South Africa
Forex activities in South Africa are regulated and supervised by the Financial Services Supervisory Authority (FSCA). A Forex broker wishing to offer investment products and advice must be a Financial Service Provider (FSP) in South Africa. Forex brokers who intend to operate a Forex business on a discretionary basis must obtain the appropriate category FSP license: Category I or Category II.
Stages of licensing:
- Gathering all necessary documents related to your brokerage business, directors and shareholders for KYC verification.
- Preparing a business plan.
- Registration of key persons and representatives.
- Company registration in South Africa.
- Obtaining insurance.
- Opening a bank account with a local bank, depositing capital.
- Submission of documents to FSCA and support in the process of obtaining a license.
Requirements:
- Minimum of 1 director (individuals only).
- Minimum of 1 shareholder (legal entities or individuals).
- Minimum of 1 director resident in South Africa.
- Compliance Officer.
- Bank account with one of the banks in South Africa.
- Professional liability insurance required.
- Passing of regulatory examinations for key persons and representatives.
- Registered office.
Taxation:
Corporate income tax - 28%.
Capital Gains Tax - 18.6%.
Capital:
There is no minimum share capital requirement. Brokers must maintain sufficient capital to cover all their liabilities and operating expenses - R5 million (approximately $350,000).
Accounting requirements - financial statements must be filed annually.
Timeframe: from 3-4 months to 1 year.
State fee: approximately 850 USD for Category I.
State fee: approximately 1900 USD for Category II.
The price includes:
- FSCA application fee.
- Compliance Officer.
- Accountant/Auditor Service.