If you plan to operate in financial markets and offer FX brokerage services to clients from regulated jurisdictions, you must apply for a Forex broker license, and Seychelles, definitely, suits well to get it. This license is required for all brokerage firms, mutual and hedge funds.
Reasons for choosing an offshore jurisdiction
Authorities in both offshore and onshore jurisdictions shall grand the license to the entity, which fulfils all statutory requirements, but as a rule, it is much more easier to adhere to offshore legal regime, it is especially important, in terms of minimum capital requirements. Below, the basic requirements for obtaining Seychelles forex license are displayed.
Seychelles Financial Services Authority will not grant a license unless it is satisfied that the applicant:
- Is a domestic company or a company incorporated under the laws of a recognized jurisdiction;
- Has at least 2 (two) natural person appointed as directors, residence requirements are not stipulated;
- Has at least 2 (two) shareholders; legal and physical person can act as a shareholder.
- Employs at least one licensed Representative of Securities Dealer and a Compliance officer. The directors can occupy this position;
- Has a minimum paid‐up capital of US$ 50,000;
- Satisfies the FSA that it is a fit and proper person to be licensed as a dealer;
- Provides for a separate account to hold clients’ funds;
- Has a local office;
- Has Professional Indemnity Cover in place
The advantages of a Seychelles forex license:
- Eligibilities of the license holder: the right to engage in securities trading, such as shares, options, bonds and others, as well as to manage investment portfolio on behalf of a client.
- Offshore tax regime.
- Seychelles is one of the most popular jurisdiction for the establishment of a brokerage company; all the necessary infrastructure for the establishment of a company and doing business is already present.
Seychelles is one of the best jurisdictions for opening a company and obtaining a Forex brokerage license in terms of reasonable cost and minimal capital requirements. Prompt timeframes are, also, worth mentioning:
- Establishment of a Company – 1 week;
- Preparation of all necessary documents to apply for the license – approx.1 month, subject to the specific clients’ needs and the difficulty of a project;
- Review of the application be the FSA – 1 months, period may be extended by the FSA up to 3 months
Application procedure:
1. Data collection.
This is the first stage, at which a comprehensive KYC procedure takes its place, the procedure incudes: verification of the identity documents, residence address, the source of funds and the check whether a client possess necessary education, qualifications and experience to engage in this business.
2. Preparation of the application.
At this stage, application forms to be filled and all necessary documents to be collected, this, also, includes drafting of the Articles and Memorandum.
3. Submission of the application.
After all documents collected and the forms filled, we will submit the application to Seychelles FSA. All government fees to be paid at this stage.
4. Further support.
Our specialists will be in touch with the FSA and monitor the procedure of application consideration.
Required documents
In accordance with the established requirements, each of the directors or officers, shareholders and beneficiaries must provide the following documents:
- Police Clearance Certificate
- Declaration of no history of Bankruptcy
- Certified Passport Copy
- Original or Certified Copy of Bank Reference Letter
- 2 Certified copies of Professional Reference Letters
- Original or Certified Copy of utility bills
- Resume / CV outlining experience in Forex Brokerage Activities and Qualifications warranting issuance of a license.
- Information on who the target audience and market will be.
All documents must be issued no longer than 3 months prior to the submission, certified and, if required, translated into English and apostilled.
Eternity Law International will provide you with expert advice on obtaining a forex broker license in a suitable jurisdiction. If you have any questions or need advice on obtaining a forex broker license, call us at the phones indicated on the site, or write to CRM form, our specialists will answer you online.