For many years, companies involved in brokerage activities have found Saint Vincent and the Grenadines to be an especially appealing location for the registration of their business due to its favorable economic conditions, reasonable costs, and lack of excessive bureaucracy. However, the recent news about changes in SVG brokerage license has raised concerns among operators.
How has the brokerage licensing industry in Saint Vincent and the Grenadines been affected?
In January 2023, the Financial Services Authority of Saint Vincent and the Grenadines (SVGFSA) required all Business Companies (BCs) and Limited Liability Companies (LLCs) involved in brokerage activities to provide evidence of licenses in the jurisdictions where they operate.
In addition, SVGFSA gave very short deadlines for the provision of supporting documents — only 45 days.
What are the changes in the process of registering a new entity in SVG?
New jurisdictional changes have also affected brokers wishing to incorporate a business in the country. In addition to the other necessary documents required for entity registration, applicants must now submit a certified copy of the licenses from the jurisdictions where the companies will operate.
The failure to provide these documents will result in the rejection of applications for company registration in SVG.
What to do in this situation?
Given the present circumstances, those intending to incorporate a brokerage company in Saint Vincent and the Grenadines have two options.
1. Adhere to the directives of the SVG Financial Services Authority
Comply with the FSA’s requirements by submitting officially certified copies of licenses from the jurisdictions where a business intends to operate, along with the company registration documents, or provide a legal opinion from a regulatory or competent authority that confirms the legitimacy of conducting activities in specific markets without a license.
2. Select a substitute jurisdiction for licensing
Opt for an alternative jurisdiction to register your company and obtain a license that provides a more favorable business environment and flexible legislation concerning the brokerage industry.
Where to obtain a brokerage license in 2023?
Take into consideration the alternative jurisdictions that UniversePAY suggests:
The Republic of Seychelles
The Seychelles is a nation located on 115 islands in the western part of the Indian Ocean. It is one of the most cost-effective jurisdictions for obtaining a brokerage license, with many benefits and opportunities.
Advantages:
— Political and economic stability
— Favorable tax rates
— Low minimum authorized capital
— Modest financial costs and fees
— Clear legislative framework
— High standards of privacy
The Comoros
Situated in the north of the Mozambique Channel between Madagascar and Africa, the Comoros is a state that has received particular attention in 2023 after other recognized jurisdictions introduced tighter regulations.
Advantages:
— The fastest approval time (1 month)
— No initial capital requirements
— No local office/staff requirements
— Single license for various services
— Moderate level of jurisdiction’s prestige (not sanctioned by the EU)
The Republic of Mauritius
The island nation of Mauritius in the southwestern Indian Ocean is a popular hub for obtaining a brokerage license. The main regulator of non-banking financial services in Mauritius is the Financial Services Commission (FSC), established back in 2001.
Advantages:
— Stable, actively developing economy
— Advantageous tax rates
— Relatively low license fee
— International recognition
— Covers most countries of the world
— Fast approval process (3 months)
Obtain a financial license
Looking for ways to legalize your brokerage activities in 2023 or acquire a license in a different jurisdiction?
Send us an e-mail at info@universepay.eu or click the button below to ask additional questions or get a consultation from our experts with more than 8 years of experience.