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 Public Fund is recognised as a mutual fund and is neither a Private nor a Professional Fund. Every licensed public fund must have at least:

  • Two natural persons as directors, in the case of a company, which is resident in or outside Seychelles;
  • Two natural persons as general partners or two natural persons as directors of one or more corporate general partners, in the case of a partnership, which is resident in or outside Seychelles;
  • Two natural persons as trustees or two natural persons as directors of corporate trustees, in the case of a unit trust, which is resident in or outside Seychelles.

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

None

  • 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