Obtaining a Financial Services License in Hong Kong

Hong Kong is one of the world’s leading financial hubs, ranking third globally and first in Asia as a trusted centre for finance. Its open markets, international connectivity, and robust regulatory system make it a top destination for financial institutions and professionals looking to serve clients across the region.

But entering this market isn’t as simple as setting up shop. If you plan to advise clients, manage assets, trade securities, or provide other financial services in Hong Kong, you must first obtain the proper licence. Operating without one is a serious offence that can result in fines, licence revocation, or even criminal liability.

This guide walks you through everything you need to know about financial services licensing in Hong Kong, including:

✅ Who needs a licence and who doesn’t
✅ Which regulators oversee financial services activities
✅ The step-by-step licensing process, costs, and timelines
✅ Common exemptions and compliance obligations

By the end, you’ll have a clear roadmap to navigate Hong Kong’s licensing requirements and ensure your business operates legally and with confidence.

Financial services in Hong Kong are overseen by multiple authorities, each responsible for specific types of activities. 

The Securities and Futures Commission (SFC) is the primary regulator for most common financial services, including securities trading such as stocks, bonds, and ETFs, as well as futures contracts, asset management, and investment advisory services.

Other regulators that handle more specialised areas include:

• Hong Kong Monetary Authority (HKMA): Oversees banking and deposit-taking institutions. Banking services in Hong Kong operate under a separate licensing system, which is divided into three tiers. These institutions are commonly referred to as “authorised institutions”. When an authorised institution provides financial services, it falls under the direct supervision of the HKMA.
• Customs & Excise Department (CED): Primarily enforces import and export laws, but also supervises certain financial compliance areas such as anti-money laundering (AML) in money service sectors
• The Insurance Authority (IA): Regulates insurance companies and insurance intermediaries
• The Mandatory Provident Fund Schemes Authority (MPFA): Administers retirement fund schemes

Any company or individuals offering or advertising regulated financial services in Hong Kong must have a license. This rule applies whether the operation is based in Hong Kong or another country.

According to the Securities and Futures Commission of Hong Kong (SFC), the following list of financial activities is regulated and requires a license from SFC:

Other requirements 

• Any overseas corporation or individual that wants to engage in any of the activities previously mentioned within Hong Kong can apply for a temporary license. This license usually lasts 3 – 6 months, may have extra requirements, and requires the company to register with the Companies Registry (CR) as a Non-Hong Kong Company. For example, registering as a Branch of an international company.  
• If an individual wishes to engage in any of the above-mentioned activities on behalf of a corporation, he or she needs to obtain a representative's license. 

Certain activities in Hong Kong do not require a financial services license. These include:

• Group company advice: if you own the shares of a company or group, there is no need to apply for a license to provide financial advice solely to the company. 
• Essential to another regulated activity: if you already have a license for the regulated activity and providing advice on another regulated industry is essential for carrying out your business, you don't need to apply for an additional activity, as long as it is for the sole purpose of the first activity that you hold a license for. 
• Professional advice perspective: certain professionals such as accountants, trust companies advisors or lawyers do not need to apply for a financial service license to provide advice as long as it is related to their main core industry. 
• Margin financing activities: the institutions and individuals who hold securities dealing licenses, do not need an additional license for engaging in margin financing activities for their clients. 
• Leveraged foreign exchange trading: the authorised institutions, that are directly regulated by the Hong Kong Monetary Authority (HKMA), don't need to apply for an additional license for foreign exchange trading.
• Engaging with professional investors: if you carry out securities and futures dealing activities as the principal or agent, meaning not acting on behalf of a corporation or anyone else, there is no need to apply for a financial services license while engaging with companies or other individuals who hold licenses. The definition of professional investors can be found in Chapter 571 of the Securities and Futures Ordinance (SFO) of Hong Kong, in Schedule 1. 

In addition, individuals who carry out regulated functions for a HKMA licensed bank or deposit-taking company(for example, bank employees in a securities dealing department) do not need to be licensed or registered with the SFC. However, if they are performing regulated activities, their names must be listed in the register maintained by the HKMA. 

To obtain a financial license in Hong Kong, you generally apply through the Securities and Futures Commission (SFC). The key steps are outlined below.

License registration is open to both corporate and individual applicants, as individual applicants can apply for a license known as a ‘representative license’. 

Corporate applicants must be either a company incorporated in Hong Kong or an overseas company registered with the Companies Registry of Hong Kong. Sole proprietorships and partnerships are not eligible for licensing as intermediaries. 

Depending on the activity that the applicant wants to engage in, there could be some minimum capital and liquidity requirements. These requirements ensure that the entity has sufficient funds to meet operational needs and regulatory requirements.

The following are the requirements:

* depending on whether client assets are held, and whether the entity is a sponsor or non-sponsor.

Whether applying as an individual or a corporation, you must satisfy the SFC “Fit and Proper” guidelines both at the time of application and throughout the period your license or registration is in force. This assessment covers the company itself, all shareholders, the applicant, and other relevant persons as appropriate.

The SFC will consider:

• Financial status: the authority will review if there is any history of financial troubles, debts, or bankruptcy from the applicant. Your best approach is to ensure that there are no outstanding debts or unresolved bankruptcy cases before you submit an application.
• Qualifications and experience: the applicant must have relevant and verifiable experience related to the activity to carry out. 
• Good standing and reputation: the applicant must not be blacklisted or have a tarnished reputation for malpractices.
• Individuals must be at least 18 years old.

The SFC will refuse a license if the applicant does not satisfy its requirements for being fit and proper.

The criteria outlined above form the fundamental basis for the SFC’s assessment of each license or registration application. The SFC may also take other factors into account that are not publicly disclosed.

For more information, please refer to the “Fit and Proper Guidelines” and “Guidelines on Competence” .

The company will need to nominate at least two individuals to occupy this role, in which they will be in charge of supervising the conduct of each activity. The individuals will need to hold a license for being a representative in the intended regulated activity. 

Additionally, the nominated individuals for the role must possess the know-how and qualifications to engage in the regulation of their business-regulated activities. 

Several documents must be submitted as part of the licensing process. While requirements may vary depending on the type of license, the fundamental documents generally include:

• Proof of identity for directors and shareholders: Passport or Hong Kong ID card to verify personal identity.
• Details of directors and shareholders: Personal information, professional qualifications, and relevant experience to assess fitness and competence.
• Certificate of Incorporation: Official document proving that the company is legally registered.
• Memorandum and Articles of Association: Legal documents outlining the company’s structure, purpose, and governance rules.
• Organisational chart: Visual representation of the company’s management structure and reporting lines.
• Business plan and financial projections: Applicants must submit a business plan outlining operations and expected expenses for the first six months. If there is insufficient capital, the plan should explain how additional funding will be secured and from what sources.
• Insurance requirement: for some of the intended regulated activities, for example, securities and futures or margin financing, the applicant must be insured for a certain amount to carry out the activity.  
• Compliance and risk management system: mechanisms to lower the liabilities and risk should be put in place within the company.

Both corporate and individual applicants can submit their application online to the SFC via the SFC's official platform called WINGS (Web-based Integrated Licensing and Regulatory System).

It is recommended to create an account before submitting applications by clicking Sign Up in the upper right corner, so you can save progress while completing the application. Individual accounts are for non-licensed people submitting for themselves or others, while Advisory Firm accounts are for professional advisors submitting on behalf of clients. 

You will have to provide your name, contact number, email, and address (if you are an advisory firm) and create login details. WINGS will send a verification code to your mobile or email.

Once you have an account, you can access the application forms on the All Forms page. Complete every question in the application form, including any supplements and questionnaires, where applicable.

Follow the instructions on the page, make sure to provide all necessary supporting documents and properly sign the application. 

You can track the progress of your application through the account you used to submit it.

WINGS may return your application if it is incomplete. You can resubmit later with additional documents or information. Common reasons for application return include:

• Applying for the wrong type of regulated activity.
• Missing required forms, supplements, questionnaires, or supporting documents.
• Failing to explain why you are fit and proper in areas such as disciplinary actions, financial status, character, or mental health (for individuals).
• Not meeting competence requirements.

After your application is accepted, you will receive a WINGS Mail requesting payment. Pay the fee through WINGS’ online payment system. See the table below for the amount.

Fees are charged per type of regulated activity, meaning if you operate more than one type of activity, you will pay the fee for each type separately.

Licenses have an expiration date. Annual fees, at the same amounts listed above, must be paid within 30 days of expiry to maintain validity. 

Late payments of 1 to 3 months incur a 10%–50% surcharge; payments overdue by more than 3 months result in suspension, and payments over 4 months result in revocation of the licence.

Once all the documentation and requirements are fulfilled, the application process takes between 2 and 4 months, depending on the activity to carry out.

The processing time may vary depending on several factors, including the types of services or products you propose to provide, the quality and completeness of your application, response times from other regulatory bodies to vetting requests (where applicable), your response time to provide any additional information requested during assessment, and the total number of applications being processed at any given time.

Once licensed, entities are required to comply with ongoing regulatory obligations, which include 

• Regular submission of financial reports
• Adherence to anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations
• Compliance with conduct and disclosure standards.

Both the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), have the power to enforce the regulations and make inspections of institutions and companies, as well as request the release of pertinent documents. If inspection results in a breach of the permitted regulated activity in the license, the authority will use disciplinary, civil, or criminal actions, depending on the gravity of the breach. Some of the consequences include the following:

• License revocation or suspension.
• Monetary penalties and fines.
• Directions to strengthen internal controls and risk mechanisms. 
• Court notifications for winding up orders, or void declarations of securities transactions.
• Criminal prosecutions for minor offenses or indictable offenses. Depending on the seriousness of the offenses, they will be prosecuted by different authorities. Minor offenses will be overseen by the SFC, while indictable ones by the Department of Justice. For example, maximum fines are up to 10 million Hong Kong dollars and 10 years of imprisonment. 

To operate legally in Hong Kong’s financial market, businesses intending to provide or advertise financial services or products must obtain a financial services license, primarily from the SFC. This requirement applies to Hong Kong-incorporated companies, as well as foreign companies that want to engage in trading activities in Hong Kong. 

The application form can be found and filled online, and all applicants must demonstrate proper reputation, relevant qualifications, and sufficient liquidity.

It is always important to highlight that failing to comply with the requirements established by the Hong Kong authorities can result in losing the financial services license, or even escalate to civil and criminal penalties. It is the responsibility of the directors and the company secretary to ensure that the activities carried out are in compliance with the laws and local regulations of Hong Kong.