COMPARE BEFORE YOU DECIDE
One comparison table to see the differences between the regimes.
Start with the business scope, competent authority and capital baseline. Specific requirements must still be checked item by item in the relevant guide against the business model and licence conditions.
LICENSING COMPARISON
Core comparison of Hong Kong financial qualifications
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| Licences / Qualifications | Regulatory authorities | Business and Applicable Scenarios | Capital and Financial Resources | Entry pathways |
|---|---|---|---|---|
| SFC Type 1 licence · Dealing in securities | Hong Kong Securities and Futures Commission (SFC) | Securities brokerage, placing and underwriting, building capital-markets transaction businesses. | All amounts are in HKD: an approved introducing agent or a dealer meeting the definition must have no specified minimum share capital and HKD 500,000 in liquid capital; providing margin financing or acting as the custodian of a private OFC requires HKD 10,000,000 in share capital and HKD 3,000,000 in liquid capital; other cases require HKD 5,000,000 in share capital and HKD 3,000,000 in liquid capital. Also check any variable requirements. [1] (3.2.18) [6] | New Application / Acquisition |
| SFC Type 2 licence · Dealing in futures contracts | Hong Kong Securities and Futures Commission (SFC) | Executing futures transactions for clients, assessing exchange and client-asset arrangements. | The general minimum paid-up share capital is HKD 5 million, with fixed required liquid capital of HKD 3 million. For an approved introducing agent, a dealer meeting the definition, or a futures non-clearing dealer, there is no specified minimum share capital and fixed required liquid capital is HKD 500,000. Applicable variable required liquid capital must also be calculated.[1] (3.2.18)[6] | New Application / Acquisition |
| SFC Type 3 Licence · Leveraged foreign exchange trading | Hong Kong Securities and Futures Commission (SFC) | Distinguishing leveraged foreign-exchange business from the general money-changing and remittance regimes. | An approved introducing agent must have minimum paid-up share capital of HK$5,000,000 and fixed liquid capital of HK$3,000,000. Other Type 3 business requires minimum paid-up share capital of HK$30,000,000 and fixed liquid capital of HK$15,000,000. The lower capital thresholds for ordinary brokers or firms not holding client assets must not be applied. [1] (3.2.18) | New Application / Acquisition |
| SFC Type 4 Licence · Advising on securities | Hong Kong Securities and Futures Commission (SFC) | Securities investment advice and research services, clarifying the boundary between recommendations and execution. | Where the licence condition prohibits holding client assets, there is no minimum paid-up share capital requirement, and fixed liquid capital is HK$100,000. In other cases, share capital of HK$5,000,000 and fixed liquid capital of HK$3,000,000 are required. Check the variable capital requirement and funding needs of the business as well, rather than considering only whether the firm receives funds directly. [1] (3.2.18) [6] | New Application / Acquisition |
| SFC Type 5 licence · Advising on futures contracts | Hong Kong Securities and Futures Commission (SFC) | Providing professional advice on futures trading and matching personnel to the required competence. | Where a condition prohibiting the holding of client assets is imposed, there is no specified minimum paid-up share capital and the fixed required liquid capital is HK$100,000. In other cases, the minimum paid-up share capital is HK$5 million and the fixed required liquid capital is HK$3 million. Applicable variable requirements and other financial conditions must continue to be met.[1]（3.2.18）[6] | New Application / Acquisition |
| SFC Type 6 licence · Advising on corporate finance | Hong Kong Securities and Futures Commission (SFC) | Assessment of business classifications for corporate finance, M&A financial advisory and sponsor business. | HKD share capital / fixed liquid capital: non-sponsor and not holding client assets: no specified share capital / 100,000; non-sponsor, other cases: 5,000,000 / 3,000,000; sponsor: share capital of 10,000,000, with fixed liquid capital of 100,000 if not holding client assets and 3,000,000 otherwise. Also check the variable requirement for liquid capital. [1] (3.2.18) | New Application / Acquisition |
| SFC Type 7 licence · Providing automated trading services | Hong Kong Securities and Futures Commission (SFC) | Technology and regulatory boundaries for automated trading facilities and platforms. | Obtain a Type 7 licensed corporation licence under Part V. The minimum paid-up share capital is HKD 5 million and fixed required liquid capital is HKD 3 million; applicable variable requirements must also be calculated. This table cannot be applied directly to automated trading services recognised under Part III, and virtual asset trading platforms may also be subject to separate financial requirements.[1] (3.2.18) | New Application / Acquisition |
| SFC Type 8 Licence · Securities margin financing | Hong Kong Securities and Futures Commission (SFC) | Financial resources and risk control requirements for securities margin financing. | A Type 8 licensed corporation must have minimum paid-up share capital of HKD 10 million and fixed liquid capital of HKD 3 million, and must calculate the applicable required liquid capital under the relevant requirements based on client loans, securities collateral and other risks. Actual funding needs vary with the scale of lending and the quality of collateral; a fixed HKD 3 million does not by itself suffice to lend. [1] [6] | New Application / Acquisition |
| SFC Type 9 licence · Asset management | Hong Kong Securities and Futures Commission (SFC) | Discretionary portfolio management, fund management and wealth management businesses. | Where a condition prohibits holding client assets, there is no specified minimum paid-up share capital, and the fixed required liquid capital is HKD 100,000; in other cases, the minimum paid-up share capital is HKD 5 million and the fixed required liquid capital is HKD 3 million. Also check variable requirements, the operating budget and any additional qualifications for products or specialised business activities.[1] (3.2.18) [6] | New Application / Acquisition |
| SFC Type 10 licence · Providing credit rating services | Hong Kong Securities and Futures Commission (SFC) | Providing credit rating services to the public or subscribers. | Where a licensing condition prohibits the holding of client assets, there is no specified minimum paid-up share capital, and the fixed liquid capital requirement is HKD 100,000. In other cases, the minimum paid-up share capital is HKD 5 million and the fixed liquid capital requirement is HKD 3 million. Variable capital and applicable financial requirements must also be checked separately.[1] (3.2.18) [6] | New Application / Acquisition |
| SFC Type 11 licence · Dealing in or advising on over-the-counter derivatives (not yet implemented) | Hong Kong Securities and Futures Commission (SFC) | Monitor the statutory implementation and licensing status of the OTC derivatives regime. | Type 11 cannot currently be presented as a category open for applications, and no definite minimum capital can be promised. This information does not treat historical consultation proposals, proposed financial resources rules or thresholds for other categories as requirements already in force for Type 11. The position in future will be governed by formally effective legislation and the SFC’s implementation arrangements.[1] [2] | Implementation Status Note |
| SFC Type 12 licence · Client clearing of OTC derivatives (not yet implemented) | Hong Kong Securities and Futures Commission (SFC) | Monitor the implementation and licensing status of client clearing for OTC derivatives. | Type 12 has not yet opened as a current licensing category. This material does not state fixed minimum paid-up capital or liquid capital figures that have not been verified as effective. Central counterparty participation requirements, bank prudential capital or proposed customer-clearing capital cannot directly replace the final legal requirements for future Type 12. [1] [2] [8] | Implementation Status Note |
| SFC Type 13 licence · Providing depositary services for relevant collective investment schemes | Hong Kong Securities and Futures Commission (SFC) | Applicable recognised-fund depositary, asset custody and independent oversight arrangements. | A Type 13 licensed corporation must have minimum paid-up share capital of HKD 10,000,000 and fixed liquid capital of HKD 3,000,000, and must comply with applicable variable required liquid capital and other Fund Manager Code of Conduct requirements. Where an authorised financial institution follows the registered institution route, its status should be assessed separately under the applicable banking prudential and regulatory framework. [1] (3.2.18) [7] | New Application / Acquisition |
Capital is a regulatory resource threshold, not a service quotation. The absence of a stated uniform minimum capital requirement does not mean that sufficient operating funds are unnecessary. An acquisition does not remove regulatory review, and registration or membership does not amount to a general financial licence.
Get Advice on Business SuitabilityYOUR NEXT CHAPTER STARTS HERE
First, tell us about your business,
Then select a suitable licensing path.
Discuss your business model, capital budget and schedule with Tang Shangyong (Drew) to prepare a checklist of next steps.