What is a Seychelles investment fund licence?

A Seychelles investment fund licence authorises a collective investment scheme - money pooled from investors and managed to a stated strategy - to operate under the Mutual Fund and Hedge Fund Act 2008 (as amended), regulated by the Financial Services Authority (FSA). In plain terms, it lets you run a mutual fund or hedge fund from Seychelles. The Act recognises three categories: the private fund, the professional fund and the public fund, each with its own investor rules and level of oversight. The fund itself is usually structured as a company or a limited partnership, and it must appoint the supporting roles a regulated fund needs - a fund administrator, an approved auditor, and at least two directors - before the FSA will licence it.

Why set up a fund in Seychelles?

• A real, recognised framework - funds are licensed under the Mutual Fund and Hedge Fund Act 2008 and supervised by the FSA, not run as an unregulated side arrangement.

• Three fund types - a private fund (up to 50 investors), a professional fund (professional investors, US$100,000 minimum each) or a public fund (open to the public), so the licence can fit the strategy.

• Lower running costs than tier-1 hubs - FSA application and annual fees run in the low thousands of dollars, well below comparable centres, though the wider operating budget is what really matters.

• Flexible vehicle - the fund can be a company (an IBC or a Special Licence Company) or a Seychelles limited partnership, depending on how you want investors to come in and how you want it taxed.

• Foreign administration permitted - the fund can be administered in Seychelles by a licensed administrator or, for some structures, from an approved foreign jurisdiction.

Who is it for?

Good fit:

• fund managers launching their first regulated vehicle

• boutique hedge fund and private equity teams

• family offices pooling capital for a defined group

• managers who want a credible mid-tier domicile without tier-1 cost

Not a fit: anyone who can't fund the administrator, audit and compliance roles a licensed fund requires, or who is simply pooling money from a handful of friends and doesn't need a regulated wrapper. If you only want to trade your own capital, you don't need a fund licence at all - talk to us before you commit, because this is one of our more expensive engagements.

What it actually costs - read this first

Most pages quote a single low number. We won't. Our engagement fee - incorporating the fund vehicle, and assembling, reviewing and submitting the FSA application - starts at US$15,000. That is a small fraction of the real cost of getting a fund live. You also need to budget for the FSA's own application and annual fees, a licensed fund administrator, a custodian or prime broker where the strategy requires one, an FSA-approved auditor, offering-document and legal drafting, at least two directors with a Seychelles presence, and ongoing compliance. A realistic all-in budget for a launched, compliant fund commonly runs from the mid-six figures into seven figures in the first year, depending on the fund type and strategy. If your budget is below that, the licence isn't the right step yet - and we'll tell you so.

What the FSA Requires

• A fund vehicle - usually a Seychelles company (IBC or CSL) or a Seychelles limited partnership

• At least two directors (or, for a partnership or unit trust, two general partners or trustees)

• A licensed fund administrator - in Seychelles, or an approved foreign administrator for eligible structures

• An FSA-approved auditor and annual audited accounts (Seychelles-licensed, or a foreign auditor from a recognised body)

• A custodian or prime broker to hold and safeguard fund assets where the strategy and structure call for one

• A registered office or principal place of business in Seychelles for the fund

• An offering document / prospectus - light for a private or professional fund, far more detailed for a public fund

• Fit-and-proper documents for each director, the promoter and the administrator: certified passports, CVs, references and source-of-funds evidence

• Confirmation of the investor rules for your category - the 50-investor cap (private), the US$100,000 minimum subscription (professional), or full public-offering disclosure (public)