Seychelles Mutual Fund Licenses

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Seychelles

Mutual Fund Licenses

Seychelles Mutual Fund & Hedge Fund Act,2008 offers an excellent and tax-effective structure for fund business. Mutual funds in Seychelles can be constituted as a company, trust or partnership. The most common structure for a mutual fund is the International Business Company or Protected Cell Company.

a) Significant Features of Seychelles Mutual Funds:

  • Seychelles licensed funds are exempted from taxes on total fund’s income. They are also exempt from withholding tax and stamp duty.
  • Seychelles mutual fund law also allows Umbrella funds to operate (i.e. a fund that invests in a range of different fund or sub-funds).
  • A broad range of fund vehicle options are available to choose from. E.g., IBC (International Business Company, CSL (Special License Company), Trust, and PCC (Protected Cell Company).
  • Mutual fund in Seychelles can be administered in Seychelles by a Seychelles Licensed fund administrator or outside of Seychelles by approved foreign administrator.
  • Accounts for mutual funds can be prepared overseas and audited by approved overseas auditors

b) Types of Seychelles Fund Licenses

Private Fund

Key Features:

1. No more than 50 investors
invitation to subscribe is to be made on a private basis
2. Aimed at the professional adviser looking to gather together a consortium of investors
3. Prohibits any invitation to the public to subscribe for shares
4. No minimum or maximum investment required

Public Fund

Key Features:
1. Designed to be mass marketed
2. Applicant needs to furnish a detailed offering document
3. The authority will need to be satisfied that all risks and plans of the fund are disclosed upfront to the investors
4. two natural persons as directors, in the case of a company, which is resident in or outside Seychelles

Professional Fund

Key Features:
1. Aimed for Professionals or high net worth investors with the initial minimum investment per investor being US $ 100,000
2. Recognized Banks, Mutual Funds, Insurance Companies, Securities dealers, etc. are considered professional investors

Exempt Foreign Fund

Key Features:
1. Already licensed as a mutual fund in a recognized jurisdiction
2. Need not hold Seychelles fund license
3. Must be administered by a Seychelles licensed fund administrator
4. Is either listed on a stock exchange or provides for a minimum investment of not less than US $ 100,000

Seychelles Mutual Fund Licenses