Any person who would like to start a money lending business, which provides an alternative source of loan outside the banking system, is regulated by the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) (“the Ordinance”). As pursuant to the Ordinance, a Money Lenders Licence (“the Licence”) is required to carry on such business in Hong Kong.
How to Apply for a Money Lenders Licence?
According to Section 8 of the Ordinance, an application shall be made to the Registrar of Money Lenders, the Companies Registry. Various documents are needed to complete the application:-
- Three sets each of an application form and statement form;
- A business plan to prove the applicants’ comprehensive understanding and capability of the management of a money lending business.
Apart from making an application to the Companies Registry, the applicant shall simultaneously send a copy of the application to the Commissioner of Police. Additional documents are required, including: –
- Documentary proof showing the financial situation;
- Tenancy agreement and floor plan of the premises that is intended to be used for money lending business;
- General permission from the landlord in written form;
- Permit to occupy a new building’ issued by the Buildings Department;
- Land Register obtained from the Land Registry by conducting land research;
- Annual return (if the applicant is a company).
The above list is non-exhaustive, and relevant supplementary information sheets may be required.
Approval of the Money Lenders Licence
In general, it takes 3 to 4 months to process an application. In the meantime, the Commissioner of Police will conduct an investigation and examination of the submitted documents. Whilst the Licencing Court will be responsible to approve the application, taking into account the following factors: –
- 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 concerning money lending business, etc.);
- 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.); and
- Whether the grant of such licence is contrary to the public interest.
If the application is approved, an acknowledgment letter and a notice will be issued to the applicant. The applicant is required to attend a hearing and bring along all the requested documents to the Licensing Court. The License will be granted once the applicant has submitted all the requested documents to the Licensing Court.
Renewal of the Money Lenders Licence
It is worth noticing that the Licence granted has a validity period of 12 months. If a licensee would like to continue its operation of money lender service, he/she shall apply for renewal of licence within 3 months prior to the expiration. The application process is similar to the aforementioned process, and the applicant shall complete and submit the relevant forms and documents accordingly.
Please feel free to contact us at enquiry@hksunlawyers.com for further enquiries.
