SFC License in Hong Kong

Hong Kong holds a leading position among the world’s financial centers due to its open economy, reliable legal framework, and strict financial regulation. To conduct investment activities and provide brokerage services, it is necessary to obtain a license from the Securities and Futures Commission (SFC). Possessing this license demonstrates reliability and increases trust among investors and clients, allowing companies to attract the attention of major partners.

Advantages of an SFC license in Hong Kong

Protection of investors’ interests. The SFC implements measures to prevent fraud and other manipulations, creating a safe environment for investors.
Opportunity to work with virtual assets. Companies holding this license can engage in virtual asset activities and provide custody services. This option expands business opportunities in the rapidly growing blockchain and cryptocurrency sector.
Support for innovative technologies. The SFC offers various programs that help companies participate in tenders and implement innovations in their operations.
Collaboration with international regulators. The SFC cooperates with major financial institutions, and licensed companies can not only enter larger markets but also attract foreign investors.

Types of SFC licenses in Hong Kong

In Hong Kong, the Commission regulates 11 types of licensable activities, classified as Type 1–11 in accordance with the Securities and Futures Ordinance (SFO).

Type 1 – Dealing in Securities. Required for executing transactions in securities on behalf of clients. Includes brokerage activities, trading of stocks, bonds, and other financial instruments.
Type 2 – Dealing in Futures Contracts. Trading in futures contracts, including commodity, currency, and financial instrument contracts. Covers futures brokers and dealers.
Type 3 – Leveraged Foreign Exchange Trading. Trading foreign currencies using leverage.
Type 4 – Advising on Securities. Providing investment advice on securities.
Type 5 – Advising on Futures Contracts. Advising on futures investments, including recommendations on trading commodities, currencies, and financial instruments.
Type 6 – Advising on Corporate Finance. Providing corporate finance advisory services.
Type 7 – Providing Automated Trading Services. Offering automated trading services.
Type 8 – Securities Margin Financing. Margin financing for securities, including funding for stock purchases.
Type 9 – Asset Management. Managing clients’ assets, including investment funds, pension schemes, and other collective investment arrangements.
Type 10 – Providing Credit Rating Services. Providing credit rating and analysis services.
Type 13 – Providing Depositary Services for Relevant CISs.

Requirements for obtaining an SFC License in Hong Kong

The company must be registered in Hong Kong.
Financial reliability and sufficient capital to conduct the relevant business must be demonstrated.
Key personnel of the company must pass examinations such as the Licensing Examination for Securities and Futures Intermediaries (LE) and have relevant experience.
Appointment of responsible persons in accordance with the fit and proper criteria is mandatory.

SFC licensing process in Hong Kong

SFC Licensing Process in Hong Kong

Determining the type of license. Our specialists will help you select the optimal license type for your activities. Consultations are available via phone or through our website.
Preparation of documents:

Preparation of legal documents:
Incorporation documents
Proof of capital
Resumes and qualifications of management
Business plan and description of activities
AML/KYC policies and internal control procedures

All documents must be translated into English and notarized.

After verification and approval, the company obtains the right to conduct legal operations.

Our Services

Law&Trust specialists will guide you through all stages of obtaining an SFC license in Hong Kong. Our services include:

Consultation on license type selection and optimal corporate structure for your business
Preparation and verification of the complete document package for submission to the Securities and Futures Commission (SFC)
Full licensing process support, including interaction with the regulator
Post-licensing support, including reporting, accounting, and corporate matters
Consultation on digital and innovative financial products

F.A.Q.

Is reporting required after obtaining the license?

Yes. Companies are required to regularly submit financial and operational reports to the SFC and maintain compliance with regulatory standards.

Can a Hong Kong license be used to operate in other countries?

The SFC license primarily applies in Hong Kong; however, licensed companies can cooperate with international partners and leverage it to gain investor trust outside Hong Kong.

Our clients