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1 | Country | Registration Authority | Regulator | Type of License (Permitted Activities) | Tier | Taxation and type of tax | Cost and terms | Requirements | Additional services | Time frame | Legislative Sources | Source of Information | ||||||||||||||||||
2 | Vanuatu | Vanuatu Financial Services Commissions The relevant Licence is issued under the provisions of Vanuatu’s financial legislation and is granted by the Minister of Finance upon application to the Vanuatu Financial Services Commission (VFSC). Each applicant should obtain 2 licenses: a) Principal Licence - will be issued in the name of the Company. The license has no expiration date, renewing by paying annual government fees and will be active till revocation by the VFSC or voluntary termination of services by a licensee. b) Representative license - will be issued in the name of physcial person who is an official company's representative (usually it is Director) | Vanuatu Financial Services Commissions | Financial Dealer License (Categories A-B-C) An applicant can apply for one or few types of licenses. Each type of license enable a licensee to work with specific instruments: Type A: • debenture stocks • loan stock • bonds • certificate of deposit • proceeds of Foreign Exchange Type B: • shares in share capital of a corporation • proceed of precious metals • proceed of commodities • a right whether or not conferred by warrant, subscribed for shares or debt securities • a right under depository receipt Type C: • future contracts and derivative products but not limited to futures and options • an option to acquire or dispose of any security falling within any other provision of the Act • a right under a contract for the acquisition or disposal of the relevant securities under which the delivery is to be made at a future date and at a price agreed when the contract is made in accordance with the terms of that contract | Tier 4(D) | 0% | COST: Minimum share capital for the company - 1000 USD Special bond deposit for a license appliction (regardless the number of Types) - 5,000,000 VUV. Government fees - 3000 USD per category (500 USD gov. fee for each Principal and Representative license + 1000 USD annual fee for each license) Service fees - depends on list of services required. Average amount, for comapny registration and assistance with license obtaining - except substance fees - 15,000 - 20,000 USD Substance fees - including office, local director, accounting or license manager - starting from 4000 USD per month (the amount is approximate) The procedure of an application filling to the Vanuatu Financial Services Commission will be as follows: Step 1. Registration of International company in Vanuatu. The company will be registered through local agents who usually provide registered address and local secretary (required by las) and assist with depositing initial capital and other actions related to license application. Step 2. Preparation of documents for application, bond deposit • Compliance and due diligence procedures for UBO / Shareholder, Director, Compliance officer and other Key persons in a company’s structure. • Filling application forms (Principal License, Representative license, Personal Questionnaire for each Key person in the company); • Drafting a business plan; drafting statutory manuals to support the business plan as needed such as Internal Operations Manual, Anti-Money Laundering Policy, Risk Management Procedures, financial projections to support the business plan. • Organisational Structure with clear lines of responsibility and authority. • Getting Indemnity insurance for a company. • Organization of local presence – local office premises, local manager or local director, local accounting. ***The applicant must establish an office and recruit its own staff in Vanuatu to comply with the physical presence requirement. If they bring in their own manager from overseas, then that person must be a resident and must reside continuously in Vanuatu for at least 6 months. The Regulator is flexible in that they will allow a time period from the approval of the application to establish a physical presence, staffed with a Resident Director/Manager. As an alternative option a licensee can appoint local license manager who is approved and licensed by the VFSC. This option can be used by startup companies mostly. The VFSC expects that big companies with significant turnover will establish local office and hire local manager and staff. Kindly note, that possible options for substance requirements ensuring by licensed companies are discussing now and additional information may be provided by the VFSC Step 3. Application submission During the application process the VFSC may request additional information and documents for review. Step 4. Post approval • According to recent changes in legislation, the licenses will be issued for an unlimited time, and timely payment of state fees will be confirmation of the license renewal. Wherein the VFSC can make inspections at any reasonable time to check that licensees are met legislative criteria and revoke a license in case of detected violations. • Once the FDL application is approved in principle, the Regulator will inform the applicant to lodge a security deposit of VT5,000,000 prior to the release of the Licenses. This VT5,000,000 deposit is equivalent roughly to US$48,000.00 subject to the prevailing forex rates. • This Security Deposit is refundable when the company ceases business, subject to no claims from clients. • Compliance officer should be registered in the FIU (Financial Intelligence Unit) and provide regular compliance reports. • Annual audited financial reports will be obligatory. • Quarterly reports to the VFSC will be reuqired • Annual reports to the VFIU will be required | • AML/Compliance officer who should be registered in Financial Inteligence Unit • Local office-substance • Resident Manager • Indemnity insurance • Annual audited reports | We can recommend local agents who can provide the following services fully or partly (depending on direct contractual arrangements): 1. Provision of nominee directors, if available; 2. Provision of nominee local manager or director, if available; 3. Accounting/bookkeeping services; 4. Reconciliation and tax calculation services; 5. Audit services; 6. Assistance with opening additional operational bank accounts. The professional fees for the above-mentioned services are dependent on the combination of services chosen and are available upon request. | A complete licence application is normally decided upon by the regulator within 4-6 months from the date of filing. | https://www.vfsc.vu/70-prevention-of-fraud-investments-act/ https://fiu.gov.vu/amlctf-acts | |||||||||||||||||||
3 | Seychelles | Registrar Of Companies Seychelles | Seychelles Financial Services Authority Under the provisions of the Seychelles Securities Act 2007. | Type: Seychelles Offshore Securities Dealers License (SDL). Permitted activities: • Selling your own shares to third parties (Trop-X); • Issuing your own Managed Account products; • Carry out trading on behalf of others (LPOA) etc. / CTA activities; • Deposit-takings of third parties; • Offering trading (self-trading or managed) in FX/Forex, CFDs, Futures; • Managed Accounts Forex; • Forex CTA activities; • Trading in commodities (also agricultural commodities and spot metals); • Creation of your own price and fee schemes (managed account fees, profit shares, spreads, mark-ups etc) | Tier 4(D) | 1.5% on offshore earnings for CSL (Companies Special License ) The Seychelles CSL is a local tax resident company specially licensed under the Companies (Special Licences) Act, 2003 by the Financial Services Authority (FSA) and is subject to a tax rate of 1.5% of its worldwide (gross) income. | COST: Min paid-up share capital - USD 50,000 -subject to be changed Company set up including the provision for statutory requirements and Government/License Processing Fee - USD 35,450 Renewal licenses fees: $3750 Time Frame: - Set-up Domestic Company: 24h - Licensing preparations: 2 weeks - Licensing process: usually 3-6 months | • 2 shareholders • 2 directors (both should be qualified with 3-4 years’ experience in Financial companies) • Securities Dealers Representative - Can be one of the directors of the company • Professional Indemnity Insurance • Compliance officer (local), MLRO (Local) and DMLRO (team less than 5 not needed) • Legal advisory • Qualified personnel • Tax calculation • Bookkeeping/Audit • Physical office (local) • Audited Financial Statements with local Auditor. | ||||||||||||||||||||||
4 | Labuan (Malaysia) | Labuan International Business And Financial Centre Regulated under the Labuan Financial Services and Securities Act, 2010 (“LFSSA”) and Labuan Islamic Financial Services and Securities Act, 2010 (“LIFSSA”) as IBFC and regulated by the LFSA. | Labuan International Business And Financial Centre | Money Broker License Labuan money broking business is intended to serve institutional investors and high-net-worth individuals. The licensee is allowed to: • Bring together the counterparties on mutually acceptable terms for the same financial products in money or foreign exchange market to facilitate the conclusion of a transaction; • Receive payment for its service in the form of brokerage or commission fees; and • Act as a mediator and is strictly not permitted to act as a principal [brokerage completes a customer's trade using their own inventory] | Tier 4(D) | 3% of audited net profit | COST: Min paid-up share capital - MYR 500,000 (around USD 115,000) to be maintained in a local bank after the approval of license Gov/Regulatory Fees - License application fee USD 2,500 Our professional fee for the processing of the license application is USD 50,000 which includes the following services: • attending to compliance and due diligence procedures; • formation of Labuan company, only after the pre-approval by LFSA; • provision of registered address for the first year; • provision of the resident secretary for the first year; • setting up a bank account in Labuan; • collecting and reviewing license application documents; • reviewing of Business Plan and AML Policy and other required policies and procedures and collecting and briefly reviewing license application documents; • filing the application documents with the regulator (LFSA) for pre-approval and following up the application process until finalized • Obtaining the relevant Money Broker License | • 1 shareholder; • Local Office and min 2 local employees; • 2 Directors with experiencer; • Compliance & AML function | 1) Assisting with obtaining a Professional Indemnity Insurance policy; 2) Provision of Executives directors, if needed; 3) Provision of nominee shareholders, if needed; 4) Provide on-going services, such as accounting, audit, bookkeeping, quarterly reporting; 5) Opening additional operational bank accounts (worldwide); 6) Provision of GDPR services & ISO certification services. | 3-4 months from the date of submission of a complete application | https://forex-malaysia.my/ | |||||||||||||||||||
6 | Mauritius | The Financial Services Commission (FSC) | The Financial Services Commission (FSC) | Investment Dealer (Full Service Dealer Excluding Underwriting) SEC 2.1. Full service dealer (excluding underwriting) – authorised to: • Act as an intermediary in the execution of securities transactions for clients; • Trade in securities as principal with the intention of reselling these securities to the public; • Give investment advice which is ancillary to the normal course of business activities; • Manage portfolios of client The License is granted by Financial Services Comission of Mauritius. Basically, the company will have 2 licenses: • Global Business License -general license that is obligatory for all GBCs in Mauritius • Investment Dealer Investment Dealer (Full Service Dealer Excluding Underwriting) | Tier 4(D) | 15% that can be reduced to a net effective tax rate of 3% subject to certain requirements. | COST: Minimum unimpaired stated capital of MUR 1 million at all times (approx. USD 25,000) or equivalent. The licensee is also requested to have a Professional Indemnity cover that varies with the volume of activities and risk of its business. Fees payable to the authorities: Registrar of Companies (‘ROC’) Incorporation Fee - 100 Financial Services Commission (“FSC”) GBC Processing Fee - 500 GBC License Fee (annual) - 1,950 Investment Dealer (Full-service Dealer excluding underwriting) License processing fee - 750 Investment Dealer (Full-service Dealer excluding underwriting) License annual fee - 2,500 Management company Fees- $58,000 approx (depending on Agent) Total fees- $64,000 for the first year (Fees includes setting up of company, License acquisition, all governmental fees, provision for all mandatory requirements and service address) Required steps: 1. Reservation of company name - Check company name availability; - KYC and corporate documents preparation. 2. Application for a company registration - Filing all necessary documents to the Registrar. 3. Application to GBL license Preparation and filing the application for Global Business License to Financial Services Commission. 4. Local bank account opening Application and supporting documents filing; 5. Preparation and submission of the application to the FSC - Preparation of all supporting documents required by Financial Services Commission including detailed business plan, financial forecasts, manuals and policies, personal questionnaires for all key persons including dealer team (at least 2 persons), KYC documents checking, etc.; - Application filing. 6. Communication with the Regulator on additional clarifications and questions - Communication with an appointed officer, additional documents and information provision. 7. Obtaining the license - Company approval; - Obtaining indemnity insurance; - Local office and at least 1 local member of staff with core function for the beginning. | Each licensed company must have local management company (MC) that provides local office, secretarial services, local directors, compliance, etc. The licensed company can not operate without the MC. • Local management company • 2 local directors • MLRO, DMRLO and compliance officer (local) • Dealing team with experience (at least 2 persons, each dealer should be agreed with Regulator) • Qualified local personnel • Tax calculation • Bookkeeping/Audit • Physical office (local) • Audited Financial Statements with local Auditor. • Principal bank account in Mauritius • Segregation of clients funds. It is mandatory to segregate clients’ funds from company funds; • Professional indemnity insurance | We can recommend local agents who can provide the following services fully or partly (depending on direct contractual arrangements): 1) Opening of operational and clients bank accounts (Mauritius) 2) Provision of local Management company, local directors, secreatary services, MLRO and DMLRO and compliance officer 3) Provide outsourced services, such as Accounting, Bookkeeping, Payroll services Internal Audit, External Audit, Tax Calculation, Quarterly & Annual Reporting 4) Provide outsourced Compliance & AML Support services 5) Provide outsourced Risk Management services 6) Assistance with finding local office premises 7) Assistance with Trademark & Brand Name registration - 8) Provide Legal Opinions 9) Provide DPO & GDPR Advisory services Professional fees for the above-mentioned services depend on the combination of services chosen and are available upon request. | Around 3-4 months | Link to the Regulator https://www.fscmauritius.org/en/licensing/licensed-activities | https://sb-sb.com/en/publications-en/article-en/mauritius-forex-license/ | ||||||||||||||||||
7 | Cyprus | Cyprus Securitites and Exchange Commission (CySEC) | Cyprus Securitites and Exchange Commission (CySEC) | In Cyprus, there are two forms of forex licenses and typically the companies are known as CIF-Cyprus Investment Company.: Standard license(STP) –Approximately EUR150,000.00, the broker will keep clients’ money but cannot trade on his own account; Full license(MM)-requires approximately EUR 750,000.00-the broker can deal on his own account (the market maker); The companies operate through various financial instruments, including the most demanded: traded securities; futures and options; money-market financial instruments; blocks of securities for the statutory obligations; forwards and other derivative instruments related to financial indexes, interest rates, and cash payments; contracts for commodities, cash or clearing settlements when working on multilateral trading platforms; derivative securities and forwards for the commodity contracts, which may be committed in the form of clearing settlements, unless otherwise stipulated in paragraph 6 above; financial cash-settled contracts; options, futures, forward contracts for interest rates and any other derivative instruments relating to climatic variables, freight rates, emission quotas, made in cash and so on. | Tier 3(C) | Low corporate tax (12.5%) 0% tax for corporate gain Lowest VAT at 19% No withholding tax on dividends An extensive network of double-taxation treaties | COST: Minimum paid up capital: EUR ~ 125,000.00 or EUR 730,000.00 depending on the license type (STP or MM) License government application fee: 4,000.00 EUR +19% VAT Investors compensation fund: EUR 20,000.00- 30,000.00 (approx.) License renewal government fee: EUR 4,000.00 + 19% VAT Each CIF is also subject to application and licensing fees as stated in the CySEC’s Consolidated Directive DI87-03, (A), (B), (C) and (D) established for yearly costs and fees. In general, application will cost EUR 7000, with an additional EUR 5000 to be paid for those applying to trade in cryptocurrencies or Contracts for Differences on cryptocurrencies. Additional fees will also apply for additional ancillary services, or establishment of branches in other countries. Licensing fees are changed based on the annual turnover of the company, on a percentage basis. This ranges from 0% for a company with a turnover less than EUR 500,000 to 0.5% for a company with turnover more than EUR 500,001 but less than EUR 1,000,000. Subsequent income bands will be charged cumulatively but at a lower rate. | In order to register for the forex license, you will first need to have a registered Cyprus Investment Firm (CIF) with a suitable local presence. This can be met by having a local, registered office address, hiring a certain number of local employees, and by having a suitable expenditure within the country. Company structure: Only one shareholder (can also be a legal person, no nationality restriction) 2 executive and 2 non-executive directors. There are requirements in terms of their residency Beneficial owners' details – disclosed to the authorities Shareholders' details – part of public record Directors' details – Part of public record In addition, you will also need a Risk Manager and Compliance Specialist, as well as internal and external auditors. The appointed internal auditors are required to be Cyprus residents. In order to support this, they should submit the relevant KYC and personal documents, such as their Curriculum Vitae along with the relevant educational certificates and professional references, notarized copies of passports and proof of residential address. Shareholders and directors are also required to fill up a personal questionnaire, as well as submit proof of their clean criminal record, and good financial standing. Required Documents: Incorporation Documents of the Company: ● Certificate of registration/incorporation from the Registrar of Companies. ● Certificate of shareholders. ● Certificate of the registered office from the Registrar of Companies. ● Certificate of good standing. ● Memorandum and Articles of Association. ● Certificate of the applicant’s directors and secretary. ● Capital Evidence – All relevant agreements, contracts, certificates proving the existence of capital raised. ● Shareholders Documents – In the case of a Legal Entity, the same documents as point 1 apply, in the case of a Natural Person, then a certified copy of ID or Passport, a Proof of Residence and a CV are required. Personal questionnaires dully completed from each Natural Person and/or UBO (persons that exceed 10% shareholding in the company). For each Senior Management / Director: ● Certified copy of ID or Passport. ● Non-bankruptcy certificate. ● Clean criminal record. ● Personal Questionnaire. | from 5 up to 9 months | https://mundo.expert/en/BlogNews/CyprusForexlicense | ||||||||||||||||||||
8 | UK | UK Financial Services Authority (FSA UK); The Prudential Regulation Authority (PRA); Financial Conduct Authority (FCA); | Financial Conduct Authority (FCA) | There are three types of licences: (1) Dealing on own account (Dealer Licence) - this licence is equivalent to "market-making" and involves position-taking which includes in the conclusion of the transaction in financial instruments. (2) Matched Principle (Intermediary Licence) also known as STP/straight-through processing involves client trades being hedged with an equal transaction with a liquidity provider. (3) Restricted Broker licence - This is an introducer or referral type of licence, permitting firms to conduct sales and marketing but not being able to hold client funds. | Tier 2(B) | Tax Rate System: Individual Tax starts from 20% Corporate Tax is just 20% | COST: To obtain a forex license in England, the minimum amount of capital investment must be 150 thousand Euros. A limited license costs 500,000 Euros and a full dealer license costs 750,000 Euros. It is enough to set the size of the authorized capital at 150 thousand euros. However, the calculation must be justified by an economically justified calculation of the business plan and calculations must be attached. TERMS: Convenient forms of ownership are LTD and LP. The founder may be a non-UK citizen and non-UK resident. But the director is a private individual who is located in the UK for sure. Another important position is Compliance Officer. This employee maintains a connection between the director and the founder, and further complies with the licensing norms and rules of the exchange. Opening a bank account. To obtain a license, a company must have a bank account in any country. But it is better that a corporate account be opened with a UK financial institution. The introduction of authorized funds. Next, an application is submitted for opening a forex license, which is considered by the FCA. | License Requirements Threshold Conditions - Firms are required to demonstrate at the time of their authorisation that they satisfy the minimum standards set by FSMA, namely the Threshold Conditions, for all regulated activities. Firms must also demonstrate that their key persons running or managing the firm are 'fit and proper' to perform their functions. Location of offices - your firm's 'mind and management' I.e. directors, compliance and governance function, audit and risk functions should be in the UK. Appropriate resources - your firm must demonstrate that it has the appropriate financial resources, skills and experience of those managing your firm's affairs. Suitability - Your firm must demonstrate competence and ability of your management, and that the affairs of the firm are conducted in an appropriate manner in the best interest of consumers. 1/3rd of office staff should hold the citizenship of the UK (Not mandatory) Document requirments: Directors/Shareholders information: Notarized passport copy (Should be notarized in English - 2 copies) Last 3 months utility bill (Should be notarized in English - 2 copies with original) Director/Shareholder's Bank reference letter Lawyer's reference letter The copy of educational degree certificate (Should be in English) Director/Shareholder's CV Criminal record check certificate For Regulatory Bodies: FCA, United Kingdom Application Form Statutory Declarations Bank Application Forms AML (Anti-Money Laundering) Procedures Strong Business Plan with stated Revenue 3-year Financial projection of your business Balance sheet with forecast description AML/CFT Declaration | https://www.handbook.fca.org.uk/handbook/PERG/13/3.pdf | |||||||||||||||||||||
10 | Singapore | Monetary Authority of Singapore (MAS) | Monetary Authority of Singapore (MAS) | Full list of activities ander Capital markets licence (CMS licence) * Fund management * Real estate investment trust management * Advising on corporate finance * Dealing in capital markets products (including securities, units in a collective investment scheme (CIS), over-the-counter (OTC) derivatives, exchange-traded derivatives and spot foreign exchange), СFD-dealing * Securities financing * Providing credit rating services * Providing custodial services for securities | Tier 3(C) | Corporate tax rate 17% | A minimum base capital - 500 000 - 5 000 000 SGD Application cost - 1000 SGD Annual license payment - 2000 - 8000 SGD Incorporation of PLC - 3000 USD Step 1: Setting up business * Before making an application to MAS: * Incorporation of the PLC + Corporate bank account * Rent an office * Employment contacts drafts * Business Plan draft * Internal policies and procedures should be prepared with a view to ensuring compliance with Singapore’s Anti-Money Laundering/Counter-Financing of Terrorism laws and regulations. Step 2: Submitting application to MAS Documents to prepare (2 main forms): * Form 1 (in case a company intend to operate as Broker-dealer); * Form 3A to appoint representative(s) for the regulated financial activity that your business will be conducting. * Special circumstances may require you to appoint temporary or provisional representatives. If so, Form 3B (provisional representative) and/or Form 3C (temporary representative) must be filled and submitted to MAS. Step 3: Outcome Typically, MAS will take up to 6 months to review and process an application, provided that the company meets all the requirements, submitted all the documents properly and has paid the application fee. | -Directors: At least 2 directors, with one director resident in Singapore; -Chief Executive Officer: A Chief Executive Officer with at least 10 years of relevant experience, and who is resident in Singapore; and -Representatives: At least 2 full-time Singapore-based individuals for each regulated activity should be appointed as representatives of the business. They will be the ones who carry out the regulated activities on behalf of your business. -Compliance officer -Qualified personnel -Tax calculation -Bookkeeping/Audit -Physical office (local) -Audited Financial Statements | 6 months | Singapore Securities and Futures Act 2001 https://sso.agc.gov.sg/Act/SFA2001 Monetary Authority of Singapore https://www.mas.gov.sg/ Obtaining Capital Markets Services (CMS) Licence Guideline https://www.mas.gov.sg/regulation/capital-markets/Capital-Markets-Services-CMS-Licence Form 1 Application for CMS license https://www.mas.gov.sg/regulation/forms-and-templates/form-1--application-for-a-capital-markets-services-licence-other-than-for-a-fund-management-company | Monetary Authority of Singapore https://www.mas.gov.sg/ official website | |||||||||||||||||||
11 | Hong Kong | Securities and Futures Commision (SFC); Securities and Futures Ordinance; | Securities and Futures Commision (SFC); Hong Kong Monetary Authority; | Under the Securities and Futures Ordinance (SFO) of Hong Kong, forex activity in HK will require SFС type 3 "Leveraged foreign exchange trading" license. “leveraged foreign exchange trading means— (a) the act of entering into or offering to enter into, or inducing or attempting to induce a person to enter into or to offer to enter into, a leveraged foreign exchange contract; (b) the act of providing any financial accommodation to facilitate foreign exchange trading or to facilitate an act referred to in paragraph (a); or (c) the act of entering into or offering to enter into, or inducing or attempting to induce a person to enter into, an arrangement with another person, on a discretionary basis or otherwise, to enter into a contract to facilitate an act referred to in paragraph (a) or (b), The Securities and Futures Commission of Hong Kong totally forbid CFD trading, the only exception applicable is Forex CFDs, which meet the definition of Leveraged foreign exchange trading and are regulated under type 3 SFC license | Tier 3(C) | • Tax for individuals is under 2% 8.25% corporate income tax on the first HKD 2 million of asseassable profits. Tax on remaining is 16.5% • No Corporate Income Tax on foreign sourced income • No tax on capital gains, dividens or interests | MINIMUM PAID-UP CAPITAL: • HKD 5 million ( > EUR 500 000) – if approved as an introducing agent • HKD 30 million ( > EUR 3 million) – in any other case MINIMUM LIQUID CAPITAL REQUIREMENT: • HKD 3 million ( > EUR 300 000) – if approved as an introducing agent • HKD 15 million ( > EUR 1,5 million) – in any other case Introducing agent (broker) – Introduces clients to execution brokers with which consumers open securities, futures and/or leveraged foreign exchange contract trading accounts. COMPANY STRUCTURE: • Minimum 1 director (advisable to have at least 1 resident in Hong Kong) • Minimum 1 shareholder • At least 2 (preferably 3) Responsible Officers. At least 1 RO must be an executive director. LOCAL OFFICE: • Requied | DOCUMENTS REQUIRED: • 3 notarized copies of passport (notarization should be conducted in English) • The principal and three notarized copies of your utility bills for the past six months • The director’s or the shareholder’s account statement reference letter from the bank • A reference letter from your legal adviser • A CV from the director or the shareholder, demonstrating at least six years of the experience in the financial area and at least three years of the executive posts’ position holding • A copy of the certificate, stating your academic achievements (in English and Chinese) • Your personal criminal history (or, rather, its absence) OTHER DOCUMENTS REQUIRED: • Application to the Hong Kong Securities and Futures Commission • Attested declarations • Registration form for bank • Anti Money Laundering regulations • Business programme • Money perspective for the nearest three years • AML/CFT affirmation | Within 6 months | https://www.sfc.hk/en/ | ||||||||||||||||||||
12 | United Arab Emirates, Dubai | Dubai Multi Commodities Centre (DMCC); Dubai Gold & Commodities Exchange (DGCX); Dubai Financial Services Authority (DFSA); Emirates Security and Commodities Authority (SCA); | Dubai Financial Services Authority (DFSA); Emirates Security and Commodities Authority (SCA); | In Dubai, only the DMCC and DIFC offer Forex Trading licenses. Companies whose principal activity is centered on trading their own money in Forex, OTC, and Exchange Traded Derivatives (ETDs) on regulated exchanges. Regarding forex trading, there are 2 types of activities allowed in the DMCC. Trading in FX, OTC and Exchange Traded Derivatives on its own behalf with counterparties deemed acceptable by DMCC: includes firms whose main activities are based on the trading of their own money in Forex or OTC and Exchange Traded Derivatives with counterparties which are regulated by authorities deemed acceptable by DMCC. Instead of a specific license, it is required that the firm obtain a membership of the Dubai Professional Trading Group. Trading for a proprietary account on regulated exchanges: includes firms whose main activities are based on the trading of their own money in FX, OTC and Exchange Traded Derivatives on regulated exchanges. The firm is required to obtain the membership of Dubai Gold & Commodities Exchange (DGCX). | Tier 3(C) | 0%(nearly) | DIFC Application fee: USD 25,000 License fee: USD 25,000 CAPITAL REQUIREMENTS The base capital requirment for the license is USD 500,000 whereas, the actual capital requirement is based upon the Risk Capital and Expenditure based capital requirement. DMCC The estimated cost of forex trading license in Dubai is up to AED 32,000 or $ 8,720. The investor will pick whether to take an office or choose a Flexi Desk. To choose this option you need to keep in mind the number of visas. As the number of visas will depend on the size of your office space. SHARE CAPITAL REQUIREMENTS In DMCC you need a share capital of AED 50,000 ($ 13,625). You need to deposit this amount in your bank account as well as you need to show a bank letter. | Passport Copies of Shareholder Visa Copies (Visit / Entry Stamp / Residence) Trade Name options | DFSA Rulebooks: https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/DFSA1547_10726_VER310.pdf https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/DFSA1547_17395_VER450.pdf | |||||||||||||||||||||
13 | Georgia(Freezone) | Forex companies are registered and supervised by the National Bank of Georgia (NBG) | Forex companies are registered and supervised by the National Bank of Georgia (NBG) | receipt and transfer by a person of orders from clients for transactions with securities; a company can provide Forex (FX) services to clients outside Georgia, including access to bank accounts and merchant accounts (credit card processing, SEPA, SWIFT, etc.) | Tier 4(D) | There are two taxation options: Normal Georgian Company: corporate income tax 15% on profits per year, Vat 18% Free Zone: full tax exemption | The free zone license fee is USD 6,000 and the company is restricted to only have foreign clients. The choice of whether to register in the free zone is made prior to registration. A company cannot later move to free zone. Annual license fee USD 6,000 Minimum Capital: There is no minimum capital to set up a forex company in Georgia. Payment of Capital: Whatever the amount of capital you register your company with there is no obligation to pay the capital immediately. Sais you register the company with a capital of 50,000 Euros. You need to show the capital was paid in the next balance sheet. So all the expenses incurred during the year can be reconciled as capital. As forex companies are under the supervision of the National Bank of Georgia it is recommended to register the company with a paid up capital of 100,000 Gel (40,000 Euros) to 150,000 Gel (60,000 Euros) minimum. | Local Director: No obligation to have a local director Local Office: You need a lease agreement for a local address 2500 USD per year Local Employees: There are no requirement of having local employees but here again as you are under the supervision of the central bank it would be better to have at least an accountant maintaining updated accounts and a compliance officer handling KYC and AML. Those services can be outsourced. Local director NOT required. • Local Physical Office required • Minimum 2 Directors • Corporate directorship allowed • Minimum 2 shareholder • Corporate shareholder allowed • Company Secretary • Auditor • Legal Adviser | Around 4 weeks | https://ybcase.com/en/jurisdictions/svobodnye-industrialnye-zony-v-gruzii | ||||||||||||||||||||
14 | South Africa | Financial Services Conduct Authority of South Africa (FSCA) | Financial Services Conduct Authority of South Africa (FSCA) | LICENCE CATEGORIES: Category I Category I FSP renders financial services other than the financial services mentioned in Categories II, IIA, III and IV. Category I FSPs may only offer advice or intermediary services concerning the relevant subcategories of financial products. Subcategories should be chosen during the application process. Category II – Discretionary FSP Category I Discretionary FSP' means a discretionary FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003. A discretionary FSP renders intermediary services of a discretionary nature as regards the choice of a particular financial product referred to in the definition of 'administrative FSP' but without implementing any bulking. Category IIA – Hedge Fund FSP 'Hedge Fund FSP' means a Hedge Fund FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003. A Hedge Fund FSP must also apply for a Category II license. Hedge funds FSPs are those who pool investment funds in order for trading in liquid assets using more complex techniques usually not available to retail investors. Category III – Administrative FSP Administrative FSP' means an administrative FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003. Administrative FSPs can offer intermediary services referred to in the above license categories but may not offer short-term insurance or policies. They can use the method of bulking, which refers to combining several orders to kointly execute them as one consolidated order. Category IV – Assistance Business FSP Assistance Business FSP' means an FSP that renders intermediary services in relation to the administration of assistance policies on behalf of the Insurer to the extent agreed to in terms of a written mandate between the insurer and the Assistance FSP. | Tier 4(D) | Corporate income tax – 27% (from April 1, 2023) Dividend Withholding Tax - 20% Capital gains tax – 21,6% | Starting from 60,000 USD - Professional fees including provision of local director / Key person for the first year, company registration and preparation of all the documents needed for license application (Category I or Category II) Minimum share capital - not required | COMPANY STRUCTURE AND STUFF: • Min. one shareholder (can be legal entities or natural persons); • Min. 2 directors (can be only natural persons, one should be local). 3 directors can be required by the Regulator depending on business model; • Qualified personnel; • At least on Key Individual - it can be local director if he/she has enough expirience; • Compliance & AML Officers • External auditor, local • Accounting The FSP shall maintain current assets that are at least adequate to satisfy current liabilities. Accounting requirements – Annual submission of audited financial statements Local office – May be required Registered office – Will be required Local employees – Will be required (Key Individual) Regulatory examinations (for Key Individual(s) and Representative(s)) – Required REQUIRED DOCUMENTS: In order to obtain a license, local agents will fill all required application forms and also acquire apostilled corporate documents. • Notarized 2nd ID (for each shareholder, UBO and director) • Certified Utility Bill (for each shareholder, UBO and director) • Notarized Criminal Record (for each shareholder, UBO and director) • Notarized passport (for each shareholder, UBO and director) • Bank reference Letter (for each shareholder, UBO and director) • 2 Reference letters of character provided by professionals (for each shareholder, UBO and director) • Certified higher education diploma (for each shareholder, UBO and director) • Detailed CV of the applicant dated and signed (for each shareholder, UBO and director) • Detailed business plan • Manuals (will be drafted by the local agents): Anti Money Laundering policy, security policy and procedures and others if requested by the regulator) All documentation should be provided in English language or translated to English by a professional and certified by Notary Public. PROFESSIONAL INDEMNITY COVER – Required (total cover should be not less than R5 million Rand (around 350,000 USD) | 1) Opening of operational and clients bank accounts (worldwide) 2) Assistance with recruitment of personnel (e.g. Executive Director(s), Independent Non-Executive Director(s), other required qualified personnel) 3) Outsourced services, such as Accounting, Bookkeeping, Internal Audit, External Audit, Tax Calculation, Quarterly & Annual Reporting 4) Outsourced Compliance & AML Support services 5) Outsourced Risk Management services 6) Assistance with finding local premises 7) Assistance with Trademark & Brand Name registration 8) Provide in-house trainings/seminars 9) Provide Legal Opinions 10) Provide DPO & GDPR Advisory services | Approximately 10-12 months from the date of documents filing. | https://www.fsca.co.za/Pages/Default.aspx | |||||||||||||||||||
15 | Australia | Australian Securities and Investment Commission (ASIC) | Australian Securities and Investment Commission (ASIC) | Australian financial services (AFS) licence ● provide financial product advice to clients ● deal in a financial product ● make a market for a financial product ● operate a registered scheme ● provide a custodial or depository service ● provide traditional trustee company services ● provide a crowd funding service ● provide a superannuation trustee service, or ● provide a claims handling and settling service. a list of different industries for which you may need to apply for AFS: ● Financial Planners. ● Managed Discretionary Account Providers (MDA Advisers and MDA Operators). ● Managed Investment Schemes (Fund Managers, Responsible Entities and Custodians). ● Remittance Providers. ● Traders (Foreign Exchange, Futures and Contracts for Differences). ● Brokerage Providers (e.g. Insurance and Securities). ● Payment Product Providers (e.g. PayPal). ● Multi-discliplinary financial institutions, including Banks. | Tier 2(B) | ● Paid-in capital of USD 714,660 ● License application fee (one time) USD 1485 ● Fee for changes to the terms of the current license USD 249 ● Financial reporting fee USD 549 ● Annual license fee USD 1086 | ● Physical presence in Australia: office + management ● The application process is lengthy and will take at least 6 months if not more. ● Doing business with US residents is strictly prohibited. There are no legal restrictions for other regions. ● A forex company licensed by the Commission must obtain its permission to operate on the territory of other states; ● At least one shareholder should have at least 3 of the last 5 years of experience with a regulated Forex company in Australia or another jurisdiction. At least one director and secretary of a private company must normally reside in Australia. (Total minimum there must be 1 director; in practice, usually 2)). At least two directors of a public company must usually reside in Australia. (There must be at least 3 director). Risk Management System: Chief Specialist for risk management will be a key member of the supreme guides. (this also includes compliance) Functions that are commonly outsourced include: (a) information technology (IT) systems for storage records relating to the provision of financial services; (b) recruitment and training of representatives; (c) research on financial products for which providing financial services; (d) the operation of call centers; (e) periodic compliance checks representatives | Corporations Act 2021 https://www.legislation.gov.au/Details/C2019C00216 | https://lawstrust.com/en/licence/finance/brokerskie-licenzii/avstraliya | |||||||||||||||||||||
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