I. What is a TCSP License?
A TCSP License, which stands for "Trust or Company Service Provider License," is a statutory license issued by the Hong Kong Companies Registry under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).
License Validity Period: Typically 3 years.
Legal Consequences of Unlicensed Operation: Any person who operates a trust or company service business in Hong Kong without a license commits an offence and is liable on conviction to a fine of up to HKD 100,000 and imprisonment for 6 months.
Exempt Persons: Licensed banks, SFC-licensed corporations (where the service is ancillary to their main business), accounting professionals, legal professionals, etc., may be exempt under specific conditions.
II. Common License Types ("Big License" vs. "Small License")
Officially, there is no distinction between "Big License" and "Small License" — all approved TCSP licenses are identical in official name and format. These are merely industry colloquialisms. The core difference lies in whether the license permits holding and handling client funds.
Comparison Aspect | So-called "Big License" (Full-Function License) | So-called "Small License" (Restricted License) |
Core Difference | Permits holding and controlling client assets (client funds). | Does not permit holding or controlling client funds. |
Funds Handling | Can receive, hold, and make payments on behalf of clients. | All fund transactions must be operated directly by the client or handled through a third party. |
Applicable Business | Comprehensive trust services, company secretarial services, acting as a trustee managing trust assets. | Pure company secretarial services, registered address services, advisory services not involving holding client assets. |
Application Requirements | Extremely stringent, with a focus on fund management capabilities, internal controls, audit procedures, professional indemnity insurance, etc. | Relatively stringent, focusing on compliance and anti-money laundering systems. |
Professional Indemnity Insurance | Usually mandatory to purchase high-amount insurance. | Strongly recommended, but requirements are relatively more flexible. |
Recommendation for Choice: If your business plan involves acting as a trustee managing trust assets, you MUST apply for the "Big License" that allows handling client funds. If you only provide services like company secretarial work, registered address provision, etc., that do not involve client funds, applying for the "Small License" is sufficient.
III. License Purposes (Which businesses require a TCSP license?)
Any person who, in the course of business, provides any one or more of the following services to others in Hong Kong must apply for a TCSP license:
Service Category | Specific Description |
Incorporation of Corporations | Assisting in the incorporation of Hong Kong companies or other legal entities. |
Company Secretarial / Director Services | Acting as, or arranging for another person to act as, a director or company secretary of a corporation. |
Provision of Registered Address | Providing registered office, business address, correspondence, or administrative address for corporations or partnerships. |
Trustee Services | Acting as a trustee of an express trust. |
Nominee Shareholder Services | Acting as, or arranging for another person to act as, a nominee shareholder. |
Partner Services | Acting as, or arranging for another person to act as, a partner of a partnership. |
IV. Personnel Requirements
1. Fit and Proper Test
All directors, partners, and ultimate owners (individuals holding 25% or more of the shares or control) of the company must pass a rigorous background check. It must be ensured that they have no serious criminal records related to finance, fraud, money laundering, etc., and possess good commercial integrity.
A Fit and Proper Statement must be submitted using Form TCSP4 (for individuals) or Form TCSP5 (for corporations).
2. Compliance Officer and Money Laundering Reporting Officer
The licensee must appoint at least one Compliance Officer and one Money Laundering Reporting Officer during the license validity period. Any vacancy must be filled within 7 days.
Depending on the company's size, these two positions can be held by the same person.
3. Recommendation on Number of Directors (if applying as a corporation)
Industry practice recommends appointing at least 2 directors, with at least 1 being a locally practicing lawyer or accountant in Hong Kong, to meet the Fit and Proper Test requirements.
V. Application Process and Timeline
Application Process
Step | Content |
1. Prepare Documents | Certificate of Incorporation, Articles of Association, Shareholder and Director details, valid Hong Kong Business Registration Certificate (not a branch registration certificate). |
2. Complete Forms | Form TCSP1, Supplementary Information Sheet TCSP1-SIS (and TCSP1-SIS2A), Fit and Proper Statements (TCSP4/TCSP5). |
3. Develop Compliance Documents | AML/CTF Systems Manual, covering Customer Due Diligence (KYC), Risk Assessment, Transaction Monitoring, Record Keeping, etc. |
4. Submit Application | Submit electronically via www.tcsp.cr.gov.hk. |
5. Pay Fees | Pay the prescribed application fee and background check fees. |
6. Await Approval | The Companies Registry reviews the application and may request supplementary information if necessary. |
Application Timeline
Electronic licenses are generally approved within approximately 3.5 to 4.5 months from the date of application submission. Estimates from different sources vary slightly, but the review period is generally considered to be about 30 to 60 working days.
Important Note: You cannot operate a trust or company service business before the license is approved.
VI. Application Costs
1. Government Fees
Fee Item | Amount (HKD) | Remarks |
Application Fee | $3,440 | Per application. |
Additional Fit and Proper Test Fee | $975 / person | For each individual required to undergo the Fit and Proper assessment. |
Note: Some sources mention an initial application fee of HKD 8,000. This figure may include professional consultancy fees or other administrative costs. It is advisable to refer to the official information published by the Companies Registry.
2. Professional Consultancy Fees (if applicable)
As the application process involves significant compliance requirements, many businesses hire professional consultants or lawyers for assistance. Fees generally range from HKD 50,000 to 100,000.
3. Ongoing Compliance Costs (after license approval)
- License renewal fees (recommend submitting renewal application 3 to 4 months before expiry; must be submitted on or before 60 days prior to expiry).
- Annual return submission to the Companies Registry and payment of associated fees.
- Maintaining effective internal control systems and AML policies.
- Professional indemnity insurance premiums (if applicable).
Important Note: The Anti-Money Laundering Ordinancedoes not have a grace period. If you miss the license renewal deadline, you must re-apply for a new license.
Summary
Item | Key Points |
Regulator | Hong Kong Companies Registry |
License Validity | 3 years |
"Big License" vs "Small License" | Unofficial distinction; core difference is the ability to hold client funds. |
Core Personnel Requirements | Fit and Proper Test (Directors/Ultimate Owners) + Compliance Officer + Money Laundering Reporting Officer |
Application Timeline | Approx. 3.5 - 4.5 months (for electronic licenses) |
Government Application Fee | $3,440 + $975 / person (for Fit and Proper Test) |
