Hong Kong Money Lenders LicenseSimilar to Mainland China’s small loan license in business attributes，Licensed entities usually carry out loan business in the form of finance companies。The license is issued and regulated by the Hong Kong Police Force，At this stage, regulatory requirements continue to become stricter，The relevant financial and regulatory authorities in Hong Kong also pay close attention to the compliance operations of the lending market.、Consumer protection and debt risk control。
Due to irregularities such as induced lending in the market,，And may push up residents' debt ratio and debt amount，Regulators scrutinize money lending business more cautiously。therefore，If an enterprise plans to establish a new financial company andApply for a money lender's license，The actual difficulty of handling has increased significantly，The basis for compliance needs to be fully assessed、business model、Risk control capabilities and subsequent operational requirements。
Hongkongmoneylenders licenseregulatory background
Hong Kong money lenders license is subject to theMoney Lenders Ordinance》 (Chapter 163 of the Laws of Hong Kong) Regulation。When a licensed company conducts business such as private loans,，Requires ongoing compliance with regulatory requirements，and ensure business promotion、Customer due diligence、loan approval、Interest rate arrangement、There are clear compliance mechanisms in collection management and data retention.。
In the current regulatory environment，Money lender license is not just a matter of company registration，It involves license access、actual business、Venue configuration、Comprehensive financial compliance arrangements for compliance systems and risk management。We generally recommend that companies before entering this field，Complete the license feasibility assessment first，And combined with its own business plan to determine whether it is a new application、Acquisition of licensed entities，Or carry out business layout through other compliance paths?。
Hong Kong finance company transferProject status
The Hong Kong financial companies that can currently be connected are licensed entities with existing business records.，The company has conducted business in the past，and remain normal。Project number is I7bbbIO84bb。Regarding bad debts，Further interviews and detailed due diligence required；As far as the current situation is concerned，Both companies have few bad debts，The company structure is relatively simple，Mainly engaged in private loan business。
The project’s office space is still in use，The receiver may continue to take over the existing office space based on actual needs.。The office area is approximately over 2,000 square feet，The monthly lease is more than HK$50,000。Specific acceptance methods、Lease arrangements、business information、financial records、License status and potential risks，It is recommended to conduct a comprehensive verification before formal transactions。
Things to check before transfer
- Whether the money lender’s license is still valid and in good condition；
- Company past business records、Customer Portfolio and Loan Asset Quality；
- bad debts、Overdue accounts and potential legal disputes；
- office lease、Staff arrangements and daily operating costs；
- Company equity、debt、Tax and bank account status；
- Are there any regulatory inquiries?、complaint、Litigation or other compliance risks。
If the company needs to know more detailed transfer information、Transaction structure and due diligence arrangements，Further consultation is available。We can assist in docking various financial license projects in Hong Kong，and provide professional advice on compliance matters related to money lender licenses。
Licensed company acquisition cases：Green Energy Technology Group
Green Energy Technology Group (00979) has announced，It passed the indirect wholly-owned subsidiary Bliss Hour Limited on April 12, 2018，Proposed to acquire the entire issued share capital of Zhuofu Limited (the "Target Company") for a cash consideration of HK$500,000。
The target company holds a money lender's license under the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong。The board of directors believes，The acquisition provides good opportunities for the group，Contribute to diversifying the group’s business scope，and expand the group’s revenue sources。
Practical suggestions for corporate layout of money lender licenses
For companies planning to enter Hong Kong’s money lending and finance company business，The commercial value of a moneylender license lies not only in the qualifications，What matters more is whether the licensed entity is stable、Compliance、Operate sustainably。Whether you choose to apply new or acquire an existing licensed company，compliance review、Transaction due diligence、License renewal、Business risk control and subsequent operations are core considerations。
We recommend that companies before transacting or applying，First clarify the type of loan you intend to carry out、Source of funds、Customer positioning、Risk control process and compliance responsible person arrangement，and simultaneously assess regulatory acceptance and commercial feasibility.，To reduce subsequent operation and transaction delivery risks。
About Hong Kong Xintong
Hong Kong Xintong focuses onHong Kong Securities and Futures Commission license、Hong Kong Insurance Broker License、Hong Kong MSO Licenseandmoneylenders licenseApply for service，Assist customers to applyUS MSB license、NFA、RIA、Canadian MSB license、Mainstream overseas financial licenses such as Australia and Mexico，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableCayman Islands Offshore Company Registration、Offshore fund establishment and global compliance operations and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。
