Hong Kong Forex License: how to get and how much does it cost?
The foreign exchange market has been gaining popularity in recent years. Both businesspeople and ordinary people see it as a new source of income. To work in the Forex market, a company needs a license, and practice shows that it must be issued abroad to minimize the tax burden and increase prestige. Getting a license to work on the Forex market in Hong Kong will take a lot of time, but its capabilities will justify all the costs.
Why apply for a Forex license in Hong Kong?
Hong Kong is considered to be the largest financial centre in Asia, but at the same time its legislation is significantly different from the traditional Chinese one. Jurisdiction is not on FATF's "black list" and has a good reputation on the world stage.
- It has low tax rates;
- Wide range of types of licenses for various currency transactions;
- Access to international financial markets;
- Possibility of cooperation with Asian electronic payment systems;
- Actual legislative base in the sphere of financial regulation.
Issuance of licenses is handled by the Hong Kong Securities and Futures Commission. It makes serious requirements both to applicants for their receipt and to documents. A Forex license in Hong Kong costs at least HK$10,000 per year. It is almost impossible to calculate the amount of money for its execution, as it depends on the volume of the company's documents, the correctness of questionnaires and the competence of employees involved in obtaining it. The help of professionals will come in handy.
IT-OFFSHORE company has many years of experience in working with government agencies of foreign jurisdictions and can make the process of obtaining a Forex license in Hong Kong remote and less costly.
Mandatory requirements to applicants for a license
In addition to the documents certifying the identity of the owners of the company applying for a Forex license and its founding documents, a business plan developed for at least 3 years ahead plays an important role in decision-making. Analyzing the company's development strategy, the Securities and Futures Commission draws conclusions about its integrity and the possibility of its presence on the financial market in Hong Kong. However, more serious parameters play a decisive role:
- Fixed capital from 5,000,000 Hong Kong dollars;
- The company should really exist at least for a year, and be created specifically for the Forex market;
- Registered address and office with an actual presence within the jurisdiction;
- The documents capable of confirming the solvency of the company, its reputation and lack of criminal records of owners and top managers;
- A staff of highly qualified employees capable of confirming their competence in foreign exchange markets;
- Presence of two independent employees controlling the company's compliance with the rules of work in the Forex market;
- At least one of the two directors has local residency.
An entrepreneur planning to obtain a Forex license in Hong Kong must first establish a company, then choose one of the 9 possible types of work permits, collect a set of documents, the content of which may vary depending on the type of license and the source data of the company, and only after compliance with all these steps, apply to the Commission on Securities and Futures.