Continuing on our series of Articles about where to set up a Broker Business Offshore this week’s article explores the pros and cons of setting up a licensed Brokerage Business in Seychelles.
A Seychelles Securities Dealer’s License is a license which allows a Business (ie a Seychelles Company) to trade in securities, either as a principal (ie on its own account) or as an agent (on behalf of the Company’s clients). In comparable jurisdictions such a license is often referred to as a Broker’s License.
Whilst there are ways to trade in securities without a license (Contact Us for details) such a License:
(a) Is useful to traders looking to attract more clients (the existence of a license invariably makes the client feel a whole lot more comfortable);
(b) Can gift you access to a much wider range of banking partners and brokerage platforms
What Does a Seychelles Dealer’s License Entitle You To Do?
A Seychelles Securities Dealer License is a license which allows a company to trade in securities either as a Principal (on its own account) or as an agent (on behalf of its clients) and specifically can empower your business/company to:
(a) make or offer to make an agreement with another person to enter into or offer to enter into an agreement, for or with a view to acquiring, disposing of, subscribing for or underwriting securities or in any way to effect or cause to effect a securities transaction;
(b) cause any sale or disposition of or other dealing or any solicitation in respect of securities for valuable consideration, whether the terms of payment be on margin, instalment or otherwise or attempt to do any of the foregoing;
(c) participate as a securities dealer in any transaction in a security occurring upon a securities exchange;
(d) receive as a securities dealer under an order to buy or sell a security which is executed; or
(e) manage a portfolio of securities for another person on terms under which the first mentioned person may hold property of the other person.
(f) deal in shares, warrants, debentures, loan stock, bonds, certificate of deposits, futures, contract for difference and options.
In summary a Seychelles Dealer’s License can empower your Business/Company to:
(a) Advise other persons concerning investment in securities
(b) Issue, analyse or prepare reports concerning specific securities; &
(c) Manage a portfolio of securities for another person
Brokers and Traders in growing numbers are choosing Seychelles as the place to incorporate a Licensed Brokerage or Dealing Company. Here are some of the reasons why:
· A modern, extensively researched and flexible Securities law (drafted by a hugely experienced UK/Australian/Seychelles qualified Corporate Lawyer)
· Proven track record with a steady growth (10% per annum average)
· Outstanding political and social stability
· Is an enabling law (ie it’s a new law designed to tract business not an amendment of an old law designed to increase regulation)
· Regulator flexibility
· Convenient time zone at GMT+4
· Enhanced privacy (Seychelles has no public register of Directors, Shareholders or Owners)
· Excellent facilities in terms of service providers, communications, service businesses etc
· Favorable corporate tax rate (1.5% p.a)
· Attractive corporate and personal tax environment
· Access to a growing range of Double Taxation Avoidance Treaties
· Is a/the gateway for investment into (and attractive to investors from) Africa
· Allows the foreign Securities Dealers from recognized jurisdictions
· Free remittance of profits and capital
· Low minimum capital requirements (USD 50,000)
Licensing Conditions for Seychelles Securities Dealers
The applicant company must:
· Be a company incorporated under the Companies Ordinance, 1972 or under the laws of a recognized jurisdiction. Please refer to Schedule 2 of the Act (which can be accessed if you Click Here) for the list of recognized jurisdictions
· Employ at least 2 (two) natural person directors
· Employ at least one individual who is licensed as a Securities Dealer Representative
· Comply with the prescribed minimum issued and paid up capital requirement of US$ 50,000
· Comply with the insurance requirement – the licensee must have a professional indemnity cover appropriate for the nature and size of the business
· Satisfy the Authority that a fit and proper person will be licensed as a Securities Dealer Representative
· Have specified premises that are suitable for keeping registers, records and other
OCI’s Seychelles Dealer’s License Services
If you are interested in applying for a Seychelles Securities Dealers License OCI can assist you with any or all of the following:
· Drafting and or Vetting of the Licence Application;
· Incorporation and Structuring of the licensee entity;
· Assistance with the preparation and review of application pack;
· Liaison with service providers and regulatory authorities regarding licensing;
· Filing the application pack at Seychelles Financial Services Authority (“FSA”), liaison and follow ups.
· Middle and back office operations;
· Advice on corporate governance;
· Coordination of KYC and AML processes
· Maintenance of registers and other statutory records of the company;
· Coordination of response to client requests;
· Corporate secretarial work;
· Assistance with opening a bank account.
· Accounts and Reporting
· Preparation and maintenance of financial statements
· Liaising with the company’s auditors during audits of the company’s financial records
· Preparing periodic management accounts and budgets for management purposes
· Virtual office
· Business address including correspondence mailing address, mail handling and forwarding;
· Registered office service including provision and maintenance of company name plate;
· Telephone Services including telephone answering services and call forwarding services.
For detailed information on pricing and what information/documentation has to be supplied as part of the Application Process please Contact Us