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Brokerage company: how to open it in 2022

20. 04. 2022
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To open a brokerage company in 2022, you need to think carefully about your plan of action. You need to choose a jurisdiction, register a legal entity, open an account, and obtain a license.

Searching for a jurisdiction

Before you open a brokerage company, consider everything carefully. As a beginner, you can't count on a quick income. So if funding is weak, you need to think carefully about how to save money on opening a brokerage company.

For example, the only jurisdiction that does not require a brokerage license is St. Vincent and the Grenadines. Company registration takes one day, and the registered capital is $1. If the entrepreneur signs up as an LLC that will work outside the island, he/she may pay no taxes.

Other advantages to opening a brokerage company in St. Vincent:

  • The brokerage company can be located anywhere in the world;
  • Owners, shareholders can be kept off the public registry, which allows you to remain incognito;
  • Personnel do not have to prove their professionalism in the field;
  • Local Financial Services Authority (FSA) does not control the work of a brokerage company.

If there are no problems with money and you want to choose a more serious jurisdiction, it is profitable to register a company for brokerage activities in Cyprus. Companies registered here have no problems with banks and payments, and they themselves are trusted.

There are also other offshore jurisdictions. Registration of a brokerage company in Mauritius, the Dominican Republic is simple and cheap, but there may be problems with banks or payment systems.

Company registration

After having decided on the jurisdiction, it is necessary to choose a business structure. The best option for a brokerage company - LLC. If it is decided to register in Saint Vincent and the Grenadines, LLC is the only form which allows you to save on taxes.

Having determined the form of organization, it is necessary to submit the necessary documents to the regulator and pay the fees. When a positive decision is made, you should pick up the certificate of registration and register at the tax office.

Opening an account

To work in the Forex market you must open a special bank account. Usually this is done in the jurisdiction where the company is established. Additionally you need to set up accounting for expenses and sources of income, which is crucial for understanding the financial performance of the business. Also, accounting makes it easier to fill out tax returns in countries where they are required.

Get a license

If the company is incorporated in a jurisdiction other than St. Vincent and the Grenadines, you need a license. Each country has its own rules.

For example, the process of obtaining a broker's license in Cyprus cannot be called simple. Licenses have been issued since 2001 by the Cyprus Securities and Exchange Commission (CySEC). The regulator needs to be provided with:

  • a business project;
  • a financial forecast for 3 years;
  • a questionnaire completed for each shareholder or director;
  • risk management methods;
  • a clean bill of health for each employee.

In addition, directors, internal and external auditors, and a risk manager must be appointed. CySEC can review an application for 6 months and then it makes a decision. After receiving the license, the company can start the brokerage activity.

How to open a brokerage company

To register a brokerage company in 2022, call IT-OFFSHORE experts and we will help you.

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