Which Business Activities Require a License for a Hong Kong Company?
First, a crucial distinction: every business operating in Hong Kong must obtain a Business Registration Certificate under the Business Registration Ordinance (Cap. 310). This is a basic requirement for all companies, not a license to conduct a specific regulated activity.
However, depending on the nature of your business, you may need additional government licenses, permits, certificates, or approvals beyond the standard business registration. The requirement for a license arises from the nature of your business activity.
Financial Services and Securities
Securities and Futures Commission (SFC) Regulated Activities
The Securities and Futures Ordinance (SFO) defines 13 types of regulated activities that require an SFC license:
Type Regulated Activity
Type 1 Dealing in securities
Type 2 Dealing in futures contracts
Type 3 Leveraged foreign exchange trading
Type 4 Advising on securities
Type 5 Advising on futures contracts
Type 6 Advising on corporate finance
Type 7 Providing automated trading services
Type 8 Securities margin financing
Type 9 Asset management
Type 10 Providing credit rating services
Type 11 Dealing in OTC derivative products or advising on OTC derivative products
Type 12 Providing client clearing services for OTC derivative transactions
Type 13 Providing depositary services for relevant collective investment schemes
Broadly speaking, you need an SFC license if you are a corporation carrying on a business in a regulated activity in Hong Kong, or actively marketing such services to the Hong Kong public. License applications typically take approximately 15 weeks for a licensed corporation.
Banking and Deposit-Taking
Engaging in retail and wholesale banking activities — including operating current and deposit accounts — requires authorization by the Hong Kong Monetary Authority (HKMA) under the Banking Ordinance. Hong Kong operates a three-tier authorization regime covering licensed banks, restricted license banks, and deposit-taking companies.
Money Lending
Any person carrying on business as a money lender in Hong Kong must obtain a money lender's license under the Money Lenders Ordinance (Cap. 163). The license is valid for 12 months and must be renewed before expiry. Operating without a license is a criminal offense.
Insurance
Insurance companies must be authorized by the Insurance Authority (IA) to carry on insurance business in Hong Kong. Insurance intermediaries (agents and brokers) must also hold valid licenses under the Insurance Ordinance.
Food and Beverage Businesses
The Food and Environmental Hygiene Department (FEHD) is the licensing authority for food businesses in Hong Kong. The following establishments require licenses:
· Restaurants (general and light refreshment)
· Food factories
· Fresh provision shops
· Bakeries
· Factory canteens
· Siu mei and lo mei shops
· Frozen confection factories
· Milk factories
· Cold stores
· Composite food shops
Additionally, permits are required for selling restricted foods, including:
· Frozen confections, milk, non-bottled drinks, Chinese herb tea
· Cut fruit, sushi, sashimi, oysters, and meat to be eaten raw
· Food sold from vending machines
Liquor licenses are also required to sell liquor for consumption on premises, issued by the Liquor Licensing Board.
Travel Agencies
Under the Travel Industry Ordinance (Cap. 634), no person may carry on travel agent business without a travel agent license from the Travel Industry Authority (TIA).
A person carries on travel agent business if they obtain for another person carriage or accommodation outside Hong Kong (outbound), or provide services to visitors in Hong Kong (inbound).
Licensing requirements are substantial: travel agents typically need HK500,000 bank guarantee. The TIA license application realistically takes eight to 16 weeks. Operating without a license is an offense.
Import and Export
While general trading companies do not require a specific license, certain goods are controlled under the Import and Export Ordinance (Cap. 60).
A license from the Director-General of Trade and Industry is required for the import, export, re-export, or transshipment of:
· Strategic commodities (based on international export control regimes)
· Endangered species (animals and plants)
· Pharmaceutical products and certain chemicals
· Hazardous chemicals
· Ozone-depleting substances
· Waste
Hotel and Guesthouse Accommodation
Under the Hotel and Guesthouse Accommodation Ordinance (Cap. 349), operating a hotel or guesthouse requires a license from the Licensing Authority. This applies regardless of whether the premises are located in commercial or residential buildings.
Education and Training
Establishing a school in Hong Kong requires a Certificate of Registration of a School from the Education Bureau under the Education Ordinance.
For non-local courses, course providers must register each course with the Registry at least four months before commencement.
Construction and Building Contractors
Contractors engaged in construction work in Hong Kong must be registered with the Buildings Department. Registration categories include:
· General Building Contractors (RGBC)
· Specialist Contractors (RSC)
· Registered Minor Works Contractors (RMWC)
Applicants must hold a valid Business Registration Certificate, appoint an Authorized Signatory, and appoint qualified personnel.
Broadcasting and Telecommunications
The Communications Authority regulates the broadcasting and telecommunications industries under the Broadcasting Ordinance (Cap. 562) and the Telecommunications Ordinance (Cap. 106). Licenses are required for:
· Domestic free/pay television program services
· Sound broadcasting services
· Telecommunications services and facilities
Other Trades Requiring Licenses
The FEHD also issues trade licenses for operating:
· Places of public entertainment (theatres, cinemas, entertainment machine centres)
· Commercial bathhouses
· Private swimming pools
· Funeral parlours and undertaker businesses
· Slaughterhouses
· Offensive trades
Key Considerations
- "Fit and Proper" Requirements
Many licensing regimes require applicants to meet "fit and proper" criteria, demonstrating suitability in terms of character, qualifications, and experience. - Multiple Licenses
A single business may require multiple licenses. For example, a restaurant serving liquor needs both a food business license and a liquor license. - Provisional Licenses
Some licensing authorities offer provisional licenses to allow businesses to commence operations while completing outstanding requirements. - Ongoing Compliance
Licensed businesses must maintain compliance with ongoing obligations, including reporting requirements, fee payments, and adherence to codes of conduct. - Penalties for Non-Compliance
Operating a regulated activity without the required license can result in criminal liability, fines, and even imprisonment.
How to Check Licensing Requirements
The Hong Kong government provides a Business Licensing Information Service where entrepreneurs can search online for the specific government licenses, permits, certificates, or approvals required for their intended business operations.
Hong Kong maintains a licensing regime that covers a broad spectrum of business activities — from financial services and food businesses to travel agencies and construction contractors. While the city is known for its business-friendly environment, these licensing requirements exist to protect public health, safety, and the integrity of the financial system.
Before launching any business in Hong Kong, it is essential to:
- Determine whether your intended activities fall within any regulated category
- Identify the relevant licensing authority
- Factor licensing timelines and costs into your business plan
- Ensure ongoing compliance with license conditions
When in doubt, seek professional legal advice — the consequences of operating without a required license can be severe, and the licensing landscape is subject to change as regulations evolve.