Buyer's Guide: How to Buy an SFC License
Buying an SFC licensed corporation is a major decision. This guide will help you understand the process and what to look out for.
Why Buy an Existing License?
Compared to applying for a new license, buying an existing licensed corporation has these advantages:
- Save Time - New license applications typically take 6-12 months or longer
- Certainty - Existing licenses are already approved, no risk of rejection
- Added Value - May include existing clients, business track record, bank accounts, etc.
- Trading Rights - Some licenses come with SEHK/HKFE trading rights, which are valuable
How to Buy on the Platform
Step 1: Browse Listings
View all licenses for sale on the 'Browse Listings' page. You can filter by license type, price range, seller role, etc.
Step 2: View Details
Click on listings you're interested in to view detailed info including license type, company details, trading rights, financial status, etc.
Step 3: Contact Seller
Use the platform's inquiry feature to contact sellers directly. Your inquiry is sent to the seller's email.
Step 4: Negotiate
Communicate directly with sellers to learn more details and negotiate terms.
Due Diligence Checklist
Before purchasing, you should verify the following:
Company & License Status
- Verify license status and conditions on SFC website
- Confirm no ongoing regulatory investigations or legal disputes
- Check past compliance record and disciplinary actions
- Confirm RO identities and transition arrangements
Financial Status
- Review recent financial statements and audit reports
- Confirm company meets Financial Resources Rules (FRR) requirements
- Understand any outstanding debts or contingent liabilities
- Verify bank account status and fund arrangements
Trading Rights
- Confirm if SEHK/HKFE trading rights are included
- Understand trading rights conditions and restrictions
- Verify trading rights are transferable
Important Notice
Any license transfer requires SFC approval. Please consult professional legal and compliance advisors before completing any transaction to ensure all regulatory requirements are met.
Can't Find the Right License?
If you can't find a suitable license on the listings page, you can post a 'Wanted' listing to let sellers with licenses contact you directly.
Tips
- Clearly state the license types you need in your wanted post
- List any special requirements (trading rights, company history, etc.)
- Set a reasonable budget range