To carry on a regulated activity in Hong Kong — dealing in securities, dealing in futures, advising on securities or asset management, among others — a firm must be licensed by the Securities and Futures Commission (SFC) as a licensed corporation, and the individuals who run and supervise that activity must be licensed too.
An SFC application is not a form-filling exercise. The regulator is assessing whether the firm, its owners and its people are fit and proper to hold a licence, and whether the business is set up to operate to standard from day one. Getting there means preparing the corporate structure, the Responsible Officers, the compliance and risk framework and the financial resources before you submit.
Which regulated activity do you need?
The SFC licenses by regulated activity type. Most firms entering Hong Kong are looking at one or more of the core types, and the exact combination shapes the capital, competence and compliance you will need.
- Type 1 — dealing in securities (brokerage, distribution of securities).
- Type 2 — dealing in futures contracts.
- Type 4 — advising on securities.
- Type 5 — advising on futures contracts.
- Type 6 — advising on corporate finance.
- Type 9 — asset management (discretionary management of securities or futures portfolios).
Responsible Officers and the management line
A licensed corporation must have at least two Responsible Officers (ROs) approved by the SFC to supervise each regulated activity, and at least one of them must be an executive director available to supervise the business at all times.
Since the Manager-in-Charge (MIC) regime, the SFC also expects clear accountability for the firm’s core functions — overall management, key business lines, operational control, risk management, finance, information technology, compliance and anti-money-laundering. The people carrying those functions must be identified and, for the senior ones, approved.
The fit-and-proper test
Both the corporation and every licensed individual must satisfy the SFC’s fit-and-proper test. In practice the regulator looks at financial integrity, reputation, character and reliability, and — for individuals — competence: the right academic or industry qualifications, relevant experience, and the recognised industry examinations for the regulated activity.
Capital and financial resources
Licensed corporations must meet minimum paid-up share capital and liquid capital requirements under the SFC’s Financial Resources Rules (FRR). The exact figures depend on the regulated activity and on whether the firm will hold client assets — an adviser or asset manager that does not hold client assets faces different requirements from a securities broker that does.
Beyond the minimums, the SFC expects the firm to be adequately resourced for the business it actually intends to run, with systems, premises and staffing in place.
From readiness to a granted licence
A well-run application starts with a readiness review — identifying the gaps in structure, people, capital and controls — and closes them before submission. The application itself is made through the SFC’s online portal (WINGS), with supporting documents on the business plan, the ROs and MICs, the compliance and risk framework, and the financial position. The SFC then reviews, raises questions, and — once satisfied — grants the licence, sometimes with conditions.
What we do on sfc licence application.
- Readiness review across structure, people, capital and controls — before you submit.
- Responsible Officer and Manager-in-Charge arrangements, including competence support.
- Business plan, compliance manual and risk framework written to SFC expectations.
- The application through WINGS, and the follow-through on the SFC’s questions to grant.
- New company incorporation and the operating model you need before day one.
Frequently asked
How long does an SFC licence application take?
It depends on the regulated activity, the completeness of the application and how quickly the SFC’s questions are answered. Preparation — getting the people, capital and controls ready — is often the larger part of the timeline. A clean, well-prepared submission moves faster because it invites fewer follow-up questions.
How many Responsible Officers do I need?
At least two ROs approved to supervise each regulated activity, with at least one being an executive director available to supervise the business at all times. The ROs must each pass the fit-and-proper and competence requirements.
Do I need an office and staff in Hong Kong before I am licensed?
The SFC expects a licensed corporation to be genuinely set up to run the business it applies for — that includes appropriate premises, systems and staffing. The operating substance is part of what the regulator assesses, so it is built during preparation, not after.
Can RETU submit the application for us?
RETU prepares and manages the application end-to-end and deals with the SFC’s questions. The licence is granted to and held by your firm — RETU is not itself a licensed corporation.
RETU Consulting Limited is a financial-services consultancy and is not itself an SFC-licensed corporation. Where an engagement involves a regulated activity, that activity is carried out by the appropriately licensed entity.