Set up a Forex and Brokerage Company in the UK

To set up a forex and brokerage company in the UK, investors must register a legal entity with the Companies House and then proceed to obtain the mandatory licenses for this industry. Our lawyer in London can provide complete assistance during the company registration process, as well as with the subsequent application to obtain a forex license in the UK.  

Company registration conditions setting up a forex and brokerage company in the UK

To open a company in the UK, businesspeople follow the same general steps, regardless of the industry in which the business will ultimately operate. In addition to this, to set up a forex company in the UK, the founder(s) will go through a licensing process. Regulatory compliance is mandatory, as this is a highly regulated business sector.

To open a forex and brokerage company in the UK, founders start by selecting a suitable business form. Below, our lawyer in England lists the essential steps:

• Choose the company type: examples include the company limited by shares and that limited by guarantee, with the former being the most commonly used type;
• Select the directors: appointing a company director is mandatory. At the same time, you may also choose to appoint a company secretary (though this is not obligatory);
• Provide information on the shareholders: at least one shareholder is required (he/ she may also be a director in the company). Additionally, you will also offer information on the guarantors and the people with significant control over the company;
• Choose a company name: this must comply with the local requirements for company names (some words cannot be used);
• Prepare the documents: these are the Articles of Association, the Memorandum, and other statements;
• Register the business: when you open a forex brokerage company in the UK, you will register it with the Companies House.

Licensing for investors who open a forex and brokerage company in the UK

A forex brokerage license in the UK is applied for with the Financial Conduct Authority (FCA). Some of the conditions that are relevant for obtaining the forex license are briefly summarized below by our lawyer in the UK:

• depositing a minimum start-up capital for the business;
• a legal local office;
• appointing a director who meets the FCA requirements;
• complying with the anti-money laundering conditions;
• providing specific documents that serve to fully disclose information on the company (such as bank letters and complete data on the co-founders and key managers within the company).

Including all the required documents in the license application is a firm step in ensuring that the submission is processed as fast as possible. Incomplete or missing information and/ or forms cause delays. Failure to provide sufficient information about the business model (or submitting a business model that is too generic) can also mean that the company will not align with the requirements.

If you want to set up a forex company in the UK, our team can detail these requirements and the process of obtaining the license.

Finally, meeting the FCA’s standards at all times is essential for a company that will offer forex and brokerage services in the UK.

Below, we remind investors who want to obtain a forex license in the UK that the processing times differ:

• 6 months for a company that falls under the scope of the Financial Services and Markets Act (FSMA);
• 3 months for an e-money or payments firm.

Therefore, those who open a forex brokerage company in the UK should expect the longer processing time of the two stated above.

When a company is successfully licensed, it is added to the Financial Services Register.

Contact us for more information on obtaining a forex brokerage license in the UK and the other steps that are relevant for investors in this business sector.