Quick Facts
| Parameter | Value |
|---|---|
| License name | SFC Type 7 License |
| Country | Hong Kong |
| Regulator | SFC |
| What it covers | Providing automated trading services |
| Minimum capital | HKD 5,000,000 paid-up |
| Timeline | 6–9 months |
What is the SFC Type 7 License?
The SFC Type 7 License is a regulator authorisation issued by SFC that allows a regulated entity in Hong Kong to provide the services covered by the regime. Often paired with Type 1 for ATS providers.
Who needs a SFC Type 7 License?
Operators offering services that fall within the activity definition supervised by SFC. The activity scope captures providing automated trading services — and you should treat anything within or adjacent to that scope as caught until the structure has been opined on.
How the SFC Type 7 License application works
The application is run as a structured five-stage workstream: scoping and gap analysis, incorporation and substance, AML/KYC programme drafting, regulator submission and RFI cycles, and post-licence onboarding. Total time from kickoff to authorisation is 6–9 months.
Cost of the SFC Type 7 License
The total first-year cost combines: regulator fee, statutory capital tied up at HKD 5,000,000 paid-up, legal fees confirmed at engagement, substance (resident director, office, AML officer where required), and the first year of ongoing supervision. We provide a fixed-scope quote at engagement so the number is not a moving target.
Pitfalls to avoid
- Mismatched substance. Paper directors and serviced offices are detected at first examination. Substance must be substantive;
- Generic AML programmes. SFC reads policies as a competency signal — generic templates are visible;
- Banking afterthoughts. A licence without a bank account is a paperweight. Banking is part of the engagement, not bolted on after authorisation;
- Ignoring the year-one supervision burden. Authorisation is the start. Annual audit, AML refresh and material-change notifications are calendared from day one.
Frequently asked questions
What does the SFC Type 7 License cover?
The SFC Type 7 License authorises providing automated trading services. It is supervised by SFC. Often paired with Type 1 for ATS providers.
What is the timeline for the SFC Type 7 License?
Typical timeline is 6–9 months from kickoff to authorisation. Variance comes from RFI cycles and the quality of the application file at submission, not from the published schedule.
What is the minimum capital for the SFC Type 7 License?
Statutory capital is HKD 5,000,000 paid-up. Capital is one input — substance, governance and the AML programme usually drive the application outcome more than the capital line on its own.
How does the SFC Type 7 License fit alongside other Hong Kong licences?
Most operating models in Hong Kong combine SFC Type 7 License with one of the other available regimes — see the full list on the Hong Kong page.
Who supervises SFC Type 7 License authorisation in Hong Kong?
SFC is the supervising authority. The same regulator handles ongoing supervision after authorisation, including annual returns and material-change notifications.