Trust or Company Service Providers (TCSPs) in Hong Kong operate under a highly enforcement-focused regulatory regime. Since the introduction of the licensing framework under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), the Companies Registry has significantly increased inspections and disciplinary actions. In practice, compliance failures most often arise from weak AML implementation, poor CDD documentation, and inadequate sanctions controls. This guide explains Hong Kong TCSP licence requirements, application procedures, fees, ongoing AML obligations, inspection focus areas, and penalties, and includes a practical TCSP inspection checklist available for free download.
What Is a TCSP License under AMLO?
A Trust or Company Service Provider (TCSP) is any person or business that, by way of business, provides trust or company services such as company formation, nominee arrangements, company secretarial services, or registered office addresses. Because these services involve the ownership and control of legal entities, TCSPs are classified as high-risk Designated Non-Financial Businesses and Professions (DNFBPs). TCSPs are therefore subject to Hong Kong’s AML regulatory regime, with the Companies Registry acting as the licensing authority and supervisory body.
Who Must Hold a Hong Kong TCSP Licence
- Sets up or registers companies or other legal entities for clients
- Acts as, or arranges for another person to act as, a company director, company secretary, partner, or trustee
- Provides nominee shareholders or nominee directors
- Offers a registered office address, correspondence address, or mail-handling service
- Maintains statutory records or handles filings with the Companies Registry on behalf of clients
- Assists with bank account opening or provides ongoing company administration
These services are widely used by SMEs, start-ups, family offices, and high-net-worth individuals. Increasingly, TCSPs also support clients involved in virtual asset and crypto-related activities, which elevates money-laundering and sanctions risks and requires stronger KYC, enhanced due diligence, and closer ongoing monitoring.
Exemptions to the TCSP Licence Requirement
Common exemption categories include:
- Legal professionals, such as solicitors and foreign lawyers, when providing trust or company services as part of their legal practice
- Accounting professionals, including certified public accountants, CPA firms, and corporate practices regulated under Hong Kong’s professional accounting legislation
- SFC-licensed corporations, where trust or company services are ancillary to their principal regulated activities
- Other persons or classes of persons specifically designated by the Secretary for Financial Services and the Treasury
It is important to note that these exemptions are narrowly interpreted. Even where a TCSP licence is not required, exempt persons remain fully subject to AML/CFT obligations, including customer due diligence, record-keeping, and suspicious transaction reporting. Regulators will closely scrutinise whether the exemption is being properly relied upon, particularly where trust or company services are provided on a repeated or commercial basis.
TCSP Application and Licensing Process in Hong Kong
TCSP Licence Application and Approval Criteria
A TCSP licence is issued by the Companies Registry. In reviewing a TCSP licence application, the Companies Registry focuses in particular on:
- AML framework: Whether the applicant has a risk-based AML/CFT framework tailored to TCSP activities.
- Compliance Officer (CO) and MLRO appointment: Whether suitably qualified and experienced individuals are appointed, with clear authority and responsibility.
- Policies, procedures, and controls: Whether internal AML, CDD, sanctions, and record-keeping procedures are adequate and operational.
- Understanding of TCSP-specific risks: Whether the applicant demonstrates awareness of risks arising from nominee arrangements, offshore structures, and complex ownership.
TCSP Application Categories
Applicants must first identify the appropriate application type:
- New licence – Form TCSP1
- Licence renewal – Form TCSP2
- Approval to add ultimate owners, partners, or directors – Form TCSP3
Depending on the applicant and associated persons, fit and proper declarations may also be required using Form TCSP4 (individuals) or Form TCSP5 (corporations).
TCSP Application Procedures and Fees
1. New TCSP Licence Application
- Complete Form TCSP1 with supporting documents
- Submit TCSP4 or TCSP5 where fit and proper assessment is required
- File via the TCSP Licensing Portal, by post, or in person
- Pay fees: HK$3,440 plus HK$975 per person subject to fit and proper testing
- Await review and respond to any Registry queries
2. TCSP Licence Renewal
- Submit Form TCSP2 before licence expiry
- Provide updated ownership and business information
- Submit additional fit and proper forms if new persons are added
- Pay fees: HK$2,910 plus HK$975 per assessed person
- Operations may continue only if the existing licence remains valid
3. Adding New Owners, Partners, or Directors
- Submit Form TCSP3 with updated structure charts
- Include TCSP4 or TCSP5, unless the person is exempt
- Pay HK$1,140 per person
- Approval must be obtained before the new person assumes their role
Fit and Proper Assessment
The Companies Registry assesses whether each relevant person is fit and proper, considering factors such as:
- Criminal history involving fraud, dishonesty, AML, or terrorist financing
- Past non-compliance with AMLO or regulatory requirements
- Insolvency or winding-up history
- Overall integrity, competence, and financial soundness
Applications may be delayed or refused if concerns are identified.
Submission, Review, and Approval
Applications must include key supporting documents, such as:
- Valid Business Registration Certificate
- Organisational and shareholding structure charts
- Exemption evidence (if applicable)
- Board authorisation for the TCSP application
Incomplete or inaccurate submissions will not be processed. The Companies Registry may request clarifications or conduct interviews as part of its assessment. Once approved, the TCSP licence is issued and recorded on the public register, and remains valid for three years, subject to ongoing compliance with AML/CFT obligations.
Penalties for Operating Without a TCSP Licence
Operating a trust or company service business without a valid TCSP licence is a criminal offence under the AMLO. Both companies and individuals may be held liable.
Potential consequences include:
- Fines of up to HK$100,000
- Imprisonment for up to six months
- Immediate business stoppage or forced cessation of services
- Serious reputational damage with banks, clients, and regulators
Unlicensed operation also creates downstream risks. Banks and professional counterparties are required under AML guidelines to verify the TCSP licence status of service providers. Failure to hold a licence may result in account rejections, enhanced scrutiny, or loss of business opportunities, including difficulties in raising capital or bidding for tenders.
Ongoing Obligations for a Hong Kong TCSP Firm
Once a TCSP licence is granted, compliance becomes an ongoing obligation, not a one-time exercise. Licensed TCSPs must continuously meet regulatory expectations under the AMLO, Companies Registry licensing conditions, and applicable AML/CTF guidelines.
1. Ongoing Notification and Reporting
TCSP licensees must promptly notify the Companies Registry of material changes, including:
- Changes in ownership, directors, or partners
- Changes in business address or contact details
- Changes affecting fit-and-proper status
- Appointment or resignation of the Compliance Officer (CO) or MLRO
Key requirements
- Notification must be made within one month of the change
- Use Form TCSP6 – Notification of Changes in Particulars
- No filing fee is payable
Failure to notify is an offence under the AMLO, punishable by a fine of up to HK$50,000, and may lead to disciplinary action or licence suspension.
2. Anti-Money Laundering (AML) and CFT Compliance
TCSPs must implement and maintain an effective AML/CFT compliance programme in line with the TCSP AML Guidelines.
Core AML obligations include:
- KYC and CDD for clients, beneficial owners, and controllers
- Enhanced due diligence for higher-risk clients and structures
- Ongoing monitoring of business relationships and changes in risk
- Record-keeping for at least five years, even after a relationship ends
- Suspicious Transaction Reporting (STR) to the JFIU where suspicion arises
3. AML Audits and Regulatory Inspections
TCSPs are subject to periodic inspections and audits by the Companies Registry.
Inspectors assess:
- Whether AML policies are implemented in practice, not just documented
- Quality and consistency of CDD files
- Effectiveness of risk assessments and monitoring
- Staff awareness and training
Material deficiencies may result in remedial directions, monetary penalties, licence suspension, or revocation.
Is your TCSP inspection-ready?
Download our Hong Kong TCSP Inspection Checklist (PDF) to identify compliance gaps before regulators do.
4. Appointment of CO and MLRO
- A TCSP must appoint a Compliance Officer (CO) and MLRO at all times
- These roles must be filled by individuals with appropriate seniority, competence, and authority
- Any vacancy must be filled within seven days
Nominal or ineffective appointments are a frequent inspection finding.
5. Annual Submission – Form SIS2
- All TCSP licensees must complete Form SIS2 as part of the annual reporting exercise
- The form must be submitted by the specified deadline
Failure to submit SIS2 constitutes a breach of Licensing Condition 3 and may trigger disciplinary action under section 53Z of the AMLO.
6. TCSP Licence Renewal
A TCSP licence is valid for three years. Renewal must be submitted at least 60 days before expiry
Applications submitted less than 60 days before expiry are not accepted. Failure to renew on time requires the TCSP to cease operations immediately. Operating without a valid licence is a criminal offence (fine HK$100,000 and 6 months’ imprisonment)
Renewal requirements
- Form TCSP2 – Application for Renewal of a TCSP Licence
- Valid Business Registration Certificate
- TCSP4 / TCSP5 for persons subject to fit-and-proper assessment
- Fees: HK$2,910 + HK$975 per assessed person
Ensuring Sustainable TCSP Compliance in Hong Kong
Compliance with the Hong Kong TCSP licence regime requires more than obtaining initial approval. Ongoing adherence to AMLO, AML controls, CDD standards, sanctions obligations, and conduct expectations is essential to mitigate regulatory and enforcement risks.
Heinbro provides a one-stop compliance solution for TCSPs and other financial services firms in Hong Kong. Combining deep regulatory expertise with hands-on operational support, Heinbro assists clients across the full lifecycle—from TCSP licensing and immigration, to ongoing AML compliance, inspection support, staff training, and strategic growth through compliant recruitment and resourcing. This integrated approach enables TCSP licensees to meet regulatory expectations while maintaining sustainable business operations.
Get in touch with Heinbro at heinbro@heinbro.com, or call +852 2811 1708 to book a free consultation.
