← Back to Hong Kong licences
HONG KONG LICENCES
SFC licensed corporation
Regulated activities · Securities and Futures Ordinance (Cap. 571)
Licensing authoritySecurities and Futures Commission (SFC)
Governing legislationSecurities and Futures Ordinance (Cap. 571)
Common activity typesTypes 1, 2, 4, 7 and 9
Financial requirementsUnder the Financial Resources Rules
Purpose of the licence
A licensed corporation is licensed for specified regulated activities. Common examples are Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 7 (providing automated trading services) and Type 9 (asset management). Unless an exemption applies, carrying on the relevant regulated activity requires the appropriate licence or registration.
Main application requirements
- Appoint at least two SFC-approved Responsible Officers for each regulated activity, including at least one executive director, and ensure at least one RO is available at all times to supervise each activity. Personnel must also satisfy the applicable competence and fit and proper requirements;
- The company, directors, substantial shareholders and managers must meet fit and proper requirements, including background, financial standing and integrity;
- Continue to meet the Securities and Futures (Financial Resources) Rules and other applicable financial requirements. For a Type 9 licence subject to a condition prohibiting the holding of client assets, the minimum paid-up share capital requirement does not apply and minimum liquid capital is HK$100,000. Actual resources must be calculated for the activities, licence conditions and Rules;
- Have suitable business and record-keeping premises that protect confidentiality and security and allow regulatory access. Shared offices or business centres require an individual assessment, together with appropriate information systems and business continuity arrangements;
- Submit financial resources returns and audited accounts as required.
Application process
- Form a Hong Kong company and identify qualified Responsible Officers and managers;
- Prepare the business plan, compliance manual and financial evidence, and apply to the SFC;
- The SFC reviews completeness and requests additional information where needed;
- Respond to SFC enquiries, which may cover the operating model and shareholders' sources of funds;
- The SFC decides on the corporate and relevant individual licences and RO approvals.
Acquisition, sale and transfer
An acquisition of a licensed corporation, such as a Type 4 or Type 9 business, may be assessed. Availability is confirmed separately, and operations depend on due diligence, personnel and required regulatory procedures. We provide matching, valuation, licence and background checks, and coordination of ownership changes and regulatory procedures.