Which SFC license do I need?

Type 1 for dealing in securities (brokerage), Type 2 for futures, Type 4 for advising on securities, Type 9 for asset management. Many firms hold multiple types.

How much does an SFC licensed company cost?

An existing SFC licensed corporation costs HKD 1.2M-2.5M depending on license type, ROs, and compliance framework.

SFC License Types Explained: Type 1, 2, 4, 9 for Hong Kong

What Are SFC Licenses?

The Securities and Futures Commission (SFC) regulates financial services in Hong Kong under the Securities and Futures Ordinance (Cap. 571). Any company conducting regulated activities must hold the appropriate SFC license. There are 12 types of regulated activities; the most commonly traded are:

Type	Activity	Market Price
Type 1	Dealing in Securities (brokerage)	HKD 2M+
Type 2	Dealing in Futures Contracts	HKD 1.8M+
Type 4	Advising on Securities	HKD 1.2M+
Type 9	Asset Management	HKD 1.5M-2.5M

Key Requirements

Incorporated Hong Kong company
At least 2 Responsible Officers (ROs) with relevant experience
Minimum paid-up capital: HKD 10M (Type 1/2/9); no minimum for Type 4
Monthly liquidity requirements maintained
Compliance and internal control framework
Fidelity insurance coverage
Quarterly Financial Resources Rules (FRR) returns to SFC

Buying vs Applying New

Applying for a new SFC license takes 6-18 months with significant uncertainty. Buying an existing licensed corporation via share acquisition takes 8-12 weeks (subject to SFC approval of the change of ownership) and the license is already in place (subject to SFC approval of ownership change).

Responsible Officers (ROs)

Each licensed corporation needs at least 2 ROs. ROs must pass the required SFC licensing exams and have relevant industry experience. When buying a licensed company, existing ROs may stay on (ideal) or you need to recruit new ROs.

Frequently Asked Questions

Can I hold multiple SFC license types?

Yes. Many firms hold combinations like Type 1+4+9. You only need one licensed corporation entity.

Does SFC need to approve the share transfer?

Yes. Any change in ownership of a licensed corporation must be notified to the SFC. They review the new shareholders for fitness and propriety.

What is a "professional investors only" condition?

Some Type 9 licenses have conditions restricting services to professional investors (individuals with HKD 8M+ portfolio or institutions). This is common for smaller fund managers.

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