Hong Kong trust and fiduciary business rules
Hong Kong regulates trust or company service providers through a licensing regime administered by the Companies Registry. For a U.S. citizen, the published materials describe which trust services fall within that regime, what the public register displays and how applications are handled.
Who administers the licensing regime
A person carrying on, or wishing to carry on, a trust or company service business in Hong Kong is required to apply for a licence. The definition covers several services provided in Hong Kong to another person, including acting as a trustee of an express trust or arranging for another person to do so. It also covers specified company formation, office address, director and nominee shareholder services.[3]
A trust or company service business licence normally lasts three years. Certain persons and businesses are exempt from the licensing requirement.[3]
The SFC separately licenses securities and futures activities. It identifies 13 types of regulated activity under the Securities and Futures Ordinance, and explains that the required SFC licence or registration depends on the activity. The SFC regime and the Companies Registry trust or company service provider regime are separate licensing regimes with different scopes.[1]
Services within the licence
Trust or company service business is defined through a list of services. In addition to providing trustee services for an express trust or similar legal arrangement, the list includes forming legal persons, acting as a director or partnership partner, providing a registered or business address and acting as a nominee shareholder in the circumstances specified by the guideline.[3]
A successful applicant receives a licence, and the applicant's name is added to the register of TCSP licensees. The licence states its validity period, the licensee's name and business address.[3]
How the public register works
The Registrar maintains the register, which is open to the public without charge on the Companies Registry's Trust and Company Service Providers Licensing Regime website. The register contains the name and business address of every TCSP licensee.[3]
The register page provides search fields for a licensee's English name, Chinese name or licence number. Its list also displays licence number and business address, with a remarks field.[2]
When a licence has expired and no renewal application has been made, the person's name no longer appears in the register. Certified copies or an extract from the register can be obtained as a document showing an entry.[3]
Applying for a licence
For an initial application, the guideline identifies Form TCSP1 and supporting forms for people subject to the fit and proper test. It says the application must include the required information and documents, plus a copy of a valid business registration certificate. Filing may be electronic through the licensing regime website, in person or by post.[3]
The guideline lists an application fee of HK$3,440, plus HK$975 for each person subject to the fit and proper test. For renewal, it specifies Form TCSP2 and states that an application is due at least 60 days before the licence expires if the business is to continue after expiry. The published renewal fee is HK$2,910 plus HK$975 for each person subject to the test.[3]
Where the Registrar decides not to grant a licence, the applicant is notified in writing with the reasons.[3]
Questions and answers
Which Hong Kong office administers trust or company service provider licensing?
The Companies Registry administers the licensing regime. The Registrar of Companies maintains the licensee register under the ordinance.[3]
What information does the public register show?
The register contains each licensee's name and business address. The register page provides searches by name or licence number and displays licence number and business address.[2][3]
How does an applicant submit an initial licence application?
The guideline specifies Form TCSP1 and requires the listed information and documents, including a valid business registration certificate. It describes electronic submission, in-person delivery or post.[3]
How long does a trust or company service provider licence usually last?
A licence normally has a three-year validity period, which is stated on the licence.
What happens to a name on the register after licence expiry without renewal?
Where a licence has expired and no renewal application has been made, the person is no longer a licensee. The person's name no longer appears in the register.[3]
Related resources
Related glossary terms
- Permanent establishment: The IRS describes a permanent establishment as a fixed place through which an enterprise conducts its business. The exact meaning depends on each treaty.
- Foreign grantor trust: A foreign grantor trust is a foreign trust treated as owned by a grantor, often a U.S. person. Ownership brings Form 3520 and Form 3520-A reporting duties.
- Reporting financial institution: The Common Reporting Standard classifies a financial institution as reporting when it falls within the relevant jurisdiction's rules and is not non-reporting.
Related articles and guides
- Mauritius trust and fiduciary business regulation: Mauritius's FSC describes which Management Companies may act as trustees, the published categories and application materials. It directs readers to a register.
- Isle of Man regulation of trust services: Isle of Man regulation of trust and fiduciary business, including licence classes, the public register and the application process, for U.S. citizens.
- Bahamas trust and fiduciary business regulation: The Bahamas Securities Commission oversees corporate service providers. Covered roles include trustees of purpose trusts and private trust company agents.
Tools and official documents
- Foreign trust reporting role finder: Tick the roles that describe a connection to a foreign trust or foreign account to see the forms the IRS and FinCEN instructions discuss. Roles can overlap.
Related pages
- Hong Kong: overview: Start page for this jurisdiction.
- Taxation of trusts
- Reporting and information exchange
- U.S. treaty and agreements
- Courts and legal system
Sources and data notes
- Securities and Futures Commission of Hong Kong, Do you need a licence or registration?. https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Do-you-need-a-licence-or-registration. Retrieved .
- Registry for Trust and Company Service Providers, Companies Registry, Register of Trust or Company Service Provider Licensees. https://www.tcsp.cr.gov.hk/tcspls/search/public-search. Retrieved .
- Companies Registry, Registry for Trust and Company Service Providers, Guideline on Licensing of Trust or Company Service Providers. https://www.tcsp.cr.gov.hk/tcspls/portal/guide/59/eng. Retrieved .
Dates in this block record when each source was read for this page.