PUNJAB PRIVATE SECURITY COMPANIES (REGULATION AND CONTROL) ORDINANCE, 2002

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THE PUNJAB PRIVATE SECURITY COMPANIES 
(REGULATION AND CONTROL) ORDINANCE, 2002 
(LXIX of 2002) 
CONTENTS 
1. Short title, extent and commencement 
2. Definitions 
3. Ordinance not to apply to Civil and Armed Forces, etc 
4. Private Security Companies’ employees not to wear certain uniform 
5. Prohibition of maintenance of a company without a licence 
5-A. Prohibition of cash-in-transit 
6. Procedure for grant and renewal of licence, etc 
7. Registration of existing companies 
8. Appeal 
9. Exhibition of licence 
10. Penalties 
11. Revocation of a licence 
12. Effect of revocation of licence, etc 
13. Employment of staff by licensee, etc 
14. Training of security guards 
15. Possession by licensee of arms, ammunition, etc 
16. Identification papers 
17. Power to inspect and search 
18. Liability of Directors, Officers, etc 
19. Information to be passed on to Government 
20. General 
21. Delegation of powers 
22. Indemnity 
23. Power to make rules 
TEXT 
1
THE PUNJAB PRIVATE SECURITY COMPANIES (REGULATION AND 
CONTROL) ORDINANCE, 2002 
(LXIX of 2002) 
[19th October, 2002] 
An 
Ordinance 
to provide for regulation, licensing and control of private security companies in the 
Province of Punjab. 
 Whereas it is expedient to provide for regulation, licensing and control of 
private security companies in the Province of Punjab and for matters conne cted 
therewith and ancillary thereto; 
 And whereas  the Provincial Assembly of the Punjab is dissolved and the 
Governor is satisfied that circumstances exist which render it necessary to take 
immediate action; 
 And whereas  under Article 4 of the Provisional  Constitution (Amendment) 
Order No.9 of 1999, as amended by the Chief Executive Order No.11 of 2000, the 
Governor of a Province may issue and promulgate an Ordinance; 
 Now, therefore,  in exercise of the aforesaid powers and all other powers 
enabling him in  that behalf, the Governor of the Punjab is pleased to make and 
promulgate the following Ordinance:– 
1. Short title, extent and commencement .– (1) This Ordinance may be called 
the Punjab Private Security Companies (Regulation and Control) Ordinance, 2002. 
 (2) It extends to the whole of the Punjab. 
 (3) It shall come into force at once. 
2. Definitions.– In this Ordinance unless there is anything repugnant in the 
subject or context– 
a) “Company” means a company incorporated under the Companies 
Ordinance, 1984 (XLVII of 1984); 
b) “Government” means the Government of the Punjab; 
c) “licence” means a licence granted under this Ordinance for carrying 
on the business of a Private Security Company by providing for 
consideration, security guards or security arrangem ents for the 
                                                 
1Promulgated by the Governor of the Punjab on 19 October 2002; and published in the Punjab Gazette (Extraordinary), dated 
19 October 2002, pages 3051 -58. Under Article 4 of the Provisional Constitution (Amendment) Order 1999 ( 9 of 1999), it will 
remain in force notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the 
Islamic Republic of Pakistan. 
This Act was published in the Punjab Gazette (Extraordinary), dated 19.10.2002, pages 3051-3058. 
protection of persons or property or to prevent theft or unlawful taking 
of property; 
d) “licensee” means the holder of a licence; 
e) “Licencing Authority” means the Government of the Punjab or an 
officer nominated by Government to exercise al l or any of the powers 
of the Licencing Authority; 
f) “prescribed” means prescribed by rules made under this Ordinance; 
g) “Private Security Company” means any company incorporated under 
the Companies Ordinance, 1984  (XLVII of 1984), carrying on, 
maintaining or engaged in the business of providing for consideration, 
security guards or making other arrangements for the security of other 
persons and their property and cash-in-transit, functioning under a valid 
licence issued by the Licencing Authority; and 
h) “security guard” includes any watchman or other person engaged by 
the licensee for the protection of persons or property or to prevent theft 
or robbery at the protected places and who possesses required training 
as prescribed by the Licencing Authority under the rules. 
3. Ordinance not to apply to Civil and Armed Forces, etc .– The provisions of 
this Ordinance shall not apply to– 
a) any member of armed forces, police or any civil armed force; and 
b) any inspector, guard, watchman, or other persons employed  by an 
individual employer for inspection, protection, guarding of his 
residence, commercial or business premises or for the protection of 
persons or property of such employer who is not engaged in the 
business of Private Security Company. 
4. Private Security Companies’ employees not to wear certain uniform.– No 
person employed by the private security company shall wear uniform akin to uniform 
of armed forces, police or any civil armed force and shall wear the uniform as may 
be prescribed by the Licencing Authority: 
 Provided that no other private security guard employed by private 
organizations or individual employer shall wear the uniform prescribed for security 
guards of registered private security companies. 
5. Prohibition of maintenance of a company wit hout a licence .– No person 
shall carry on the business of a Private Security Company or maintain or provide 
security guards or security arrangements for consideration unless he holds a licence 
for the purpose issued under this Ordinance. 
2
[5-A. Prohibition of cash -in-transit.– No Private Security Company shall 
undertake the business of transit of cash or valuable articles unless a No Objection 
Certificate has been issued by the Licensing Authority in this regard.] 
                                                 
2Added by the Punjab Private Security Companies (Regulation and Control) (Amendmen t) Act 2004 (Act XIII of 2004); and 
published in the Punjab Gazette (Extraordinary), dated 9.6.2004, pages 1459-1460, s.2. 
6. Procedure for grant and renewal of licen ce, etc.– (1) Whoever desires to 
engage or to assist in the business of maintaining a private security company shall 
make an application for grant of a licence to the Licencing Authority and shall with 
his application furnish such information, attach docum ents and pay such fee in the 
form and manner as may be prescribed.  
 (2) On receipt of an application under sub -section (1), the Licencing 
Authority may, after such verification and enquiry as it may deem necessary and 
subject to such conditions, including  furnishing of security, as may be prescribed, 
grant or refuse to grant the licence. 
 (3) A licence issued under sub -section (2) shall be non -transferable, valid 
for a period of three years and shall be renewable on an application made in the 
form and on payment of such fee as may be prescribed. 
 (4) A licensee shall furnish annual performance report before the Licencing 
Authority on such form and within such period as may be prescribed. 
 (5) The Licencing Authority shall, through a notification in the offi cial 
Gazette, prescribe the fee payable for issuance of licence or renewal thereof. 
 (6) A licence shall not be granted if– 
a) satisfactory evidence has not been produced of the good moral 
character of partners and officers of the company holding manageria l 
or executive positions; or 
b) satisfactory evidence has not been produced to show that the applicant 
is a fit and proper person to hold a licence; or 
c) the applicant has been convicted of any offence involving fraud or 
moral turpitude or if the applican t is a company, any of its officers 
holding a managerial or an executive position or, as the case may be, 
any of its partners has been convicted of any offence involving fraud or 
moral turpitude; or 
d) it is not in the public interest to do so; or 
e) the Private Security Company is not registered under the Companies 
Ordinance, 1984 (XLVII of 1984); or 
f) the Private Security  Company has not obtained a No Objection 
Certificate from the Ministry of Interior, Government of Pakistan: 
 Provided that reasons for refusal to grant a licence shall be recorded in writing 
and be communicated to the applicant. 
 (7) The Licencing Authority may, at any time, vary or revoke any of the 
conditions of a licence or impose any additional condition thereto. 
 (8) The Licencing Authority shall, before taking any action under sub-section 
(7), notify to the licensee its intention of the proposed action and provide him an 
opportunity to show cause against such action. 
7. Registration of existing companies .– (1) A company already funct ioning 
under a No Objection Certificate granted by Government shall not continue for more 
than three months from the commencement of this Ordinance unless an application 
for licence has been made within thirty days of such commencement.  
 (2) Where an appl ication as aforesaid has been made in respect of an 
existing company and such application is rejected then notwithstanding the period of 
three months provided in sub-section (1) the company may be continued for a period 
of thirty days from the date on whic h the application is rejected or if an appeal is 
preferred, until such appeal is dismissed. 
8. Appeal.– Any person aggrieved by an order of the Licencing Authority made 
under section 7 may, within thirty days, prefer an  appeal against such order to the 
officer notified in this behalf by Government whose decision thereon shall be final. 
9. Exhibition of licence .– Every licensee shall exhibit his licence or a certified 
copy thereof at a conspicuous place at his principal place of business and at every 
branch where the licensee carries on the business of Private Security Company. 
10. Penalties.– Any person who– 
a) contravenes any of the provisions of this Ordinance or any rule made 
thereunder; or 
b) carries on the business of Private Security Company without a  licence; 
or 
c) fails to comply with the conditions of the licence; or 
d) fails to exhibit the licence or certified copy thereof at a conspicuous 
place in the office or place of business of the Private Security 
Company; or 
e) not being the holder of a lice nce keeps, uses or exhibits any sign, 
writing, painting or other mark implying that he holds a licence to carry 
on the business of a Private Security Company; or 
f) being a licensee or an applicant for grant of a licence knowingly makes 
a false or incorrec t statement or omits to furnish any particular which 
he is required to furnish; or 
g) being a licensee, violates the relevant provisions of the Companies 
Ordinance, 1984 (XLVII of 1984), 
shall be punishable with imprisonment for a term which may extend to three 
years, or with fine which may extend from twenty thousand rupees to two hundred 
thousand rupees or with both, and in case of default of payment of fine, the offender 
shall be liable to imprisonment which may extend to one year. 
11. Revocation of a li cence.– (1) The Licencing Authority may, by an ord er in 
writing, revoke a licence– 
 a) if it is satisfied that the licensee– 
i) has ceased to carry on the business for which he has obtained 
the licence or a licensee being a company, has applied for 
liquidation, winding up of the company or the company has been 
dissolved; or 
ii) has obtained the licence by providing false information in 
contravention of the provisions of this Ordinance; or 
iii) is no longer a fit and proper person to continue to hold a licen ce; 
or  
iv) has been convicted of any offence involving fraud or moral 
turpitude or any of the officers of the licensee holding a 
managerial or executive position, partner, employee or security 
guard has been convicted of any offence involving fraud or 
moral turpitude; or 
v) is contravening or has contravened any of the provisions of this 
Ordinance or the rules made thereunder; or 
b) if it is found that the security guards employed by the company do not 
posses the prescribed qualifications or training; or 
c) if the company fails to provide services to its clients as per agreement 
signed by it or as per the prescribed procedure; or 
d) if it is considered necessary to do so in the public interest. 
 (2) The Licencing Authority shall before revoking any licence under sub -
section (1) give the licensee a notice to show cause in writing specifying a date, not 
less than thirty days from the date of the notice, on which the revocation shall take 
effect unless the licensee satisfies the Licencing Authority that the lic ence was not 
liable to be revoked. 
 (3) When the Licencing Authority revokes a licence under sub-section (1) it 
shall forthwith inform the licensee, by notice in writing of such revocation specifying 
date thereof and the Registrar of Companies concerned. 
 (4) The person whose licence has been revoked may, within thirty days of 
the receipt of the notice referred to in sub -section (3), prefer an appeal to 
Government whose decision thereon shall be final. 
12. Effect of revocation of licence, etc .– (1) Where an  order of revocation 
becomes effective under section 11, the licensee shall cease to carry on the 
business of a private security company. 
 (2) Notwithstanding the revocation of licence, the enforcement of right or 
claim of any person against the licensee or by the licensee of any right or claim against 
any person arising out of, or concerning any matter or thing done prior to the revocation 
of the licence shall not be affected. 
13. Employment of staff by licensee, etc.– (1) The licensee may, in the conduct 
of his business, employ as many persons as he may consider necessary to be 
security guards and members of staff and shall at all times during such employment 
be responsible for the good conduct of each and every person employed by him. 
 (2) The licensee shall not employ as a security guard any person who– 
a) has been convicted of any offence involving fraud or moral turpitude or 
dismissed from Government Service on charges of misconduct; or 
b) is, in the opinion of the Licencing Authority, not a fit and pro per person 
to be employed as security guard. 
 (3) Notwithstanding anything contained in sub -section (1), no person shall 
be employed by a licensee as a security guard until he has submitted to the 
Licencing Authority a statement containing complete particu lars and other 
information of such person on the prescribed form and the Licencing Authority has 
conveyed its no objection in writing to the recruitment of such security guard by the 
licensee. 
 (4) Every licensee shall maintain a list of all the persons em ployed by him 
with their full particulars and antecedents at the place of his business. 
 (5) Every licensee shall, before deploying the security guard, get the 
security guard registered at the local police station of the area of his deployment. 
 (6) Every licensee shall make arrangements for insurance of every 
security guard employed by him, with a registered insurance company, in respect of 
serious injury sustained amounting to disability or death of security guard in the 
discharge of his duties. 
14. Training of security guards .– The Private Security Company shall make 
arrangements for training and refresher courses of the guards employed by it 
through Elite Police Force Training School, Lahore or any other institution prescribed 
by the Licencing Authority. 
15. Possession by licensee of arms, ammunition, etc .– (1) A licensee may 
possess and keep arms, ammunition and other equipment which may be necessary 
for performance of functions of the Private Security Company in accordance with the 
law and rules made thereunder for possessing and keeping of arms and ammunition, 
and shall use and retain such number of arms, quantity of ammunition and type of 
equipment in such manner as may be prescribed. 
 (2) A licence to retain arms, ammunition and other equipment may be  
issued by Government or the authority concerned on the directions of Government. 
 (3) No cash, etc., shall be transported except through special transporting 
vehicles approved by the Licencing Authority. 
 (4) No radio or wireless communication equipment o r any other gadget 
shall be procured or used except with proper licence. 
 (5) All security companies using radio or wireless communication system 
shall submit their communication plans quarterly on the prescribed proforma to the 
Licencing Authority. Any change or addition thereto shall be intimated immediately. 
 (6) The list of all other security gadgets or equipment shall be submitted 
quarterly on the prescribed proforma to the Licencing Authority. 
16. Identification papers .– (1)  Every security guard shal l at all times carry 
proper security papers and identification papers issued by the licensee in such form 
and containing such particulars as may be prescribed and produce such papers for 
inspection when so required by the Licencing Authority or any officer  duly authorized 
by the Licencing Authority and shall surrender the identification papers to the 
licensee when he ceases to be such security guard with the licensee. 
 (2) Any person, other than a security guard, or, who has ceased to be a 
security guard, c arrying identification papers of a security guard shall, in addition to 
any other punishment to which he may be liable under any other law for 
impersonation, be punishable with imprisonment for a term which may extend to one 
year or with fine or with both. 
17. Power to inspect and search.– (1) Where the Licencing Authority is satisfied 
upon receipt of any information or after such enquiry as it may think necessary that 
there is sufficient reason to believe that any premises is used for carrying on 
business of a private security company by a person who is not the holder of a 
licence, it may, by warrant or writing under its hand, authorize any person named 
therein, or any police officer not below the rank of an Inspector, with such assistance 
and by such force  as is necessary to enter for searching the premises and all 
persons found therein, to seize all documents and things reasonably supposed to 
have been used or intended to be used in connection with the business of a private 
security company which are found  in such premises or in possession of such 
persons. 
 (2) The powers of inspection and search of Licencing Authority specified in 
sub section (1) may also be exercised by any person authorized by the Licencing 
Authority: 
 Provided that no female shall be se arched except by a female Police 
Officer/Official. 
 (3) For the purposes of an enquiry, the Licencing Authority or any person 
authorized by it not below an officer of Grade 16, may for furtherance of such 
enquiry– 
(a) enter, inspect and examine by day or b y night the place of business of 
every licensee ; and 
(b) require the production of records, accounts and documents kept by a 
licensee and inspect, examine and obtain copies thereof. 
 (4) Any person who– 
(a) refuses the Licencing Authority or any person au thorized by it to enter 
or search any place; or 
(b) assaults, obstructs, hinders or delays the Licencing Authority, or the 
person authorized by it, entry in execution of the duty assigned under 
this Ordinance; or 
(c) fails to comply with any lawful demand of the Licencing Authority or the 
authorized person in execution of his duty under this Ordinance; or 
(d) refuses or neglects to give any information which may reasonably be 
required of him and which is in his power to give, 
shall be punishable with impris onment for a term which may extend to one 
year, or with fine or with both. 
18. Liability of Directors, Officers, etc.– Where an offence under this Ordinance 
has been committed by a person who at the time of commission of the offence was a 
Director, Secreta ry, Manager, partner or an officer of the company or who was 
purporting to act in any such capacity, shall unless he proves that the offence was 
committed without his consent or knowledge and that on learning he exercised due 
diligence to prevent the commission of the offence, be deemed to have abetted such 
offence. 
19. Information to be passed on to Government .– The Private Security 
Company shall inform Government about the change as and when it occurs 
regarding directors, location, arms and ammunition, employees and guards, etc. 
20. General.– (1) The provisions of this Ordinance shall be in addition to and not 
in derogation of the provisions of any other law for the time being in force. 
 (2) Nothing in this Ordinance shall be construed as conferring on a 
licensee or his employees any of the powers which by any law are conferred upon or 
exercisable by a police officer or officers of customs, immigration, prisons, or any 
other public officer: 
 Provided that all licensed private security companies including th eir directors, 
security supervisors and security guards shall have a right to defend their own 
bodies and the bodies of other persons and lawful property for which the Private 
Security Company has entered into an agreement to protect against any offence 
affecting the human body or such property. 
 (3) The Private Security Company shall not be construed as Private 
Military Organization for the purposes of Private Military Organizations (Abolition and 
Prohibition) Act, 1973. 
21. Delegation of powers .– Government may, by notification in the official 
Gazette, delegate all or any of its powers under this Ordinance, either generally, or in 
respect of such company or class of agencies as may be specified in the notification, 
to any of its officers. 
22. Indemnity.– No suit, prosecution or other legal proceedings shall lie against 
any person for anything which is done or intended to be done in good faith under this 
Ordinance. 
23. Power to make rules .– (1) Government may make rules for carrying out the 
purposes of this Ordinance. 
 (2) In particular and without prejudice to the generality of the foregoing 
powers, such rules may provide for all or any of the following, namely– 
(a) the information and documents to be furnished by an applicant for a 
licence; 
(b) the taking and recording of photographs and fingerprints of the persons 
applying for a licence and of every person employed by a licensee; 
(c) the form of a licence and the identification papers of the security 
guards; 
(d) the uniform, badge or emblem to be worn by th e employees of a 
licensee; 
(e) restraining the use of any arms, ammunition and equipment by a 
licensee and his employees; 
(f) regulating the activities of a licensee and the manner in which the 
business of a licensee shall be conducted; 
(g) training for security guards; 
(h) matters pertaining to the welfare of employees of private security 
companies; 
(i) compulsory insurance and compensation in case of serious injury 
amounting to disability or death of security guards in discharge of his 
duties; and 
(j) matters incidental to the above.