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Obtain Forex Trading Licenses in Seychelles

Updated on Friday 05th July 2019

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Obtain-Forex-Trading-Licenses-in-Seychelles.jpgForex (FX) is short for foreign currency exchange, the process of exchanging currencies for commerce or trading or other personal purposes. The foreign exchange market is not a centralized one; rather it is performed by traders around the world. Where these licensed traders may open a company can largely depend on the jurisdiction’s taxation principles.
 
The forex trading license is normally used by brokers and companies which activate in the business of trading foreign currencies. Because the foreign exchange market registers fluctuations on a daily basis, this can represent a profitable occasion for offshore companies in Seychelles expand their assets. Obtaining the forex trading license involves a simplified process, a matter where our specialists in company formation in Seychelles can provide information. The same team of advisors can help foreign business persons establish offshores in Seychelles.
 

How the Forex trading license is used in Seychelles

 
To perform operations on the foreign exchange market, a forex trading license is necessary under certain conditions. For instance, if a company is registered in Seychelles and has brokerage business activities in the insular state, then such license is mandatory. If all operations are outside Seychelles even if the company is registered in this country, then there is no need for a license in this matter, especially if the operations are in a state where a forex trading license is not imposed. Please consider that the following matters are the main steps involved in a forex trading license application:
 
•    register a company in Seychelles with at least 2 shareholders, 2 managers and a minimum share capital of $ 50,000;
•    apply with the Seychelles Financial Services Authority for a forex broker license;
•    set up a corporate bank account and deposit the minimum share capital.
 
We remind that the company registration process in Seychelles is subject to a fast incorporation regardless of the home country of the business person interested in this jurisdiction.
 

Regulations for forex trading company licensing in Seychelles

 
The Securities Act in Seychelles contains a broad range of services to which Forex trading can be assimilated. Included here are financial instruments like shares, bonds, debt instruments, futures. The Forex trading company can trade in Forex futures and in this case the provisions of the Act will apply.
 
When applying for a license for obtaining a securities license, these issues need to be taken into consideration by investors who set up a company in Seychelles:
 
  • the application: the application for is to be filled in accordingly and any additional documents provided as per the specifications. 
  • information change: the data included in the application can be changed following a proper notification to the Securities Authority. 
  • renewal: an investors who open an offshore company in Seychelles and applies for a securities license can renew it provided that the annual fee is paid.
  • display: all license holders are required to display their license at their place of business in Seychelles.
 
When the company representative submits an application for a securities dealer license, the following documents are to be submitted:
 
  1. Accounting statements: the audited financial statements of the company for the last two years; an exception is made when the company was incorporate din the last 12 months;
  2. Statements for the controlling owners: the most recent audited financial statements for the controlling owners of the company that is applying, when applicable;
  3. Questionnaire: as issued by the Securities Authority, filled in by the company directors, shareholders and beneficial owners.
  4. Information: complete information on the company, the name, registered office, place of incorporation, complete address, etc.
 
In some cases, information about the prior information about the director’s activities is requested. For example, the Securities Authority may ask if the director has been licensed in any other jurisdiction where the law requires such securities business registration before he has decided to open an offshore company in Seychelles. Another issue if the director has a license suspended, canceled or revoked. 
 
Upon offering the information, the applicant also signs a declaration that the information is complete and accurate, to the best of his knowledge and belief.
 
Below, our agents who specialize in company formation in Seychelles list a number of business conduct matters included in the Securities Act:
 
  • Independence: the licensee needs to be independent and impartial when providing services to clients; 
  • Material interest: the licensee should inform the client if he has any material interest in a certain transaction;
  • Communication: when communicating with the client, the licensee shall do this is a fair and clear manner.
  • Risk understanding: the licensee shall make reasonable efforts to inform the client of the risks involved in a certain transaction.
  • Transparency: the company offering the trading services shall be transparent about its identity, business status or address.
 
When applying for a securities dealer’s license, the company representatives should be well aware of all the requirements and all the conditions for the future conduct of the business, as some of them have been outlined above. One of our agents specialized in company formation in Seychelles can give you more information about the timeframe for obtaining the license or licenses and about other requirements, such as being allowed to offer the FX service on a platform (such as a website).
 

The Special License Company (CSL) in Seychelles

 
The Seychelles Financial Services Authority oversees the financial sector in the insular state, including the brokerage activities for which a forex trading license is necessary. In this sense, one should, first of all, registers a Special License Company (CSL), a necessary status to perform businesses in the financial sector under a forex trading license. Moreover, a company in Seychelles which obtained the CSL can offer advice to foreigners interested in the stock, securities, and forex investments.
 

Investments in Seychelles 

The folloist list present some of the statistics regarding investments in Seychelles:
  • - foreign direct investments in Seychelles increased by approximately 3.7 million US$ in Q2 2018.
  • - according to the Seychelles Investment Board, the 2018 forecast was around 139.2 million US$ and this amount was surpassed by 14%, to an actual foreign direct investments inflow of 158.5%.
 
Investors can easily open an offshore company in Seychelles and engage in forex trading, provided that they provide all of the documents for company registration and that the business functions in accordance with the local requirements. The time required to open the company will be shorter than that required to obtain the license. We recommend that investors get in touch with our agents as soon as they have decided to incorporate in this jurisdiction. 
 
 
In matters related to forex trading license and offshore registration in Seychelles, we suggest you contact our team of company incorporation consultants in Seychelles for comprehensive assistance and support.
 
 

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