The Seychelles Security Dealer License (SDL) company in 2023
Since 2003, Healy Consultants Group PLC assists our Clients with the A to Z of securities business set up and licensing, including in the Seychelles. Our services include i) Seychelles company registration ii) obtaining a Security Dealer License (SDL) from the Seychelles Financial Services Authority (FSA) iii) assistance in fulfilling all licensing requirements vi) corporate bank account opening v) work and residency visa strategies.
What is the Seychelles Security Dealer License (SDL)?
- The SDL allows a company to trade in securities, either as the principal trader, agent or a broker on behalf of Clients. The licence also allows holders to provide Clients with advisory services on investment and securities.
- Licensing applications are processed within three to four months of submission of the final application pack to Seychelles FSA.
- Only Seychelles registered entities can apply for a license. Non-resident entities cannot apply. Consequently, most of our Clients also engage us to register a simple Seychelles LLC.
- After the license application is approved, your Seychelles entity will be able to legally deal in securities including i) working in the security market ii) security brokerage services ii) security transactions iv) investment consulting and v) portfolio management.
- This license restricts the Client to deal in security business only. If our Client wishes to deal in mutual funds, they must apply for a Mutual Fund License from Seychelles FSA.
Advantages of a Seychelles Security Dealer company
- Seychelles is a well regulated hub for the new companies wishing to establish a foothold in Africa.
- Reasonable one-off license fees of US$3,000 and a minimum share capital requirement of US$50,000, which is lower than other offshore jurisdictions such as BVI and Cayman Islands.
- Licensed Seychelles securities dealers enjoy a low corporate tax rate of only 1.5% on assessable gross income and no withholding tax on dividends or interest payable, provided that the substance activity requirement is met by the securities dealer.
A detailed list of advantages of registering a company in Seychelles is available on this page.
Disadvantages of a Seychelles Security Dealer company
- Seychelles is not a reputable international jurisdiction, and opening a bank account for a Seychelles company is difficult.
- Seychelles security dealer companies must appoint a qualified resident compliance officer and auditor in order to secure a license. This adds to the administrative and cost burden of the business.
- Seychelles security dealer companies must have a physical office in Seychelles suitable for keeping the registers, records and other statutory documents of the company.
- The core income generating activity of the security dealer must be undertaken in a physical office in Seychelles by i) employing an adequate number of suitably qualified employees to carry out the core income activities and ii) incurring an adequate amount of operating expenditure.
A detailed list of disadvantages of registering a company in Seychelles is available on this page.
How can Healy Consultants help your business to secure an SDL license?
- Prepare documents: Healy Consultants Group PLC will assist our Client in preparing i) license application forms ii) a detailed business plan iii) documents related to the mandatory appointment of at least two natural persons as directors and iv) questionnaire filled by each director, shareholder, UBO, compliance officer, and key applicants and iv) internal operation manual.
- Prepare an AML/CFT program: Healy Consultants Group PLC will prepare a detailed an Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) program including i) reviewing Seychelles AML/CFT regulations ii) liaising with our Client to understand their business model and specific KYC risks iii) supplying an MS Word AML/CFT program including a) ant-money Laundering Manual and b) compliance manual and iv) amending the documents as per our Client’s request.
- Recruit local employees: Healy Consultants Group PLC will i) source multiple quality candidates for the compliance officer position ii) subject to candidates to our recruitment process iii) aggressively and skillfully negotiate their consulting terms and conditions iv) minimize the annual fee request by asking them to share roles and v) supply our Client with a detailed comparison table, comparing and contrasting each candidate for our Client’s final interview.
- Secure physical office space: Healy Consultants Group PLC will assist our Client to find a physical office premises. Our team will provide a detailed comparison table including i) location ii) price per square feet iii) number of years of tenancy iv) fully or partially furnished and v) photos. Thereafter, Healy Consultants Group PLC will draft a lease agreement. Our Client is required to pay annual rent directly to the landlord.
- Secure pre-conditional approval: Once ready, Healy Consultants Group PLC will submit a high-quality license application to Seychelles FSA. The authorities will review the standard manuals and policies from the service providers to be used in a future application.
- Submit license application: After the above steps are completed, Healy Consultants Group PLC will contact and submit a quality license application to Seychelles FSA. All going well, the license will be approved within four months. During the review, our Client should, however, expect the regulator to revert multiple times for additional information and supporting documents.
- Capital injection: Our Client must inject a paid-up capital of at least US$50,000 to the corporate account.
- Secure approval from Seychelles FSA: Healy Consultants Group PLC will ensure that candidates sourced for our Client’s Seychelles SDL company meet the FSA’s Fit and Proper Person Guidelines.
Accounting and tax considerations
- Corporate tax in Seychelles is levied on an SDL company at 1.5% of worldwide income.
- Tax returns must be filed by 31 December in Seychelles, or a 20% per annum penalty will be imposed on the debt.
- However the taxpayer in Seychelles may request to have an alternative tax period applied to their business.
- The SDL company must have its accounts audited annually by an auditor according to International Financial Reporting Standards.
- The licensed security dealer must submit to the FSA its audited accounts within four months of the end of each financial year.
- The appointed Auditor must be a member of an accountancy body in compliance with section 2(1) of the Act or a member of any other accountancy body as approved by the auditor.
More information on the accounting and tax consideration of a Seychelles company is available on this page.
Legal and compliance consideration
- Prior approval is required from Seychelles FSA for companies engaging in i) banking ii) insurance iii) fund management and iv) FinTech.
- A Seychelles SDL company must employees at least one individual who is licensed as a representative, and at lease two natural persons as director.
- Depending on the nationality of our Client, the profile of his customers and the nature of his business model, there is a 50% probability Seychelles FSA will revert to require the business to appoint two qualified directors, at least one of whom is a Seychelles resident. All directors must also have work experience and education commensurate with the expected trading activities and volume of the business.
- A Seychelles company must submit the financial statement to an independent appointed auditor.
- The SDL company must comply with the insurance requirement under section 73 of FSA.
More information on the legal and compliance consideration of a Seychelles company is available on this page.
Multicurrency corporate bank account opening considerations
- There are very few banking options available in Seychelles, which is a challenge for foreign companies.
- For multicurrency bank accounts, we recommend Bank of Ceylon, Bank of Baroda, MCB Seychelles.
- Typical documents required to open multicurrency account for a Seychelles SDL company include i) copies of director’s passport ii) proof of address iii) company profile iv) Directors and UBO’s CV.
More information on the banking consideration of a Seychelles security dealer company is available on this page.
Our service packages
- For a total engagement fee of US$44,700, Healy Consultants Group PLC will project manage the A to Z of your Seychelles Security Dealer business set up. The total engagement period will be five months.
- Our standard services package includes i) company registration ii) Seychelles registered agent and registered address services iii) opening an international multicurrency corporate bank account iv) sourcing local compliance officer, representative and office space v) preparation of AML/CFT programs and other required documents and vi) securing a security dealer license with the FSA.
- Additionally, our Firm can offer multiple support services, including i) accounting and bookkeeping and ii) setting up trusts and foundations.
- Refer to the attached pdf file to view updated sales invoice with our latest notes:
View invoice PDF
Healy Consultants Group PLC will assist our Clients in setting up a Seychelles Security Licence Dealer business. Contact us for more information.