Completing Form 2 for a Hong Kong Money Lenders Licence by an Individual or Partnership

Money Lenders Licence Form 2 for Individuals and Partnerships

To carry on a money lending business in Hong Kong, an individual or partnership must apply under the Money Lenders Ordinance (Cap. 163) using the prescribed form. For individuals and partnerships, that form is money lenders licence form 2. This guide breaks down the form section by section and lists the supporting documents required.

The Commissioner of Police and the Licensing Court administer the Money Lenders Ordinance. A successful applicant receives a licence for a specific place of business. Operating without a licence is a criminal offence. All applicants must also hold a current Business Registration Certificate from the Inland Revenue Department before or at the time of submitting the licence application.

Form 2 Money Lenders Application: Who Uses It

Form 2 is used by two types of applicant:

• A sole proprietor applying in their own name.
• A partnership of natural persons not carrying on business through a company.

Companies must use Form 3. A body corporate or a partnership with a corporate partner cannot use Form 2.

The form requires disclosure of the applicant’s identity, business address, background and financial standing. The Licensing Court must be satisfied the applicant is a fit and proper person to hold a money lenders licence.

Hong Kong Money Lenders Licence Individual: Part 1 - Applicant Particulars

For an individual applicant, Part 1 collects:

• Full name in English and Chinese.
• Hong Kong Identity Card number or passport number for non-residents.
• Date and place of birth.
• Residential address, which must be a physical address, not a post office box.
• Contact telephone number and email address.
• Occupation and employer, if any.

If the applicant is a partnership, the form requires the same details for every partner. Each partner must be named and provide their identity documents. The partnership’s principal place of business must be stated; this address becomes the licensed premises if the application succeeds.

All residential addresses must be supported by proof of address, such as a utility bill or bank statement dated within the last three months.

Partnership Money Lender Licence Form: Part 2 - Place of Business

Part 2 asks for the proposed place of business where the money lending activity will be conducted. The address must be a fixed, physical premises in Hong Kong. The Licensing Court will inspect the premises to confirm it is suitable and accessible.

You must state:

• The full address, including floor and room number.
• Whether the premises are owned or rented.
• If rented, the landlord’s name and contact details.
• The hours of operation.

The premises cannot be a residential unit unless it is lawfully used for business. You must also confirm the premises comply with all applicable leases, building regulations and planning requirements.

How to Fill in Form 2 Money Lenders: Part 3 - Declaration and Consent

Part 3 contains the declaration to be signed by the applicant. An individual signs personally. For a partnership, every partner must sign. The declaration confirms that:

• The information in the form is true and complete.
• The applicant has not been convicted of any offence under the Money Lenders Ordinance or any other relevant law.
• The applicant is not an undischarged bankrupt.
• The applicant has not had a money lenders licence refused or revoked in Hong Kong or elsewhere.

The form also requires a consent to act from a person authorised to accept service of documents on the applicant’s behalf. This is usually the applicant or, for a partnership, one of the partners. The person consenting must provide their full name, Hong Kong Identity Card number and residential address.

Fit and Proper Assessment and Supporting Documents

The Licensing Court requires evidence that the applicant is fit and proper. The following documents must accompany Form 2:

• Identification documents: For each applicant and partner, a copy of the Hong Kong Identity Card (front and back) or passport.
• Proof of address: For each individual, a recent utility bill or bank statement showing the residential address.
• Business Registration Certificate: Evidence of registration with the Inland Revenue Department.
• Certified financial statements: For the preceding financial year if the applicant has been in business, or a statement of assets and liabilities if new to the trade.
• Police record: A certificate from the Hong Kong Police confirming no criminal record. Non-residents must provide a similar certificate from their jurisdiction.
• Consent to act: The signed form from the person authorised to accept service.

The Licensing Court will also consider the applicant’s reputation, financial standing and any past conduct affecting suitability. The fit and proper test is applied to every partner in a partnership.

Licensing Conditions and Obligations

Once a licence is granted, the licensee must comply with ongoing conditions under the Money Lenders Ordinance. These include:

• Displaying the licence at the licensed premises.
• Keeping proper books of account and records of all loans.
• Limiting the rate of interest to the statutory maximum (currently 48% per annum for loans covered by the Ordinance).
• Not advertising in a misleading or aggressive manner.
• Not lending to persons under 21 years of age.

The Commissioner for Labour does not regulate money lenders directly, but other government bodies such as the Companies Registry maintain records of licensees. Any change to the applicant’s business address, ownership or partnership structure must be notified in writing to the Licensing Court.

Licence Renewal and Amendment

A money lenders licence is valid for one year and must be renewed annually before it expires. The renewal process uses Form 8 for individuals and partnerships, or Form 9 for companies. Form 2 is used only for the initial application.

To change the licensed address after it is granted, a separate application must be made using the relevant amendment form.

Where to Submit Form 2

Submit the completed Form 2 and all supporting documents to the Licensing Office of the Hong Kong Police Force. The application fee must be paid at the time of submission. The Licensing Office will process the application and may call for additional information or an interview.

Allow at least three months for the application to be processed. There is no guaranteed timeline, as the Licensing Court must satisfy itself on the fit and proper criteria before granting a licence.

For further information, refer to the Money Lenders Ordinance (Cap. 163) and guidance from the Hong Kong Police Force. Businesses can consult the Companies Registry for related corporate compliance matters.