Hong Kong is one of the most important financial centers in the world and there are many financial institutions that provide various financial services to customers and investors. Those who want to open a financial company in Hong Kong benefit from a favorable business environment and a low and simple taxation regime.
Investors who open a company that will offer financial services will most likely need to obtain a financial license in Hong Kong. An alternative to licensing is registering and this applies to authorized financial institutions.
This article summarizes the main steps and requirements for those who open company in Hong Kongin the financial sector. If you require more details, as well as assistance with registration, our Hong Kong company formation experts can assist you.
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How to open a financial company in Hong Kong
Financial services include a wide range of economic services provided within the finance industry, such as:
- credit unions;
- credit card companies;
- insurance companies;
- accountancy companies;
- investment funds;
- real estate funds;
- and stock brokerages.
Financial companies can manage, invest,or exchange money on behalf of clients. Banks are the most common example of a financial institution and Hong Kong has many banks operating in its banking sector, including foreign branches.
Our Hong Kong company formation agents can offer you detailed information about the financial markets in Hong Kong and the specific regulations.
Investors in Hong Kong can open a non-banking financial company, a financial institution that will provide a wide range of banking services, but does not hold a banking licence and is not a bank in the traditional sense of the word. Some of the services that can be provided by a financial company in Hong Kong include:
- capital markets services;
- private banking;
- brokerage services;
- foreign exchange services;
- investment services: asset management, hedge fund management, etc.;
- insurance.
Financial services companies must observe a complex regulatory system and the regulations that exist to protect customers. Our partner lawyers in Hong Kong can tell you more about the legal framework for financial services.
The financial license in Hong Kong
For those who open a financial company in Hong Kong an important distinction is made between the license and the registration.
Generally, a company will need a financial license in Hong Kong if it is an authorized financial institution, and it will need to register if it is an authorized financial institution that carries out regulated activities other than leveraged foreign exchange trading and those related to securities margin financing. For these Type 3 and Type 8 activities the company will need to be a registered institution.
Individuals who perform regulated activities for registered institutions, such as the bank staff working in the securities department, do not need to be licensed or registered. Individuals who perform a regulated function for a principal who is a corporation licensed to perform a regulated activity carried out as a business will need to be licensed representatives.
Some licensing exemptions are in place and these can apply to trust companies, certain professionals, group companies, securities dealers, and in other cases. We highly advise those who wish to obtain a financial license in Hong Kong to rely on our company formation experts for more details.
Different and/or additional licensing requirements apply for those involved in Fintech activities, or virtual asset fund managers.
Financial licensing and/or registration in Hong Kong falls under the scope of the Securities and Futures Commission. This is an independent body tasked with regulating the HKSAR’s securities and futures markets.
According to the Commission, in September 2024 there were 6,517 regulated activities licensed corporations. Our team who can help you open a company in Hong Kongsummarizes additional data below:
- Most of these companies (2,203) were involved in asset management;
- 1,995 of the total regulated activities licensed companies were offering services related to securities advising;
- 1,462 companies were involved in dealing with securities;
- 293 corporations were advising on corporate finance and 169 were advising on futures contracts.
If you would like to know more about the licensing requirements for financial services companies, our Hong Kong company formation agents can answer your questions.
If you are interested in setting up a company in Hong Kong, our experts can help you choose the best type of company for your business. We can also help you hire employees in Hong Kong.
Our company registration representatives in Hong Kong can also help you open other kinds of companies, like a recruitment company or a trading company. Please do not hesitate to contact our office in Hong Kong if you have any questions.