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Hong Kong – Marketing Trips: Pros And Cons Of Temporary Licences.

29 May, 2014

 

Legal News & Analysis – Asia Pacific – Hong Kong – Corporate/M&A 

 

If sales staff come to Hong Kong frequently, it can make more sense to get them a full licence rather than separate temporary licences each time they visit. Repeated applications for temporary licences can involve considerable time and effort for compliance staff.

 

Pros of full licence:

 

  1. Once only;
  2. No time limit on validity;
  3. Available for all types of regulated activities; and
  4. Easier to follow up with potential investors in Hong Kong after initial visit.

 

Cons of full licence:

 

  1. Longer SFC processing time (although if you apply for a provisional licence at the same time, there’s no real difference);
  2. Need to sit the local regulatory framework paper;
  3. Ongoing obligations of CPT and the need to complete an annual return; and
  4. The individual would need a title with the licensed corporation (default title being “licensed representative”) so that he/she can be properly included in the organisational chart.

 

A further alternative is for the overseas individual to be licensed as an itinerant professional. 

 

Deacons

 

For further information, please contact:

 

Peter Poon, Deacons

peter.poon@deacons.com.hk

 

 

Homegrown Corporate/M&A Law Firms in Hong Kong 

 

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