Eternity Law International News Purpose and Features of Obtaining an SFC License in Hong Kong

Purpose and Features of Obtaining an SFC License in Hong Kong

December 14, 2021

SFC License in Hong Kong or Securities and Futures Commission is a financial industry regulator operating in Hong Kong. The Commission was created in order to exercise administrative control and regulate the activities of all companies that operate or are in any way connected with the financial sector.

When and for what purpose the Commission responsible for the regulation of securities and futures in Hong Kong was established

Hong Kong has the status of one of the largest and most reliable financial centres in the world. Despite this, the region has quite a few regulators of activities related to financial transactions. The SFC was established in 1989 and today it is one of the oldest financial supervisors.

The most important and, perhaps, the most basic, tasks of the organization are the regulation of the operating activities of all firms with the status of financial companies, and administrative control over all their operations, regardless of the range of their services. The Commission controls not only those enterprises that are registered in Hong Kong, but also those that operate in China as a whole. The regulator, among others, oversees the following commercial entities:

  • market makers and brokers;
  • investors and large traders;
  • all companies that act on the market as issuers of bonds, derivatives, stocks and other similar instruments.

The SFC also oversees the activities of forex brokers. To each of the above companies, the Commission issues a corresponding license that gives the official right to work in this sector.

SFC License in Hong Kong: limits of the regulator’s liability

The SFC is a structure independent of the local government. The regulator receives funding, for the most part, from fees that are collected from the reporting entities. However, unlike, for example, FinCom, the Futures and Securities Commission, which regulates the Hong Kong territory, provides a report on the activities carried out and their results to authorized representatives of government agencies every year.

In general, the SFC task list looks like this:

  • defend and contribute in every way to strengthening the integrity of the Hong Kong securities market;
  • encourage and maintain reasonable competitiveness, fairness of transactions, orderliness and transparency of the environment in which transactions with securities are carried out;
  • ensure compliance with general rules and regulations within the market, in particular, investigate cases in which any violations were noticed;
  • issue licensing permits and subsequently provide supervision over companies that are under the regulation of the Commission;
  • monitor organizations-registrars of shares, stock exchanges and other platforms of this type;
  • render all possible assistance to the development of financial infrastructure;
  • regulate the listing procedure within the Hong Kong stock exchange;
  • interact with foreign and local regulatory agencies; provide them with the support and professional assistance they need;
  • provide assistance to investors.

How to apply for an official financial authorization in Hong Kong

A company that wishes to obtain a financial license from the SFC must fully meet the criteria set by the Commission. The regulator’s employees will check not only the information provided about the officials and shareholders of the applicant company, but also their personal characteristics, in particular, suitability to hold the appointed post, etc.

The SFC will necessarily study all parameters of the application, including:

  • the applicant’s solvency and his financial position in general;
  • the experience of all persons who are in any way connected with the applicant and are directly related to the provision of services, as well as their qualifications and work experience;
  • the company’s ability to carry out regulated transactions without disruption and in accordance with the imposed requirements;
  • reliability, profitability and reputation of the structure.

In addition, the financial operator must be willing to demonstrate a willingness to contribute to the development of the Hong Kong financial sector and provide professional services to consumers.

If you want to work in the financial sector and register your company in Hong Kong, then you should consider purchasing a ready-made structure with an SFC license. To purchase a ready-made SFC license in Hong Kong, contact us.

You can see other offers in the categories of ready-made companies and licenses for sale.

Our highly professional specialists from Eternity Law International are ready to provide you with assistance in resolving your issue.


You could be interested

Italy gambling license

A license is a document, the presence of which gives the right to conduct any activity: construction, accounting or gambling. Licensing of gambling in Italy is compulsory. Without the presence of such a document, the functioning of the business will be in question and may be criminally punishable. Issuance of permits for gambling business is...

Company registration in Nauru

Nauru is the smallest autonomous republic in the world. It is an insular country outside Europe. For entrepreneurs, Nauru is of particular interest, since in this jurisdiction it is possible to register an offshore company, which means a complete absence of tax charges. Organizational forms for companies in Nauru An offshore company in Nauru is...

Foreign Enterprises Redomiciliation on Cyprus

When enterprise changes its location, it’s known as redomiciliation of companies. Organization changes its official place according to Law norms, while maintaining its status. Under Law, foreign enterprises can move to some state without ceasing to operate in jurisdiction where they were originally approved. When the redomiciliation occurs, the enterprise will have to use the tax...

Development of DeFi solutions

Decentralized finance has been receiving special attention since the market crash in 2020. However, until now, not everyone understands the essence of this phenomenon. At the beginning, this name was given to analogs of traditional financial market instruments with a decentralized architecture. Now they are an autonomous public system that consists of decentralized services and...

Registering and obtaining permission to open a small alternative investment fund in the EU

Nontraditional Ιnvestment Fund (below mentioned as AIF) is an efficient option for mutual contributions and contributions in shares (both listed and unlisted), bonds, cryptocurrencies, and related products, real property objects, and similar valuable assets. The following is an overview of the main obligations of registering for establishing a small alternative investment fund and limitations on...

Luxembourg payment licenses

E-payments market is constantly evolving, which leads to the emergence of new legislative provisions and norms regulating this type of activity. Firms that offer such services are subject to regulation by EU Directives and oversight by official bodies in specific jurisdictions. Payment institution license Luxembourg cover a variety of services, from providing payment infrastructure to...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52


Lochrin Square, 1


Jacovides Tower, 5 floor


Kesklinna linnaosa, Tuukri 19


Esplanade, 7 floor


Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175


20 Martin Place


3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7