# Type 1 Licence for Dealing in Securities (Hong Kong)

Source page: https://protegra.io/licensing/licences/investment-firm/hong-kong-type1/

The Type 1 Licence for Dealing in Securities is issued by Securities and Futures Commission (SFC) under Securities and Futures Ordinance (Cap. 571). The legal decision period is 15 weeks from submission of a complete corporate application. The application fee is HKD 4,740. Ownership changes need the regulator's approval before completion.

## At a glance

| Official name | Type 1 Licence for Dealing in Securities [1] |
| --- | --- |
| Issued by | [Securities and Futures Commission](https://protegra.io/licensing/regulators/sfc-hong-kong/) |
| Jurisdiction | [Hong Kong](https://protegra.io/licensing/jurisdictions/hong-kong/) |
| Licence family | [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/) |
| Legal basis | Securities and Futures Ordinance (Cap. 571) [2]; Securities and Futures (Fees) Rules (Cap. 571AF) [3]; Securities and Futures (Financial Resources) Rules (Cap. 571N) [4] |
| Passporting | Domestic only |
| Application fee | HKD 4,740 [5] |
| Annual fee | HKD 4,740 [6] |
| Statutory decision time | 15 weeks from submission of a complete corporate application [7] |

## What it lets you do

- [Reception and transmission of orders](https://protegra.io/licensing/activities/order-reception-transmission/)
- [Execution of orders on behalf of clients](https://protegra.io/licensing/activities/order-execution/)
- [Dealing on own account](https://protegra.io/licensing/activities/dealing-own-account/)

- **Reception and transmission of orders.** Receiving client orders in financial instruments and passing them to another firm for execution.
- **Execution of orders on behalf of clients.** Concluding agreements to buy or sell financial instruments on behalf of clients.
- **Dealing on own account.** Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades.

## Where it is valid

_Valid in Hong Kong._

## Cost

_Regulatory costs from the official sources above. Professional fees, staff, office and audit come on top and depend on the business model._

## How long it takes

Statutory: 15 weeks from submission of a complete corporate application [7]. Observed: SFC performance target: 15 weeks to process a complete corporate licence application (one target for all regulated activity types) [5]. The statutory clock usually starts only when the regulator treats the application as complete, and pauses while it waits for answers to its questions.

## Buying a company that already holds it

**Prior approval required.** Under Section 132 of the Securities and Futures Ordinance (SFO), prior approval from the SFC is mandatory before any person can become or continue to be a substantial shareholder of a licensed corporation. Under Schedule 1 Part 1 Section 6, a substantial shareholder threshold is 10% or more of issued shares, 10% or more of voting power at general meetings, or control of 35% or more of voting rights in a holding entity. If acquired without prior knowledge, application must be made within 3 business days of becoming aware. An application fee of HKD 3,000 applies via Form 7 on WINGS-LIC, and approvals are valid for 6 months. [5]

## Laws behind it

- [Securities and Futures Ordinance](https://protegra.io/licensing/laws/hk-securities-and-futures-ordinance/): Cap. 571 (enacted as Ord. No. 5 of 2002)

## Sources

1. [sfc.hk: Types of intermediary and licensed individual](https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Types-of-intermediary-and-licensed-individual): retrieved 2026-09-24
2. [sfc.hk: Securities and Futures Ordinance with subsidiary legislation](https://www.sfc.hk/en/Rules-and-standards/Laws/Securities-and-Futures-Ordinance-with-subsidiary-legislation): retrieved 2026-09-24
3. [elegislation.gov.hk: cap571AF](https://www.elegislation.gov.hk/hk/cap571AF): retrieved 2026-09-24
4. [elegislation.gov.hk: cap571N](https://www.elegislation.gov.hk/hk/cap571N): retrieved 2026-09-24
5. [sfc.hk: Application procedures](https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Application-procedures): retrieved 2026-09-24
6. [sfc.hk: Annual licensing fees](https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Annual-licensing-fees): retrieved 2026-09-24
7. [sfc.hk: Performance pledges](https://www.sfc.hk/en/About-the-SFC/Corporate-governance/Performance-pledges): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.