Hong Kong TCSP License and Trust Company Registration
Applications, acquisitions and core differences

These are not the same system, and cannot be simply distinguished by the statement that "TCSPs cannot directly act as trustees, only trust companies can." A TCSP license is a business license under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, regulating the provision of trust or corporate services in Hong Kong in a business form, including acting as or arranging for others to act as trustees of express trusts. Trust company registration, on the other hand, is a company qualification under Part VIII of the Trustees Ordinance, requiring not less than HK$3 million in issued and paid-up cash share capital, and HK$1.5 million in designated deposits or approved bank guarantees. Both can be applied simultaneously; the actual path depends on the company's role, the content of services, and whether the services are provided in a business form.

Yes, but only if the same applicant meets the applicable conditions of both systems and continuously fulfills its respective compliance obligations. Whether simultaneous holding is required depends on the trust or company services actually provided by the company, whether trust company qualification under Part VIII of the Trustee Ordinance is required, and the requirements of the client and transaction structure.

The two are not interchangeable, nor is there a fixed application order applicable to all projects. Companies can prepare in parallel or apply in stages as needed, but should not conduct business that has triggered the system before obtaining the corresponding license or qualification.

Based on Aiying License's past project service experience, it is generally recommended to allow approximately 6 to 8 months for the entire process, from preparing the application, personnel and compliance documents, to regulatory review and completion of supplementary documents. This timeframe is based on project planning experience and is not a fixed approval period promised by the Companies Registry; the actual progress depends on the completeness of the application materials, the suitability of the personnel, the number of supplementary documents required, and whether further investigation is needed.

Registered trust companies must have issued share capital of not less than HK$3 million, with the directors confirming that not less than HK$3 million of this capital has been paid up in cash. In addition, they must maintain a designated deposit of HK$1.5 million, or submit a bank guarantee of equivalent value acceptable to the Companies Registry; one of the two must be chosen. The HK$3 million requirement pertains to company share capital, while the HK$1.5 million requirement pertains to the designated deposit or bank guarantee. These are different in nature and should not be simply described as a "HK$450 million margin deposit." Professional liability insurance cannot substitute for this requirement.

It can be one of the conditions in a specific regulatory framework, but the TCSP license itself is not the same as a virtual asset custody license, nor can it be used as the sole basis for authorizing the operation of VASP, VATP or independent virtual asset custody business.

In the SFC-licensed VATP customer asset custody structure, the platform must hold customer assets through its affiliated entities. According to the current VATP Guidelines, such affiliated entities must be incorporated in Hong Kong, hold a TCSP license, be wholly owned subsidiaries of the platform operator, and complete the relevant regulatory notifications; they must also comply with the SFC's requirements on asset segregation, wallets, private keys, internal controls, and risk management.

Therefore, ordinary TCSP-licensed companies cannot claim to independently provide virtual asset custody solely based on their TCSP license. Other VA Custody business models still need to be separately evaluated under the SFC, HKMA, or other applicable regulatory regimes.

That's not the correct way to judge. A "VA account" is not a single regulatory license category; a TCSP license only reflects that the licensee is authorized to operate related trust or company services under AMLO, and does not constitute a guarantee for opening a bank account, nor does it replace the authorization required for virtual asset trading, custody or other regulated activities.

Banks will review the actual business model, applicable regulatory licenses, shareholders and controllers, sources and flows of funds, customers and counterparties, regions involved, AML/CFT regimes, and system capabilities on a case-by-case basis. If the business triggers SFC, HKMA, or other regulatory requirements, the corresponding licenses or approvals must still be obtained; a TCSP license alone cannot presume that the relevant account can be opened or maintained.

Acquisitions typically take 3-4 months, saving 3-4 months compared to applying for a new application. A more significant advantage is the immediate access to an existing customer base, established banking relationships, and operational teams, enabling immediate operation. However, acquisition costs vary depending on factors such as the target company's customer base and business scale, requiring comprehensive due diligence.

The ongoing compliance requirements differ between the two. TCSP licensees must renew their licenses and pay related fees according to the licensing regime, and continue to comply with AML/CTF, client due diligence, record keeping, and material change reporting requirements. Registered trust companies, on the other hand, must continue to meet the qualification and financial requirements under the Trustees Ordinance, including maintaining a designated deposit of HK$1.5 million or a valid bank guarantee, and fulfilling company registration and other applicable reporting obligations. Trust companies do not have a uniform fixed annual renewal fee standard; specific annual costs should be calculated based on the company's circumstances and the official fees for the current period.