To legally operate in the market, you must obtain permission. A Forex license allows you to significantly expand your business even during unstable political and economic conditions. This factor encourages business people to invest their capital in this activity area.
General data
A permitted broker will be systematically checked by regulatory authorities, including for compliance with AML and KYC policies. It is worth noting that traders will only choose licensed trading platforms. No one wants to deal with a broker who does not have a permit and, therefore, does not operate within the framework of the law. A permit guarantees the quality and safety of transactions concluded on the market.
An important point is the choice of country to open a business. It is better to review several states and carefully study the requirements for companies. You may be unable to fulfill some conditions – the amount of authorized capital, firm registration, and permission costs will be too large. Also, it is only possible to conduct remote activities in some places; people will need an actual office on the territory of a given state. It is better to find out about all this in advance.
What is required to register a business
If all the regulatory body’s requirements are met, then the registration process will be positive. Depending on the state you choose for registration, some conditions may differ. But we will indicate requirements that will be common regardless of the selected area :
- have a physical office (purchase or lease), usually within state borders, and confirm this with an appropriate agreement: purchase/sale or lease;
- develop a business plan for the firm;
- decide on shareholders and appoint management;
- provide the required package of papers;
- register the authorized capital and pay the state fee.
When registering an organization, people must be careful, establish requirements, and draw up all submitted documents; otherwise, registration will be denied.
How to get a permit?
Once the firm has successfully registered, the permitting process can begin. For this, you will also need to prepare papers. For management, the following will be required:
- Identity cards;
- Registration (paid utility bills);
- Diplomas of financial education;
- Certificates of no criminal record;
- Provide a certificate to the tax office confirming the absence of debts.
It is also necessary to provide a detailed business project, including a detailed description of financial activities and compliance with AML and KYC policies, confirm the legality of the source of capital, and provide corporate papers for the firm. If copies of papers are provided, they must be certified by a notary. You will also need to select a staff of employees with financial education and practical experience. After the team is formed, it will be checked by regulatory authorities.
Then, you need to open a corporate bank account. Considering all financial risks, it is recommended to consider several bank options to suit your requirements best. The bank must have a high and reliable rating (AML compliance). An authorized person from the bank must provide a certificate of the source of capital, a list of partners, the movement of funds, the purpose of opening an account, identification papers, registration, and much more.
Once all papers have been collected, a licensing application is submitted to local regulatory authorities. The regulator may request additional data, such as accounting and auditing. The time frame for consideration of an application and permit issuance will differ in each state. When the permit is issued, it is necessary to create a system for conducting financial transactions: purchase the appropriate equipment and software, connect to providers, create accounting, etc.
Where to find a reliable partner?
Each jurisdiction sets its own unique rules for regulating the financial market, so understanding all the intricacies can be extremely difficult, especially if you have not previously dealt with this issue. In this case, qualified Gofaizen-Sherle lawyers come to the rescue. They have extensive experience in this industry and have helped a huge number of companies quickly and easily prepare the necessary documents. They will study the activities of your company, tell you which jurisdiction suits you best and what you need to pay attention to so that your company meets all the requirements.
Conclusion
Permitting brokerage activities in the market provides an excellent opportunity to increase your capital. Having a permit will attract clients who prefer to deal only with platforms whose activities are carried out within the framework of the law and in compliance with the AML/KYC policy.