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Hong Kong is known for being a regional hub for the financial industry. The Securities and Futures Commission (SFC) issues various licences for different needs of financial institutions and establishes regulations around them. We help you with the technical jargons, walk you through the regulatory requirements and assist in the application of Licensed Corporation (LC) licences issued by the SFC.
Companies that conduct any of the following regulated activities are required to hold a SFC licence:
There are a lot of rules, guidelines, and processes involved in obtaining a license from the SFC.
Our team of professionals formerly from the Big 4, banks and regulator simplify the journey for you. We’ll follow all of the steps necessary to get you registered, from beginning to end. We offer guidance on the various licensing requirements for any categories that financial institutions ask for. Whether you’re a fund manager, financial adviser, insurance broker, trust manager company, or payment services provider, we can help.
Our experienced team will guide you along the licensing journey.
Outsource filing SFC license applications and leave the stress to us. We have extensive experience in preparing and submitting SFC license applications for entities engaged in securities dealing, advising on securities and corporate finance, as well as asset management.
The types of licenses under the SFC regime include:
Note: The Securities and Futures Ordinance (SFO) has been revised to introduce licensing requirements for dealing in OTC derivative products or advising on OTC derivative products (type 11 regulated activity) and providing client clearing services for OTC derivative transactions (type 12 regulated activity). However the licensing regimes are not yet in operation and the effective date for implementation is not yet confirmed.
We will be with you during the entire journey from drafting, submission, and attending to SFC queries to finally obtaining the license. Outsource the preparation and submission of SFC license applications to us as we have the best team to guide and help you navigate through the regulator’s requirements.
We have successfully applied for various types of licences issued by the SFC. Our high success rate is primarily attributable to our tailored and comprehensive approach in assessing the key factors, through the regulator’s lenses:
The licensing application process begins upon submission of a letter of application, together with completed prescribed forms, supporting documents, and the required prescribed fee. The SFC will assess, among other things, the applicant’s business plan, compliance functions, financial standing, and other relevant aspects of the proposed licensed corporation and its contemplated regulated activity. Following a preliminary review of the materials received, the SFC will issue a letter formally accepting the application.
Pursuant to the SFC’s performance pledge, the processing period for a corporate licensing application is 15 weeks from the date of formal acceptance. Depending on the completeness of the information provided and whether the SFC has any concerns regarding the application, the overall licensing process typically takes approximately 4–6 months.
If applicants do not meet the licensing criteria, have complex business models, or fail to provide necessary forms, information or documents at time of initial application, they may experience a longer review period.
Outsource filing SFC license applications to us and we will strive to make it a worry-free experience for you.
Determining the exact license type depends entirely on your proposed business activities and how revenue is generated, rather than your corporate structure or entity type.
In Hong Kong, the Securities and Futures Ordinance (SFO) breaks down regulated activities (RAs), into distinct "Types".
For institutional clients and financial firms, the vast majority of applications centre around Type 1 Dealing in Securities, Type 4 Advising of Securities, and Type 9 Asset Management. However, your specific business setup may require a combination of these licenses.
During our initial scoping session, we review your investment activities and target clients to ensure you apply for the precise scope of Regulated Activities (RAs), avoiding costly misclassifications.
You can absolutely add an additional Regulated Activity (“RA”) at a later date. This is a very common approach for financial institutions that want to launch their core business quickly and expand their regulatory scope as they grow.
However, you cannot simply update your entity profile to reflect the change. You must submit a formal application for the “Addition of Regulated Activity.”
The application process is similar to a corporate licensing application. Our team of skilled professionals can assist you throughout the licensing process to add the additional regulated activity.
The SFC will not review a Corporate License application without its accompanying individual RO applications. You must appoint a minimum of two approved ROs for each regulated activity, at least one of whom must be an Executive Director of the Hong Kong entity, and at least one must be physically based in Hong Kong to provide active supervision.
Your capital must be fully injected and verified prior to final approval, but it does not need to be entirely in your bank account on the day you submit your application.
The SFC evaluates your financial requirements across three distinct stages:
At Application Submission: You must demonstrate financial capability. This means providing a 6-month operational budget, a funding plan, and bank statements proving that your parent company or shareholders have the ready funds to support the Hong Kong entity.
Before Final Approval (The "In-Principle" Stage): Once the SFC is satisfied with your vetting, they will issue an Approval-in-Principle (AIP) letter. This is the trigger point. You must immediately inject the required Paid-up Capital into your Hong Kong bank account, calculate your Liquid Capital, and submit a formal financial return (Supplement D) as proof of funds to secure your final certificate.
Once Approved (Ongoing): The moment your license is active, you must maintain the required Paid-up and Liquid Capital at all times. Dipping below the statutory threshold during operations requires immediate notification to the SFC and a cessation of regulated activities.
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