Setting up a business in the financial sector in Seychelles can represent a good investment opportunity for many foreign enterprises. One of the ways in which such a business can be created is by opening an investment fund in Seychelles and among the options a mutual fund is one of the safest.
In order to set up such a fund in Seychelles, one must respect the provisions of the Mutual Fund and Hedge Fund Act which provide for the requirements to be met upon the registration of such funds.
Below, our company formation agents in Seychelles provide the main steps for opening a mutual fund in the insular state. You can rely on us for assistance in setting up a Seychelles mutual fund.
The Seychelles mutual fund – definition
Before starting the procedure of opening a mutual fund in Seychelles, one must first understand the operations such an investment fund can carry out. A mutual fund can collect investor funds with the purpose of making collective investments or spreading investment risks. Such a fund issues equity interests to investors interested in receiving a part of the profits or gains resulted from the investments made by the Seychelles mutual fund. This type of investment fund can also take the form of an umbrella fund.
Our local agents can offer more information on the ways in which a mutual fund can operate. Alternatively, foreign investors who want to set up offshore company in Seychelles can also benefit from our assistance.
A Seychelles offshore business can have many benefits, especially when it comes to taxation. The registration procedure can be completed in a matter of 1 week.
Just like in other countries, you will be required to open a corporate bank account and this procedure can be generally completed in a period of 4 weeks. Please know that our consultants can represent you in this process.
Foreign investors can also set up a Seychelles IBC, which is the most popular choice amongst foreign businessmen. This company type was introduced in the Companies Act in 1994 and since then, there was observed the registration of several hundreds IBCs each month.
At the moment, there are more than 200.000 IBC operating in Seychelles, the popularity being given by the favorable tax system.
Types of mutual funds in Seychelles
There are several types of investment funds which can be set up in Seychelles, some of them available for registration as mutual funds. Among these are:
- the private fund which must meet specific criteria and for which a private fund license is required;
- the professional fund which is dedicated to professional investors seeking to hold shares;
- the public fund which needs to have at least two natural persons as directors of the mutual fund;
- the foreign exempt fund which is an investment fund registered outside Seychelles which obtains the right to operate here.
Every type of fund is subject to specific licensing criteria. If you need more information on how to choose to set up a Seychelles mutual fund, our company registration advisors are at your disposal.
How to register a mutual fund in Seychelles
The registration of a Seychelles mutual fund must start with the incorporation of a company with the Trade Register. The business forms which can be employed for registration are limited partnerships, unit trusts, special license companies, anonymous and offshore companies. It is also useful to know that companies registered outside Seychelles but recognized here can also be used to set up a mutual fund.
Once the company is registered, it can apply for the investment fund license with the Financial Services Authority in Seychelles (FSA).
Each type of mutual fund is subject to specific licensing fees; however, it is important to note that the documents to be filed are the same.
If you want to open a company in Seychelles with the purpose of setting up an investment fund, our consultants can help you.
How to obtain a license for a mutual fund in Seychelles
The following documents must be submitted with FSA in order to obtain a license for a mutual fund in Seychelles:
- – a covering letter which must contain information about the fund’s administrator (the letter must be signed by the appointed administrator);
- – the application form issued by the FSA;
- – the receipt indicating the payment of the licensing fee;
- – certified copies of the registration documents of the company applying for the license;
- – personal questionnaires completed by the directors, partners or trustee (depending on the structure of the legal entity applying for the license);
- – information about the auditor of the fund along with the auditor’s consent;
- – certified copies of the auditor’s certificate of membership and certificate of Good Standing;
- – a 3-year financial forecast;
- – in case of foreign funds, the audited financial statements of the last 3 years.
Other requirements to be satisfied in order to be issued a license for a mutual fund are:
- – the payment of the 500 USD fee for the private fund license;
- – the payment of the 750 USD fee for the professional fund license;
- – the payment of the 1,000 USD fee for the public fund license;
- – the payment of a 1,500 USD fee for an exempt foreign fund license.
It is important to note that these fees can change, which is why we recommend you address our company registration representatives in Seychelles for updated information.
For complete support in setting up a mutual fund in Seychelles, please feel free to contact us.