An availability of name search is conducted so that it can be ascertained that no existing organization bears a name which is exactly or so closely similar to the company sought to be incorporated. To conduct this search, get two unique names of your choice and fill Form CAC 1 (Availability Check and Reservation of name) online.

2. Fill Form CAC 2 (form for company registration) online.

3. Fill the Memorandum and Articles of Association online.

4. Pay filing fees to the CAC and Stamp Duties to the Federal Inland Revenue Service (FIRS). The applicant should also budget for Professional fees for the Legal Practitioner (CAC Accredited Agent) who would assist with the entire process.

5. Attach all relevant documents, including the means of identification of Directors and shareholders.

6. Upload electrical signatures of subscribers, Directors, Secretary and legal practitioner/Agent.

After registration with the Corporate Affairs Commission and once the Certificate of Incorporation has been issued, the next step will be to obtain a private Security License from Nigeria Security and Civil Defence Corps (NSCDC)

REGISTRATION WITH THE NIGERIAN SECURITY AND CIVIL DEFENCE CORPS (NSCDC)

The Nigerian Security and Civil Defence Corps (NSCDC) is governed by the Nigerian Security and Civil Defence Corps Act No. 2 of 2003 and the Nigerian Security and Civil Defence Corps (Amendment) Act of 2007. The NSCDC is saddled with the responsibility of licensing and regulating every Private Security Company in Nigeria. The requirement for registration with the NSCDC are outlined below:

1. An application for private guard license addressed to the Commandant General of the NSCDC.

2. Two Certified True Copies of the Memorandum and Article of Association of the Company.

3. Two photocopies of the Certificate of Incorporation.

4. Payment of application fee N500,000 (Five Hundred Thousand Naira).

5. Tax Clearance Certificate.

6. Statement of Account from the Bank.

7. Letter from a Legal Adviser.

8. Letter from an Auditor

9. Proposed salary structure

10. Veterinary certificate (This is optional as it only applies where there would be use of security animals. for example, dogs.)

11. Personal History Statement (PHS) forms at One Hundred Thousand (100,000.00) only. All directors must obtain one. PHS form musts 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 unfilled.

12. Two copies of the Directors credentials to be attached with PHS forms.

13. Letter from bankers.

14. Eight copies of the passport photographs of each of the directors.

15. 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.

16. Photocopy of the signature page of the Directors’ International passport or National ID Card or Driver’s License which should be stapled at the back cover of the file jacket.

17. Attestation letters from the referees for each director.

18. One uniform sample with two photographs of a guard in the uniform. The uniform and accoutrement must not have semblance of any government agency or any Private Guards Company.

The requirements in stage two above will be presented by the NSCDC to the Presidency for a final check and clearance of all the directors. A letter of security clearance will be issued to NSCDC from the Presidency and the company will be invited to pay for the licence fees. The NSCDC reserves the ultimate discretion to grant an application for license having regards to an Applicant’s ability to satisfy all the requirements. When the payment for licence is completed and the Commandant General of the NSCDC recommends the company, a licence may be approved by the Ministry and issued to the company.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080