How to apply for a Money Lender Licence? Briefing on the documents required and the process!

“Money Lenders are allowed to operate and advertise their own lending business and are required to obtain a Money Lender’s Licence to operate a money lending business in Hong Kong. Money lending transactions and licensing are regulated under the Money Lenders Ordinance, Cap 163. The process of obtaining a licence is more stringent as the business involves borrowing and may have a serious impact on the public interest. If you are interested in learning more about the application process for a money lender’s licence, please refer to this article.

Individual/Partnership Application Form for a Money Lender Licence.

“Form 2” – an application form for an individual to obtain a licence for himself/herself or a partnership.

“Form 4” – a statement in support of an individual’s application for a licence for himself or herself or for a partnership.

“SIS-2” – Supplementary Information Sheet – Application by an individual for a money lender licence for himself or a partnership.

“SIS-2A – Supplementary Information Sheet – Suitability Criteria – Individuals applying for a money lender’s licence for their sole proprietorship or partnership.

Companies Applying for a money lender’s licence.

“Form 3” – Application for a company licence.

“Form 5 – Statement in support of a company’s application for a licence.

“SIS-1” – Supplementary Information Sheet – Application by a company for a money lender’s licence.

“SIS-1A – Supplementary Information Sheet – Fit and Proper Criteria – Company’s Application for a Money Lender’s Licence.

What is the process of applying for a money lender’s licence?
Step 1) Download the required documents
Applicants can either obtain the above forms, statements and relevant supplementary information sheets in person at the Money Lenders Registration Office on 13/F, Queensway Government Offices, or go to the Companies Registry website to download the relevant documents.

Step 2) Complete and sign the application form and statement in triplicate
As applications for a money lender’s licence are subject to the scrutiny of three government departments, namely the Licensing Court, the Money Lenders Registry and the Police, please complete three copies of the application form, three copies of the statement and one copy of the relevant supplementary information sheet.

Step 3) Draw up a loan business plan
Next, prepare a plan for your money lending business and submit it with your application to show that you are prepared to run a money lending business and that you have a thorough understanding of your money lending business. Details of the business plan can be downloaded from the Companies Registry’s website – “Guidelines for Lender Licence Applicants on Submission of Business Plan” and read the guidelines.

Step 4) Deliver the documents to the Money Lenders Registration Office
Deliver the above documents to the Money Lenders Registry (13/F, Queensway Government Offices) and pay the licence application fee (HK$8,800), which can be found in the Fees Required to be Paid under the Money Lenders Ordinance.

Then submit two copies of the application form, two copies of the statement and one copy of the relevant supplementary information sheet, together with a copy of the business plan, together with proof of identity or business and evidence of authorisation.

Step 5) Delivery of documents to the Police Licensing Office
The applicant should then deliver one copy of the application and one copy of the statement to the Money Lenders Licensing Unit of the Hong Kong Police Force (12/F, Arsenal House, Police Headquarters, 1 Arsenal Street, Wanchai, Hong Kong).

If the applicant submits the application, the Commissioner of Police has the authority to investigate the application for a licence and may normally require the applicant to produce further relevant documents for approval, such as “proof of landlord’s permission”, “tenancy agreement”, “annual return”, etc.

It normally takes 3 to 4 months from the date of delivery of the application to issue a licence. Notice of the application for a money lender’s licence will be published in the Government Gazette, The Standard and the Hong Kong Economic Times.

The above information is for reference only. If you have any questions about taxation or accounting, the best course of action is to seek advice from a professional accountant and we welcome your enquiries.

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