Regulations for Forex broker license in Seychelles

The Seychelles Financial Services Authority is in charge of overseeing non-bank financial services in the Seychelles. Created by the Financial Services Authority Act , 2013, its duties include:

  1. Issuing licenses
  2. Regulating activities
  3. Enforcing rules and compliance standards
  4. Monitoring business conduct in the non-bank financial sector in Seychelles.

Taxation of forex companies in Seychelles

  • Corporate income tax is set at 1.5% on worldwide gross income

Types of Forex licensing in Seychelles

License typeDescription of forex license in Seychelles
Dealer LicenseThis Dealer license in Seychelles is crucial for companies looking to engage directly in the buying and selling of financial instruments, including forex. Holders of a dealer license can operate in various capacities, such as:
  • Trading for their own account (market making) – where the company profits from the bid-ask spread of financial instruments;
  • Brokerage services, acting as intermediaries between buyers and sellers and earning a commission for their services;
  • Providing liquidity and executing trades on behalf of clients.
Investment Advisor LicenseAn investment advisor license in Seychelles is tailored for entities focused on providing advisory services rather than direct trading or brokerage services. These services can include:
  • Forex advice, offering insights and recommendations on currency trading strategies;
  • Strategic currency trading, providing guidance on long-term currency positions based on macroeconomic indicators, geopolitical events, and market analysis;
  • General investment advice, covering a broader spectrum of financial planning and investment strategy beyond just forex;
  • This forex license in Seychelles is suited for firms specializing in financial analysis and advisory services, helping clients to make informed investment decisions.
Specially Licensed Company License (CSL)The CSL license in Seychelles is a flexible license that accommodates a wide range of business activities, including forex trading. It offers:
  • Flexibility in business operations, allowing for a broader scope of services beyond just financial services;
  • Potential tax benefits, as CSLs might be subject to different tax regulations compared to other licensed entities, depending on the specific business activities and structure;
  • This license can be a good fit for companies looking to combine forex trading with other business ventures under a single corporate entity.

Overview of requirements to obtain forex license in Seychelles

  • Incorporate a company under the Seychelles Companies Act.
  • Appoint a minimum of two fit and proper individuals as directors.
  • Secure a minimum paid-up capital of USD 50,000.
  • Ensure the compliance officer is deemed fit and proper.
  • Establish a physical business presence in Seychelles appropriate for maintaining records among other functions.
  • Demonstrate previous experience in the financial background of the shareholder.

Estimated time frames to get forex license in Seychelles

Business name verification

1-5 days

Company formation

up to 2 weeks

Documents preparation

1 month

Forex license obtainment

3-4 months*

* The timeline also depends on the workload of FSA and any clarifications and queries that FSA may request in relation to the application.

Legal services for obtaining Forex license in Seychelles

Basic Package

30,000USD initial set up

  • Turnkey company formation
  • Registering share capital
  • Legal address for 1 year
  • Corporate documents
  • AML/KYC policies and other internal documents
  • HR services for appointing required local employees (Director, MLRO, Compliance)
  • Search for business premises for rent
  • Applying for the license and ongoing monitoring

Registration of the Forex Dealer licensed company under the minimum regulatory requirements

Additional services on request:

  • Individual business plan
  • Adaptation of prepared documents
  • Accounting services
  • Preparation of legal opinion
  • Assistance in opening bank account
  • Setting up KYC/KYT provider
  • Apostilled corporate documents
  • Legal support

Ready-Made solution

available on request

  • Registered company
  • Legal address for 1 year
  • No debts, no liabilities – clean company
  • Registered share capital
  • Active license
  • Corporate documents
  • Assistance with transfer of ownership

Jegor Kupratsevits

Head of Finance Projects

Requirements for Forex licensing in Seychelles

List of required documents

  • Cover letter: A formal cover letter, signed by the applicant or their representative, introducing the application.
  • Completed Application Form: Submission of a completed Application Form, ensuring accuracy and completeness.
  • Personal Questionnaire (PQ) Form: Completion of Personal Questionnaire Forms by each relevant party, providing comprehensive personal and professional information.
  • Proof of funds: Providing evidence demonstrating the source of funds or wealth supporting the business activities for obtaining forex license in Seychelles.
  • Proof of Physical Office: Submission of proof of physical place of office, including Title Deed of Premises or Lease Agreement.
  • Representative License Application Forms: Completion of Representative License Application Forms for each prospective representative, detailing their roles and responsibilities.
  • Insurance: Obtaining and submitting an insurance quotation appropriate to the proposed business.
  • Business Plan: Preparation and submission of a detailed Business Plan, outlining strategies, financial projections, and compliance measures.
  • Manuals and Policies: Documentation of internal policies and procedures to ensure regulatory compliance and operational integrity.

Share Capital and Government Fees

  • Minimum paid-up capital: Upholding a minimum paid-up capital of US$ 50,000 to demonstrate financial capability and stability.
  • Application fees: Payment of relevant application fees as specified (Securities Dealer License in Seychelles – US$1,500, Securities Dealer Representative License in Seychelles – US$500).

Personnel Requirements

  • Compliance officer: Appointment of a compliance officer responsible for ensuring regulatory compliance.
  • Directors: Appointment of a minimum of 2 natural person directors.
  • Fitness and propriety: Ensuring that all personnel meet stringent fitness and propriety standards, enhancing trust and integrity within the organization.
  • Auditor: Appointment of an approved auditor for annual audit of accounts.

Business premises requirements

  • Ensuring office within the jurisdiction for obtaining forex license in Seychelles. Maintaining suitable premises for record-keeping.

Roadmap of obtaining Forex license in Seychelles

For more detailed road map of the project and commercial offer – get in touch with our Forex professional.

Jegor Kupratsevits

Head of Finance Projects

1

Initial Setup

The initial phase involves thorough due diligence on all company stakeholders to align with the regulations of Seychelles. Support is provided for creating necessary documents including agreements, business plans, and compliance manuals, tailored to the specific regulations of Seychelles. The process includes gathering and organizing all required documents for a comprehensive submission to the Seychelles Financial Services Authority (FSA).

2

HR & Compliance Team Assembly

Options are presented for the selection of experienced local compliance teams, familiar with Seychelles’ regulatory environment. Support extends to the recruitment process, ensuring that selected personnel fulfill the FSA’s requirements.

3

Submission

The submission phase focuses on the careful review and submission of the complete application package to the FSA for obtaining forex license in Seychelles. The initiation of the bank account opening process in Seychelles is also undertaken during this stage.

4

Follow up

Regular interaction with the FSA is maintained to address inquiries or additional information requests. The bank account setup also progresses, with attention given to providing any additional documentation requested.

5

Approval

Upon receiving approval, assistance is provided in finalizing the formalities for obtaining the official Securities Dealer License from the FSA. This includes support in obtaining the Certificate of Incorporation.

6

Operational Launch

The commencement of operations under the Seychelles regulatory framework marks this stage. Continuous support is offered in compliance monitoring and regulatory reporting to maintain adherence to FSA guidelines.

This roadmap outlines the strategic process for obtaining a Securities Dealer License in Seychelles, highlighting meticulous planning, legal expertise, and operational support, ensuring a seamless transition to fully licensed operations.

Advantages of registration Forex company in Seychelles

Links for legislation related to Forex business in Seychelles

Sets the regulatory framework for Seychelles’ securities and capital markets, overseen by the Financial Services Authority. It aims to ensure market fairness, efficiency, and transparency, protecting the interests of issuers, investors, and intermediaries.

Establishes measures against money laundering and terrorism financing, detailing obligations for financial institutions to prevent, detect, and report financial crimes, aligning Seychelles with international standards.

Regulates the establishment and operation of International Business Companies, offering ease of incorporation, operational flexibility, and privacy, aiming to attract international business.

Provides criteria for obtaining a securities dealer license in Seychelles, including qualifications, financial requirements, and operational capabilities, ensuring only qualified entities offer trading services.

Seychelles Forex license regulatory body

FAQ about Forex license in Seychelles

1. Why is Seychelles considered one of the most practical locations for obtaining a license?

Seychelles is renowned for offering low taxation to its license holders, coupled with moderate compliance requirements and affordable company maintenance costs. Additionally, its strict confidentiality policy ensures that the identities of license owners are not publicly disclosed.

2. Who can apply for a Forex license in Seychelles?

Both individuals and foreign legal entities looking to establish a branch in Seychelles are eligible to apply for the license.

3. I am already licensed in another jurisdiction; will this impact the application process in Seychelles?

Yes, and positively so. Having a license from another country is seen favorably by the commission as it indicates your compliance with important regulations such as AML/CFT and market integrity. This existing compliance is a positive indicator during the application process.

4. How long does it take to receive a license?

The process typically takes about 2-3 months from when the application is submitted to the regulator until the license is issued. During this period, the regulator may request additional clarifications. At Legalaes, we ensure that any questions from the regulator are addressed promptly to avoid unnecessary delays.

5. What kind of services can I offer with a financial license from Seychelles?

A financial license in Seychelles allows you to offer a wide range of services, including brokerage, advisory, and trading services.

6. How can my clients verify that my license is valid?

Once a license is granted, the FSA includes information about the company, such as its name and contact details, on their website. This allows end clients to verify the validity of the license. The regulator regularly updates the Regulatory section of its website, including issuing scam alerts about companies falsely claiming to have an FSA license when it is missing.

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