Brokerage, including Forex, CFDs and Derivatives business activities are highly regulated. Now if a company offers Forex Brokerage services to its clients (Corporate or Personal), the company must be issued with a Forex Broker License. Further, international banks will not accept account applications from unlicensed companies unless companies or individuals trade own funds only.
This License can be useful for Brokerage firms, mutual or hedge funds who may have clients wishing to invest in securities which may not be permissible or must comply with onerous and costly compliance of their resident jurisdiction. Such investments can be done through an entity incorporated in Seychelles licensed to carry on Securities dealing business thereby bypassing these constraints legally.
Why should I pick an Offshore Jurisdiction?
Obviously, all jurisdictions, both onshore and offshore, have the ability to grant a Forex Broker License to qualified applicants. Generally, onshore jurisdictions impose much higher capital requirements on applicants and consequently, the costs of setting up in those jurisdictions are very high when compared to some of the offshore financial centres.
Offshore jurisdictions offer many interesting possibilities because:
- Many will allow a Forex Brokerage to operate free of tax on profits.
- Seychelles has become increasingly popular among Forex Brokers and CFD Brokers
- The Securities Dealers License in Seychelles allows you to buy, sell, trade securities such as shares, bonds, options, forex, etc and manage a portfolio of investments for and on behalf of your clients.
In our professional opinion, the best jurisdiction today to Incorporate a Company and obtain a Forex Brokerage License at a reasonable cost with reasonable capital deposit requirements is Seychelles without any doubt. Seychelles also offers low registration costs and rapid approvals. It is no surprise that the Seychelles regulation has become so popular among Forex Brokers.
Seychelles Forex Broker License Requirements
The Basic requirements are:
- Domestic Company formation in Seychelles
In order to obtain the license, we first need to incorporate a Domestic company in Seychelles with a share capital of US$50,000. The company must have at least two (2) shareholders and two (2) directors. A person can act both as a shareholder and director of the company. The incorporation takes around 2 weeks.
- Office – Mandatory – Fully furnished office fit for FSA approval – as the FSA need to see that the company has an operating presence in Seychelles, and will visit the office. The office includes the following services: Rent, electricity, water, active phone number, cleaning and basic internet.
- Compliance officer – Mandatory – Compliance correspondence with FSA and record keeping.
- Security Dealer License Representative – Mandatory – We can appoint the more qualified director as the Securities Dealers License Representative of the company.
- Professional Indemnity Cover – Mandatory. You can either arrange it by yourself or we can arrange it for you through our insurance provider.
- Legal advisor – Mandatory.
- Preparation of Annual Financial Statements – Based on the number and nature of transactions
- Auditing services – Based on volume and number and nature of transactions
* All monthly fees are paid upfront every 6 months
In order to qualify, all the following documents are required for any and all Directors/Officers, Shareholders and Beneficial Owners. They must not be older than 3 months:
- Police Clearance Certificate – Certificate to ensure that there are no criminal records
- 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.
Seychelles Forex License Package
Our package includes everything you need to set up and operate an online Forex Brokerage with a Seychelles Forex License.
Seychelles Forex License Fees
Please contact us for a detailed proposal outlining all the costs, fees and requirements. As one of the world leaders in acquisition of Seychelles Forex licenses, we offer a full range of corporate services in Seychelles including license application services and annual support. Our fees are extremely aggressive and clients have told us our fees are as much as US $10,000 less than other less experienced providers!
Since 1998 we have assisted our clients in applying for and obtaining Licenses in Seychelles and many other jurisdictions around the world, making us the proven experts in the FX brokerage field. Let us help you every step of the way, your business is important to us and we guarantee professional service. Contact Us today to become a client and get your Seychelles Forex Brokerage License now!