The Republic of Seychelles, which includes 115 islands, is considered the richest state in Africa with a high GDP. Seychelles with its economic stability and openness to innovation has attracted the attention of many large investors and traders. It is worth mentioning top brokers such as Thunder Markets, FBS, and Exness, have such forex licenses in Seychelles and are under the financial control of the authorities of the archipelago.

The Financial Services Authority (FSA), formerly the International Business Administration (SIBA), a supervisory body, regulates, monitors and licenses non-banking financial services providers.

The FSA was formed in 2013 (under the Financial Services Authority Act) and has identified several objectives on which it should focus: development of an enabling economic environment, registration, licensing, and examination of market participants for compliance with international practices. Seychelles is also integrated with the global community, is a member of the IMF and the World Bank, and adheres to international standards for combating financial fraud.

A flexible approach to the taxation system, simplified procedures of business operation, and unique location have made Seychelles a financial hub between Europe, Asia, and Africa.

Advantages of obtaining a Forex license in Seychelles

Stable political climate, progressive legislation.
The state strives for development, and market growth, is open to innovation, adopts clear legislative norms, and strives to gain the status of a reliable global center.

Flexible policy about the consideration of applications.
The term is up to 3 months – one of the fastest review procedures among offshore zones, the minimum package of documents and fulfillment of a set of standardized requirements is sufficient for registration of the Seychelles forex brokerage license.

A wide range of financial instruments.
Obtaining a license gives the broker the right to buy/sell securities, shares, and futures, and management of clients’ funds.

Reasonable taxation system.
Brokers have an opportunity to work without profit tax, there is no tax on dividends.

Low financial costs.
State duties, fees, and registration fees are among the lowest in the trading sphere.

Several preferences for business.
Connection to SWIFT system, no limits on the number of clients, confidentiality, use of IBAN, no capital controls.

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Requirements for obtaining a license in Seychelles

The FCA, before making a final decision on obtaining a Seychelles forex license, verifies compliance with these requirements:

  • A registered company in the jurisdiction (takes up to 2 weeks) with a minimum capital deposit of $50k.
  • Availability of an office with all communications, furniture, and internet (FSA must check and approve).
  • Hiring staff: 2 managers and 2 shareholders (the same person can be both director and founder); Compline officer will interact with the Regulator; registration of a securities dealer license representative.
  • Financial filing and auditing depend on the nature of transactions and several transactions.
  • Business Insurance.

FSA requirements for officers, founders, and beneficiaries:

  • Confirmation of no criminal record
  • Proof of qualification in the brokerage environment
  • Copies of identification documents
  • Bank reference
  • Confirmation of absence of bankruptcy history

The submitted documents must be in English, and not more than 3 months old, an apostille may be required on some certificates.

Process of obtaining a Forex license in Seychelles

Depending on the workload of the Regulator, completeness, and accuracy of the data in the documents, the process of obtaining a license takes from 8 to 12 weeks. The FSA has the right to request additional information, conduct an inspection of the office, as well as conduct additional interviews with the managers regarding future activities, business vision, and structure.

  • Stage 1

Opening a company in Seychelles

  • There are several options of legal structures available for brokerage activities: IBC – most often registered a business company (1 director and 1 shareholder – can be the same person, there are no citizenship requirements), LLC – limited liability company, Trust – with asset protection, Foundation – for private capital management. Despite the changes in legislation, the incorporation of a company in the islands continues to be quite a favorable option for many businesses.
  • Stage 2

Bank account

  • Opening an account, depositing authorized capital, and obtaining an account statement. According to the statistics for 2020, 60% of forex brokers prefer to work with local banks in Seychelles. This is due to adhering to a high level of confidentiality about client and company data.
  • Stage 3

Information gathering

  • Preparation of all identification documents of the managing director and founders; collection of data that can prove qualifications and experience in forex activities (letters of recommendation, etc.), verification of the company in the Seychelles Registry.
  • Stage 4

Filling in all forms

  • Entering all data in the application form to the FSA, preparing translation of documents, apostille.
  • Stage 5

Submission of the application

  • The application must be submitted to the FSA after paying a fee of $6500 (this is only for the application and it is not refundable if it is rejected).
  • Stage 6

Receive authorization from the FSA

  • The FSA may require additional documents, certificates, and copies before its final decision to issue the Seychelles forex license.

Forex consultant in Seychelles

Сonsultant

Eugen Fomin

Types of Forex licenses in Seychelles

The Republic of Seychelles has adopted the Securities Act of 2007 (Securities Act). Sections of the Act state that any forex trading activity in the jurisdiction is licensed and subject to monitoring by the FSA.

Options of forex licenses in the territory:

  • A dealer’s license provides the opportunity to officially work on the securities market, to conclude transactions (buy/sell) including foreign exchange contracts, to engage in brokerage.
  • Consultant’s license permits to provide consultations in the field of investment, to make trading strategies for clients.
  • Special license (CSL), which allows you to conduct a wide range of forex activities.
  • Company license of IBC type allows engaging in forex trading with zero taxes.

The type of license depends on the number and volume of transactions, the scope of the business, and the main focus of the company.

The FSA can revoke a license if: there is a violation of the law, failure to comply with KYC, massive customer complaints, or market manipulation.

Documents required to obtain a forex license in Seychelles

Based on the submitted documents and fulfilled Seychelles forex license requirements, the Financial Services Authority decides on the issuance of a permit. Having the authorization of this jurisdiction may be interesting for companies (hedge funds, investment, brokers, etc.) whose clients want to invest their capital in securities.

To register for a forex license, you must submit:

  • completed official application to the FSA and questionnaires with data about managers
  • certified copies of documents of directors, beneficiaries, and shareholders, documents on professional experience
  • copy of receipts for payment of all fees
  • company documents (memorandum of association, proof of deposit of share capital, proof of local office, utility receipts, business plan outlining market strategies, procedures for complying with international anti-fraud regulations, internal policies)
  • insurance policy
  • bank statement
  • financial statements
  • references from business partners proving the reliability of the company

Forex license regulation in Seychelles

Adoption by the Republic of Seychelles of several regulations such as the Anti-Money Laundering Act (2006), Securities Act (2007) and Regulation of 2008, International Business Companies Act (2016), Business Tax Act as amended in 2018, has allowed this financial center to establish itself as a trusted and respected in the international financial industry, seeking to attract foreign investment.

The Seychelles Financial Services Authority (FSA), established in 2013, is responsible for:

  • Registration of financial market participants
  • Company certification (license issuance/renewal/revocation)
  • Monitoring of the company’s activities, verification of reports

The information submitted to the FSA is confidential and will not be disclosed. Seychelles forex license fees depend on the chosen business strategy and type of company, the nature of transactions on the market.

FAQ about Forex License in Seychelles

Is Forex trading allowed in Seychelles?

Yes. It is regulated by several statutes, regulations, and rules and the FSA.

What is a Forex license in Seychelles?

A license is an official permission from the Seychelles Regulator FSA (Securities Act 2007) to conduct certain types of transactions in the financial market of this jurisdiction.

How to obtain a broker’s license from the FSA in Seychelles?

Submit a correctly completed application package to the Regulator (FSA may require additional information, contracts, and receipts) and receive the result of the review within 3 months.

How long does it take to obtain a Forex license in Seychelles?

The Republic has adopted a rather flexible and fast process of document review, which lasts from 2 to 3 months.

What makes Seychelles an ideal place to obtain a Forex license?

Several factors such as no tax for offshore companies, the size of the authorized capital, clear requirements from the government on the process of obtaining a license, good local banking environment, low office costs, and strategic location between Europe, Africa, and Asia have led to the fact that the top companies have licensed or opened a legal entity in this territory.

Can I renew my Forex license in Seychelles?

The license must be renewed every 5 years by applying to the FSA and paying a fee for a specific type of permit.

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