Completing Form 5 Supporting Statement for a Company Money Lenders Licence

What Is the Money Lenders Form 5 Supporting Statement for Companies?

A company applying for a money lender's licence in Hong Kong must submit Form 5. This supporting statement provides detailed information about the corporate structure and the fitness of its directors and key personnel. Required under the Money Lenders Ordinance, it is filed alongside Form 3, the main licence application for companies. The money lenders form 5 asks for declarations about the company's ownership, financial standing, and the suitability of each person who controls or manages the business.

Form 3 captures basic company particulars and the business plan. Form 5 digs deeper. It requires background information on every director, any shareholder holding 10% or more of the issued shares, and key officers such as the company secretary. The Licensing Authority uses this to assess whether the company and its controllers meet the "fit and proper" standard required to operate as a money lender.

Form 5 Money Lenders Supporting Statement: What It Discloses

The supporting statement in Form 5 serves as a character and financial dossier for the company applicant. It requires the following categories of information:

• Corporate structure: A full list of shareholders, including the percentage of shares each holds, and an organisational chart showing the ownership chain up to the ultimate beneficial owner.
• Directors' and officers' details: Full name, Hong Kong Identity Card number or passport number, residential address, and current business occupation for each director, the company secretary, and any person who will manage the money lending business.
• Financial standing: The company's net worth, sources of funding, and a statement of assets and liabilities. The Licensing Authority expects the company to have sufficient capital to operate responsibly.
• Character references: At least two character references from persons of standing (for example, a solicitor, accountant or Justice of the Peace) for each director and the proposed business manager.
• Criminal and bankruptcy history: A declaration of whether any director, shareholder or officer has been convicted of any criminal offence, is an undischarged bankrupt, or has been involved in any company that was wound up or entered into a composition with creditors.

The form must be signed by each director and the company secretary, confirming the information is true and complete.

Hong Kong Money Lenders Form 5: Who Must Complete It

Every company applying for a new money lender's licence must complete and submit Form 5. This includes local companies incorporated under the Companies Ordinance (Cap. 622) and foreign companies registered in Hong Kong. The form applies to the initial licence application only; for licence renewal, the company uses Form 9 with a different supporting statement.

The Licensing Authority will not process an application unless Form 5 is fully completed and signed by all required parties. Incomplete forms may be returned, delaying the entire application.

Supporting Statement for Company Money Lender: Directors' Fit and Proper Criteria

The supporting statement establishes that every director and key officer is a fit and proper person to hold a money lender's licence. The Licensing Authority examines several factors:

• Business experience: Whether the director has relevant experience in lending, finance or related fields. A director with no financial background may be required to demonstrate how they will manage the business competently.
• Financial integrity: The director must not have a history of dishonesty, fraud or financial mismanagement. This includes past convictions for theft, deception or offences under the Money Lenders Ordinance.
• Bankruptcy status: An undischarged bankrupt director will almost certainly disqualify the company from obtaining a licence. The form requires a declaration of past bankruptcies or compositions with creditors.
• Other regulated activities: If a director has been refused a licence, had a licence revoked, or been disqualified from acting as a company director, this must be disclosed.

Each director's character references and declaration of convictions or bankruptcy history are submitted as part of Form 5. The Licensing Authority may also conduct its own checks with the Police and the Companies Registry.

Form 5 Corporate Money Lender: Corporate Structure and Financial Standing

For a corporate money lender, the Licensing Authority needs to see the full ownership structure and the company's financial health. Form 5 requires the applicant to provide:

• A list of all shareholders holding 10% or more of the issued shares, with their shareholding percentages.
• The ultimate beneficial owner(s) of the company, which may involve tracing through holding companies or trusts.
• A statement of the company's net worth, supported by audited financial statements or management accounts if the company has been trading.
• Details of borrowings, guarantees or other financial arrangements that could affect the company's financial standing.

The form also asks whether the company has ever been refused a money lender's licence or had a licence revoked, and whether any director or shareholder has held a money lender's licence that was revoked or not renewed.

How to Complete and File Form 5

Form 5 is available from the Hong Kong Police Licensing Office, along with the other forms in the money lenders licence application pack. The form must be typed or completed in block capitals in English or Chinese. Each page must be signed by the director and company secretary. Character references must be original documents signed by the referees.

Submit the completed Form 5 together with Form 3, the business plan, the Certificate of Incorporation, the Business Registration Certificate and the prescribed fee to the Licensing Office. The office will acknowledge receipt and may request additional information or an interview with the directors.

The fee for processing a new licence application is set by the Government and is payable at the time of submission. The Director of Home Affairs, the authority under the Money Lenders Ordinance, decides on the application within a reasonable period, typically several months.

What Happens After Filing Form 5

Once the Licensing Office receives the complete application, including Form 5, it reviews the disclosures and conducts background checks. If the Licensing Authority is satisfied that the company and its directors are fit and proper, and that the business plan is sound, it will issue a money lender's licence.

If the application is refused, the company may appeal to the Administrative Appeals Board. The reasons for refusal are usually stated in writing, and the company can address the specific concerns in a new application or an appeal.

Common Mistakes in Form 5

Applicants should avoid the following errors when completing the money lenders form 5:

• Incomplete shareholder information: Failing to list all shareholders with 10% or more shares, or not providing the ultimate beneficial owner, will result in the form being rejected.
• Missing signatures: Every director and the company secretary must sign the form. A single missing signature invalidates the application.
• Outdated character references: References must be dated within six months of the application date.
• Concealing criminal or bankruptcy history: The Licensing Authority will cross-check declarations against police and Companies Registry records. Inaccurate or incomplete disclosures can lead to refusal and may affect future applications.

For further guidance, refer to the Hong Kong Police Licensing Office website or seek advice from a solicitor or licensed money lender consultant.