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Hong Kong Banking License

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Hong Kong Banking Licence and HKMA Authorisation Requirements

The Hong Kong Monetary Authority (HKMA) is the competent authority for banking supervision under the Banking Ordinance (Cap. 155). Hong Kong is one of the world's leading international financial centres, with total banking sector assets exceeding HKD 27 trillion and a long-established reputation as the primary gateway for capital flows between China and global markets.

The Banking Ordinance establishes a three-tier system of authorised institutions, each with different deposit-taking powers and capital requirements:

Licensed Bank

May accept deposits of any size and maturity. Full banking services including current and savings accounts. Minimum total assets at time of application: HKD 4 billion. Minimum paid-up share capital: HKD 300 million.

Restricted Licence Bank

May accept deposits of HKD 500,000 or more for any maturity. Minimum paid-up share capital: HKD 100 million. Suitable for wholesale banking and treasury operations.

Deposit-Taking Company

May accept deposits of HKD 100,000 or more with an original maturity of three months or longer. Minimum paid-up share capital: HKD 25 million.

Fit and Proper Requirements

Directors, the chief executive, and substantial shareholders all undergo HKMA fit and proper assessment. The HKMA also requires evidence of satisfactory supervisory track record from the home regulator for foreign applicants.

Capital Adequacy and Operations

All authorised institutions must comply with Basel III capital adequacy ratios. Physical presence in Hong Kong with locally based executive management is mandatory across all three tiers.

Tax Advantages of a Hong Kong Banking Licence

Hong Kong levies profits tax at 16.5% on assessable profits sourced in Hong Kong. Foreign-sourced income is generally not subject to Hong Kong profits tax. There is no capital gains tax, no dividend withholding tax, no estate duty, and no value added tax, making Hong Kong one of the most competitive tax environments among major international banking centres.

Neptune Fiduciaries: Hong Kong Banking Authorisation Support

Neptune Fiduciaries assists financial institutions with Hong Kong banking authorisation, local entity structuring, HKMA application preparation, and compliance framework development across all three authorised institution tiers.

Get in Touch

Contact Neptune Fiduciaries at info@neptunecorporate.com or sales@neptunecorporate.com or visit our Contact Us page.

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