In order to open a Singapore security agency, an entrepreneur will need to meet certain company registration requirements and several employment conditions imposed by the Police Licensing and Regulatory Department (PLRD).
Below, our company formation agents in Singapore guide investors through the steps for opening a security agency. With experience in registering companies in various industries in Singapore, our consultants can assist those interested in opening a security agency business here.
Choosing a business form for the Singapore security agency
Apart from the Private Security Law which provides for the specific requirements which must be met by Singapore companies operating in this field, the Company Law’s provisions must also be respected. Among these provisions, there is also the requirement of choosing an appropriate business form for conducting the activities.
The Company Law provides for:
the future owners to choose a suitable structure for the company which respects the legal requirements in terms of registration;
drafting the Articles of Association in which the main object of activity of the business is written;
depositing the minimum share capital in accordance with the legal requirements in its industry;
incorporating the company with the Accounting and Corporate Regulatory Authority and other relevant authorities;
obtaining the necessary licenses in order to offer the services written in the constitution documents.
One of the best business forms for setting up a company in SIngapore as a security agency is the limited liability company as it offers various advantages to its shareholders.
If you decide to open a company in Singapore in the private security field, our advisors can assist you during the incorporation procedure. Such a business can also be created as a branch office in Singapore.
The best legal form of a security agency in Singapore
When opening a security agency in Singapore, there are various things to consider, among which the legal form under it will operate. Depending on whether the owner is a Singapore national or a foreign one, there are several types of structures one can choose from.
The partnershipis the most suitable business form for foreign citizens who want to open small security companies in Singapore, as they can enter an agreement with Singapore citizens who know how the market works and the requirements to be met. Moreover, considering the qualification requirements for the company directors, the Singapore citizen or resident is highly likely for them to meet these selection criteria.
Another type of entity that can be used for the creation of a Singapore security agency is the limited liability company which has obvious advantages such as the limited responsibility of the shareholders and also the possibility of having more than one owners who can contribute to the share capital of the company.
No matter the decision of the owner or owners, both legal forms are suitable for such an enterprise in Singapore.
Another way of setting up a company in Singaporeas a private security business is through a joint venture or even a franchise, if there is an offer in this sense. The joint venture is a suitable option for those who have an established firm abroad and which can cooperate with a local one in order to cover the Singapore market.
The franchise implies less operational effort from the franchisee, however, the fee for taking over the business model can be more expensive. Either way, these are both options for those interested in setting up this type of venture in Singapore.
If you decide to open a company in Singapore and need guidance, our local experts are at your service in order to help you register the selected business form.
We invite you to watch our video on how to set up a security agency in Singapore:
Company formation for a security agency in Singapore
Foreign or local investors who want to set up such business in Singapore must first register a company for which they must ensure the following:
- a minimum share capital of 300,000 SGD for the company;
- a minimum number of two directors, where each of them will fulfill certain specific duties;
- obtain one of the two licenses issued by the PLRD: the security agency license or the security service provider license;
- the business form of the agency must be the private limited liability company;
- the private security agency must be located in a space dedicated for commercial purposes.
Requisites for the directors of security agencies in Singapore
As mentioned earlier, a Singapore private security company must have at least two directors who must fulfill certain roles in the company. The first director must act as a contact point with the Police Licensing Department, while the second one must have one of the following qualifications:
at least 2 years of experience in a private security-related position;
must be a certified manager under the Private Security Act in Singapore;
must have passed the Manage Security Operations training module within the PLRD;
must have passed the Manage Security Emergencies training module with the PLRD.
Also, the director applying for one of the licenses for offering private security services must be a Singapore resident.
Company directors in a security firm in Singapore
As mentioned above, a Singapore security company must have at least two directors who will have different responsibilities within the firm. One of the directors will represent the company in its relations with the authorities and will apply for the security agency license, while the other will become the contact person with the Police Force in Singapore.
If the criteria for the first director were described above, the second director will also need to comply with a few requirements, among which:
- he or she must have at least 2 years of experience in a security-related field or must have managed a security firm;
- must be certified under the WSQ module of the Manage Security Agency;
- must have a clean criminal record and a good character.
Other requirements when opening a security agency in Singapore refer to the uniform of the personnel for which prior approval from the Licensing Office with the PRLD has been obtained. The uniform must not be similar to that of the police or army in Singapore.
If you want to open a company in Singaporeand operate as a private security firm, we invite you to reach out to our specialists if you have any questions about the creation of such a business.
Other requirements for security agencies in Singapore
Setting up a security firm in Singapore implies having various responsibilities which must be mainly fulfilled by the person who has been licensed for such activities. The first and most important one refers to the fact that only the licensee will be allowed to manage the activities of the Singapore company. Also, the licensee cannot enter into debt collection cases on behalf of the company, nor does he or she allow for the employees to enter such situations.
The Singapore security firm has the right to hire personnel, including persons over the age of 60, however, proper medical examinations must be undergone by the staff. Each person must undergo training before starting to work for the firm. It is also important to note that under the Private Security Law, specific wages must be ensured.
If you plan on setting up a security firm in Singapore and information on all the requirements to be met, our company formation agents can offer detailed information.
Can a security agency operate as a branch office in Singapore?
Yes, it is possible for foreign companies to set up operations in Singapore under the form of a branch office, however, the foreign security agency must make sure it meets all the requirements imposed by the legislation here in order to set up an office and develop its activities.
First of all, the branch office will meet the same share capital requirements imposed under the Singapore legislation. Then, it must make sure to hire personnel in accordance with the legal requisites imposed by the Singapore Police Department. Also, all licenses must be obtained by the parent company on behalf of the local entity.
The creation of a security agency can be supervised by our Singapore company formation officers who can also prepare the documents required to incorporate this business form.
Small security business vs. a large private security company in Singapore
Most security agencies in Singapore have started small before growing into large ones, which is why for those seeking to have a predictable future, starting small is a good option. Moreover, the local government supports small entities through various subsidies and grants which can also be accessed by security agencies.
At the level of 2019, there were more than 252 security agencies in Singapore for which the government proposed the creation of a Special Wage Credit Scheme, just like in the case of other industries.
Through the Security Association Singapore, licensing conditions are to be revised in the coming years, with the purpose of consolidating the private security services market.
If you have any questions about the current legislation related to the operation of a private security agency in Singapore, you can direct them to our local representatives.
Tailored assistance in opening a Singapore security agency
If you decide on opening a private security company, you can rely on the support provided by our company registration advisors in Singapore. They will make sure to propose a suitable business form, in accordance with the size of your future business and then handle the registration procedures with the Accounting and Corporate Regulatory Authority (ACRA).
We will then advise on the licensing requirements to be met, however, you should know that it take a few weeks to obtain the operating license. Also, the certification courses that must be completed by the employees will also take a few weeks more. Apart from these, all security agents must also obtain their ID cards with the USE Customer Service Centre.
If you want to open a security company in Singapore and need advice, do not hesitate to ask our specialists about all the requirements to meet before starting the registration procedure.
Why open a security agency in Singapore?
Singapore is one of the busiest cities in the world which is why the private security sector developed at a fast pace in the last few years. Considering there are no restrictions to foreign investors interested in operating in this industry, many overseas experienced security agents decide to open their own companies in Singapore.
According to recent statistics, the Singapore security industry:
- is expected to bring around 18 million USD to the local economy in 2019;
- by 2023, the same industry is expected to generate 23 million USD;
- by 2023, the number of private security firms is expected to increase by 16.7%;
- household security services in Singapore are expected to grow by 4.9% by the end of 2019.