Security Services Company Registration in Nepal

Starting a security services company registration in Nepal requires compliance with multiple legal frameworks, regulatory approvals, and licensing requirements. The private security sector in Nepal has grown significantly over the past decade due to increased demand from banks, corporate offices, industries, embassies, and residential complexes. This article explains the complete process, legal requirements, documents, fees, and regulations for security services company registration in Nepal.

What is a Security Services Company in Nepal?

A security services company in Nepal is a private business entity that provides trained security personnel, surveillance, and protection services to clients on a contractual basis. These companies deploy armed or unarmed security guards, supervisors, and managers to protect people, property, and assets.

Security service companies in Nepal must be registered under the Company Act, 2063 (2006) and must separately obtain a license under the Private Security Service Act, 2063 (2006). Both registrations are mandatory before commencing any security-related business operations in Nepal.

Legal Framework for Security Services in Nepal

The security services sector in Nepal is governed by a specific set of laws and regulations. Understanding these laws is the first step toward lawful registration.

Primary Laws and Regulations

Law / Regulation	Year (B.S.)	Year (A.D.)	Purpose
Private Security Service Act, 2063	2063	2006 AD	Regulates private security service companies and personnel
Private Security Service Regulation, 2065	2065	2008 AD	Operational guidelines and procedures for security firms
Company Act, 2063	2063	2006 AD	Governs company formation and registration
Labor Act, 2074	2074	2017 AD	Regulates employment and workers’ rights
Foreign Investment and Technology Transfer Act, 2075	2075	2019 AD	Governs foreign involvement in businesses

The Private Security Service Act, 2063 defines private security services as any service provided by a person or entity for consideration, involving guarding persons, premises, vehicles, cash, or valuables. This Act prohibits anyone from operating a security service company without obtaining the required license from the government.

Types of Security Services Covered Under the Law

Under the Private Security Service Act, 2063, the following types of security services fall within the regulated scope:

• Personal Security (Bodyguard Services): Protection of individuals
• Premises Security: Guarding commercial buildings, factories, and residential complexes
• Cash and Valuables Transit: Escorting and protecting cash, gold, and valuables
• Event Security: Managing crowd and access control at events
• Industrial Security: Guarding factories, warehouses, and industrial zones
• Institutional Security: Banks, hospitals, educational institutions, embassies

All of these service categories require the company to hold a valid license issued by the Ministry of Home Affairs through the concerned District Administration Office (DAO).

Regulatory Authorities for Security Company Registration in Nepal

Security services company registration in Nepal involves multiple government authorities:

• Office of the Company Registrar (OCR): For company incorporation under the Company Act, 2063. Visit OCR Nepal
• Ministry of Home Affairs (MoHA): Grants the final license for private security service operations. Visit MoHA Nepal
• District Administration Office (DAO): Issues local-level approval and security service license
• Inland Revenue Department (IRD): For PAN/VAT registration. Visit IRD Nepal
• Department of Labor: For labor registration and compliance under the Labor Act, 2074

Step-by-Step Process for Security Services Company Registration in Nepal

Step 1: Company Name Reservation at OCR

The first step is to reserve the company name at the Office of the Company Registrar. The name should not be identical to any existing registered company and must not violate the naming guidelines under the Company Act, 2063.

Step 2: Prepare Company Documents

After name reservation, prepare all required documents as listed below and have them notarized where applicable.

Step 3: Register the Company at OCR

Submit the company registration application along with all documents at the OCR. The company can be registered as a Private Limited Company or a Public Limited Company. Most security service firms in Nepal register as Private Limited Companies.

Step 4: Obtain PAN and VAT Registration at IRD

After company registration, obtain the Permanent Account Number (PAN) from the Inland Revenue Department. VAT registration is required if the annual turnover exceeds the threshold defined by the IRD.

Step 5: Apply for Security Service License at DAO/MoHA

This is the most specific and mandatory step for security companies. Apply for the security service license at the concerned District Administration Office (DAO) under the Ministry of Home Affairs. The application must comply with the Private Security Service Act, 2063, and the Private Security Service Regulation, 2065.

Step 6: Police Clearance and Verification

The Ministry of Home Affairs coordinates with Nepal Police for background verification of the company directors and key personnel. This step ensures that persons with criminal records do not operate security agencies.

Step 7: Labor Registration and Social Security Fund Enrollment

Register all security personnel under the Labor Act, 2074 and enroll them in the Social Security Fund (SSF) as mandated by the Social Security Act, 2074.

Step 8: Renew License Annually

The security service license is valid for one year and must be renewed annually from the concerned DAO or MoHA office as per the Private Security Service Regulation, 2065.

Documents Required for Security Services Company Registration in Nepal

Documents for Company Registration at OCR

• Application form for company registration
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Citizenship certificates of all shareholders and directors
• Passport-size photographs of directors
• Proof of registered office address (rent agreement or ownership certificate)
• Bank voucher of registration fee payment

Documents for Security Service License at DAO/MoHA

• Certified copy of company registration certificate from OCR
• Certified copy of PAN/VAT certificate
• Details of proposed security personnel (name, age, qualification, experience)
• Proof of paid-up capital as required under the Act
• Details of training facilities for security guards
• Uniform design and code of conduct documentation
• Character certificates (police clearance) for directors and key management
• Details of arms/weapons (if applying for armed security services)
• Office premises documents (rent agreement or ownership deed)
• Security guard training program outline

Minimum Capital Requirement for Security Companies in Nepal

Under the Private Security Service Regulation, 2065, security service companies must meet specific minimum paid-up capital requirements depending on the category of services they intend to provide.

Category of Security Service	Minimum Paid-Up Capital
Unarmed Security Services	NPR 10,00,000 (Ten Lakh)
Armed Security Services	NPR 25,00,000 (Twenty-Five Lakh)
Cash / Valuables Transit Services	NPR 50,00,000 (Fifty Lakh)
Nationwide Multi-Category Security	NPR 1,00,00,000 (One Crore)

These figures are subject to periodic revision by the Ministry of Home Affairs. Companies must demonstrate that the capital has been deposited in a recognized bank account in Nepal before the license is granted.

Can Foreign Nationals Register a Security Services Company in Nepal?

Under the Foreign Investment and Technology Transfer Act, 2075 (2019), the security services sector in Nepal falls under the restricted or prohibited category for foreign direct investment (FDI). The government of Nepal does not allow foreign nationals or foreign entities to own or operate private security service companies in Nepal.

This means only Nepali citizens can register and operate security service companies in Nepal. Any foreigner found operating a security business in Nepal without authorization is subject to legal penalties under the Private Security Service Act, 2063, and other applicable laws.

Responsibilities of a Licensed Security Service Company in Nepal

Once licensed, the security service company has specific legal responsibilities under the Private Security Service Act, 2063:

• Provide proper training to all security personnel before deployment
• Ensure security guards carry valid identity cards issued by the company
• Maintain a register of all employed security personnel
• Not deploy security personnel without a written service agreement with the client
• Comply with the uniform and conduct standards prescribed by MoHA
• Renew the license before expiry every year
• Report any criminal incidents or misconduct of security personnel to the concerned authority
• Follow the wage and benefit standards under the Labor Act, 2074

Penalties for Operating Without a Security Service License in Nepal

Section 18 and related provisions of the Private Security Service Act, 2063 prescribe penalties for violations. Operating a security service company without a valid license can result in:

• Imprisonment of up to 3 years
• Fine up to NPR 30,000 or both imprisonment and fine
• Seizure of equipment and assets used in unauthorized security operations
• Permanent disqualification from obtaining a future security service license

Conclusion

Security services company registration in Nepal involves a two-stage process: company registration at the Office of the Company Registrar and obtaining a security service license from the Ministry of Home Affairs through the District Administration Office. The entire process is governed by the Private Security Service Act, 2063, the Private Security Service Regulation, 2065, and the Company Act, 2063. Meeting the minimum capital requirements, submitting the correct documents, and ensuring full compliance with labor and security laws are the key requirements for successfully starting and operating a security services company in Nepal.

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