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

A Seychelles Professional Fund is recognised as a mutual fund that has:

  • Shares that can only be held by professional investors; and
  • Initial minimum investment amount per each investor is at least US$100,000 or its equivalent in any other convertible currency.

A professional investor is considered as: –

  • A person whose ordinary business or employment involves, whether for his own account or the accounts of others the acquisition or disposal of property of the same kind or substantially the same kind as the property of the relevant fund;
  • A person who has a net worth, whether individual or jointly with his spouse exceeding US$ 1,000,000 or its equivalent in any other convertible currency; and has signed a declaration to such effect and whereby he also consents to being treated as a professional investor;
  • A bank licensed under the Financial Institutions Act, 2004 or under the corresponding law of a recognised jurisdiction;
  • A mutual fund licensed under this Act or under the corresponding law of a recognised jurisdiction;
  • An insurance company licensed in Seychelles or under the corresponding law of a recognised jurisdiction; or
  • A securities dealer or stock broker licensed in Seychelles or under the corresponding law of a recognised jurisdiction.

Legal Requirements

Requirements

Description

General

  • Corporate¬† vehicle permitted

IBC (International Business Company), CSL (Special License Company), Trust and PCC (Protected Cell Company)

  • 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

Yes

  • Local director required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes

  • 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