Seychelles Mutual Funds
Seychelles Mutual Funds and Hedge Fund Act, 2008 offers an efficient and well regulated fund regime that ensures the right balance between investor protection, cost and ease of doing business.
Type of Funds:
- Public Fund
- Professional Fund
- Private Fund
- Exempt Foreign Fund
A Public Mutual Fund is defined as any mutual fund which is not a private fund or a professional fund (namely funds offered to the general public). Significant additional information over and above that required in the case of a private or professional fund will need to be included in the offering documents for a public fund. This is designed to ensure the maximum protection possible is afforded to investors who do not have significant financial experience.
A professional fund is defined under the Act as a mutual fund, the equity interests of which can only be acquired by professional investors and in respect of which the initial minimum investment per investor is not less than US$100,000. A professional investor is a person who, in the ordinary course of his business or employment, deals with the same kind, or substantially the same kind of property as that dealt with by the fund or who has a net worth exceeding US$1 million. An investor must sign a declaration confirming that he meets these criteria and consenting to be treated as a professional investor for the purposes of the Act. Given the high level of experience of a professional investor, the level of detail required to be included in a professional fund’s offering document will be significantly less than that required in the case of a private or public fund.
Funds which will have no more than 50 investors and which do not permit an invitation to the public to subscribe, are another important category and referred to as ‘Private Funds’ making Seychelles ideal for Private Unit Trusts and other investment vehicles. A list of recognized jurisdictions is also included in the Mutual Funds and Hedge Fund Act.
Exempt Foreign Fund
To increase flexibility within the licensing regime and to attract inward investment from established fund managers in other jurisdictions, a fast track regime has been established in the Seychelles. This allows foreign funds which are already licensed in certain recognized jurisdictions to be granted an exemption from the Seychelles licensing requirements provided that they are managed by a Seychelles licensed fund administrator and (i) are listed on a stock exchange in a recognized jurisdiction or (ii) the minimum investment by each investor is more than US$100,000. These Exempt Foreign Funds appeal to already established fund managers looking for a safe but efficient jurisdiction from which to operate their fund. A list of recognized jurisdiction is included in the Act.
Mutual and Hedge Fund Vehicles:
- Seychelles International Business Company [IBC] tax exempt.
- Seychelles Special License Company [CSL] access to DTA treaties and is taxed at 1.5% on CSL income.
- Seychelles International Trusts which is tax exempt
- The applicant and administrator is fit and proper
- Administrator of the fund have relevant and sufficient experience.
- Being in compliance with the Act.
- Properly licensed custodian
- Fund administrator and custodian are separate and independent
- Constitutional documents are in accordance with the Act
Seychelles offers investors from Europe to Asia a favorable timezone.
Tax exemption, which is fully exempt if using an IBC as the vehicle or minimal taxation of 1.5% if using a CSL.
Audits can be conducted by approved overseas auditors.
Lastly Funds can be established and administered at a far less cost than other jurisdictions.
Process to setup
- Consultation if required
- Complete our online form
- Name approval within 24hrs
- Draft of constitutional documentation
- Lodging of license application usually takes 2 weeks.