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

Any one of the following activities undertaken in relation to a mutual fund amounts to mutual fund administration:

  1. managing including controlling all or substantially all of the assets of the mutual fund or
  2. administering a mutual fund or
  3. providing a principal office to a mutual fund within Seychelles or
  4. providing an operator (director, trustee or general partner) to a mutual fund.

A mutual fund administrator’s licenced company must be incorporated under the Companies Ordinance, 1972, or a company which is not incorporated in Seychelles (in which case, the company is required to have an agent for service in Seychelles).

There are various types of Seychelles Fund Administrator Licences:

  • Seychelles Fund Administrator’s Licence – allows its holder to administer an unlimited number of mutual funds.
  • Restricted Seychelles Fund Administrator’s Licence – permits its holder to administer only the mutual funds specified in its licence.
  • Approved Foreign Administrator – An applicant incorporated overseas and holding a current licence or other authorisation from a regulatory body in a recognised jurisdiction may be exempted from the licensing requirement. This allows such persons to administer outside Seychelles, a Seychelles’ licensed fund without having to be licensed by the Authority.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Seychelles Domestic Company

  • License application fee

Unrestricted License

Restricted License

  • Annual license fee

Unrestricted License

Restricted License

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid up capital

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

No

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholder allowed

Yes

  • Local shareholder required

No

Service Providers Required

  • Company secretary

Yes

  • Auditor

Yes

  • Legal adviser

Yes

 Tax Treatment

Business tax payable by a fund administrator is the aggregate of the following amounts paid by it or another party, in respect of a fund administered by the licensee:

  • 10% of fees in respect of new mutual fund licences;
  • 5% of fees in respect of annual renewal of mutual fund licences; and
  • 5% of all other fees under the Act.

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

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