Seychelles Forex License 2025

Situated in the Indian Ocean, Seychelles is an archipelago comprising 115 islands. The country enjoys political stability and has a well-thought-out financial sector.

Because of many reasons, Seychelles has also emerged as a very attractive jurisdiction in recent years from which to obtain a forex license for people who wish to conduct business within the foreign exchange trading industry.

The Seychelles forex license, with its regulatory framework, strikes a balance between innovation and supervision, allowing entry into legitimate forex activities.

Advantages of the Seychelles Forex License

The strategic location and its membership in various international organizations make Seychelles a credible and reliable jurisdiction on the international arena. Seychelles is a member of such reputable organizations as the United Nations, the World Trade Organization, and the Commonwealth of Nations. These memberships allow Seychelles to participate in international discussions, share experiences, and contribute to the universality of debates related to sustainable development, environmental protection, security, and democracy. This could instill confidence and faith in possible clients and other partners in the forex industry.

Seychelles has a very supportive tax environment for forex businesses, with a system of taxation designed to attract foreign investment and provide for economic growth. There is no Capital Gains Tax, no Corporate Tax, and no Withholding Tax levied on the forex trading activities carried out by International Business Companies. Thus, forex brokers and traders can optimize their financial activities and retain more of their profits.

Seychelles maintains a relatively low threshold of reporting compared to other jurisdictions. This allows forex operators to bear less administrative burden and still remain within the boundaries of generally accepted regulatory standards. The country has strict legislation in place with regard to protecting confidentiality and privacy, which may be an overriding factor in instances where forex operators are handling sensitive client information.

On one hand, Seychelles provides a modern, flexible regulatory regime regarding forex licensing. This is a regime that needs to strike a proper balance between offering facilitation in terms of doing business and ensuring effective supervision; it should be able to take care of established forex brokers and new entrants. It needs to offer a competitive environment that, at the same time, is regulated. Fundamentally, Seychelles is known to have administrative procedures that are simplified with clearly stated regulatory requirements that make the obtention and maintenance of a forex license quite easy compared to other jurisdictions.

Forex Seychelles Regulations

The Seychelles Financial Services Authority is the relevant regulatory authority for the licensing and supervision of forex trading services through the Financial Services Authority Act, 2013. Additionally, it provides support for regulatory matters to holders of forex licenses, which can be helpful for the operators to learn about the regulatory compliance issues and keep themselves abreast of the latest developments in the industry.

The following legal acts and regulations of Seychelles are, inter alia, applicable to forex traders and brokers:

• Securities Act of 2007
• Securities (Licensing and Market Conduct) Regulations of 2008
• Anti-Money Laundering Act of 2006
• Anti-Money Laundering Regulations of 2008
• Seychelles International Business Companies Act of 2016
• Seychelles Companies (Special Licenses) Act of 2003
• The Business Tax (Amendment) Act of 2018

The Securities Act of 2007 provides the needed legal framework in Seychelles for the regulation of securities and financial activities, including forex trading. It provides for the establishment of the FSA as the regulating authority over conducts involving forex trading. The act also sets out the terms and conditions for forex license application; prescribes ongoing requirements for license holders; prohibits market manipulation and insider trading; and provides for cooperation between the Seychelles FSA and foreign regulatory authorities for the purpose of facilitating the exchange of information and promoting international regulatory standards.

The Anti-Money Laundering Act of 2006 sets the legal framework within which anti-money laundering and the financing of terrorism is pursued. It is a requirement that financial services providers, including forex brokers, implement AML/CFT procedures, conduct customer due diligence, and file suspicious transaction reports. Every licensee is obliged to keep proper books and records of their transactions and correctly identify their clients, store business correspondence, and identify transaction history. Such records are to be made available for inspection upon request from relevant authorities. Also, under this act, forex licensees are to carry out additional due diligence on politically exposed persons since such persons may potentially be involved in corruption or other misuses of money.

Additionally, there is The Seychelles Companies (Special Licenses) Act of 2003, prescribing special licenses that shall be issued to financial services providers, including forex brokers, at the discretion of the FSA. The act sets out the requirements and the eligibility criteria that have to be met by companies engaged in financial activities for them to be licensed, which include capital requirements, submission of audited accounts, and compliance with relevant regulations.

Advantages

Seychelles Forex License Types

Different licenses from the Seychelles are available for activities that fall under forex and other financial services. The licenses are granted by the FSA, permitting businesses to operate legally from this jurisdiction while observing specific regulatory requirements. The type of license you need will depend on the nature of the activity related to forex, the scope of business operations, and resources.

The key Seychelles forex licenses include the following:

• Securities Dealer License: gives permission to corporations, on their behalf or on behalf of clients, to buy and sell securities, including foreign exchange contracts. Thus, it entitles holders to conduct activities related to trading, brokerage, and market-making.
• Investment Adviser License: grants permission to corporations to provide investment advice, forex-related advice to customers to follow certain strategies of foreign exchange trading upon instances and occasions of investment opportunities.
• A CSL is granted for a special license company, which has broad applications and can be issued for anything from forex trading to other forms of businesses.
• An IBC License will be allowed for companies that conduct activities related to forex trading, as it is of a flexible nature and can conduct international business in almost all spheres.

Requirements for Seychelles Forex License Applicants

The Seychelles forex license, for instance, requires one to set up a local company incorporation to begin Forex trading. It will take a few business days, but it depends on the nature of the company and the activities involved. Business structures that can be used include an International Business Company, Special License Company, and a Limited Liability Company.

The initial capital required for a Securities Dealer License ranges from 660,000 SCR (approximately 47,000 EUR) up to 1.3 million SCR (approximately 93,000 EUR) or more, depending on the activities and services the license will intend to carry out. With the exception of the licenses described above, the minimum starting capital depends upon the FSA’s decision and is subject to specification with due regard to the scope of services that a Licensee is willing to provide, the complexity of operations, the degree of risks of forex activity, and others. The FSA may also consider any requirement necessary for ongoing operational and regulatory expenses of the company. Although there are no stated capital requirements, it is expected that all licensees have capital that is sufficient to support their planned business activities and obligations.

All applicants for a license for forex also have to pay, upon the presentation of the application, license application fees. Specific license application fees applicable for the different types of forex licenses in Seychelles depend on the license type and the scope of activities. Once the application submitted to the FSA has been considered and determined to be complete, an invoice of the application fees will be sent to the applicant. The authority can only begin substantive processing upon confirmation of receipt of payment for the application fees.

Following are some other key requirements for Seychelles forex license applicants:

• This means all those individuals who will manage, control, or own the forex company should be able to satisfy the FSA’s fit and proper tests, which include clean financial and criminal records, relevant qualifications and experience, plus a history of ethical conduct. The applicant should indicate adequate financial resources, including capital, to support forex trading activities and comply with regulatory requirements that are on a continuous basis.
• An appropriately structured operational infrastructure, including correspondent arrangements for relevant technology, risk management systems, and internal controls to ensure compliance with relevant regulations
• Internal AML/CFT procedures, including the appointment of an AML compliance officer
• Proof of readiness to start operations, inter alia: the necessary infrastructure, systems, and personnel must be available.

Below are the documents that are needed for a forex license in Seychelles:

• Memorandum of Association
• Articles of Association
• An application form from the FSA
• A business plan describing the forex trading business that is proposed, strategies to be followed, target markets, and how the applicant will comply with the regulatory requirements
• A business continuity plan
• Evidence of its Seychelles registered agent and physical address in Seychelles
• Internal operations manual
• The policy of conflict of interests
• Client service agreement
• Complaints handling policies and procedures
• Internal AML/CFT policies and procedures
• Financial statements and projections, proving financial stability to be in line with the requirements
• Evidence of the capital required
• References or recommendations from banks, business partners, or professional advisers, proving the reputation and credibility of the company

Brokers regulated with FSA Seychelles

How to Establish a Forex Company in Seychelles

It is the most common legal type of business organization in Seychelles and one preferred by foreign investors. In Seychelles, no confidential information exists about the beneficial owners, directors, and shareholders of a Seychelles IBC. During the registration process of a new IBC, the Registrar does not require any filing of information concerning the true beneficial owner of the newly constituted company.

This information only remains privy to the certified registered agent assigned to the corporation. The only corporate documents in the public domain are the Memorandum of Association and Articles of Association. For this reason, this kind of corporation is normally used by entities that place a great significance on privacy and security of information. However, you should base your ultimate choice on grounds of the scope and objectives of your forex business. If you need specific advice on the issue at hand, then our attorneys will be able to help you. Whichever business legal structure is right for you, we can advise on all of the minutiae that involves the preparation, incorporation, and licensing of your business.

The following are the key requirements for an IBC:

• One shareholder – this need not be resident in Seychelles
• At least one director, who need not be resident in Seychelles and who can also be a shareholder.
• A registered agent and a registered office in Seychelles where official correspondence may be served and where administrative and legal matters are dealt with on behalf of the company.
• The IBCs are banned from doing any business within Seychelles since these are companies to be used for international business outside of the jurisdiction.
• The annual fee to maintain the company’s status of being registered and in good standing.
• Maintenance of the books of account, minutes of meetings, and other corporate documents accurately and correctly.

Following is a list of some of the documents commonly required to establish a forex company in Seychelles:

• Notarized copy of Memorandum of Association
• Notarized copy of Articles of Association
• Notarized copies of passports of shareholders and directors
• Proof of address of each shareholder and director
• A declaration of compliance; this is a statement to confirm that the company will apply its laws and those of Seychelles.
• Consent by the director to act
• Resolution by the shareholder
• A document describing the source of funds
• Share certificate given to the shareholders to evidence their interest in the company.
• Power of attorney if an agent or attorney is incorporating on behalf of the company.

FOREX LICENSE IN SEYCHELLES

How to Apply for a Seychelles Forex License

Seychelles is one of few countries where it is actually possible to get a forex license in 3 months. That said, the actual time needed for application processing can be more and depends on different circumstances like the complexity of your application, accuracy of submitted documents, and, of course, workload of the regulatory authority.

Following is the major step involved in the application process of forex license in Seychelles:

1. Preparation and compilation of all required application documents.
2. Submission of an application form with all the required documents to be forwarded to FSA for approval.
3. Due Diligence and background checks will be conducted by FSA on applicants, directors, shareholders, and other relevant parties.
4. The physical presence can be verified by an on-site inspection along with the interviewing of your management team as part of the application process.

The review of the application would take into consideration the fact that the applicant complies with the laws and regulations in the Seychelles, such would have a sound business plan, showing viability and sustainability; ensuring proper internal control and governance structure, and being properly prepared for positive contribution to the local and international financial community.

Seychelles

Capital	Population	Currency	GDP
Victoria	100,060	SCR	$19,536

Ongoing Requirements for Seychelles Forex Licensees

Compliance for getting a license is only the tip of the iceberg, as there are literally hundreds of other regulatory requirements for each Licensee to adhere to subsequent to maintaining a forex license. These have become the foundational requirements for compliant, safe, client-oriented forex activities and protection of Seychelles’ reputation as an offshore financial center.

According to the Seychelles regulations, each Forex license must pay annual supervision fees. As a rule, Seychelles Forex license fees might differ depending on the license type, scope of activities, and type of service provided by the licensee. The exact amount is known once the new Forex license is granted because usually in such a moment the FSA issues an invoice for the annual supervision fees.

The company should maintain proper and accurate records of all the business transactions, financial dealings, customer relations, and compliance matters. These records must be provided to the regulatory body whenever asked for. Also, Forex licensees may be required by the FSA to present regular financial reporting. These reports also help in proving financial stability and follow-up on financial requirements for the company.

It is also very crucial to update and manage the risks associated with forex trading and financial services continuously to keep the forex business going in a sustainable and compliant manner. It is, therefore, compulsory that the Seychelles forex licensees introduce effective risk management policies protecting both the interests of the company and the clients. These should include market risks, that is, price fluctuation, credit risks, which allow for counterparty default and operational risks- system failures; liquidity risks-availability of funds, regulatory risks-changes in capital requirements.

The Seychelles forex licensees should continuously observe all the requirements regarding AML/CFT. While it is highly essential that internal AML/CFT processes be adequately maintained, the policies and procedures need regular updating to keep them abreast with relevant changing regulations. Anti-money laundering information in each forex firm has to maintain proper records of transactions, customer identification documents, and associated documents and retain availability for inspection by regulatory bodies. Any transaction which is considered suspicious or unusual has to be reported to the relevant authorities within the required time limit.

Ongoing staff training is usually very crucial for continued adherence to such regulations. It would involve training employees why protection of interest and funds of clients are paramount, that employees are fully made aware of the standards of compliance, codes of conduct, and best practices within the forex industry in Seychelles. Ongoing training reduces the risk of unintentional non-compliance; thereby minimizing the possibility of penalties, legal actions, and reputational damage.

It is of utmost importance to constantly protect the clients, and for that, every Seychelles forex licensee is required to constantly meet the following terms and conditions:

• The cost of trading, spread, commission, and any other fees used in the trade must be clearly defined to the clients, and there must not be any hidden cost.
• Statements regarding risk disclosure must be provided to the clients.
• Client funds must be kept separated from the operating funds.
• Misrepresentation, unauthorized trading, and market manipulation by the licensees of forex are strictly prohibited practices.
• Have clearly outlined procedures for handling customer complaints.
• Comply with data protection legislation to ensure clients’ personal and financial data is secure and kept confidential.

If you would like to start forex trading and obtain a forex license in Seychelles, then our team here at Regulated United Europe will be happy to help you with the incorporation of the company and application for a license. With the panel of devoted legal advisors, tax experts, and financial accountants at your side, the procedure of getting a forex license in Seychelles will get faster, smoother, and absolutely transparent. Feel free to contact us to schedule a personal consultation now and set the stage for long-lasting success.