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Setting up a Security Company



Setting up a Security Company


Here is a guide on how to set up a security company in Malaysia:

  1. Form a business structure. The business structures for security companies in Malaysia are private limited liability company (PLC). A PLC is a must. It offers limited liability protection to its shareholders.

  2. Register your business with the Companies Commission of Malaysia (SSM). You will need to provide SSM with your company's name, address, and directors. You will also need to pay a registration fee.

  3. Obtain a Private Agency License (PAL) from the Ministry of Home Affairs (KDN). To obtain a PAL, you must have a paid-up capital of at least RM50,000 or RM600,000 and one of your shareholders must be a former high-ranking officer of the police or army with at least 30% of the company's share equity.

  4. Purchase public liability insurance. This will protect your company from financial liability in the event of a claim arising from your security services.

  5. Hire qualified security guards. Your security guards must be trained and licensed by the KDN.

  6. Develop a security plan. This plan should outline your company's security procedures and protocols.

  7. Obtain the necessary permits and licenses from the relevant authorities. This may include permits for the use of security equipment, such as firearms or surveillance cameras.

  8. Market your business. Let potential clients know about your security services. You can do this through advertising, attending trade shows, and networking with other businesses.

Here are some additional tips for setting up a security company in Malaysia:

  • Conduct market research. Understand the demand for security services in your area and identify your target market.

  • Write a business plan. This will help you to define your goals, strategies, and financial projections.

  • Comply with all applicable laws and regulations. This is essential to avoid legal problems and ensure that your security company is operating safely and ethically.

  • Invest in training and development for your employees. This will help them to improve their skills and knowledge, and provide better security services to your clients.

  • Build relationships with other security companies and law enforcement agencies. This can help you to share information and resources, and stay up-to-date on the latest security threats.

Security Agency License


A security agency license in Malaysia is a permit required to operate a private security company. The license is issued by the Ministry of Home Affairs (KDN) under the Private Agencies Act 1971.


There are two types of security agency licenses in Malaysia:

  • License 2(a): This license is for companies that provide personal guard and protection services.

  • License 2(b): This license is for companies that provide investigation services.

To apply for a License 2(a), you must meet the following requirements:

  • Your company must be registered with the Companies Commission of Malaysia (SSM).

  • Your company must have a paid-up capital of at least RM600,000.

  • At least one shareholder must be a former high-ranking officer of the Malaysian Police or Army with a minimum rank of Senior Assistant Commissioner (SAC) or Brigadier General (BrigGen), holding at least 30% of the company's share equity. Alternatively, at least one shareholder must be a former public officer with experience in the management and professional group, having served in the security sector for at least five (5) years with a rank grade of 54 or possessing a security course certificate at an equivalent level, holding at least 30% of the company's share equity.

  • Your company must have a security plan that outlines your company's security procedures and protocols.

  • The majority of the shares (70%) are held by Bumiputera shareholders.

  • Your company must purchase public liability insurance.

  • Your security guards must be trained and licensed by the KDN.

To apply for a License 2(b), you must meet the following requirements:

  • Your company must be registered with the Companies Commission of Malaysia (SSM).

  • Your company must have a paid-up capital of at least RM50,000.

  • At least one of your shareholders must be a former high-ranking officer of the police or army with at least 30% of the company's share equity.

  • Your company must have a security plan that outlines your company's security procedures and protocols.

  • Your company must purchase public liability insurance.

  • Your security guards must be trained and licensed by the KDN.

To apply for a security agency license, you must submit the following documents to the KDN:

  • Application form for Private Agency License

  • Copy of business plan working paper together with the biodata of shareholders and Board of Directors

  • Copy of SSM certificate of incorporation

  • Copy of company's bank statement showing a paid-up capital of at least RM50,000

  • Copy of identification documents of all shareholders and directors

  • Copy of security plan

  • Copy of public liability insurance policy

  • Copy of security guard training and licensing certificates

The processing time for a security agency license application is usually two to three months.

Once you have obtained a security agency license, you must renew it every two years.


How Bestar can Help


Bestar is a leading corporate services provider in Malaysia that can help you with all aspects of setting up a security company in the country. We offer a comprehensive range of services, including:

  • Company registration: Bestar can help you register your company with the Companies Commission of Malaysia (SSM). We will also provide you with free company secretarial services for one year.

  • Obtaining a Private Agency License (PAL): Bestar can assist you in obtaining a PAL from the Ministry of Home Affairs (KDN). We have a team of experienced professionals who can guide you through the application process and ensure that you meet all the requirements.

  • Purchasing public liability insurance: Bestar can help you find and purchase public liability insurance for your security company. We will work with you to find the best policy for your needs and budget.

  • Developing a security plan: Bestar can help you develop a security plan that is tailored to your specific needs. We will assess your company's security risks and recommend appropriate security measures.

  • Obtaining the necessary permits and licenses: Bestar can assist you in obtaining the necessary permits and licenses from the relevant authorities. We have a good understanding of the regulatory landscape and can ensure that your company is compliant with all applicable laws and regulations.

In addition to these services, Bestar can also provide you with ongoing advice and support. They can help you with things like:

  • Compliance with laws and regulations: Bestar can keep you up-to-date on changes to the law and ensure that your company is compliant with all applicable regulations.

Bestar is a trusted partner for many security companies in Malaysia. We have a proven track record of helping businesses to succeed. If you are looking for a reliable and experienced partner to help you set up your security company, Bestar is the right choice for you.


Here are some of the benefits of using Bestar to set up your security company:

  • Expertise: Bestar has a team of experienced professionals who can guide you through every step of the process.

  • Affordability: Bestar offers competitive rates and packages.

  • Convenience: Bestar can handle all aspects of setting up your security company, so you can focus on running your business.

  • Peace of mind: Bestar is a trusted partner that you can rely on to get the job done right.

If you are interested in learning more about how Bestar can help you set up your security company, please contact us today. We will be happy to answer your questions and provide you with a free consultation.



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