Can You Buy a Security Agency in Singapore? SPF Licence Rules

Short answer: yes, you can buy a security agency in Singapore, but how you buy it decides what happens to the Security Agency Licence. The Private Security Industry Regulations have no process for transferring the licence to another entity. If you buy the shares, the licensed company keeps its licence, but every director and controller must be a fit and proper person, and the next renewal goes through the Security Agencies Competency Evaluation (SACE). If you buy only the assets, your own company must apply for a fresh licence with the Police Regulatory Department (PRD), and it cannot supply security officers until that licence is granted.

This guide is general information from the Singapore Police Force (SPF), GoBusiness and the Private Security Industry Act 2007, not legal advice. Confirm your deal structure with PRD in writing and with a Singapore lawyer before you sign.

Who needs a Security Agency Licence in Singapore?

Under section 15 of the Private Security Industry Act 2007 (PSIA), a business must not supply the services of security officers to other people for reward, or advertise that it does, without a security agency’s licence. The penalty on conviction is a fine of up to $50,000, imprisonment of up to 2 years, or both. SPF’s Security Agency Licence page gives the same two triggers, and the GoBusiness licence directory notes that only companies with this licence can accept assignments from clients.

The individual guards need their own licences too. Section 14 requires a security officer’s licence, and section 16 bars an employer from hiring anyone as a security officer unless that person is a licensed security officer. So when you buy an agency, you are taking on two layers of licensing: the agency licence, and every officer licence.

Does the security agency licence survive a share sale?

In a share sale the licence holder, meaning the company and its UEN, does not change, so nothing is transferred. The licence survives the deal, but it is only as safe as the people who end up running and owning the company:

• Fit and proper test on new officers. Under the PSIA, an “officer” of a business entity includes its directors and any person who can control or substantially influence its affairs. The licensing officer may refuse a renewal under section 21(5), or revoke a licence under section 24(1), if an officer is not, or is no longer, a fit and proper person. Section 21(8) lists the warning signs: associating with criminals, dishonesty, harassing tactics, mental disorder, and undischarged bankruptcy.
• Director changes. Since 15 September 2025, SPF says a licensee should update ACRA within 14 days when a director or partner changes, and need not inform PRD separately once that is done. Regulation 14 of the Private Security Industry (Regulated Agencies, Private Investigators and Security Officers) Regulations 2009 treats the ACRA filing as notice to PRD.
• Controller changes. Regulation 14(5) also requires the licensee to tell PRD in writing within 14 days when there is a change in anyone with a substantial interest in, or control over, its business. This does not apply where that person is a director, and a filing to ACRA’s central register of controllers within the same 14 days counts as that notice.
• Board make-up. SPF’s licensing criteria still apply at renewal: at least 2 directors, all fit and proper, at least one a Singapore Citizen or PR, and foreign directors based in Singapore holding an Employment Pass or S Pass.

SPF does not publish a rule saying that a change of shareholders needs PRD’s prior approval. Ask PRD to confirm in writing that the licence stays valid after completion, and consider making completion conditional on that answer. Its published contacts are the FormSG at go.gov.sg/spf-prd and 6835 0000.

What happens to the licence in an asset sale?

An asset sale moves the contracts, equipment and staff into your own company, and that company has no licence yet. It applies as a first-time applicant through GoBusiness and must meet SPF’s criteria: it must be registered with ACRA, have at least 2 directors with one a Singapore Citizen or PR, have an initial paid-up capital of S$500,000 and run from a physical office. First-time applicants must also pass three core SACE competencies (C1, C2 and C6), and they get a 1-year licence.

Until the licence is granted, your company cannot supply security officers. In practice, either the seller keeps running the sites until completion, or the deal waits for your licence. A seller that stops trading can cancel its licence any time before expiry, but SPF does not refund licence fees.

Compare the two routes in our asset sale vs share sale guide.

What are the licence fees, tenures and processing times in 2026?

SPF revised licence tenures and fees from 1 July 2026, and Regulation 6 now sets them:

• new licence, or renewal for a dormant agency: 1 year, S$355;
• renewal after passing all ten core competencies: 3 years, S$812;
• renewal after passing all core competencies and at least seven electives (one or more from each of the four categories): 5 years, S$1,270.

SPF lists no fee for amending licence details such as directors, operating address or contact details. SPF estimates processing for new, renewal and amendment applications at about 4–6 weeks after a complete submission, and new applicants may be interviewed. The SACE assessment itself takes about four months, though, and a licence grant may be delayed or rejected if the agency does not pass SACE in time, so plan around the longer figure.

What is SACE and why does it matter to a buyer?

SACE replaced the old Security Agencies Grading Exercise on 1 January 2022, and the Police and the Ministry of Manpower assess agencies on core and elective competencies. From 1 January 2026, PRD sends each existing agency a renewal and SACE notice about six months before its licence expires. The assessment starts only after the agency submits its renewal on GoBusiness.

For a buyer, this means that if the licence expires soon after completion, you are the one sitting the evaluation, so check the expiry date before you agree a price. The SACE results page lists the agencies assessed in each cycle, and for renewals under the July 2026 tenures, a 3- or 5-year licence shows the agency passed all ten core competencies (a renewal with exemptions gets only 1 year).

What should due diligence cover before you buy a security agency?

• Licence: the licence, its conditions and expiry date, its tenure, and any notices, suspensions or censures from PRD.
• SACE: past results, and how ready the agency is for the next cycle.
• People conditions: SPF requires at least one director certified in the WSQ module “Manage Security Agency within Legal Framework”. If that director is the only holder and leaves, another director must hold it within six months. Check bizSAFE status too: level 2 for a new licence and level 3 for a renewal.
• Officers: the active staff list and each officer’s licence, grade and training records, which the seller can pull from SPF’s private security licence e-service. Also check that pay meets the Security Progressive Wage Model, which MOM says is a PRD licensing condition.
• Contracts: client contracts with change-of-control, assignment or termination-for-convenience clauses, plus deployment sites and any subcontractors.
• Staff transfer: if you buy the business as a going concern, Section 18A of the Employment Act generally moves employees across on their current terms. Section 16(3) of the PSIA also requires the employer to tell PRD before it hires a licensed officer, and within 14 days after that employment ends. See what happens to staff in a business takeover.

Our due diligence checklist for buyers covers the financial and legal side, and how to buy a business in Singapore walks through the full process. For a similar licence-and-PWM sector, see buying a cleaning business in Singapore.

How do you buy or sell a security agency on SG Business Mart?

SG Business Mart is a Singapore marketplace, not a broker. Sellers list their business directly, choose what to share and talk to buyers themselves, with one-time listing packages of S$49, S$79 or S$99 (see pricing). You can browse current businesses for sale. Sellers can make a buyer’s checks faster by preparing the licence, SACE results, officer list and contract schedule before listing; see selling a business in Singapore.

Frequently asked questions

Can you buy a security agency in Singapore?

Yes. In a share sale the licensed company keeps its Security Agency Licence, as long as its directors and controllers are fit and proper. In an asset sale, your own company must apply for a new licence and cannot supply security officers until it is granted.

Is a Security Agency Licence transferable?

No. The current Private Security Industry Regulations have no process for transferring a security agency licence to another entity. Only a share sale keeps the same licence, because the licence holder does not change.

Do I need PRD approval to buy shares in a security agency?

SPF does not publish a prior-approval rule for share sales. New directors and controllers must be fit and proper, and changes must be notified within 14 days, which an ACRA filing can cover. Get PRD’s position in writing before completion.

What are the requirements for a new security agency licence?

An ACRA-registered entity with at least 2 fit and proper directors, at least one of them a Singapore Citizen or PR, an initial paid-up capital of S$500,000 and a physical office. First-time applicants must also pass SACE core competencies C1, C2 and C6.

How much does a security agency licence cost?

From 1 July 2026: S$355 for a 1-year new or dormant-agency licence, S$812 for a 3-year renewal and S$1,270 for a 5-year renewal. Amending licence details has no fee.

How long does a security agency licence take?

SPF estimates about 4–6 weeks after a complete application, but the SACE assessment takes about four months. A licence grant may be delayed or rejected if the agency does not pass SACE in time.

What is SACE?

The Security Agencies Competency Evaluation is run by the Police and MOM, and it replaced the grading exercise in 2022. It assesses agencies on core and elective competencies, and the results decide whether a renewal gets a 3- or 5-year licence.

Do security officers transfer when you buy a security agency?

In a going-concern purchase, Section 18A of the Employment Act generally moves employees on their current terms. Each officer must hold a valid security officer licence, and PRD must be told before a licensed officer is employed.