The financial industry is very prolific in Seychelles and those who want to open companies here have several options when it comes to the subsectors they can operate in. No matter the choice, it is mandatory to obtain the necessary licenses in accordance with the activities they want to complete through these companies.
The payment service provider (PSP) license is one of the most sought types of business permits for financial companies in Seychelles and obtaining it is not very complicated. Below, our company formation agents in Seychelles explain the requirements one needs to meet in order to obtain a PSP license. We also invite you to get in touch with us if you are interested in setting up an offshore company in Seychelles and in obtaining a PSP license.
Payment service providers in Seychelles
There are various types of services a financial company in Seychelles can offer. Among these, offering merchant and online payment solutions is one of the most sought as many businesses seek to integrate such services in their activities. In order to become a payment service provider in Seychelles, one must first register a company in this country. Then, the company must apply for a PSP license which enables it to process payments.
It is good to know that foreign investors who want to apply for PSP licenses in Seychelles have several choices when it comes to the types of structures they can use for registering the company. It should be noted that they cannot use a Seychelles offshore company for obtaining a PSP license.
Our company registration advisors in Seychelles can help you choose a business structure under which a PSP license can be obtained.
Company registration requirements for obtaining a Seychelles PSP license
As mentioned above, a local or foreign entrepreneur must first register a company with the Companies Register in Seychelles before applying for a PSP license. The payment service provider permit will be issued by the Central Bank of Seychelles based on several criteria that have to be met by the company. Among these:
- the company must be registered under the provisions of the Seychelles Companies Law;
- the company must be financially sound and have a share capital which enables it to offer such services;
- the company has specific governance rules related to the payment, clearing and settlement system;
- the company has appointed officers who have clear responsibilities in relation the decisions to be made;
- the company has specific procedures which helps it identify, manage, monitor and report the risks the business might be subject to;
- the company has strict internal risk control and audit mechanisms which provide for an accurate picture of its activities;
- the company uses a banking software which complies with the requirements imposed by the Central Bank.
Apart from these, the managers or directors of the institutions must be of good character and have clear criminal records.
With respect to the registration of a company seeking to obtain a PSP license, our Seychelles company formation specialists can help you.
Choosing an appropriate business form
Obtaining a PSP license in Seychelles implies registering a local business which is why the first aspect to consider is to choose the legal entity under which it will operate. From this point of view, an investor must decide if the company will provide its services in Seychelles or outside the country. There is also the possibility of operating in and out of the country.
The offshore company is by far preferred by most foreign investors and a Seychelles PSP license can be obtained through it, however, this is suitable only for those seeking to operate on other markets. On the other hand, there is the limited liability company which does not benefit from the same tax advantages as the offshore but allows access to clients in Seychelles.
There are no differences when opening an offshore or limited liability company when it comes to the procedure and the licensing requirements, including the minimum share capital, as in this sector the investment is dictated by the Seychelles Central Bank.
Another important aspect to handle will be the creation of the bank account which must be done with a local financial institution where the share capital must be deposited.
If you are interested in opening a company in order to apply for a PSP license, our Seychelles company formation specialists are at your service with details on how to choose an appropriate business form.
How to apply for a PSP license in Seychelles
In order to obtain the Seychelles PSP license, the company must submit an application with the Central Bank. The application consists in a form which must be completed by the representative of the company and which must contain specific information, such as:
- – the name of the company applying for the license and information about the directors;
- – complete information about the company (including on foreign companies applying for the license);
- – information about the share capital of company (authorized, issued and paid-up capital);
- – a list of all the shareholders, directors and auditors in the company;
- – information on why the applicant chose Seychelles as a place of business.
A questionnaire must also be answered and submitted upon applying for the Seychelles PSP license.
We are also at the disposal of foreign investors who want to set up offshore companies in Seychelles.
Requirements for directors of payment services providers
The appointment of one or more directors when setting up a business to obtain a PSP license is mandatory in Seychelles. Even if the law does not impose a specific number of directors, these must meet certain requirements, among which they must be of good character, have the necessary experience to manage and complete their daily activities, as well as meet the reporting requirements imposed by the law.
The Central Bank will make specific verifications in order to see if the selected persons meet the requirements of the law. It is also possible to appoint foreign director who must obtain Seychelles employment permits to be able to work here.
The directors must have the necessary qualifications and experience; however, they can also be member of various financial organizations that attest to their proficiency. Moreover, they must also meet the honesty requirements imposed by the Central Bank. All these will be verified before the license is issued.
Other requisites a Seychelles PSP license holder must meet
Apart from the registration of the company, deposit of the share capital and the appointment of directors who must respect stringent requirements, a PSP license holder must also ensure it has a legal address in Seychelles. Apart from these, considering its main activities are related to the processing of payments, it must also:
- – ensure it uses acknowledged and authorized technology and programs to provide its services;
- – it has a well-established mechanism to ensure the safety of the money it receives;
- – it has a good governance of the services it provides and clear regulations of the activities it undertakes.
These must be found in the documents filed with the Central Bank for authorization.
Other aspects to know is that the National Bank can amend the requirements imposed to a PSP license holder when issuing its authorization.
Seychelles is a well-known offshore financial destination, however, its regulations are very strict.
If you are interested in setting up a financial business in Seychelles, you can rely on our local consultants for specialized assistance, including on opening a bank account.
Fees for obtaining a PSP license in Seychelles
No matter the type of financial license a company wants to obtain, the Central Bank imposes specific fees. In the case of PSP licenses, the following need to be considered:
- – for a money remittance license the application fee is 20,000 SCR, while the annual fee is 40,000 SCR;
- – for other payment services the application fee is 25,000 SCR, while the annual fee is 50,000 SCR;
- – for an operator of a payment, clearing or settlement license the application fee is 50,000 SCR;
- – the annual fee of the operator of a payment, clearing or settlement license is 100,000 SCR.
The Central Bank answers all PSP license applications within 21 days from the submission of the documents.
How long does it take to obtain a Seychelles PSP license?
When deciding to set up a business with the purpose of applying for a PSP license, there are two components to consider: the first one is the incorporation of the selected legal entity which is different from the licensing one and which is easy and fast to complete, and the second one is the actual licensing procedure with the Central Bank.
The timeframe for obtaining a Seychelles PSP license is divided into two phases. The first one which takes 21 days and during which the application file is verified, and the applicant is given a notice on whether the file is complete, and the second one which implies the actual authorization which takes 60 days.
It is not difficult to obtain a PSP license under which one can provide various services in Seychelles, including operating on the FOREX market and if you are interested in setting up a financial company, you can rely on our local advisors.
We are at your service with tailored advice no matter if you want to operate through an offshore or onshore company in Seychelles.
For assistance in obtaining a PSP license in Seychelles, please contact our specialists.