Money Lender License

General Information & Governing Authority

What is Money Lenders Service?

Money lenders service means in general making loans to others that is distinct from banks and financial institutions. The services of money lenders include provision of both secured and unsecured loans such as (i) mortgage loans, (ii) consumer and corporate loans, (iii) vehicle, plant equipment leasing, (iv) credit cards, (v) Small and Medium Enterprises loan, (vi) cheque and invoice discounting, (vii) loan syndication.

The Money Lenders Ordinance (Cap. 163) specifies the factors that the licensing court shall consider in processing an application for a money lender’s licence. The factors include:

1. whether the applicant is a fit and proper person to carry on business as a money lender (e.g. the general knowledge, qualification and experience in relation to money lending business etc).
2. whether the premises to which the application relates are suitable for the carrying on of the business of money-lending (e.g. usage of the premises and permission from the landlord and tenant etc).
3. whether the grant of such licence is contrary to the public interest.

It is an offence to operate as a money lender in Hong Kong without a license.

Licensing Criteria

The Licensing Court is responsible for approval of applications for money lenders licenses in consideration of the following conditions :

1. whether the applicant is a fit and proper person to carry on the business (e.g. the relevant general knowledge, qualification and experience, etc.).
2. whether the premises to which the application relates are suitable for the carrying on of the business (e.g. usage of the premises and permission from the landlord and tenant etc.).
3. whether the grant of such license is contrary to the public interest.
   
   

Licensing Procedure

Acknowledgement. Upon receipt of an application, the Companies Registry and the Commissioner of Police will issue an acknowledgment to the applicant. 

Commissioner of Police Investigation. To facilitate the investigation to be carried out in respect of an application for the purposes of determining whether, in the opinion of the Commissioner of Police, there are grounds for approving or objecting the application in accordance with the Money Lenders Ordinance, the CP reserves his right to request for additional information.

Licensing Court Hearing. An acknowledgment letter and notice will be issued to the applicant one (1) month after the investigation, if the application is approved. The applicant is required to attend a hearing and bring along all the requested documents to the Licensing Court.  The Money Lenders license will be granted once the applicant has submitted all the requested documents to the Licensing Court.

Approval. The Commissioner of Police will take around 60 days to review, investigate and examine all the submitted documents. Acknowledgement letter will be issued after 60 days of investigation to inform the applicant whether the application is approved. It usually takes 3 to 4 months from the date of delivery of the application.

Documents Required 

An individual, a partnership or a limited company can apply for a ML license. The following documents will usually be required for application:-

1. Complete our internal due diligence forms.
2. Identity proof and address proof of the directors/shareholders and bank signatories of the applicant.
3. Curricular Vitae of the directors/shareholders of the applicant.
4. Business plan.
5. Application and Statement forms for the applicants to the Companies Registry and to the Money Lenders Licensing, Hong Kong Police Force.
6. Supplementary Information Sheet relating to the applicant and the business (including, e.g., types of loans involved, intended business, and financial position) in support of the application.
7. Documentary proof supporting capability in managing the money lending business (Reference letter of previous working experience in money lending business, relevant certificate, etc. Resumes are not accepted).
8. Documentary proof showing the financial situation (Bank statements of the company, directors or shareholders).
9. Tenancy agreement of the premises that is intended to be used for money lending business.
10. Floor plan of the premises Showing the partitions and equipments inside the premises.
11. ‘Permit to occupy a new building’ issued by the Buildings Department (Specifying the use of premises for “office” or “shop” purposes. If the permit does not allow the use of premises for the above purposes, permission from the Buildings Department, District Lands Office and/or Town Planning Board for the change of use is required).
12. Land Register obtained from the Land Registry by conducting land research (Specifying the ownership of premises).
13. Annual return (if the applicant is a limited company) (Showing the directors and shareholders of the applicant).
14. Evidence of authorisation (if the applicant is a limited company).
15. A character or business reference (if the applicant is an individual or a partner of a partnership).
    
    

Validity of License & Renewal

Normally, the Money Lenders license has a validity period of 12 months. Licensee shall apply for renewal of license within 3 months prior the expiration to continue its operation of money lender service. 

Our Services

We can assist you:

1. To assess qualifications for applicants.
2. To rent an office at an cost-effective manner as the operating office.
3. To form a Hong Kong company for this purpose.
4. To open bank account.
5. To prepare all the required documents for license application.
6. To liaise with case officers of Companies Registry and Money Lenders Licensing, Hong Kong Police Force.
7. To attend hearing interview at Licensing Court for license processing (the applicant has to be present at the interview).
8. To negotiate licensing conditions until outcome of the application or issuance or license.

Please contact us for assistance:

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
WhatsApp: (852) 6299 9588
Skype: iBancorp
Tel: (852) 3110 6389
Fax: (852) 2186 6935

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error omission.