The Mutual Fund and Hedge Fund Act, 2008 sets out the guidelines pertaining to the application and licensing of mutual funds and other collective investment entities.

Key Features

An Exempt Foreign Fund holds a current licence or other authorisation to operate as a mutual fund issued under the laws of a recognised jurisdiction. On condition that:

  • A Seychelles Fund Administrator’s Licence administers the fund.
  • Listed on a stock exchange or provides for a minimum investment of not less than USD 100,000.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Seychelles International Business Company, Partnership or Unit Trust

  • License application fee
  • Annual license fee
  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription
  • Minimum investors

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

No

  • Local director required

No

Service Providers Required

  • Custodian

Yes (from anywhere)

  • Fund manager/Investment manager

Yes (from anywhere)

  • Fund administrator

Yes (from Seychelles)

  • Auditors

Yes

 Tax Treatment

  • The Business Tax Act does not apply to licensed and exempt funds unless the licensed fund is a company under the Companies (Special Licence) Act, 2003, in which case a tax rate of 1.5% will be applicable on the income of the fund.
  • No withholding tax is payable on dividends and/or interest payable.

Duration to Set Up

Around 3 months

Distinctive Benefits of Licence

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment
  • A mutual fund in Seychelles can be administered by a Seychelles Licensed fund administrator or an approved foreign administrator domiciled outside Seychelles.

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers