Recently, the trend for transparency and honesty in the global financial services market has been on the rise. In this regard, more and more requirements are imposed by the regulatory authorities on companies providing financial services.
However, not all companies can invest in an expensive license, pay huge initial fees, and spend a substantial amount on license renewal. That is why the world’s SMEs choose such small but proven offshore jurisdictions as the Seychelles as a place to obtain a financial license.
What is a Securities Dealer License (SDL)?
A Security Dealers License (SDL) or license for securities dealers grants the right to manage an investment portfolio on behalf of the company’s clients, trade foreign exchange, and buy and sell securities such as stocks, bonds, and options legally and without restrictions.
In addition, this brokerage license can be useful for all companies that have clients willing to invest in securities, such as brokerage firms, mutual or hedge funds, etc.
In accordance with the Seychelles Securities Act of 2007, all activities related to the implementation of brokerage operations are regulated by the Financial Services Authority. It is worth noting that the Securities Act 2007, adopted in the Seychelles, refers not only to such securities as stocks and bonds but also to derivative financial instruments, for example, forward and futures contracts, options, and contracts for difference (CFDs).
Benefits of obtaining a Brokerage license in Seychelles
The Seychelles are becoming an increasingly popular jurisdiction for brokers. Among the advantages of doing business in this country are usually noted such points as:
Political, economic, and social stability of the state.
Relatively low financial costs: the legislation of the Seychelles allows you to obtain a license with a minimum authorized capital of 50 thousand USD.
State fees for consideration of the application, issuance of a broker’s license, and its further maintenance are among the lowest.
A comparatively simple licensing procedure, a high speed of consideration of the application (no more than 3-6 months), and a flexible policy for the consideration of applications by the Financial Services Authority (FSA).
Seychelles legislation provides clear requirements for all procedures.
Favorable tax rates.
Unlimited number of clients.
Possibility for the company to open corporate or trading accounts in Europe and for clients to use IBAN and SWIFT in their transfer forms.
High standards of privacy.
Conditions and requirements for obtaining a brokerage license in Seychelles
A company applying for a license must meet the following requirements to get a brokerage license in the Seychelles:
Registration of a business in the Seychelles, the existence of a real office, and local employees to confirm that the company has an operational presence in the islands.
Possession of a minimum amount of authorized capital in the amount of 50 thousand USD.
Opening a separate account for holding clients’ funds.
Compliance with insurance requirements (the licensee must have professional compensation appropriate to the nature and size of the business).
Preparation of annual financial statements (depending on the number and nature of transactions).
Conducting an audit (depending on the volume, number, and nature of transactions).
The company must have at least 2 directors from any jurisdiction (only individuals with suitable qualifications, competencies, and experience in the financial or investment field).
The company must have at least 2 shareholders (both individuals and legal entities).
— Compliance Officer
The Compliance Officer’s responsibilities include interacting with the FSA on behalf of the company and maintaining records.
Mandatory Documentation for Obtaining a Brokerage license in the Seychelles
To obtain a Seychelles license, the following documents are required:
A completed application form;
Receipt of payment of the registration fee;
Certified copies of the applicant’s constituent documents (Memorandum and Articles of Association, Certificate of Registration, Certificate of Good Standing);
Audited financial statements of the applicant for the last 2 years, if the applicant has not been registered within the last 12 months;
For all directors, shareholders, and beneficial owners:
Certificates of no criminal record;
Certificate of non-bankruptcy;
Notarized copy of a passport;
Original or certified copy of a letter of recommendation from the bank;
2 certified copies of professional reference letters;
Original or certified copy of utility bills;
CV outlining brokerage experience and qualifications requiring a license.All documents must be no older than 3 months, certified, and, in some cases, apostilled, and translated into English.
The procedure for obtaining a brokerage license in the Seychelles
1. Registration of a company in the Seychelles with a minimum capital of $50,000;
2. Opening a bank account;
3. Preparation and collection of all necessary documents by the owners of the company and filling out the application forms;
4. Placement of a minimum authorized capital of the company of $50,000 in a corporate bank account (must be paid prior to application).
The stage of applying for a brokerage license in Seychelles:
5. Verification of forms, filing an application with the Financial Services Administration.
6. Payment of the state fee for consideration of an application for a license (non-refundable in case of refusal to satisfy the application for a license).
7. Providing additional information or documents as requested by the Financial Services Administration.
Obtain a SDL license in the Seychelles license
To get more detailed information on SDL license obtaining and registration of an online brokerage business, leave a request on our website or write to us by email email@example.com.
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