Our Available SFC Licenses in Hong Kong
The Securities and Futures Commission (SFC) is Hong Kong’s primary regulator for securities, derivatives, and investment management. An SFC licence authorises firms to conduct one or more of 12 regulated activity types — most commonly Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (corporate finance advisory), and Type 9 (asset management) — under the Securities and Futures Ordinance (SFO, Cap. 571).
SFC-licensed firms operate within Hong Kong’s role as Asia’s leading financial centre: a 16.5% corporate profits tax rate with offshore income exemptions, deep capital markets, and strong access to mainland China. Since June 2023, the SFC has also expanded its scope to regulate Virtual Asset Trading Platforms (VATPs), making SFC licensing increasingly relevant for regulated crypto firms targeting Asian institutional clients.
New SFC applications require substantive review: fit-and-proper assessments for responsible officers (ROs), a minimum of HKD 5 million in liquid capital for asset management firms, and external assessor reports. Acquiring a ready-made SFC-licensed entity compresses this timeline, though the SFC requires prior notification of any change in substantial shareholders or responsible officers.
This page covers SFC-licensed entities currently available for transfer, with a full breakdown of regulated activity types, capital requirements, and the acquisition process.
Our team facilitates both ready-made SFC acquisitions and new applications — governance structuring, SFC liaison, and responsible officer onboarding.
Ready to buy SFC Licenses for Sale
SFC License for Sale
- Company holds type 4 (Advising on Securities) and type 9 (Asset Management) authorizations.
- Company holds Qualified Foreign Limited Partnership and it allows to run and market PE funds inside China.
- Operating bank accounts at OCBC, Wing Hang Bank and China Merchant Bank Hong Kong branch.
- Software is not included in the price.
- Staff: two responsible officers and one executive director.
- No clients and no debts.
Related financial services licences in Asia and global hubs
Key Takeaways for an SFC License in Hong Kong
- Regulated financial activities. The Hong Kong SFC license is required for firms engaging in securities trading, asset management, futures contracts, and corporate finance advisory.
- Capital requirements vary by license type. Depending on the activity, firms must maintain HKD 5 million ($640,000) to HKD 30 million ($3.8 million) in paid-up capital, with additional liquidity obligations for leveraged trading and market-making.
- Strict compliance obligations. License holders must follow AML/KYC rules, submit financial audits, maintain risk control frameworks, and meet SFC’s fit-and-proper criteria. Non-compliance can lead to license suspension or fines.
- Tax and operational costs. Hong Kong offers a 16.5% corporate tax rate, but firms face annual SFC fees, audit costs, and local office expenses. Compliance with record-keeping and financial reporting adds further costs.
- Application and approval timeline. New license applications take 4-6 months, while ready-made licensed firms allow faster market entry but require additional due diligence and restructuring.
- Legasset provides full licensing support. Whether acquiring a ready-made SFC-licensed firm or applying from scratch, we assist with entity setup, compliance planning, capital structuring, and obligations that follow.
What You Need to Know About the Hong Kong SFC License
Table of Contents
An SFC license in Hong Kong is a mandatory regulatory approval for firms conducting securities trading, asset management, futures contracts, corporate finance advisory, and credit rating services. Under the Securities and Futures Ordinance (SFO), financial institutions must secure one or more of the 10 SFC license types, depending on their business activities.
Key financial services covered under the Securities and Futures Ordinance (SFO) Cap. 571 include:
- Type 1: Dealing in securities. Required for firms engaged in brokerage, securities trading, and market-making activities.
- Type 2: Dealing in futures contracts. Necessary for firms executing or arranging futures and derivatives trading for clients.
- Type 3: Leveraged foreign exchange trading. Covers financial institutions offering margin-based forex trading services.
- Type 4: Advising on securities. Applies to firms providing professional investment advice related to securities.
- Type 5: Advising on futures contracts. Required for financial advisors offering structured guidance on futures trading.
- Type 6: Advising on corporate finance. Covers M&A advisory, IPO structuring, debt financing, and related financial consultancy.
- Type 7: Providing automated trading services. Required for platforms offering algorithmic trading, trade execution, or electronic brokerage services.
- Type 8: Securities margin financing. Governs firms extending credit to clients for purchasing securities.
- Type 9: Asset management. Covers fund managers handling discretionary portfolios, hedge funds, or other collective investment schemes.
- Type 10: Providing credit rating services. Applicable to entities issuing credit ratings for securities, structured finance instruments, or companies.
While Hong Kong provides a business-friendly tax regime, SFC-licensed firms must comply with AML, risk management, and investor protection laws. Additionally, foreign ownership is unrestricted, making it an attractive jurisdiction for international financial service providers.
Regulatory Limitations and Key Compliance Factors
Before applying for an SFC license in Hong Kong, firms should be aware of the following regulatory constraints:
- Capital requirements: depending on the license type, firms must hold HKD 5 million ($640,000) to HKD 30 million ($3.8 million) in paid-up capital.
- Compliance supervision: licensees must appoint a Responsible Officer (RO) with at least three years of industry experience and undergo annual audits.
- Banking limitations: some Hong Kong banks impose strict compliance checks on SFC-licensed firms, making EMIs (Electronic Money Institutions) a viable alternative.
Who Oversees SFC Licensing and Compliance?
The Securities and Futures Commission (SFC) is the sole regulatory authority overseeing financial markets, licensing approvals, and ongoing compliance in Hong Kong. The licensing framework is outlined in the SFC Licensing Handbook (updated in 2025) and mandates:
- Strict AML and financial reporting obligations aligned with Financial Action Task Force (FATF) standards.
- A tax-efficient corporate structure with 16.5% corporate tax and no VAT on financial services.
- Ongoing license renewal and reporting duties, ensuring transparency in regulated activities.
Ready-Made vs. New SFC License Application
Legasset provides two options for obtaining an SFC license in Hong Kong:
- Ready-made licensed firms – fully operational entities with approved compliance structures.
- New SFC license application – complete licensing assistance, from capital planning to regulatory filings.
Both options ensure full SFC compliance, allowing firms to operate legally in Hong Kong’s financial sector.
Eligibility Requirements for Obtaining an SFC License in Hong Kong
SFC licenses are available to corporate entities rather than individuals. Applicants must establish a Hong Kong-based company (typically a Limited Company under the Companies Ordinance (Cap. 622)). Sole proprietorships and partnerships are not eligible.
- At least two responsible officers (RO) must be appointed, holding relevant industry experience and qualifications.
- A minimum of two directors is required, and at least one must be a Hong Kong resident.
- Ultimate beneficial owners (UBOs) must undergo fit-and-proper tests, ensuring they meet regulatory integrity and financial stability standards.
Financial and Capital Requirements
Capital requirements depend on the specific SFC license type:
- Type 1 (Dealing in Securities) – minimum HKD 5 million ($640,000).
- Type 3 (Leveraged Foreign Exchange Trading) – minimum HKD 30 million ($3.8 million).
- Type 9 (Asset Management) – minimum HKD 5 million ($640,000).
Funds must be fully paid up before submitting the license application and cannot be used for operational expenses.
Local Presence and Compliance Oversight
Applicants must maintain a physical office in Hong Kong, complying with SFC premises requirements. Additionally, key compliance obligations include:
- Resident Responsible Officer (RO). While there is no explicit requirement for an RO to reside in Hong Kong, the SFC expects that the management team, including ROs, can effectively supervise the company’s operations within the territory.
- AML Compliance Officer & Risk Manager. Mandatory for regulatory reporting, internal controls, and suspicious transaction monitoring.
- Annual Audits. Licensees must submit audited financial statements to the SFC.
Required Documentation & Submission Process
The SFC requires extensive documentation to evaluate license applications, including:
- Company registration documents (Certificate of Incorporation, Business Registration Certificate).
- Detailed business plan outlining operational scope, risk management, and financial projections.
- AML/CFT compliance policies aligned with Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
- Proof of capital injection to meet minimum financial requirements.
- Directors’ and ROs’ professional qualifications (academic credentials, industry experience).
Approval Timelines, Fees, and Hidden Costs
The licensing process typically takes 4-6 months, but delays may occur due to compliance reviews or incomplete submissions. Expected costs include:
- Application fee: HKD 4,740 ($600) per license type.
- Annual licensing fee: ranges from HKD 4,740 – HKD 37,520 ($600 – $4,800) based on business scope.
- Legal and compliance costs: HKD 100,000 – HKD 500,000 ($12,800 – $64,000) for structuring, documentation, and advisory services.
Additional costs may arise from third-party audits, enhanced due diligence (EDD) reviews, and local office lease expenses.
Common Challenges and How to Overcome Them
- Strict Capital Requirements: firms must ensure all financial reserves are in place before application submission.
- Local Director and RO Requirement: finding qualified personnel meeting SFC’s fit-and-proper criteria can be difficult. Partnering with compliance firms or headhunting agencies is a common solution.
- Compliance Burden: ongoing AML reporting, financial audits, and regulatory updates require dedicated compliance teams or outsourced regulatory support.
Pros & Cons of Acquiring an SFC License in Hong Kong
- Global Market Credibility. The Hong Kong SFC license is recognized by international investors, providing credibility to firms managing securities, asset portfolios, and financial advisory services.
- Access to Institutional & Cross-Border Clients. Licensed firms can serve both Hong Kong and overseas clients, positioning them strategically for China’s capital markets and international fund distribution.
- Attractive Tax Regime. Hong Kong applies a 16.5% corporate tax rate, with no VAT, capital gains tax, or withholding tax on dividends and interest, making it one of the most tax-efficient jurisdictions for financial firms.
- Regulated Environment with 10 Licensing Types. The SFC offers ten license types, allowing firms to tailor operations to specific financial activities, from securities trading to investment advisory, without unnecessary regulatory burdens.
- Strong Legal Protection & Investor Confidence. Operating under Hong Kong’s Common Law system ensures a stable regulatory environment, attracting institutional investors who prioritize jurisdictions with strict legal protections.
+ High Capital & Operational Costs. Depending on the license type, minimum capital requirements range from HKD 500,000 ($64,000) to HKD 30 million ($3.8 million), with additional compliance costs for audits, transaction reporting, and AML procedures.
+ Stringent Compliance & Reporting Requirements. The SFC mandates frequent reporting, internal control audits, and strict AML/KYC compliance, requiring firms to appoint qualified compliance officers and implement sophisticated monitoring systems.
+ Banking Limitations for Certain Businesses. While Hong Kong is a financial hub, local banks impose strict onboarding criteria, particularly for fintech, forex, and crypto-related firms, leading many to rely on alternative banking solutions.
+ Mandatory Local Presence & Qualified Directors. Firms must appoint at least one Responsible Officer (RO) based in Hong Kong, meeting at least three years of industry experience and SFC licensing exams, adding to operational constraints.
+ Lengthy Licensing Process. New SFC applications take 6-9 months, including background checks, financial viability assessments, and regulatory approvals, making it a time-intensive process compared to offshore alternatives.
How to Get an SFC License in Hong Kong
Businesses planning to provide regulated financial services in Hong Kong must obtain a Securities and Futures Commission (SFC) license. There are two ways to secure one:
- Acquire a ready-made SFC-licensed entity. This option eliminates the need for initial registration and allows operators to inherit an existing regulatory framework, but post-transfer approval and compliance adjustments are still required.
- Apply for a new SFC license from scratch. This involves incorporating a company, appointing key personnel, and undergoing SFC’s licensing review process.
The following step-by-step breakdown covers both pathways, detailing costs, requirements, and estimated timelines.
Step-by-Step SFC Licensing Process in in Hong Kong
- Step 1: Incorporate a Hong Kong Business Entity 1-2 weeks
A firm must be structured as a Limited Company before applying for an SFC license.
Key Documents:
- Business registration certificate
- Articles of Association
- Proof of registered office in Hong Kong
Estimated Cost: HKD 5,000–HKD 10,000 ($640–$1,280) for company incorporation. - Step 2: Appoint Responsible Officers & Licensed Representatives 4-6 weeks
SFC requires at least two Responsible Officers (ROs) who meet competency, experience, and fit-and-proper criteria. Licensed Representatives (LRs) are also required for operational compliance.
Key Documents:
- CVs and proof of financial industry experience
- Fit and proper declarations
- Personal identification documents
Estimated Cost: HKD 50,000–HKD 100,000 ($6,400–$12,800) for hiring and regulatory approvals. - Step 3: Submit the SFC License Application 1-2 months
Applicants must submit a detailed business plan, financial reports, and compliance manuals to the SFC.
Key Documents:
- Regulated business plan
- Financial statements proving capital sufficiency
- AML/KYC compliance manuals
Estimated Cost: HKD 4,740 ($610) per license type. - Step 4: Deposit Capital & Meet Financial Requirements 2-4 weeks
SFC imposes minimum capital requirements, ranging from HKD 500,000–HKD 30 million ($64,000–$3.8 million), depending on the license type.
Key Documents:
- Bank confirmation of capital deposit
- Proof of financial viability
Estimated Cost: capital requirement varies by license type (e.g., Type 1: HKD 5 million / $640,000). - Step 5: SFC Due Diligence & Regulatory Review 2–3 months
The SFC conducts an in-depth background review of the applicant's officers, financial standing, and risk management practices.
Key Documents:
- Fit and proper assessment results
- Internal control and risk management policies
Estimated Cost: Third-party compliance audits may cost HKD 20,000–HKD 50,000 ($2,560–$6,400). - Step 6: License Approval & Issuance 1-2 weeks
Once the SFC approves the application, the firm receives its official SFC license, enabling it to conduct regulated financial activities.
Key Documents:
- Official SFC license certificate
- Ongoing compliance reporting schedule
Estimated Cost: Annual regulatory fees start at HKD 3,840 ($490) per license type.
Post-Licensing Compliance Obligations
Once licensed, firms must meet ongoing SFC requirements, including:
- Annual audit reports submitted to the SFC
- AML/KYC monitoring and suspicious transaction reporting
- Capital maintenance to meet financial thresholds
- License renewal fees and periodic compliance checks
Legasset provides full support for acquiring both ready-made and newly issued SFC licenses. Contact us to discuss your licensing needs.
Common Challenges of Operating Under an SFC License in Hong Kong
An SFC license in Hong Kong offers strong regulatory credibility and access to one of Asia’s most significant financial hubs. However, businesses must be prepared for strict compliance requirements, high operational costs, and evolving regulatory expectations. While these challenges are manageable with proper planning, operators must fully understand and address them in advance.
Key Challenges Businesses Face
Stringent compliance & ongoing supervision
SFC-regulated firms must adhere to rigorous anti-money laundering (AML) and Know Your Customer (KYC) rules, submit regular financial audits, and comply with internal control obligations.
- Failure to meet AML standards can result in license suspension or revocation.
- The SFC frequently updates compliance requirements, requiring firms to adapt policies continuously.
Banking & payment restrictions
Many Hong Kong banks hesitate to onboard newly licensed financial firms, particularly those in crypto or high-risk financial sectors.
- Businesses often resort to Electronic Money Institutions (EMIs) or offshore banking solutions.
- Some firms struggle with transaction limits, increased scrutiny, and prolonged onboarding times.
High capital & operational costs
SFC license holders must maintain significant financial reserves, meet capital requirements, and cover recurring regulatory fees.
- Capital requirements vary by license type, ranging from HKD 5 million ($640,000) to HKD 30 million ($3.8 million).
- Annual compliance and reporting costs can exceed HKD 500,000 ($64,000), including audits, regulatory fees, and tax obligations.
Limited market access & business scope
SFC licensees cannot provide services to Mainland China residents unless they obtain additional approvals.
- Some business models face restrictions on leverage, securities lending, or crypto-related activities.
- Overseas expansion requires additional licenses or regulatory exemptions.
How Legasset Helps Clients Overcome These Challenges
- Compliance strategy: we assist with AML/KYC policies, risk management frameworks, and regulatory filings to meet SFC standards.
- Banking support: we help clients explore alternative banking solutions, including EMI accounts and offshore banking options.
- Cost planning & optimization: we provide a detailed breakdown of financial commitments and help businesses budget for long-term compliance.
- License expansion guidance: for firms targeting Mainland China or international markets, we outline additional licensing pathways.
By understanding and preparing for these challenges, businesses can maximize the benefits of an SFC license while ensuring long-term sustainability.
Frequently Asked Questions About Purchasing an SFC License in Hong Kong
What is the SFC license in Hong Kong?
An SFC license is a regulatory approval issued by the Securities and Futures Commission (SFC) of Hong Kong, authorizing firms to conduct regulated financial activities such as securities trading, asset management, investment advisory services, and futures contracts. It ensures compliance with Hong Kong’s Securities and Futures Ordinance (SFO), requiring businesses to meet capital requirements, AML/KYC obligations, and investor protection standards.
The Hong Kong SFC license is internationally recognized, making it an attractive option for financial firms looking to establish a regulated presence in Asia.
What are Hong Kong SFC license types?
The SFC regulatory framework consists of 10 distinct license types, covering a wide range of financial activities:
- Type 1: Dealing in securities – covers brokerage firms, securities dealers, and trading platforms.
- Type 2: Dealing in futures contracts – applies to firms engaged in futures trading.
- Type 3: Leveraged foreign exchange trading – required for businesses providing forex margin trading services.
- Type 4: Advising on securities – needed for investment advisory firms offering securities recommendations.
- Type 5: Advising on futures contracts – applies to firms advising on futures trading strategies.
- Type 6: Advising on corporate finance – required for firms handling IPOs, M&A transactions, and financial structuring.
- Type 7: Providing automated trading services – covers algorithmic and electronic trading platforms.
- Type 8: Securities margin financing – required for companies offering credit for securities trading.
- Type 9: Asset management – applies to fund managers, hedge funds, and portfolio managers.
- Type 10: Providing credit rating services – covers firms issuing credit assessments for securities and financial markets.
Each SFC license type has specific capital requirements, compliance obligations, and operational limitations, making it crucial to select the correct category for your business model.
What are the capital requirements for an SFC license?
The minimum capital requirements vary by license type and depend on the nature of the firm’s operations, for example:
- Type 1 (Dealing in Securities): HKD 5 million ($640,000) – HKD 30 million ($3.85 million) depending on client handling.
- Type 3 (Leveraged Forex Trading): HKD 5 million ($640,000).
- Type 6 (Corporate Finance Advisory): HKD 100,000 ($13,000).
- Type 9 (Asset Management): HKD 5 million ($640,000).
Additionally, firms must maintain liquid capital reserves and meet ongoing financial reporting obligations.
How long does it take to obtain an SFC license?
The application process for a new SFC license in Hong Kong typically takes 4 to 6 months, but delays can occur due to:
- Regulatory scrutiny during the fitness and properness assessment of key personnel.
- Background checks on directors and substantial shareholders.
- Delays in securing bank accounts for regulatory compliance.
For businesses seeking faster market entry, ready-made SFC-licensed firms may be available for acquisition, reducing setup time.
Can a foreign company apply for an SFC license in Hong Kong?
Yes, foreign companies can apply for an SFC license, but they must:
- Establish a Hong Kong-incorporated entity.
- Appoint at least two Responsible Officers (ROs) with relevant industry experience.
- Maintain a physical office in Hong Kong for regulatory supervision.
Foreign firms must also comply with AML, financial reporting, and governance obligations under the Securities and Futures Ordinance (SFO).
What are the annual compliance obligations for SFC license holders?
After obtaining an SFC license, firms must meet ongoing compliance and reporting obligations, including:
- Financial reporting: annual audited financial statements submitted to the SFC.
- AML/KYC compliance: customer due diligence and suspicious transaction reporting.
- Capital maintenance: ensuring continuous compliance with minimum financial requirements.
- Regular audits: internal risk control reviews and periodic compliance assessments.
Non-compliance can result in penalties, license suspension, or revocation.
How can Legasset assist in obtaining an SFC license?
Legasset provides full-scope assistance for businesses looking to obtain an SFC license in Hong Kong, including:
- License acquisition: guidance on selecting the appropriate license type.
- Regulatory compliance: assistance with AML, corporate governance, and reporting obligations.
- Application handling: preparing and submitting all regulatory documents to the SFC.
- Ready-made SFC license options: assisting in purchasing licensed firms for faster market entry.
Our team ensures a smooth, compliant licensing process, minimizing delays and helping firms establish operations efficiently.
Additional Links and Resources for SFC License in Hong Kong
The official SFC licensing register provides a searchable database of all licensed corporations, individuals, and registered institutions in Hong Kong. It is essential for verifying an entity’s regulatory status and checking compliance records.
II. SFC Licensing Handbook (Updated 2024)
The SFC Licensing Handbook outlines eligibility requirements, application procedures, and ongoing compliance obligations for licensed entities. This is the primary regulatory reference for firms applying for an SFC license in Hong Kong.
III. PwC Guide: Establishing an SFC-Licensed Entity (2024)
This comprehensive industry report details SFC licensing structures, regulatory considerations, and operational challenges for financial firms entering the Hong Kong market. It provides a practical breakdown of capital requirements, compliance expectations, and risk management strategies.
IV. Hong Kong Inland Revenue Department – Profits Tax Guide
All SFC license holders must comply with Hong Kong’s corporate tax regulations. This official guide from the Inland Revenue Department (IRD) provides insights into profits tax rates, deductions, and tax filing obligations applicable to licensed financial firms.
V. SFC Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF) Guidelines
Compliance with AML/CTF regulations is a critical requirement for SFC-licensed firms. This page details customer due diligence (CDD), suspicious transaction reporting (STR), and financial monitoring obligations required under Hong Kong’s Anti-Money Laundering Ordinance (AMLO).
