There are a huge number of brokers who are ready to work legally. A Forex license allows investors to expand their business and increase capital. Regardless of the political and economic situation, this sector is not subject to crises and stagnation. Such advantages attract entrepreneurs to engage in financial activities in the financial market.
To legally operate on the currency market, a permit is required. Such permission guarantees that the firm operates within established legislation and regulatory requirements. The absence of a brokerage license (if this activity exists) will be illegal and entail many obstacles and legal problems.
Many states provide permitting opportunities, but the requirements may vary. Additionally, the following aspects may be excellent:
- licensing periods (can vary from three weeks to one year);
- financial costs for obtaining a permit;
- taxation of activities is a somewhat critical point on which the amount of profit will directly depend;
- size of the authorized capital (in some states where this requirement is absent).
Therefore, before choosing to favor one country or another, it is recommended to study the legislative framework for this activity.
It all starts with firm registration
To successfully register, you must meet certain jurisdiction-specific conditions. Of course, they have their differences, but general requirements will have to be dealt with in any state. We list what is required for registration:
- rent an office and provide a lease agreement (in most jurisdictions, it is necessary to have a physical place on the territory of the state);
- determine the composition of shareholders and appoint managers;
- draw up a business project for the company’s activities;
- prepare the required documents;
- pay government fees.
If all conditions are met, the firm will be issued registration papers and can proceed with licensing.
What do you need to obtain a permit?
Upon completion of firm registration, it is necessary to prepare a package of papers to obtain a permit. We list the primary documents:
- documentary evidence of the clean reputation of shareholders and management (no criminal record or tax debts);
- documents on the financial education of management personnel and letters of recommendation;
- passports and place of registration of shareholders and directors (paid utility bills are possible);
- confirmation of the legal source of capital;
- detailed business plan with the financial program;
- firm registration papers.
If copies of papers are provided, they must be certified by a notary. It is essential in the organization’s program of activities to implement AML (combat illegal financial transfers) and KYC (know your customer) policies. These requirements are crucial and must be fulfilled.
After submitting a package of documents to the relevant authorities, you can open a bank account. When choosing a bank, you must approach it carefully and consider all the financial risks associated with its activities. In addition, the bank must meet the company’s requirements, be reliable, and have an appropriate reputation. An authorized person from the bank from the organization will request a package of papers (purpose of opening an account, source of capital, list of leading partners, movement of money, passports, registration, etc.).
When hiring staff (often local), it is essential to pay attention to education and the availability of relevant practical experience in the market. It is worth noting that regulatory authorities can check all personnel.
Next, an application is submitted to the regulator for permitting with the required package of papers. Each country may require additional data (employee data, accounting system, etc.).
Then, the process of reviewing documents begins, and its duration will depend on the selected state. Having received permission to operate in the Forex market, you can create a payment system: connecting to providers, creating profiles, and forming an accounting department.
A permit provides a lot of prospects and opportunities for expanding your business and increasing capital. Suppose you have any questions regarding registration and licensing. In that case, you can contact the professionals from Gofaizen-Sherle, where you will receive answers to all your questions from qualified and experienced specialists.