SOUTH AFRICA (Cat.1. - 1.13 or other) - FSP AUTHORIZATION
General information
A South African Financial Services Provider license is an outstanding entity for a broker wanting to enter the African region. The regulator is also considered the golden standard for legitimate licensing within the African context.
A South African Financial Services Provider (“FSP”) License allows you to:
1. Market financial services in South Africa
2. Accept client deposits and route them to Market Makers
3. Charge a commission for these services
4. The license can be upgraded to a Market Maker – please free to contact us if you are interested.
In order to carry out the services of a STP Broker in South Africa
§ Local or Foreign company (we suggest using a local company since due diligence requirements on foreign companies are higher, local incorporation is affordable and quick)
§ Local Bank account
§ Financial Services Provider License
§ Prior experience in Derivatives
§ Two directors with necessary experience in the industry (we strongly suggest not to use any nominees)
§ Key Individual – a local professional with specific qualifications - we can assist with introductions
Prior experience
Please note that the applicants shall provide information about the following:
§ Experience – shareholders and directors must fit such position (i.e. the individual must have background in dealing and managing client money, investment management, securities, financial background etc.)
§ Clear Criminal Record
Reporting
The Company will have to submit audited statements. The same can only be executed by a South African licensed audit company. The deadline for yearly submission is within 4 months from financial year end.
There are various companies in South Africa that can provide such services. The price will depend on the service provider. BIG 4 companies will charge a higher fee than smaller local companies.
Meeting
There are no actual meeting requirements for a South African license application.
Benefits
Clients usually ask about the specific perks of such license. We perceive the ability to connect to South African banks and being regulated by a prestigious financial regulator to be one of the biggest benefits of this regulatory framework.
Application for FSP License
Incorporation + license(Excluding time for opening a bank account) |
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Timeframe | 6 - 9 months |
Minimum paid up capital | Not Required – Only need to prove assets > liabilities |
Company structure: | |
Shareholders | At least 1 (no nationality or residency restrictions) |
Directors | At least 2 (can be only natural persons, no nationality or residency restrictions) |
Office | Can be a nominee office / correspondent address |
Beneficial owner’s details | Not part of public record |
Shareholder’s details | Not part of public record |
Director’s details | Part of public record |
Auditor Appointment | Required pre-application submission |
Other Requirements: |
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Secretary/ Resident agent | Required if you use a Foreign Company |
Registered office | Required – can be nominee/auditor/attorney |
Staff | Not Required |
Opening Bank account |
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| Relatively simple. + 3-4 weeks |
|
|
Taxation |
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| 28% of profits annually capital gains tax – YES VAT Registration – Mandatory if turnover > 1 mil ZAR annually |
Procedure and requirements (for license and company)
Application forms
1. Application forms (we will complete these for you)
Application KYC document requirement
We will need the following documents from you:
1. Certified passport/ID copies of all directors (2 sets)
2. Certified address proof of all directors (2 sets). Can be utility bills or bank statements.
3. Non-Criminal Records of Shareholders and Directors
4. Detailed CV for directors and shareholders
5. All educational qualification certificate for directors and shareholders
6. Auditor appointment letter
The process:
1. All said documents need to be sent by scan for initial verification.
2. Once the verification is done, the originals need to be couriered to South Africa.
3. Payment should be made according to the agreement.
4. Upon request of the South African regulator (if any), the client should advise on the information required or produce additional documents.
5. Application will be processed with the FSCA for licensing.
6. Application will be approved, with or without conditions.
corporate entity AS a shareholder
Required documents:
§ Passport of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
§ Utility Bill as proof of residency of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
§ Latest CV detailing Educational background and Working Experiences of an Authorized Person for the body Corporate
§ M&A to include the clause on the establishment of the South African Company (if applicable) or allowing to do so
§ Registries of Company listing down the name of Director, Shareholder, Auditor, Company Secretary (to be certified true copy by the Company Secretary)
§ Certificate of Incorporation (to be certified true copy by the Company Secretary)
§ Certificate of Registered Address of the Company (to be certified true copy by the Company Secretary)
§ Resolution by the Company to appoint the Authorised Person to act on behalf of the Company (to be certified true copy by the Company Secretary)
§ Group corporate shareholding structure including the applicant
§ Certified true copy of certificate of license granted by relevant authority(s) in its home country - (if applicable)
· Certified true copy of board resolution or minutes of general meeting which approved the setting up of the applicant
