Licensing Criteria and Procedures for Applying for Hong Kong Type 3 (Leveraged Foreign Exchange Trading) License
General information
Company structure
- Minimum 1 director (can be only natural persons, advisable to have at least 1 resident in Hong Kong)
- Minimum 1 shareholder (can be natural or legal persons, no nationality or residency restrictions)
- At least 2 (preferably 3) Responsible Officers (RO)*
*At least 1 RO must be an executive director. No requirement to be resident in Hong Kong.
Taxation
- 0% tax rate if profits are derived from activities carried outside Hong Kong
- 16,5% tax rate if profits are derived from Hong Kong sources
- No tax on capital gains, dividends or interests
Accounting requirements
- Accounting records may be kept at the local offices of the administrator or elsewhere at the discretion of the directors
Audit requirements
- Audit should be done from Hong Kong by an appointed auditor who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate
Local office - Not Required
Company name
- Language: English or Chinese (combination is not allowed)
- Restricted any name that is identical or similar to an existing company
- "Limited" must be used at the end of Company name (English) in order to denote limited liability, while in case of company name in Chinese, “有限公司” must be added at the end of such company name
- Names indicating that company in any way is related to Central People’s Government or any other department or agency will not normally be approved
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The following names require prior approval: Trust, Trustee, Savings, Building Society, Municipal, Chamber of Commerce, Cooperative, Tourist Association, Kaifong, Mass Transit, Underground Railway
In order to obtain a license, the following steps will be carried out:
- Assistance with registration of Responsible Officers (obtaining personal licenses)
- Application for reservation of company name
- Incorporation of a Hong Kong company
- Opening a bank account
- Preparation/compiling of the application to Type 3 license
- Submission of the licensing application to the SFC (including the application for approval of the proposed responsible officers)
In order to obtain license, Offshorelicense will fill all necessary application forms and also acquire apostilled corporate documents.
For that reason, please provide us with the following documents.
- Notarized passport copies of all directors and shareholders
- Notarized address proof of all directors and shareholders. Can be utility bills or bank statements
- Bank reference letter
- 2 Lawyer’s / auditor/ notary reference letters
- CV for directors and shareholders
- Educational qualification certificate for directors and shareholders
In the case if the shareholder is a company, needs to provide:
- Passport of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
- Utility Bill as proof of residency of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
- Latest CV detailing Educational background and Working Experiences of an Authorized Person for the body Corporate
- M&A to include the clause on the establishment of the Hong Kong Company or allowing to do so
- 2 Referral letters for the Authorized Person that are to be issued by a Professional such as a Lawyer, Accountants, Company Secretary or Bank of an Authorized Person for the body Corporate
- Registries of Company listing down the name of Director, Shareholder, Auditor, Company Secretary (to be certified true copy by the Company Secretary)
- Certificate of Incorporation (to be certified true copy by the Company Secretary)
- Resolution by the Company to appoint the Authorized Person to act on behalf of the Company (to be certified true copy by the Company Secretary)
- Resolution of the Company to invest in the Hong Kong Company (to be certified true copy by the Company Secretary)