MLO Money Lender Licence

01 / BUSINESS SCOPE

Business Scope and Application Value

Information verified as at 3 November 2026. A money lender’s licence applies to non-bank lending business conducted lawfully and may cover personal loans, business loans and secured financing. An application must reflect the actual business model. The product classifications below are for business planning and are not statutory licence tiers. The main text may be credited to Tang Shangyong (Drew); official documents retain the attribution of the relevant official body.

• Conduct money lending within the scope of the approved entity, premises and licence conditions, providing compliant financing to individuals or businesses. The licence confirms the right to conduct business and provides a means for the public to check it, but is not government approval or a guarantee of loan products, the company’s solvency or investment returns.
• Products such as secured loans, unsecured loans or corporate credit can be designed in line with the business plan, with different approval and risk-control processes. Business flexibility is subject to compliance with the law. One licence must not be advertised as also covering the taking of public deposits, securities margin financing or other regulated activities.
• The Companies Registry provides a list of existing licensees and applicants, which clients and business partners can use to verify the entity and licence status. A public register assists with identity verification and transaction due diligence, but inclusion in the list of applicants does not mean a licence has been granted. A copy of the licence should also be checked together with its validity period and any conditions.
• Integrating identity verification, source of funds, repayment capacity and complaint handling into a single process helps create traceable loan files. These governance arrangements can improve the basis for communication with banks and service providers, but holding a licence does not guarantee bank account opening, credit facilities or cooperation.

02 / ENTRY REQUIREMENTS

Entry Conditions and Core Requirements

• First assess whether the proposed activities constitute carrying on a money-lending business in Hong Kong and whether they genuinely fall within a specific exemption under the Money Lenders Ordinance. Do not assume automatic exemption solely because the borrower is an affiliated company, the loan is paid from an overseas account or there is no public advertising. Structures involving uncertainty should be subject to a case-specific legal analysis.
• The applicant and relevant controllers, directors, company secretary and persons responsible for managing the money lending business must remain fit and proper. The assessment covers integrity, business capability, financial standing, and records of breaches and disciplinary action. Previous licence refusals, bankruptcy or unpaid judgment debts must be disclosed accurately; adverse matters should not be concealed.
• The business plan must clearly set out the source of funds, shareholding and beneficial owners, target customers, loan products, approval criteria and debt-collection procedures, and provide financial projections for the next 2 years. Online applications, automated approvals, payment platforms and outsourcing arrangements must all be explained; submitting a generic compliance template is not sufficient.
• Except where a statutory exception applies, the actual annual interest rate on a loan must not exceed 48%. A rate above 36% may trigger court scrutiny as an extortionate transaction; this does not mean that rates from 36% to 48% are necessarily lawful or safe. Interest and related charges must be calculated using the statutory method; advertised monthly interest or flat rates alone are not sufficient.
• Before entering into a loan agreement, the interest rate, total interest, repayment amount for each instalment and in total, consequences of default, and enforcement of security must be explained, with written or audio-visual records retained. Loan agreements and memoranda must comply with the requirements of the Ordinance. The borrower’s signed acknowledgement does not relieve the licensee of the duty to explain the terms properly and in substance.
• Before arranging a loan, ask whether the borrower has entered into any loan-related agreement with a third party, and record and obtain the relevant agreement in accordance with the licence conditions. The third party concerned must meet the appointment and registration requirements. Do not allow an intermediary to charge the borrower a loan-related fee or circumvent the prohibition through tied sales.
• From 1 August 2026, it is prohibited to request or obtain loan referrer information. Information about referrers already held must not be used or acted upon to contact them. A referrer is not a guarantor liable for repayment; the prohibition cannot be circumvented by relabelling a referrer as a contact person, reference or otherwise.
• Before entering into an unsecured personal loan agreement or substantially increasing the loan amount, assess affordability by considering current income, expenditure and the repayment arrangements over the full term. The assessment must not be based on the customer’s ability to take out new debt to repay the loan, nor can a general credit score alone, other than collateral, replace the necessary checks.
• For a low-income borrower with monthly income not exceeding HKD 12,000, separately calculate the ratio of total monthly repayments on unsecured personal loans to income: it must not exceed 35% for income of HKD 6,000 or below, and 40% for income of HKD 6,001 to HKD 12,000. Include relevant existing loans from banks and money lenders, as well as the loan being applied for.
• For a low-income borrower with a fixed-term employment contract, the repayment period for an unsecured personal loan must not exceed the remaining term of the applicable contract. For borrowers with irregular income, compare the average monthly income over the most recent 3 months and 12 months in accordance with official guidance and use the higher amount; do not treat an expected pay rise as current income.
• Licensees must implement the Companies Registry’s anti-money laundering and counter-terrorist financing guidelines under licensing condition 14, including verification of customers and beneficial owners, risk assessment, ongoing monitoring, and escalation and reporting of suspicious transactions. Obtaining a copy of an identity document is not equivalent to completing due diligence, and outsourcing business activities does not transfer ultimate responsibility.

03 / PEOPLE & GOVERNANCE

Shareholders, directors and compliance personnel

• Responsibilities for directors, senior management, credit approval, client due diligence, lending, collections and complaint handling should be clearly assigned in proportion to the business’s scale. Official business plan guidance requires disclosure of headcount, roles, reporting lines and full-time or part-time arrangements; it does not prescribe a fixed headcount or invariably require two SFC-style responsible officers.
• A person responsible for managing the money-lending business should have knowledge, experience and operational capability commensurate with the business. The Police’s October 2026 guidelines list evidence of capability such as employment proof, service records and qualifications in relevant disciplines, and expressly state that a personal CV alone is not accepted as proof of such capability.
• A compliance officer at management level must be appointed to oversee the AML system, and a senior staff member must be appointed as the money laundering reporting officer to handle internal assessments of suspicious transactions and external liaison. Official guidance permits one person to hold both roles depending on the institution’s size, provided that the person has sufficient authority, resources and capability to perform the duties.
• Anti-money laundering guidelines require the Compliance Officer and Money Laundering Reporting Officer ordinarily to be based in Hong Kong for work and, as far as possible, to maintain a reasonable degree of independence and direct access to senior management. This requirement must not be misrepresented as requiring all directors to be Hong Kong residents, nor should nominal personnel be used in place of actual management.
• Ongoing training proportionate to their roles must be provided to customer service, approval and debt-collection staff. Training should cover interest calculations, prohibitions concerning intermediaries, restrictions on loans to low-income persons, privacy and the identification of suspicious transactions. AML training attendance, dates and content must be recorded and retained for at least 3 years.

04 / CAPITAL & PREMISES

Capital and business address requirements

Financial resources and sources of funds

The current official application and fit-and-proper guidelines do not prescribe a uniform minimum paid-up capital or fixed security deposit amount. However, you must demonstrate that your financial position is suitable for conducting the business, that the source of funds for lending is lawful, and that working capital is sufficient. The business plan must explain the capital required for day-to-day operations and provide financial projections for the next two years. A budget recommended by a consultant must not be presented as a statutory threshold.

Statutory share capital, net assets, liquid capital and other financial resources are not the same concept. Capital is not a government fee or consultancy fee, and must not be conflated with client assets or reserve funds.

Hong Kong Business Address and Substantive Operations

• The Licensing Court will consider whether the proposed premises are suitable for money lending business. An application should provide a genuine, usable office location and lease. A company secretary's registered address or mail collection address cannot simply be treated as premises approved for carrying on money lending business.
• Written permission from the owner is required for the use of the premises for money-lending purposes. Where the premises are sublet through an existing tenant, Police guidelines require permission from both the owner and the tenant. Before signing, it is advisable to check the permitted use under the lease, restrictions on subletting and building rules to avoid discovering after leasing that the relevant business is not permitted.
• The police require an occupation permit proving that the premises are for office or shop use. If the premises are not designated for such use, the applicable change-of-use, land and planning permissions must be obtained. The land register should also be obtained to verify title; the landlord's verbal statement alone is not sufficient.
• The floor plan must clearly show the layout, facilities and the locations of security measures, including applicable CCTV coverage, locked filing cabinets or safes, and anti-theft systems. The practical design of the premises should incorporate client privacy, records management and employee access permissions.
• Adding or replacing business premises involves a licence endorsement procedure and a suitability review of the new premises, so plan before relocating. Filing a change of registered office address with the Companies Registry cannot replace a money lender registration change or an endorsement of premises required by the court.

05 / APPLICATION DOSSIER

Application Document Checklist

• A new company application uses Forms 3 and 5 and supplementary information pages SIS-1 and SIS-1A, together with evidence of the company’s authorisation and a business plan. The application and statements must be signed by hand in the number of copies specified officially. Use the latest version issued by the Companies Registry when filing, and avoid using forms from previous years.
• New applications by individuals or partnerships use Forms 2 and 4 and SIS-2 and SIS-2A, and require identity or business evidence. An applicant may be an individual or a partnership; incorporation of a limited company should not be presented as an absolute precondition for every money lender licence application.
• Prepare the company incorporation and business registration documents, the latest annual return, an organisation chart and shareholding chart, and identify the ultimate beneficial owners. Also prepare identity, background and fit-and-proper information for directors, controllers and management personnel, and ensure that the application forms are consistent with the company registry information.
• Submit evidence of the source of funds and financial support, such as bank statements of the company, directors or shareholders, capital injection or loan arrangements, and budgets for lending funds and day-to-day operating funds. Proof of funds should correspond to the actual lending scale; showing only the nominal share capital figure is insufficient.
• Prepare capability evidence such as employer attestations for managers, service records and academic or professional qualifications, together with a division of responsibilities. A résumé may explain a person's background, but the police have expressly stated that a résumé alone is not accepted as proof of the ability to manage a money-lending business. Verifiable supporting documents are required.
• Premises documents include the lease, the landlord’s consent and any applicable subletting consent, the Occupation Permit, the Land Register and detailed floor plans. If the permitted use is inconsistent, the relevant approvals already obtained should be provided; rent receipts or office photographs alone cannot replace the officially listed proof of permitted use.
• The business-plan attachments should preferably include sample loan agreements, fee and effective interest rate calculations, records of explanations of terms, affordability assessment forms and low-income ratio calculation forms. Also prepare intermediary agreements and complaint and debt-collection procedures, ensuring that commitments included in the business plan can be implemented in practice.
• Anti-money laundering documents must cover risk assessment, customer and beneficial owner verification, sanctions and politically exposed person screening, ongoing monitoring, record retention, staff training and suspicious transaction reporting procedures. For outsourcing and online systems, attach service descriptions, access permissions and data protection arrangements.

06 / APPLICATION ROADMAP

Application process and required time

The Companies Registry’s October 2026 application booklet states that a new application generally takes 3 to 4 months from submission, while a renewal generally takes 2 to 3 months. These are not statutory guaranteed timeframes; requests for additional information, investigations and court scheduling may affect progress. A licence is valid for 12 months, and an application for renewal may be made within the 3 months before expiry. Preparation and account opening require additional time.

1. Step 1: Break down the customer base, source of funds, loan purpose, whether collateral is provided and online channels, and determine the boundaries between licensing requirements and exemptions. At the same time, assess the genuine shareholding and management team to avoid acquiring a shell or signing a long-term lease first, only to discover later that the business falls under another regulatory regime.
2. The second step is to establish the entity, management personnel and suitable premises, verify evidence of funds and capability, and complete a two-year financial forecast in accordance with the official business plan guidelines. Turn lending approvals, customer protection and anti-money laundering requirements into forms and procedures, rather than preparing only narrative descriptions for the application.
3. The third step is to prepare three copies each of the application and statement using the forms corresponding to a company, individual or partnership, and one copy of each supplementary-information page, and sign them by hand as required. A company applicant must also provide evidence of authorisation and check that the address, director and beneficial-ownership information is consistent.
4. Step 4: Submit two copies each of the application and statement to the Companies Registry, together with the relevant supplementary information pages and business plan, and pay the application fee. Also submit one copy each of the application and statement to the Money Lenders Licensing Section of the Police Licensing Office, together with the supporting documents required by the police.
5. Step 5: Undergo background, financial, operational capability and premises reviews by the Companies Registry and the police, and provide supplementary documents as requested. The application must go through the licensing court process, with relevant notices, notifications and hearings handled in accordance with the requirements at the time. Completion of the administrative filing must not be treated as authorisation to commence business.
6. Step 6: If the court considers it appropriate, it will grant the licence. The applicant must pay the licensing fee as required and verify the licence holder, premises, validity period and conditions. Before formally commencing business, confirm that advertisements, contracts, complaint hotlines and systems meet the requirements. Bank account opening remains subject to the bank’s independent due diligence.
7. The fee budget should list regulatory fees and professional service fees separately: the official fee schedule lists HK$8,800 each for an application for a new licence or renewal, and HK$1,910 each for court issue or renewal of a licence; fees paid are non-refundable. Office, consultancy, systems, loan principal and staff costs are additional. Check the latest fees again before submission.

07 / ACQUISITION & CHANGES

Acquisitions, Changes to Shareholders and Directors, and Completion

• Acquiring shares in a licensed company is different from reselling a licence as a standalone asset. If the original company continues to exist after the transaction, it remains the licence holder, and the new controllers and managers must continue to meet the fit and proper criteria. Do not promise that the buyer can use the original licence through another entity merely by signing the agreement and making payment.
• First verify the licensed company’s exact name, licence number, validity period, registered premises and any additional conditions, and check for renewal objections, suspension or revocation risks. The current list of licensed entities on the official website can serve as an initial check, but you should also review the register entries and original documents. Do not treat the seller’s advertisements or screenshots as conclusive evidence.
• Changes to shareholding, directors or management must be assessed individually against money lender registration notifications, company filings, premises endorsements and the requirements of any specific licence. Official FAQs expressly require changes to registration particulars to be notified within 21 days. Do not apply the SFC substantial shareholder approval threshold or invent a blanket requirement for the same prior approval for every acquisition.
• Due diligence on loan assets should include sampling contracts and interest calculations, bad debts, the priority of security interests, litigation, customer complaints and intermediary fees. Confirm in particular that the new conditions for 2026 have been implemented. Risks arising from missing legacy files or improper debt collection do not automatically disappear on a transfer of shares.
• Financial and compliance due diligence should cover the source of loan principal, related-party borrowings, taxes, guarantees, anti-money laundering records and regulatory correspondence. The buyer should arrange representations and warranties, indemnities and mechanisms for the transfer of information. If issues are discovered, the fact that a licence remains valid does not mean the historical business was fully compliant.
• A bank account is part of the business relationship between the company and the bank. Changes in control or authorised signatories may trigger renewed due diligence, transaction restrictions or termination of services. Transaction documents should include appropriate conditions relating to bank cooperation, licence renewals and retention of key personnel. It cannot be guaranteed that an existing account will necessarily remain available for the buyer’s use.
• The timing of an acquisition depends on due diligence, transaction documents, processing of changes, bank reviews and the remaining term of the licence; there is no uniform regulatory completion timeframe. An adviser may provide a project schedule subject to conditions, but must not advertise guaranteed exemption from a hearing or review, or approval to commence new business within a few days.

Shareholders, Directors and Other Material Changes

• The first phase of new measures takes effect on 1 August 2026: a comprehensive ban on requesting, obtaining or using information about loan intermediaries, and a debt-servicing-to-income cap on unsecured personal loans for low-income borrowers. Update all application channels and rules for using existing contacts, not just the paper application form.
• Section 16 of the new 2026 conditions also restricts the loan repayment period for low-income borrowers with fixed-term employment contracts; the remaining contract term must be taken into account in the approval process. The general affordability assessment under section 15 applies independently. Meeting the ratio cap does not mean that an overall repayment-capacity assessment can be omitted.
• The Companies Registry announced on 21 September 2026 that the advertising risk warning will change on 1 January 2027 to the official wording: “借定唔借？還得到先好借！”. It had not yet taken effect as of the date this information was verified. Websites, social media, video and third-party advertisements should be updated in advance.
• As of November 3, 2026, the current advertising risk warning remains the official wording “忠告: 借錢梗要還，咪俾錢中介”. Advertisements must also meet requirements such as displaying the licence number and complaint hotline; the officially prescribed warning should be retained in its original wording and must not be replaced with self-polished copy in standard Mandarin.
• The official announcement states that Phase 2 of the Credit Data Sharing Initiative will take effect on 1 June 2027. It requires licensees conducting unsecured personal loan business to provide borrowers’ personal credit data periodically, and requires persons meeting specified conditions to join the platform to obtain data. As of the verification date, it must not be described as fully implemented.
• The Companies Registry's official FAQ expressly states that, after a money lender's registered particulars change, the Registrar must be notified in writing within 21 days, with a copy sent to the Police Licensing Office. A change of directors must separately be notified using the applicable ND2A or ND2B under the Companies Ordinance; one filing cannot replace the other.

08 / ONGOING COMPLIANCE

Post-approval maintenance and ongoing responsibilities

• Create an annual licence-renewal calendar and submit early, within the 3 months before the licence expires. Allow for the official’s usual processing time of 2 to 3 months and update fit and proper person materials using the latest forms. If a licence has expired or its renewal is disputed, verify its actual legal status; a filing receipt alone does not establish a right to continue operating indefinitely.
• For company renewals, use Forms 7 and 9 and SIS-3 and SIS-3A; for individuals or partnerships, use Forms 6 and 8 and SIS-4 and SIS-4A. Submit the respective forms to the Companies Registry and the Police in accordance with the official procedures. Truthfully update any changed information, rather than mechanically copying the statements made in the previous year.
• Continue to check the actual annual percentage rate, records of explanations of agreements, prohibitions on advisers, borrowers’ ability to repay and restrictions on loans to low-income borrowers. Conduct spot checks of online advertisements, appointed third parties and debt-collection agents. A licensee is not automatically relieved of its regulatory responsibilities because an external partner has breached the rules.
• AML customer due diligence records generally must be retained throughout the business relationship and for at least 5 years after it ends. Transaction records generally must be retained for at least 5 years after the transaction is completed. Identify the relevant starting point for each separately, extend the retention period as required when there is an investigation, and ensure electronic records can be fully retrieved and promptly provided.
• Periodically review institutional and customer risks, update beneficial ownership, sanctions and politically exposed person screening, and monitor unusual lending, third-party repayments and early settlements. Refer suspicious matters to the Money Laundering Reporting Officer for assessment and reporting as required by law. Do not disclose to customers that a suspicious transaction report has been or is proposed to be made.
• Maintain a complaint hotline, complaints register and debt-collection oversight. Do not seek repayment from anyone who has no legal liability for the debt, or use harassing methods to locate borrowers. Restrict debt-collection agents’ access to data and retain records of their activities to facilitate the handling of complaints and regulatory enquiries.
• Chinese-language loan advertisements must clearly state “Money Lenders Licence Number” and the licence number, and must prominently display the complaints hotline and applicable risk warnings where required. Audio-visual advertisements must also meet audibility and legibility requirements. Warnings must not be hidden only in the footer, shown in an extremely small font, or displayed only after a click.
• Provide money-lending business information to the Companies Registry or the police within the specified time when requested, and retain records of responses and the basis for statistics. The company must also independently fulfil its annual return, business registration, accounting and audit, and tax obligations. Completing the company’s annual filing does not mean that the money lender’s licence renewal has also been completed.
• Continue checking the additional conditions attached to individual licences and the latest official notices. Before changing the business model, personnel or premises, first determine whether an endorsement or consultation is also required. Assign specific personnel to manage licence status, renewal progress, advertising and customer files to avoid business interruption caused by omissions during handovers.

09 / FREQUENTLY ASKED

Frequently asked questions

10 / OFFICIAL REFERENCES

Official references and information verification

Information compilation date:3 November 2026The regulatory websites below are used to verify applicable laws, the latest forms, fees and registration status. Primary legislation, current requirements of the competent authorities and case-specific decisions take precedence.

Prepared by Rengangyongsheng (Hong Kong) Limited; professional explanation provided by Business Manager Tang Shangyong (Drew). This does not constitute legal, tax or investment advice for any specific case.