China promulgated security guarding service regulation

By Jason Tian

On October 13, 2009, China State Council unveiled a piece of regulation regarding security service industry, namely, Regulation of Administration of Security Guarding Service.

China has seen a rapid growth in security guarding industry for many years. However, due to the absence of regulations, problems have also been growing therewith. There have been many reported cases where security guards infringed upon people’s rights and freedoms.

The new regulation has made clear several points relating to security service:

1.       Only the security guarding service companies can second security guards to other units. On the other hand, some other institutions and enterprises may employ their own security guards but cannot provide security guarding service to other units.

2.       Security guarding service companies shall apply for security guarding service permit and other entities self-employing security guards shall file with the local police department their security guarding activities.

3.       The regulation has set out conducts security guards may do and shall not do.

4.       It has specifically provided that entertainment places shall not employ their security guards and shall only use the services provided by the security guarding companies.

Another point that may interest you is that the regulation indicates that foreign investors may set up equity or corporative joint ventures or wholly foreign owned enterprises engaged in providing security guarding service.

When applying to set up a security guarding service company (including foreign invested enterprises), the following requirements shall be met:

(1)    The registered capital shall not be lower than RMB 1,000,000;

(2)    The legal representative and other major management personnel shall have related professional knowledge and experience with no bad records;

(3)    Shall have corresponding technical personnel in accordance with its service;

(4)    Having a domicile and be able to provide related equipment and facilities;

(5)    Having sound organizational system, and service administration systems etc..

If you are interested to make such investment, please contact us for more information at 00-86-13816548421 or 00-86-21-50383762, or email: doroto@163.com.