Seychelles Securities Dealer License vs Mauritius Investment Dealer License (2025 Review)

Seychelles Securities Dealer License vs Mauritius Investment Dealer License (2025 Review)

Choosing the right jurisdiction for your forex, securities, or CFD brokerage is a key strategic decision. Two of the most sought-after offshore regulatory frameworks are Seychelles and Mauritius. This article compares the Seychelles Securities Dealer License under the Securities Act, 2007, and the Mauritius Investment Dealer License under the Securities Act 2005, highlighting their key requirements, pros, cons, and regulatory updates as of 2025.

Seychelles Securities Dealer License Overview

Regulatory Authority

Seychelles Financial Services Authority (FSA)
Regulated under the Securities Act, 2007

Permitted Activities

Advisory on investments in securities
Portfolio management
Trading in securities (own account or as agent)
Issuance of reports and analysis
Instruments: Shares, bonds, futures, options, CFDs, etc

Key 2025 Regulatory Changes

Requirement	Before 2025	After 2025
Annual License Fee	USD 3,000	USD 6,000
Paid-up Capital	USD 50,000	USD 100,000
Resident Employee	Optional	Mandatory (1+ resident e.g. compliance officer)
Structural Change Fees	Not applicable	Introduced (for company name, directors, etc.)
Domain/Trade Name Fees	Not required	Newly applicable
Outsourcing	Allowed (non-core only)	Core functions restricted to affiliates only
Risk Warnings in Ads	Not mandated	Now required
Jurisdictional Notification	Not required	Mandatory disclosure of client jurisdictions
Transitional Period	Not applicable	18-month compliance window (existing licensees)

Capital & Banking

Capital: USD 100,000 (maintained in a regulated bank)
Client Money Deposits: Allowed
Bank Accounts: Only a few banks (e.g., MCB Seychelles, ABSA Seychelles) onboard such entities; client fund accounts are limited

Confidentiality

High level of UBO and board member confidentiality

AML/KYC Flexibility

Delayed KYC allowed under certain conditions (non-face-to-face, securities transactions) with risk-based limits and internal controls.

Seychelles License: Key Advantages

Delayed KYC procedure in certain cases.
Diverse Instruments (shares, CFDs, options, etc.)
Attractive Tax Environment
Privacy of Owners and Directors

Considerations / Limitations
Banking Limitations: Limited bank options for client accounts
Frequent FSA Approvals: Even for minor business plan changes or new instruments
Mandatory Legal Opinion: Required to onboard clients from certain jurisdictions
Tighter Outsourcing Rules: Core activities must remain in-house or within group
Increased Fees & Capital: Effective immediately for new applicants
Slower License Turnaround (typically 8–12 months)

Mauritius Investment Dealer License Overview

Regulatory Authority

Financial Services Commission (FSC) Mauritius

License Types & Capital Requirements
License Type	Activities	Capital
Full-Service Dealer (with Underwriting)	Securities dealing, underwriting, portfolio mgmt, advisory, PAMM/MAM	USD 333,333
Full-Service Dealer (Excluding Underwriting)	Dealing, portfolio mgmt, advisory	USD 33,333
Broker License	Execution, investment advice, portfolio mgmt	USD 20,000
Discount Broker License	Execution-only (no advice)	USD 18,000

Most forex/CFD brokers opt for the Full-Service Dealer License (Excluding Underwriting).

Personnel Requirements

2 Dealing Desk Officers: Head Dealer & Assistant (4–5 years of experience)
2 Mauritian Resident Directors (non-executive)
Local Compliance, AML, and Deputy AML Officers
Registered Office & CIGA presence required

Documentation & Setup

Full business plan, compliance manual, AML/CFT policy
Draft docs accepted for startups
Office and personnel setup within 6–12 months of licensing
Bank account opening: 3–9 weeks post-license

Banking Ecosystem

Robust banking (MCB, SBM, AfrAsia, Bank One)
Corporate and client fund accounts in USD, EUR, etc.
Higher acceptance rate for brokerage clients

Taxation (2025 Update)

Corporate Tax: 3.4% on net profits (expected to revert to 3.0%)
VAT and Withholding Taxes: Can be optimized under the GBC structure

Mauritius License: Key Advantages

Wide Range of License Options
Established Financial Services Ecosystem
Lower Entry Capital (from USD 18,000, average - 33,000 USD)
Professional Banking Support
Confidential Ownership Structures
Attractive Tax Rate (3%)
No Default Leverage Restrictions
Quick License Turnaround (typically 4-6 months)

Considerations / Limitations

⚠️ Local Substance Required: Real office, 2 directors, and staff within 6–12 months - though most of it can be outsourced

⚠️ Stricter KYC requirements for end customers (traders) : Proof of Address remain as a required document

Seychelles vs Mauritius: Key Differences (2025)
Feature	Seychelles	Mauritius
Minimum Capital	USD 100,000	USD 18,000–333,333
Client Fund Banking	Limited bank options (not guaranteed)	Strong banking (multiple options)
Confidentiality	High	High
Regulatory Flexibility	Requires frequent FSA approvals	More streamlined
KYC Onboarding	Risk-based delayed KYC allowed	KYC before onboarding
License Turnaround	Slower (9–12 months)	Faster (4–6 months)
Tax Rate	3%	3% (2025)
Substance Requirements	Light (1 resident staff + local compliance officer + complaints officer)	Stricter (2 directors + local office + AML officer, Deputy AML officer, Compliance officer (though usually outsourced))
Allowed Instruments	Broad	Broad (with some restrictions by license type)
Ongoing Costs	Moderate	Moderate

Final Thoughts: Which Is Best for Your Brokerage?

Choose Seychelles if you require a more flexible KYC procedure for onboarding customers and can operate with limited banking options.
Choose Mauritius if you prefer a more stable, long-term regulatory setup with stronger banking infrastructure and slightly faster licensing turnaround times.

Both jurisdictions offer excellent opportunities for launching or scaling a forex, securities, or CFD brokerage — your choice should depend on your operational goals, preferred setup time, and budget.