In this jurisdiction FSCA controls all transactions with crypto-currencies, in particular trade, in accordance with Financial Law. A firm intending to act in the Forex industry and carry out commercial operations in this niche needs to get such permission as Forex license in South Africa.
Powers of local authorities
Some time ago, FSCA had a different denomination; it controls financial services provision. This body is mandated to act as supervisory element to ensure proper procedures are followed for provision of non-banking fiscal services. Amongst other things, this group also covers collective investments mechanisms, brokerage firms and consultants working in this segment. Regulator exercises surveillance in accordance with Financial Intermediation and Advice Law.
South Africa allows cooperation with brokerage firms not controlled by FSCA. However, clients feel much more comfortable and confident cooperating with those brokers who work according to local laws and fall in competence of regional authorities.
FSP license in South Africa: types
- Category I. Firms operating in this type are eligible to offer intermediary and consultative services on eligible products.
- Category II. Being a discretional intermediate participant.
- Forex Broker License in South Africa of category IIA – a permit is issued in addition to previous one. Dealing with investment funds in trading liquid assets using more complex mechanisms being usually not accessible to retail executives.
Getting South Africa Forex License
For license to trade forex in South Africa listed in category I, it is mandatory to prepare a huge amount of documentation. In addition, applicants are required to present personally and keep stable communication with authoritative body. FSCA carefully examines the intended field of operation of the firm, the experience and education of all persons related to the company, as well as personal data.
Applicants need to have a local person authorized to be in charge of compliance with laws. All firms’ participants need complete FSCA registration. One of key members of the enterprise needs to be a resident. Additionally, applicants and their representatives need to complete specific exams, which are organized in the UK or in the jurisdiction itself. The following is also needed:
- account in banking institution, which is needed for start-up capital and meeting commercial necessities;
- detailed business plan and internal guidelines;
- KYC documents.
Organization having South Africa FSB Forex License keeps strict records; its operations are closely and permanently monitored by the FSCA.
Firm structure
- It needs to have one director and 1 shareholder.
- Local agent.
- Compliance staff.
- Independent auditor.
With regard to taxation, the following rules apply:
- corporate tax – 28%;
- capital gain – 18.6%.
The firm having FSP in South Africa must maintain current assets in the amount that will be sufficient to cover the fulfillment of current obligations and needs of organization.
If you intend to obtain a Forex license in South Africa and realize yourself in this direction, please contact our specialists. We’ll provide you with many options for ready-made businesses and provide full support at every stage of the transaction.
You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.