Forex License in Seychelles

• No mandatory leverage caps – the FSA does not restrict leverage ratios, so brokers commonly offer up to 1:500, 1:1000, or higher
• USD 100,000 minimum paid-up capital – effective January 2025, significantly below CySEC or Mauritius thresholds
• 3–6 month licensing timeline – a well-prepared application reaches approval within this window
• 0% tax on foreign-sourced income – IBCs under Seychelles’ territorial tax system pay no corporate tax on international revenue
• No restrictions on deposit bonuses or trading contests – the FSA does not prohibit promotional incentives

For brokerages targeting emerging markets in Asia, Africa, and Latin America, the Seychelles SDL offers a low-cost, high-flexibility entry point with a regulator that prioritises speed over bureaucracy.

The USD 100,000 minimum paid-up capital is a regulatory requirement, not a fee — it must remain deposited in a bank account and evidenced to the FSA as part of the application. It is not consumed by the licensing process; it forms the operational reserve of the licensed entity and is available for business use once the license is issued.

Choose the engagement model that matches your in-house capacity. Every package includes a fixed-fee scope with no surprise add-ons; upgrade between tiers without restarting the engagement.

The wide range reflects the choice of service package and whether physical office and staffing are arranged independently or through Fintech Simple’s Premium package. Brokerages that already have a Seychelles IBC in place and can source their own resident director will sit toward the lower end of the range. Those requiring a fully managed setup — office, staff, compliance framework, and 12 months of post-licensing support — should budget toward the upper end.

Seychelles forex licensing rests on five core statutes that together define the licensing conditions, compliance obligations, corporate structuring options, and tax treatment for securities dealer firms operating under FSA oversight.

The Securities (Amendment) Act 2024, gazetted 13 December 2024, introduced the most significant reforms to Seychelles forex regulation in over a decade. The changes affect licensing structure, physical presence obligations, and minimum capital — and apply to both new applicants and existing SDL holders.

• Perpetual licensing — SDL licences are now issued on a perpetual basis effective 1 January 2025, replacing the previous annual renewal cycle. Licensees pay an annual fee of USD 6,000 and must submit a compliance certificate by 31 January each year to maintain their licence in good standing.
• Physical presence requirement — The 2024 amendment mandates a genuine physical office in Seychelles with at least two resident staff members, including one resident director who must be present in-country for a minimum of 183 days per year. Virtual offices no longer satisfy this requirement.
• Minimum capital increase to USD 100,000 — The paid-up capital threshold was raised to USD 100,000, effective 1 January 2025. This applies to new licence applications from that date and to existing licensees who were required to bring their capital up to the new threshold within the FSA’s prescribed transition window.

Existing SDL holders who were not yet compliant with the physical presence and capital requirements at the time of the amendment were given a transition period by the FSA. Firms that missed the transition deadline risk licence suspension or revocation under the FSA’s enforcement powers. If you are an existing licensee reviewing your compliance status, contact our team to assess your position against the current requirements before your next annual compliance certificate submission.

The Securities (Amendment) Act 2024 doubled the minimum paid-up capital for Securities Dealer License holders from USD 50,000 to USD 100,000, effective 1 January 2025. This threshold applies to all new applicants and to existing licensees renewing under the post-amendment framework. The increase reflects the FSA’s push to ensure that only adequately capitalised firms operate in Seychelles’ capital markets space.

The USD 100,000 must be fully deposited into the company’s bank account and evidenced by a bank statement at the time of FSA application. It cannot be pledged, loaned, or offset against liabilities. For context on how this compares to capital held across offshore forex brokers, see Salvus Funds’ analysis of FSA capitalisation standards.

The 2024 amendment introduced a mandatory physical presence requirement for all SDL holders. Every licensed firm must maintain at least two full-time resident personnel in Seychelles, one of whom must be a director physically present in the country for a minimum of 183 days per year. Virtual offices and nominee-only arrangements no longer satisfy FSA requirements.

In addition to the resident director, the FSA requires each SDL holder to appoint a Compliance Officer responsible for the firm’s AML/CFT program and regulatory reporting, as well as an SDL Representative — an individually licensed professional who executes securities dealing activities on the company’s behalf.

• Resident director (183 days) — must be physically present in Seychelles for at least half the calendar year and hold decision-making authority over the firm’s operations
• Compliance Officer — responsible for AML/CFT policies, suspicious transaction reporting to the FIU, and preparing the annual compliance certificate due by 31 January
• SDL Representative — holds a personal licence from the FSA authorising them to deal in securities on behalf of the company; must pass a fit-and-proper assessment

The FSA requires every SDL holder to maintain a physical office in Seychelles that is genuinely operational — not a registered-agent address or virtual office. The premises must be adequate for the firm’s scale of operations and accessible for FSA on-site inspections. Lease agreements and utility bills are typically submitted as evidence during the application process.

Applicants must also demonstrate adequate IT and telecommunications infrastructure, including reliable internet connectivity, secure data storage systems, and business continuity arrangements. The FSA expects licensed firms to maintain records in Seychelles and to have systems capable of producing transaction reports, client records, and compliance documentation on demand.

The SDL authorises holders to deal in securities — either as agent on behalf of clients or as principal — across a range of financial instruments. The scope of permitted activities under a single SDL is broad compared to many offshore jurisdictions, covering traditional forex as well as derivatives and, since February 2025, crypto-asset CFDs.

• Forex pairs and spot FX — major, minor, and exotic currency pairs traded on a spot or rolling-spot basis
• CFDs and derivatives — contracts for difference on indices, commodities, equities, and other underlying assets
• Crypto-asset CFDs — contracts for difference referencing Bitcoin, Ethereum, and other digital assets, confirmed under SDL scope since February 2025

FSA Circular No. 3 of 2025 formally clarified that crypto-asset CFDs fall within the scope of the Securities Dealer License. SDL holders may offer CFDs referencing digital assets without obtaining a separate Virtual Asset Service Provider (VASP) licence, provided the underlying crypto asset is not directly custodied. This makes the Seychelles SDL one of the few offshore licences that explicitly covers both traditional forex and crypto-derivative products under a single authorisation.

These documents establish your company’s legal standing, financial capacity, and operational readiness under the Securities Act of 2007 and the Financial Services Authority Act 2013.

• Detailed business plan — target markets, product offerings, revenue model, marketing strategy, and three-year financial projections
• Proof of minimum capital (USD 100,000) — bank statement or auditor confirmation demonstrating fully paid-up capital, effective January 2025
• Organisational chart — reporting lines, compliance function, and key personnel including the designated Compliance Officer
• Office lease agreement — physical office in Seychelles with IT infrastructure; virtual offices are no longer accepted under the 2024 amendment
• Auditor appointment letter — confirmation from a local auditor engaged to prepare the company’s annual financial statements
• Insurance certificate — professional indemnity cover or equivalent policy appropriate to the scale and nature of the licensed activities

The FSA conducts fit-and-proper assessments on all directors, beneficial owners, and key shareholders. Each individual associated with the licence must provide a complete personal due-diligence pack. Note that at least two full-time resident personnel — including a resident director present in Seychelles for a minimum of 183 days per year — must be identified at the application stage.

• Curriculum vitae — detailed professional history covering at least ten years, with explanation of any gaps; relevant financial-services experience should be highlighted
• Police clearance certificate — issued within the last three months from every country of residence or citizenship in the past five years
• Bank reference letters — from the individual’s primary banking institution, confirming the account relationship and satisfactory conduct
• Certified passport copies — notarised or apostilled copies of the bio-data page of each director’s and shareholder’s valid passport
• Proof of address — utility bill or official government correspondence dated within three months, confirming current residential address
• SDL Representative accreditation (Section 52) — the individual named as the SDL Representative must hold or obtain the FSA accreditation required under Section 52 of the Securities Act 2007

All compliance documentation must be aligned with the Anti-Money Laundering and Countering the Financing of Terrorism Act 2020 (AML/CFT Act). The FSA reviews these policies as part of its assessment of whether the applicant has the systems and controls in place to meet its ongoing regulatory obligations from day one of licensing.

• AML/CFT manual — comprehensive risk-based policy covering customer risk categorisation, enhanced due diligence triggers, record-keeping obligations, and suspicious transaction reporting procedures aligned with the AML/CFT Act 2020
• Compliance manual — internal procedures for ongoing regulatory obligations, including periodic FSA reporting, licence condition monitoring, and staff training schedules
• KYC procedures — documented client onboarding workflow covering identity verification, source-of-funds checks, PEP screening, and sanctions list monitoring
• Compliance Officer appointment — formal letter of appointment and evidence that the designated Compliance Officer holds a valid FSA compliance officer licence
• IT security policy — documentation of cybersecurity controls, data protection measures, business continuity and disaster-recovery plan, and trade-record retention procedures (minimum seven years)

Your effective tax rate depends on how you structure the entity and where income originates.

The 33% rate applies exclusively to banking, telecommunications, and insurance companies. Forex brokerages holding an SDL are classified as securities dealers, not banks, and therefore do not attract the 33% rate regardless of income size. SDL holders paying the 15%/25% standard rates may structure a parallel IBC to hold offshore income and keep the regulated SDL entity focused on Seychelles-sourced operational activities.

• No VAT on financial services — Seychelles does not apply VAT to financial services provided by SDL holders or IBCs; see the VAT Act 2010 for the exemption schedule
• Territorial principle — only income sourced within Seychelles is taxable under domestic law; revenue generated from foreign clients and booked outside Seychelles falls outside the tax base entirely
• Double taxation treaties — Seychelles has concluded DTAs with China, South Africa, the UAE, and several EU member states, reducing withholding tax exposure for cross-border dividend and interest flows
• IBC vs. domestic structuring — a dual-entity model (domestic SDL entity for regulated broker operations + IBC for holding offshore profits) is a common approach that separates the regulatory licence from the tax-efficient holding structure
• Annual filing — all Seychelles corporate taxpayers must file annual tax returns and pay assessed tax to the Seychelles Revenue Commission; SDL holders must also submit audited financial statements to the FSA by 31 January each year

All Securities Dealer License holders must submit audited financial statements to the FSA each year. The audit must be conducted by an independent auditor approved in Seychelles and submitted within the deadline set by the FSA. Late or absent filings are treated as a compliance breach and may trigger a formal inquiry or sanction.

Since January 2025, SDL licenses are perpetual—there is no fixed expiry date requiring a full renewal application. Instead, licensees pay an annual fee of USD 6,000 and file a compliance certificate by 31 January each year confirming that all regulatory conditions remain satisfied. This certificate replaces the former licence renewal process and is binding: a missing or materially false certificate is grounds for suspension.

Record-keeping obligations run in parallel. The FSA requires licensees to retain transaction records, client files, and compliance documentation for a minimum of seven years. These records must be available for inspection at any time and stored in a format accessible from the Seychelles office. Cloud storage is permitted, but the registered local office must be able to produce records on request without delay.

Your ongoing anti-money laundering duties fall under the Anti-Money Laundering and Countering the Financing of Terrorism Act 2020, which replaced the AML Act 2006 and aligns Seychelles with the FATF Recommendations. Compliance is overseen by both the FSA (as your prudential supervisor) and the Seychelles Financial Intelligence Unit (FIU), which handles suspicious transaction reports and AML enforcement.

• Maintain a compliance programme — you must operate a written AML/CFT programme covering risk assessment, internal controls, staff training, and an independent audit function, reviewed and updated at least annually
• Conduct ongoing customer due diligence (CDD) — initial KYC is not sufficient; you must apply enhanced due diligence to high-risk clients, monitor transaction patterns on a continuous basis, and refresh client profiles when risk indicators change
• Segregate client funds — client money must be held separately from the firm’s own operating funds at all times, with reconciliations performed daily and documented evidence available to the FSA on request
• Report to the FIU — suspicious transaction reports (STRs) must be filed promptly with the Seychelles FIU; failure to report a transaction you know or suspect involves proceeds of crime is a criminal offence under the AML/CFT Act 2020

The 2024 amendment to the Securities Act introduced a mandatory requirement for two full-time resident personnel, including at least one director who spends a minimum of 183 days per year in Seychelles. One of these personnel must serve as your designated Compliance Officer, responsible for the firm’s day-to-day AML/CFT programme. The Compliance Officer must hold a current SDL Representative licence issued by the FSA—an individual credential separate from the company licence.

With effect from 1 January 2026, all FSA-licensed entities—including Securities Dealer License holders—are required to comply with the FSA Code of Corporate Governance. The Code sets minimum standards for board composition, internal controls, conflicts of interest management, and shareholder rights. For forex brokerages structured as IBCs or domestic companies with a small directorship, the practical effect is that you must document your governance framework formally and maintain board minutes, committee records, and a conflicts register in Seychelles.

Alongside the Code, the FSA has introduced a Governance Disclosure Form that must be completed and submitted annually as part of your compliance filing. The form requires licensees to confirm adherence to each governance principle, identify any deviations, and explain the remedial steps taken. Deviations are permitted where an alternative arrangement achieves the same governance objective, but they must be disclosed—unreported deviations discovered by the FSA during examination will be treated as a compliance failure rather than an accepted variation.

The FSA can suspend or revoke your Securities Dealer License on several grounds:

• Capital adequacy failure — falling below the USD 100,000 minimum paid-up capital requirement at any point without obtaining prior FSA approval for a remediation plan
• Staffing non-compliance — failure to maintain the mandatory two full-time resident personnel, including the resident director and licensed Compliance Officer
• AML/CFT breaches — material failures in your compliance programme, including failure to file STRs, inadequate CDD procedures, or an adverse finding by the FIU following a compliance examination
• Fraud or misrepresentation — providing false or misleading information to the FSA in any application, annual filing, compliance certificate, or governance disclosure
• Non-payment of fees — failure to pay the annual licence fee of USD 6,000 or any other government fee by the prescribed deadline

Before revoking a licence, the FSA typically issues a formal warning or notice of breach, giving the licensee an opportunity to remedy the deficiency within a specified period. However, serious breaches—particularly fraud or sustained AML failures—can result in immediate suspension without prior notice. A revoked entity may re-apply for a new licence after a mandatory cooling-off period, but any prior revocation must be disclosed in the new application and will be scrutinised by the FSA during its fit-and-proper assessment.