Hong Kong Securities & Futures Commission

If a firm carries on a business in regulated activities in or from Hong Kong, or holds itself out as carrying on such a business, it is required to set up a presence in Hong Kong and be appropriately licensed by The Hong Kong Securities and Futures Ordinance (the SFO) Cap. 571. Regulated activities as defined by the Securities and Futures Ordinance are as follows (except for banks which are licensed under the Banking Ordinance and are primarily regulated by the Hong Kong Monetary Authority):

 License Regulated Activities Capital Requirements
Type 1 Dealing in securities 10M (app. US$1.3M)
Type 2 Dealing in futures contracts 5M (app. US$641K)
Type 3 Leveraged foreign exchange trading 30M (app. US$3.9M)
Type 4 Advising on securities 5M (app. US$641K)
Type 5 Advising on futures contracts 5M (app. US$641K)
Type 6 x Advising on corporate finance 5M (app. US$641K)
Type 7 Providing automated trading services 5M (app. US$641K)
Type 8 Securities margin financing 10M (app. US$1.3M)
Type 9 Asset management 5M (app. US$641K)
Type 10 Providing credit rating services 5M (app. US$641K)

Hong Kong Securities and Futures Commission License Key Features

  1. Only companies incorporated in Hong Kong or an overseas company registered with the Companies Registry of Hong Kong (Applicant Company) needs to obtain a licence if any of its proposed activities fall within the definition of one of the regulated activities.
  2. The individuals who carry on regulated functions on behalf of a licensed corporation are required to be licensed representatives accredited to the licensed corporation (LRs).
  3. An Applicant Company will need to appoint at least two (2) such individuals as responsible officers (ROs).
  4. At least one (1) RO must be an executive director of the corporate entity that actively participates in or is responsible for directly supervising the regulated activity for which they are licensed.

Hong Kong Securities and Futures Commission License Legal Requirements

Requirements Description
  • Corporate  vehicle permitted
Hong Kong Company
  • Local physical office required
  • Validity of Licence
2 Years
Share capital or equivalent
  • Minimum paid up capital
Depending on the type of regulated activity, paid-up capital and liquid capital not less than the specified amounts must be maintained at all times.
  • Minimum number
  • Corporate directorship allowed
  • Local director required
  • Minimum number
  • Corporate shareholders allowed
  • Local  shareholders required
Service Providers Required
  • Company Secretary
  • Requirements to File

Hong Kong Lender License Tax Treatment

There is no capital, value added or inheritance taxes in Hong Kong, nor any stamp or document duties except in respect of Hong Kong real property.

Hong Kong Lender License Duration to Set Up

2 – 3 months

Hong Kong Lender License Distinctive Benefits

  • There is no capital, value added or inheritance taxes in Hong Kong, nor any stamp or document duties except in respect of Hong Kong real property.
  • Hong Kong Lender License allow for a wide range of activities within it scope.
  • There is no requirements for presence of a physical office.

Why US (Key Strengths)

  1. We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances.
  2. Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  3. We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly.
  4. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  5. We have a full in-house compliance support for all compliance requirements with the regulator and service providers


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