Hong Kong License No. 1It is the most common under the regulatory system of the Hong Kong Securities and Futures Commission、One of the most widely demanded types of securities dealer licenses in the market。As of September 2016，There are 1,093 Hong Kong No. 1 licensed institutions，There are 26,125 licensed individuals，in various typesHong Kong Brokerage LicenseThe number of licensees and number of units are both in the leading position。
Hong Kong No. 1 license applicationDemand continues to grow，The core reason is that it can cover a wide range of businesses，Particularly suitable for planning securities transactions、Institutions providing brokerage services and related capital market businesses。For mainland enterprises，Along with Shanghai-Hong Kong Stock Connect、Shenzhen-Hong Kong Stock Connect and other interconnection mechanisms are launched，Obtaining Hong Kong's No. 1 license also serves as a gateway to the international capital market.、Important compliance paths for expanding overseas securities business。
Business advantages of Hong Kong License No. 1
The core business value of applying for Hong Kong No. 1 license，Enterprises can carry out regulated activities related to securities trading within a compliance framework。overall，Hong Kong License No. 1 is a license to engage in securities transactions，The business scope can cover multiple types of securities products and trading arrangements。
After obtaining Hong Kong License No. 1，Licensed institutions may comply withHong Kong Securities and Futures CommissionSubject to regulatory requirements，Provide customers with the following business services：
- Stock trading brokerage services；
- Stock options trading related services；
- Bond trading brokerage services；
- buy for client、Sell mutual funds and unit trust funds；
- Securities trading related businesses such as placing and underwriting securities。
Due to the wide range of business applications，Hong Kong License No. 1 is often regarded as an important basic license for securities financial institutions to enter Hong Kong and international markets.。For plans to build a cross-border securities service platform、For companies that expand overseas customer resources or participate in capital market business，This license has strong strategic value。
Application requirements for Hong Kong No. 1 license
The Hong Kong Securities Regulatory Commission adopts prudent supervision principles for Hong Kong No. 1 license applications，Focus on paid-up capital、working capital、Responsible personnel qualifications、Comprehensive assessment of company entities and organizational structure, etc.。The applicant organization needs to prove that it has the ability to continue operating、Compliance control capabilities and qualified management team。
In practice，To apply for a Hong Kong No. 1 license, you usually need to focus on meeting the following requirements:：
- Applicants need to register and establish a company in Hong Kong，and have a physical business address；
- The company needs to have actual funds in place of no less than 5 million yuan；
- The company needs to have current assets of more than 3 million yuan，To ensure the daily operation and regulatory requirements of the institution；
- Personnel responsible for the organization need to be competent，And passed the relevant tests of the Hong Kong Securities Regulatory Commission；
- The person in charge should preferably have 3 years of relevant industry experience，To enhance the professional credibility of the application。
The Hong Kong Securities and Futures Commission is in the process of approving，Not only pay attention to whether the application materials are complete，Ability to evaluate the company's business model、internal control、Risk control mechanism、Whether the compliance system and core personnel’s resume match the business to be carried out。therefore，Before the company formally submits the application，Structure sorting should be completed in advance、Staffing and capital arrangements。
Market motivations for mainland enterprises to apply for Hong Kong No. 1 license
in recent years，Mainland enterprises’ enthusiasm for applying for Hong Kong No. 1 license continues to rise。After the opening of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect securities mechanisms，The linkage between Hong Kong’s capital market and the mainland market continues to increase，More and more companies hope to take advantage of Hong Kong’s licensing system，Establish a more international securities trading and financial service platform。
By applying for Hong Kong No. 1 license，Enterprises can carry out securities trading-related businesses within Hong Kong’s regulatory framework，and further extend its business reach to overseas markets。This is ideal for those who want to enhance international brand endorsement.、Expand overseas customers、For financial institutions that connect multiple capital markets，Makes clear compliance and business sense。
Ongoing compliance requirements after approval
Hong Kong’s No. 1 license does not mean that management can be relaxed after approval。After successfully obtaining the Hong Kong No. 1 license，Licensed institutions still need to continue to fulfill the regulatory obligations of the Hong Kong Securities and Futures Commission，Follow-up compliance work is crucial to the company's long-term stable operations.。
Licensed institutions need to pay special attention to the following matters after being approved：
- Applicants need to inform the Hong Kong Securities and Futures Commission of the company’s financial year end date within 1 month；
- Companies are required to submit financial resources declaration forms to the Securities and Futures Commission of Hong Kong every month.；
- Companies need to continue to maintain capital that meets regulatory requirements、current assets、Personnel qualifications and internal control arrangements。
Continuous compliance capabilities are an important criterion for the Hong Kong Securities and Futures Commission to supervise licensed institutions.。If the company plans to operate securities business for a long time，A complete compliance management system should be established before approval，Avoid subsequent declarations、Insufficient capital maintenance or system implementation affects business development。
Hong Kong License No. 1-10application differences
For companies that carry out multiple types of securities and financial businesses，Simply applying for Hong Kong No. 1 license may not cover all business needs。If the business is involved in multiple regulated activities，may need to be combined with the actual business model，Apply for one or more types of Hong Kong licenses No. 1-10。
The Hong Kong Securities Regulatory Commission has different regulatory requirements for each type of license.，There are also differences in the difficulty of application。Enterprises should conduct business according to the proposed、Customer type、Trading products、Funding arrangements and staffing，Determine the type of license required，and formulate corresponding application plans。
Hong Kong Xintong has long been paying attention to the Hong Kong Securities Regulatory Commission’s license application practices，Have a professional team based in Hong Kong and master first-hand regulatory information。For Hong Kong No. 1 license application or Hong Kong No. 1-10 license combination application，We can according to the enterprise business plan、Equity structure、Personnel background and capital arrangements，Provide more actionable and comprehensive advice。
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。
