Forex License in the British Virgin Islands

Key requirements for obtaining a Forex license in BVI:

Registration and documentation:

• Registration of a company in the jurisdiction with a local office and bank account is required.
• A set of documents is required, including incorporation documents, a business plan, and proof of financial stability.

Financial conditions:

• Authorized capital is set by the FSC and ranges from $100,000 to $250,000.
• Financial statements and business projections are required.

Personnel:

• FSC approval is required for key management positions with no residency restrictions.
• Applicants and key employees must meet the criteria of competence and integrity.

Compliance with regulatory requirements:

• Development and implementation of policies to prevent money laundering and terrorist financing.
• Implementation of a risk management framework, including market, credit, and operational risks.
• Commitment to comply with local financial services legislation, including specific requirements for forex activities.

Technology infrastructure:

• A robust technology platform is required, including trading platforms and cybersecurity measures.

There are several key types of licenses in this jurisdiction, each of which defines certain powers and capabilities of its holders.

Category 1: Investment Operations

• Subcategory A: Agency Activities

Allows licensees to act as intermediaries between buyers and sellers, facilitating transactions without direct involvement. Agents offer advice, assist in locating counterparties, manage negotiations, and conclude transactions on behalf of clients.

• Subcategory B: Transactions as principal

Authorizes license holders to act as market makers, trading on their behalf and for their accounts. Unlike agency activities, holders of this license can be direct participants in transactions, acting as counterparties for their clients.

Category 2. Organization of investment transactions

License issuers are given the right to refer clients to first-category license holders, receiving commissions for successful transactions. The holders’ task is to attract clients and create favorable conditions for transactions.

Category 3. Investment Management License

Provides the right to professionally manage clients’ assets, including portfolio management, investment advice, and trading on behalf of clients.

Category 4: Investment Advice

Gives licensees the right to provide investment advisory services, including advice on trading strategies and investment decisions.

In most cases, the BVI FSC issues forex licenses for one year, and the term may vary according to the type of license. The methods of license renewal vary and are directly related to the license category. To successfully renew their forex license, holders must apply for renewal before its expiration date, proving their continued adherence to regulatory standards and fulfillment of financial obligations.

There are many company legal structures available for doing business, including in the British Virgin Islands, each offering unique advantages and suitable for different business purposes. Before embarking on the process of obtaining a forex license in the British Virgin Islands, prospective entrepreneurs need to carefully select the right legal structure for their company. Popular options include a Business Company (BVI BC), an International Business Company (IBC), a Limited Liability Company (LLC), and others.

Choosing the right legal structure is important for forex entrepreneurs, many of whom favor the BVI Business Company (BC) for its flexibility, ease of formation, and tax advantages. Such companies can engage in a variety of forex activities.

Steps to set up a company in the British Virgin Islands:

1. Reserve a unique company name that meets all the requirements.
2. Select a BVI registered agent.
3. Prepare and file all required documents, including a memorandum of association and articles of incorporation, through a registered agent.
4. Prepare the necessary documents. These may include:

– Memorandum and Articles of Association;

– Registered agent details;

– Physical office lease documents;

– Application form from the agent;

– Certificate of registration of the company name;

– Copies of proof of identity and residential address of key persons;

– Set of forms for detailed audit;

– Information on share structure (number, classes, denominations);

– Receipt for payment of state duty – 450-1200 USD;

– Signed consent forms from directors and shareholders;

5. Rent a local office and register an address.
6. Open a corporate account to manage finances and pay all fees.
7. If hiring foreign employees, obtain the necessary work permits from the Department of Labor.
8. Register with the Social Security Contribution Board.

Business Features:

• No requirement to hold meetings on the islands; online meetings are possible.
• No obligation to file financial statements, provided adequate records are kept.