Asset Management in the Seychelles

The Seychelles is recognized as a leading jurisdiction for obtaining brokerage and asset management licenses, making the Seychelles Securities Dealer License particularly valuable. It is especially attractive for start-up projects due to relatively fast licensing timelines and low financial costs. Additionally, large companies often use it as an alternative license alongside more prestigious European licenses, benefiting from minimal regulatory oversight, flexible audit and reporting requirements, and adaptable taxation. Licensed companies can open bank accounts both in Seychelles and abroad, with the ability to accept VISA/MASTERCARD payments and cryptocurrencies.

Advantages of the Seychelles Jurisdiction for a Securities Dealer License

The jurisdiction offers several key advantages:

• Legislative Framework: The legislation allows obtaining a Seychelles Securities Dealer License with a minimum share capital of USD 50,000.
• Efficiency: Seychelles is one of the few jurisdictions where a brokerage license can potentially be obtained within 6-8 months.
• Cost-Effectiveness: Application processing fees, license issuance, and maintenance costs are among the lowest.
• Regulatory Loyalty: The Seychelles Financial Services Authority (FSA) follows a fairly flexible approach when processing license applications.

Key Requirements for Obtaining a Securities Dealer License in Seychelles

To obtain an FSA Seychelles Securities Dealer License, the following are required:

• Register a local company in Seychelles with a minimum share capital of USD 50,000.
• Establish a physical office in Seychelles with a compliance officer and proper record-keeping.
• The company must have at least two shareholders and two directors. Directors must have a verified qualification in securities (minimum 4 years) and management experience.
• Appoint a licensed representative with a higher education degree (business, economics, accounting) and at least 4 years of experience in the securities sector.
• The compliance officer must reside in Seychelles and be physically present in the company’s office.
• Obtain professional indemnity insurance (minimum USD 3,000).
• Submit a comprehensive application, personal questionnaires of key personnel, a detailed business plan, internal policies, and information about founders, beneficial owners, and directors.
• Appoint an external auditor within 30 days of receiving the license, submit quarterly/annual reports, and conduct an annual external audit.

Taxation in Seychelles for Licensed Entities

Key tax aspects for Seychelles Securities Dealer License holders:

• Presumptive Tax: 1.5% of annual turnover for small companies with turnover below 1 million Seychelles rupees (not applicable to companies not operating in Seychelles).
• Corporate Income Tax: For companies with turnover exceeding 1 million Seychelles rupees — 15% on the first 1 million rupees of profit and 25% on amounts above (not applicable to companies not operating in Seychelles).
• VAT: Applied to the sale of goods and services provided in Seychelles. Registration threshold — 2 million Seychelles rupees. Rates: 0% for goods/services consumed in Seychelles and 15% for those not consumed locally.

Functionality of the Seychelles Securities Dealer License

According to the Securities Act of 2007, the license allows:

• Trading and other securities operations as a market maker.
• Brokerage services for selling securities, including margin trading.
• Receiving and executing buy/sell orders for securities.
• Managing portfolios of securities on behalf of clients.

Covered securities include: Shares, primary debt instruments (bonds, notes), warrants, and derivative financial instruments (futures, options, binary options, forwards, swaps, CFDs).

Stages and Timeline for Obtaining the License

• Month I: Registration of a local company in Seychelles.
• Months II-III: Preparation and collection of required documents.
• Months IV-V: Review of documents by the regulator and issuance of preliminary approval.
• Months VI-VII: Fulfillment of regulatory requirements after receiving preliminary approval.
• Month VIII: Issuance of the license.

(Timelines are approximate and depend on the timely submission of all required documents.)

Required Documents to Start the Licensing Process

Main required documents (for each director, shareholder/UBO):

For company registration:

• Notarized copy of a valid passport (in English).
• Proof of address (not older than 3 months, translated into English and notarized).
• CV (in English).

For the license application:

• Original bank reference letter.
• Certified copies of education/professional qualifications/memberships in professional organizations.
• Detailed job description.
• Police clearance certificate (not older than 3 months).

Licensing Procedure

1. Preparation of internal documents: A detailed business plan and company internal policies.
2. Application submission: Filling out and submitting all required forms, supporting documents, and paying government fees to the FSA.
3. Regulatory review and preliminary approval: The FSA processes and reviews the application. If satisfied (often before the final setup of a local office and appointment of a compliance officer), a “Preliminary Approval” letter is issued with conditions to be met within 60 days.
4. Fulfillment of preliminary approval conditions: Meeting requirements such as renting an office, officially appointing a compliance officer and auditor, opening a corporate bank account, depositing share capital, and securing an insurance policy.
5. License issuance: After fulfilling all conditions and paying annual license fees, the license is issued.

Why Choose SBSB?

SBSB Fintech Lawyers is one of the leading law firms supporting gambling projects since 2013. We provide a full range of services: from concept to large-scale launch. Our specialists have extensive experience in crypto gambling, licensing of online casinos, bookmakers, tournament poker, and other areas.