OBTAINING AN MSO LICENSE IN HONG KONG

OBTAINING AN  MSO LICENSE IN HONG KONG

Hong Kong is one of the world’s banking centers, respectively, financial activity in the country is regulated. The MSO regulator appeared in July 2012, it issues licenses to financial companies, etc. Non-fintech services are regulated by the HKMA (the financial regulator of Hong Kong) and the SFC (regulates trading in stocks, securities, and futures).

Companies that serve the financial sector are required to have a CCE (Customs and Excise) license. In addition, Hong Kong strictly enforces AML (money laundering) requirements. In the article we will talk about obtaining an MSO license, requirements for companies, and features of working in Hong Kong.

Why get an MSO license?

• Hong Kong is a country with a developed financial sector.
• The country is politically and socially stable.
• The financial sector and banking are very well developed.
• Economic freedom flourishes.
• Low taxes.
• Hong Kong is a rule-of-law state.
• Regulatory costs are minimal.
• There are many skilled workers.
• Developed infrastructure.

Another plus is that it does not matter what country the director, beneficiary, and founder are from. Also, there is no need to prove the authorized capital. Conditions for new companies are very loyal.

Why do I need a Hong Kong license?

The business needs an MSO license if you plan to engage in money transfers and exchange of funds.

Nuances of money transfers:

• Money transfers to other regions and cities of the country.
• Withdrawal of money or mediation in receiving funds outside of Hong Kong.
• Organization of the withdrawal of money to other countries.

What are the main requirements for obtaining a license?

• The company submitting the application must be registered in Hong Kong.
• Keeping a ledger, records, and accounting for LPS transactions.
• When deciding to engage in online money transfers, you need to contact your local management office (LMO).
• The C&ED compliance test.

After providing the package of documents, personal communication with the entrepreneur is carried out.

Filing an application

First, you need to register a company in Hong Kong. Then you should collect a package of documents and submit an application. Then, after the waiting period specified in the current legislation, the regulator issues an MSO license.

The application must be made in English. The questionnaire is sent to the auditor with copies of documents in person. When the package of documents is submitted, an interview will be scheduled. During the process of obtaining a license, there will be certain fees depending on the type of activity. A particularly important step is to come for an interview, if you ignore the requirement, you may be denied a license.

Case processing

Usually, after applying for an MSO license, the CCE regulator asks for additional documents. You will also need to check the accuracy of the data entered. Once an MSO license is obtained, the company and authorization number are entered into the CCE database.

Entrepreneur activity data

The application is submitted by a company registered in Hong Kong.

Documents for obtaining an MSO document :

• Papers with personal data about the owner of the business, including the registration certificate of the company.
• Documents submitted by key persons of the company, including a declaration of compliance with applicable law.
• Peculiarities of conducting business on transfers and exchange of funds.
• Company office address.
• Payment details of bank accounts.
• Upon request, additional information, such as a business plan.

How quickly is a license issued?

The license agreement is issued after 3-5 months from the date of application. Terms depend on many factors and the quality of the package of documents.

MSO license is issued for 2 years. Then, 45 days before its expiration, the permit must be renewed.