Money Lender License Hong Kong: Complete Guide

What Is a Money Lender's License?

A Money Lender's License (MLO) is issued by the Licensing Court of Hong Kong under the Money Lenders Ordinance (Cap. 163). It is the legal authorization required for any company to lend money at interest in Hong Kong. Without it, lending money at interest may be unenforceable or illegal.

Why Buy an Existing License?

Applying for a new MLO takes 6-12 months and involves court applications, police vetting, and extensive compliance requirements. Buying an existing licensed company via share transfer takes just 3-5 weeks and the license transfers with the company.

Requirements to Hold an MLO

• A registered Hong Kong private limited company
• A physical office in Hong Kong (virtual offices not permitted)
• Fit and proper directors and shareholders
• Annual license renewal with the Licensing Court
• Annual audit reports submitted to the Court
• Compliance with Cap. 163 including maximum 48% APR interest rate
• Written loan agreements for all loans
• Proper loan records and company registers maintained

Transfer Process

Step 1: Inquiry and NDA. Sign non-disclosure agreement and receive company details.

Step 2: Due diligence. Review license status, compliance history, audit reports.

Step 3: Sign Sale & Purchase Agreement. Pay deposit.

Step 4: Share transfer filed with Companies Registry. Directors, shareholders, secretary updated.

Step 5: Notify Licensing Court of ownership change. No hearing required.

Step 6: Completion. License continues under new ownership.

Key Compliance Obligations

• Maximum interest rate: 48% APR (effective rate). Above 60% APR is a criminal offense.
• All loan agreements must be in writing and signed by the borrower.
• Advertisement restrictions apply under Cap. 163.
• Maintain proper accounting records for inspection.
• Annual renewal and audit submission to the Licensing Court.

Frequently Asked Questions