How to Apply for a Security Company Licence in Hong Kong

How to Apply for a Security Company Licence in Hong Kong | Bestar

How to Apply for a Security Company Licence in Hong Kong

To apply for a Security Company Licence in Hong Kong, you must follow the procedures set out by the Security and Guarding Services Industry Authority (SGSIA). This license is required for any company that provides security services for reward. The application process involves several steps and requires the submission of various documents.

Here's a breakdown of the process:

1. Eligibility and Pre-Application

• Company Only: An application for a Security Company Licence can only be made by a company, not an individual.

  
  

• Defining Security Work: The license covers various types of security work, as defined by the Security and Guarding Services Ordinance (Cap. 460). The types of work include:

  
  

  • Type I: Provision of security guarding services.

  • Type II: Provision of armored transportation services.

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

2. Obtaining Application Forms and Guidance

• Source: You can obtain the application form (SGS 6) and other relevant documents from the SGSIA or the Police Licensing Office.

  
  

• Online Access: The application forms and detailed guidance notes are also available for download from the Security Bureau's website, which is the parent body of the SGSIA. These documents provide crucial information on the requirements, submission process, and a list of all necessary supporting documents.

3. Completing the Application

• Company Information: The application form requires detailed information about your company, including its Certificate of Incorporation, Business Registration Certificate, and any certificates of change of name.

  
  

• Personnel Details: You will need to provide information on the company's directors, controllers, and anyone concerned with management and training. The SGSIA and the Commissioner of Police will conduct an investigation to ensure all these individuals are "fit and proper" persons to hold a license.

  
  

• Supporting Documents: You must prepare a comprehensive list of supporting documents based on the type of security work you intend to provide. This can include:

  
  

  • Training records and manuals for security personnel.

  • Resumes of trainers and management staff.

  • Information on uniforms and staff ID cards for verification.

  • For Type II work, information on armoury checks and vehicle construction.

  • For Type III work, information about your security device systems and designs.

4. Submitting the Application

• Methods: You can submit the completed application form and supporting documents in person, by post, or through the GovHK webpage.

  
  

• e-Submission: The SGSIA has launched electronic licensing services, so you can submit your application online using a digital signature such as "iAM Smart +" or a Hongkong Post e-Cert (Organisational).

5. Application Fee and Investigation

• Payment: An application fee is payable upon submission. A demand note will be issued after the Authority receives your application.

  
  

• Police Investigation: The personal data you provide will be passed to the Commissioner of Police for an investigation as part of the process. This investigation is to ensure your company and its key personnel are suitable for a license.

  
  

• Inspection: The Security Companies Inspection Unit (SCIU) of the Hong Kong Police Force may conduct an on-site inspection of your company to verify compliance with the required standards.

6. Licence Issuance and Annual Fees

• Granting the Licence: If the SGSIA is satisfied that all requirements have been met, it will grant the license. A prescribed fee is payable upon the grant of the license and annually thereafter.

  
  

• Validity: The license is typically valid for a specified period and requires annual renewal.

Important Notes:

• Security Personnel Permits (SPPs): In addition to the company license, all individuals who perform security work for a reward must hold a valid Security Personnel Permit (SPP) issued by the Commissioner of Police. This is a separate application process from the company license.

  
  

• Review all Guidance: It is crucial to read all the guidance notes and information pamphlets provided by the SGSIA and the Police Licensing Office to ensure your application is complete and accurate. Any false or misleading information may lead to the refusal of the application or the cancellation of the license.

Time Taken

The time it takes to obtain a Security Company Licence in Hong Kong can vary depending on several factors, but under normal circumstances, a typical timeframe is about three months.

Here's a breakdown of the key stages and factors that influence the overall duration:

1. Preparation Phase (Variable)

• Company Formation: If you don't already have a company incorporated in Hong Kong, this is the first step. The time required for company registration can range from a few days to a few weeks, depending on the complexity and your chosen method (e.g., using a professional firm).

  
  

• Document Gathering: This is often the most time-consuming part. You need to collect and prepare all the necessary supporting documents, including:

  
  

  • Corporate documents (Certificate of Incorporation, Business Registration Certificate).

  • Detailed information on directors and key personnel (resumes, background checks).

  • Training manuals, operational plans, and other compliance-related materials.

  • This stage is heavily dependent on your own efficiency and how quickly you can get all the information together.

2. Application Processing (Approximately 3 months)

The official processing time by the Security and Guarding Services Industry Authority (SGSIA) and the Police Licensing Office is the core of the timeline.

• Submission and Acknowledgment: Once you submit a complete application with all the required documents and pay the application fee, the process officially begins.

  
  

• Police Investigation: The Police Licensing Office will conduct a detailed investigation into the background of all key personnel to ensure they are "fit and proper" to hold a licence. This investigation is a major component of the processing time.

  
  

• On-site Inspection: The Police Force's Security Companies Inspection Unit (SCIU) may conduct an on-site inspection of your company's premises to verify compliance with the required standards. The scheduling of this inspection is also a factor.

  
  

• Decision and Licence Issuance: After the investigation and any necessary inspections are complete, the SGSIA will make a determination. If the application is approved, they will issue the licence. The SGSIA issues licences in electronic format (e-Licence) to speed up this final step.

Factors that can cause delays:

• Incomplete or inaccurate applications: This is the most common reason for delays. If your application is missing documents or contains errors, it will be returned, and the processing time will restart.

  
  

• Complex company structures: A more complicated corporate structure or a large number of directors and controllers can extend the time needed for police background checks.

  
  

• Issues with key personnel: If any director or key person has a past record or an ongoing investigation, it will significantly prolong the review process.

  
  

• High volume of applications: The processing time can be affected by the workload of the SGSIA and the Police Licensing Office.

To minimize delays, it is critical to ensure that your application is meticulously prepared, complete, and accurate before submission. Engaging a professional service to assist with this can often help expedite the process.

Fees

In Hong Kong, the fees for a Security Company Licence are broken down into a non-refundable application fee and an annual fee which varies depending on the type(s) of security work the company is licensed to perform.

Application Fee

The application fee for a new or renewed Security Company Licence is a flat rate, regardless of the type of security work. This fee is HK$3,500. You must pay this fee when you submit your application.

Annual Licence Fee

The annual licence fee is determined by the specific type or combination of security work your company is authorized to provide. The different types of work and their corresponding annual fees are:

• Type I (Guard and Patrol Services): HK$14,650

• Type II (Armoured Transportation Services): HK$27,950

• Type III (Security System Installation and Maintenance): HK$14,650

If your company is licensed to provide a combination of these services, the annual fee is a higher combined rate:

• Types I and II: HK$32,350

• Types I and III: HK$19,050

• Types II and III: HK$32,350

• Types I, II, and III: HK$41,200

This fee is payable once the license is granted and on each successive anniversary of the license issue date.

Other Potential Fees

• Replacement Fee: There is also a fee of HK$130 for the replacement of a license.

The exact fee schedule is subject to change, so it's always best to refer to the official documents from the Security and Guarding Services Industry Authority (SGSIA) or the Hong Kong Police Force Licensing Office for the most up-to-date information.

Bestar Professional Fees

Professional fees for applying for a Security Company Licence in Hong Kong are not fixed and can vary widely. These fees are separate from the government fees paid to the Security and Guarding Services Industry Authority (SGSIA).

What Professional Fees Cover

Professional fees refer to the costs of hiring Bestar to help you with the application process. Bestar can provide a range of services, including:

• Consultancy and Advice: Guiding you through the eligibility requirements, license types, and the overall application process. This is particularly useful for companies new to the Hong Kong market or the security industry.

  
  

• Documentation Preparation: Assisting with the compilation and preparation of all required documents, such as the business plan, company structure details, and résumés of key personnel.

  
  

• Compliance Support: Ensuring that your company's operational procedures, training materials, and physical premises meet the stringent standards set by the SGSIA and the Hong Kong Police Force.

  
  

• Liaison with Authorities: Handling communication and inquiries from the SGSIA and the Police Licensing Office on your behalf.

  
  

• Drafting Legal Documents: Preparing and reviewing legal documents required for the application.

Factors Influencing the Cost

The professional fees you can expect to pay will depend on several factors:

• Scope of Services: The more help you need, the higher the cost. A full-service package that includes everything from initial consultation to final submission and follow-up will cost significantly more than a simple document review service.

  
  

• Complexity of Application: The more complex your company structure, the more types of security work you are applying for, or if there are any issues with the background of your directors or controllers, the more professional assistance you will likely need.

  
  

You would need to contact Bestar in Hong Kong and get quotes based on your company's specific needs.

The actual professional fees for a Security Company Licence in Hong Kong will depend on the factors mentioned previously, such as the complexity of the application, and the scope of services.

Here is the professional fee for the application, broken down by the level of service:

1. Basic Service Package (Document Review and Submission)

This option is suitable for companies that have already prepared most of their internal documents but need a professional to ensure everything is in order before submission.

• Services:

  
  

  • Initial consultation to review the company's preparedness.

  • Review of all completed application forms and supporting documents.

  • Final compilation and submission of the application package to the SGSIA.

  • Basic follow-up with the authorities on the application status.

    
    

• Fee: HK$20,000 to HK$50,000

2. Standard Service Package (Full Application Support)

This is the most common option for new entrants to the market. It provides comprehensive support throughout the entire application process, minimizing the workload on the company's internal staff.

• Services:

  
  

  • All services in the Basic Package.

  • Guidance on structuring the company and its key personnel to meet the "fit and proper" criteria.

  • Assistance in drafting the business plan and operational procedures required for the license.

  • Preparation of training manuals and other compliance-related documents.

  • Liaison and handling of all correspondence with the SGSIA and the Police Licensing Office.

  • Preparation for the on-site inspection by the Security Companies Inspection Unit (SCIU).

    
    

• Fee: HK$50,000 to HK$120,000

3. Premium Service Package (End-to-End Compliance and Licensing)

This is for clients who require a high level of support, especially if the company's structure is complex or if they are applying for multiple types of security work. This package involves professional counsel.

• Services:

  
  

  • All services in the Standard Package.

  • Professional advice on company structure, director responsibilities, and legal obligations under the Security and Guarding Services Ordinance.

  • Comprehensive review and drafting of all contracts and agreements related to the security business.

  • Strategic consulting on market entry, including a review of competitors and pricing.

  • Ongoing compliance support for the first year after the license is granted.

  • Handling any potential issues or inquiries from the authorities.

    
    

• Fee: HK$120,000 and above.

Important Notes on These Fees:

• These figures are estimates and should be used for budgeting purposes only.

• The fees do not include the government application and annual fees.

• Bestar will require an upfront fee to begin work.

• Always ask for a detailed service proposal and a breakdown of fees before committing.

How Bestar can Help

Hiring Bestar can be highly beneficial when applying for a Security Company Licence in Hong Kong, especially given the stringent requirements and the detailed investigation process. While you can apply for the license yourself, Bestar can streamline the process and increase your chances of a successful application.

Here's how Bestar can help:

1. Expert Guidance and Strategy

• Navigating Regulations: The Security and Guarding Services Ordinance (Cap. 460) and its subsidiary regulations are complex. Bestar is well-versed in these laws and can provide expert advice on how to comply with them.

  
  

• Fit and Proper Person Criteria: The application process involves a thorough police investigation into the "fitness and properness" of all directors, controllers, and key personnel. A professional can help you understand what this entails and identify any potential issues that could be a red flag for the authorities.

  
  

• License Type and Scope: A consultant can help you determine the correct type of license (Type I, II, or III) for your business model and ensure your application accurately reflects the services you intend to provide.

2. Meticulous Document Preparation

• Comprehensive Checklist: Bestar has a detailed understanding of the extensive list of documents required for the application, including corporate records, business plans, operational procedures, training manuals, and employee details. We can create a checklist to ensure nothing is missed, which is a common cause of delays.

  
  

• Drafting and Review: We can assist in drafting or reviewing your business plan, training materials, and other documentation to ensure they meet the specific standards of the Security and Guarding Services Industry Authority (SGSIA) and the Hong Kong Police Force.

  
  

• Accuracy and Completeness: Bestar ensures that all information provided in the application form is accurate and complete, which is crucial as false or misleading statements can lead to refusal of the license or its cancellation later.

3. Efficient Communication and Liaison

• Handling Inquiries: Bestar can act as the main point of contact with the SGSIA and the Police Licensing Office. We can efficiently respond to queries and provide supplementary information, helping to prevent the application from being delayed or returned.

  
  

• Preparing for Inspection: We can help your company prepare for the on-site inspection by the Security Companies Inspection Unit (SCIU), which is a critical part of the process. This includes reviewing your premises, equipment, and records to ensure they meet all legal and procedural requirements.

4. Time and Risk Management

• Expediting the Process: By ensuring the application is complete and correctly prepared from the start, Bestar can significantly reduce the processing time. This is especially valuable for businesses that need to get up and running quickly.

  
  

• Mitigating Risks: We can help identify and address potential risks or compliance issues before they become problems, thereby reducing the chance of your application being rejected.

  
  

• Post-Licensing Compliance: Bestar offers ongoing compliance services to help you adhere to your license conditions, such as maintaining proper records and updating the authorities on changes to your company or personnel.