How to Apply for a TCSP License in Hong Kong and Its Renewal

December 27, 2024
Sinda
Services

How to Apply for a TCSP License in Hong Kong and Its Renewal

A Trust or Company Service Provider (TCSP) license is required for any individual or business in Hong Kong that provides services related to the formation, management, or administration of companies and trusts. This includes acting as a company secretary, providing registered office services, or offering services like nominee director services, among others.

Hong Kong has a regulatory framework to ensure that businesses providing these services adhere to the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards. The licensing system was implemented by the Companies Registry under the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (AMLO).

Here’s a step-by-step guide on how to apply for and renew a TCSP license in Hong Kong:

1. Determine If You Need a TCSP License

First, confirm if your business activities require a TCSP license. You are required to apply for this license if you provide any of the following services:

Forming or managing companies or partnerships.
Acting as a company secretary.
Providing registered office services for companies.
Providing nominee director or shareholder services.
Acting as a trustee of a trust.

If your business provides such services in Hong Kong, you must obtain a TCSP license, regardless of whether the services are offered to Hong Kong-based or international clients.

2. Meet the Eligibility Requirements

To apply for a TCSP license, the applicant (whether an individual or a corporate entity) must meet certain eligibility requirements:

Fit and proper person: The applicant must demonstrate that they are a “fit and proper” person to be licensed. This includes not having a criminal record, particularly in financial crimes, and possessing relevant experience and qualifications.
Compliance with AML/CFT regulations: The applicant must comply with the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) regulations. This involves establishing internal policies and controls to detect and prevent money laundering and terrorist financing activities.
Qualified staff: Individuals responsible for the services provided should have adequate qualifications, experience, and knowledge to perform their duties effectively.
Sufficient financial resources: Applicants must demonstrate that they have sufficient financial resources to support their operations, including having the necessary capital to maintain operations, meet compliance costs, and safeguard clients’ interests.

3. Prepare Required Documentation

Before applying, gather the required documentation to submit with your application:

Identity and background information for all individuals involved in the business (directors, ultimate owners, etc.).
Details of the services offered, including a description of your TCSP activities.
AML/CFT policies and procedures that your business has in place.
Business plan with financial forecasts and details about staffing, operations, and compliance measures.
Proof of professional qualifications and experience for key personnel involved in the business.
Audited financial statements (if applicable).

4. Complete the Application Form

Once you’ve gathered the necessary documentation, you will need to complete the TCSP License Application Form available on the Companies Registry’s website. The application requires details about the applicant, including:

Name and contact details.
Type of services provided.
Business address.
Ownership structure (for corporate applicants).
Details of compliance systems in place.

Make sure to fill out all sections carefully and truthfully. If you are applying as a corporate entity, provide the required corporate documents, such as the certificate of incorporation, and details of the company’s directors and shareholders.

5. Submit the Application

Submit your completed application form along with the necessary supporting documents to the Companies Registry. The submission can be made online via the e-Registry portal or in person.

You may also need to pay a non-refundable application fee, which is typically around HKD 1,450 for an individual and HKD 1,730 for a corporate entity (fees are subject to change, so check the latest on the Companies Registry website).

6. Wait for the Approval

Once the application is submitted, the Companies Registry will review your documents and verify your compliance with regulatory standards. The approval process can take up to 3 months, depending on the completeness and accuracy of your application.

If your application is successful, the Companies Registry will issue the TCSP license, which allows you to legally provide trust and company services in Hong Kong. If the application is rejected, you will be informed of the reasons and may have the opportunity to address any issues.

7. Comply with Ongoing Requirements

Once you obtain your TCSP license, there are ongoing obligations that you must meet:

Annual compliance checks: You must ensure that your business continues to comply with AML/CFT regulations, including conducting regular risk assessments and updating your policies and procedures.
Reporting obligations: Submit annual reports to the Companies Registry as required, detailing your ongoing compliance efforts and operations.
Record keeping: Keep proper records of all transactions and activities related to the TCSP services you provide.

Failure to meet these obligations could result in fines, penalties, or the suspension or revocation of your license.

8. Renewal of TCSP License

A TCSP license is valid for one year from the date of issue. To continue operating legally, you must renew your license annually. The renewal process involves:

Submitting a renewal application to the Companies Registry within the prescribed timeframe (typically 30 days before the expiration of your current license).
Updating your records: Ensure that your business continues to meet all licensing requirements, including compliance with AML/CFT regulations and the qualifications of key personnel.
Paying the renewal fee: A renewal fee is required, which is generally similar to the original application fee.

The renewal process is relatively straightforward, but be mindful of the deadline to avoid any disruption in your ability to offer TCSP services.

9. Maintain Compliance with Regulatory Updates

The TCSP licensing framework is subject to updates and changes in Hong Kong’s regulatory environment, especially concerning AML/CFT laws. It is essential to keep abreast of any new regulations or guidance issued by the Companies Registry or other relevant authorities to ensure your business remains compliant.

Conclusion

Obtaining and renewing a TCSP license in Hong Kong is a significant step for any business offering trust and company services. The licensing process involves careful preparation, ensuring that your business meets regulatory standards, and maintaining strict compliance with AML/CFT measures. By following the steps outlined above, you can successfully navigate the application process and operate legally in Hong Kong’s competitive trust and company service provider market.

For the latest forms, fees, and updates on the licensing process, always refer to the official website of the Hong Kong Companies Registry.

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