Specialized Legal Consultation for Securing Offshore Investment License

Mauritius Investment Dealer License

The first and perhaps the most common option is a Mauritius license, fully known as a Mauritius Investment Dealer License. It is usually issued for such business types as Forex brokerages, security dealing, portfolio management, derivatives, futures, and more. Any company under this license is supervised by the Mauritius Financial Services Commission (FSC).

Mauritius requires all investment companies to be domestic, which automatically makes them subject to a 15% flat tax rate on worldwide income. Henceforth, even though the country has a beneficial economic situation, the taxation rates might be costly for some licensees.

3 main advantages

• Reputation
• Versatility
• Stability

For which business models?

As we have stated above, the Mauritius license is fitting for a large scope of companies. It covers Forex brokerages, currency trading, investment platforms, portfolio management, dealing with securities, and more. The last two options are in particular limelight since the FSC strives to ensure fair and transparent securities exchanges, as well as investment advice that will efficiently accompany these activities.

Mauritius closely monitors its licensed securities exchanges and issues a special Investment Advisor license to brokers wishing to supervise investment activities and manage investment portfolios of their clientele. The main goal, of course, is to prevent any kind of fraudulent activities and financial crimes associated with unlicensed investment platforms.

As for Forex brokerages, the Mauritius license authorizes Forex currency trading under the same unwavering condition that the business must have a physical office within the country, local corporate expenses, and a minimum of one local employee.

How to get the Mauritius Investment License?

Application for an offshore investment license in Mauritius starts with preparation. The jurisdiction offers 4 license tiers: Brokers, Discount Brokers, Full Service Dealers (without underwriting), and Full Service Dealers (with underwriting). Once a broker chooses Mauritius as their licensing country, they should pick one of these license types that will accord with the type of business.

Once the license type is picked, the future CEO must form a company. Since Mauritius sets forth an obligatory requirement of having economic substance within the country, the startup must have a local physical office and at least one local employee, as well as the necessary share capital to launch with. As soon as all the criteria are met, the company can apply for the license.

As practice shows, even though companies licensed within the Mauritius jurisdiction have to undergo a rigorous control process, this license is a green light for customers looking for trustworthy and reliable companies to invest and manage their funds.

Seychelles Securities Dealer License

The next beneficial option for brokers is the Seychelles Securities Dealer License, issued by the Seychelles Financial Services Authority (FSA). This jurisdiction works equally well for Forex brokerages, investment services, exchanging and trading securities, and portfolio management.

One of the main benefits of the Seychelles license is that it involves minimal taxation and relatively low shared capital requirements. Once licensed by Seychelles, an investment company obtains benefits in transparency, enhanced security, and trustability from clients and banks.

3 main advantages

• Flexibility
• Low paid-up share capital
• Advantageous taxation (1.5% of total income)

For which business models?

Seychelles is an optimal offshore jurisdiction for FinTech (notable example: VASP license in the Seychelles), including such intricate services as managing trading bots or assisting with financial advice. Launching a trading bot requires a legal permit first and foremost due to the danger of programming flaws that might interfere with a transparent and accurate trading process. The same rule applies to investment advisors and managers of securities, to whom the FSA issues Investment Advisor and Security Dealer licenses respectively.

The Seychelles license is also suited for Forex brokerages, allowing brokers to legally conduct currency tradings, trade their own assets, or work as Forex agents. Basically, all the Forex-based activities conducted online must be legally approved by the FSA. To brokers, the Seychelles license guarantees a fast and painless registration process, moderate licensing requirements, low costs, and a stable taxation rate of only 1.5% of the total corporate income.

How to get the Seychelles Investment License?

Applying for the Seychelles Investment License starts with studying the requirements and picking the correct license type. Since Seychelles authorizes a vast range of businesses connected with finance, brokers are advised to consult professionals who will help them accurately pinpoint the company type.

Next comes the company formation that, according to the licensing criteria, includes establishing a local office, appointing at least 2 directors and 2 shareholders, having a share capital of 50,000 USD, and paying a 6,300 USD application fee. In addition, at least one of the company employees must be a Seychelles resident.

The Seychelles regulatory authority also requires conducting regular auditing of the company, providing financial reports, and appointing a company auditor. The business must be insured and have an appointed license representative, a compliance officer, and a legal advisor at the time of application. These criteria might sound overly meticulous to fledgling brokers but entrusting the licensing process to certified legal specialists, like LegalBison, substantially facilitates the procedure.

Vanuatu Financial Dealers License

Vanuatu is another popular jurisdiction that issues an investment license offshore to Forex trading platforms, dealing with securities, management of assets, commodities, money lending, derivatives, and futures. The Vanuatu Financial Dealers license is granted by the Vanuatu Financial Services Commission as soon as the applicant meets all the licensing requirements.

In essence, Vanuatu is an internationally recognized license that comes with a fast and simple registration process, mild licensing fees, and 0% corporate income tax. However, the benefits of this jurisdiction come with a list of mandatory conditions that each potential licensee must comply with.

3 main advantages

• Cost
• Fast set-up
• 0% corporate income tax

For which business models?

Vanuatu is a primary choice for brokers planning to launch a Forex business. Depending on the nature of a company, Vanuatu issues licenses of 3 types: Class A, B, and C. For this and other types of businesses, the jurisdiction requires a detailed business plan with a financial forecast for the next 3 years. This criterion can become a hassle without proper legal assistance, especially if you have never launched a Forex business before.

In addition to Forex, Vanuatu licenses security dealings, management of assets, futures, derivatives, money lending, and more. If a future investment startup is set to provide several types of services at once, a fitting class of the Vanuatu license might not be clear on the spot. LegalBison can provide comprehensive guidelines on choosing the license for a particular company type.

How to get the Vanuatu Investment License?

The final step is answering the question of how to get an offshore investment license in Vanuatu. Initially, a future CEO must thoroughly prepare for the application process by gathering all the information on licensing conditions and costs. Once a qualified legal expert assists the CEO with picking a proper license class, they can move on to the second stage: company formation.

The key requirements for any class of the Vanuatu license cover a registered local office, professional insurance to demonstrate and ensure solvency, identity documents of all the beneficiaries, including certificates of non-criminal records, implementation of the domestic AML rules, a paid-up share capital, and a detailed business plan.

As for the business plan for the future company, it should outline the aforementioned 3-year financial forecast, types of services the company intends to provide, compliance policies for AML, and all the IT infrastructure.