Start a prop firm · by jurisdiction
Prop firm licences and company setup: 16 places compared.
For each place: the regulator and what it has said about evaluation firms, what a simulated-evaluation firm actually needs, the company to form, published fees and timelines, banking and the tax headline. Every row links to a sourced, dated page.
01The comparison
Every place, one table.
Africa
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Anjouan (Comoros) | Anjouan Offshore Finance Authority (AOFA); not recognised by the Banque Centrale des Comores | Has commented | Island licence not recognised by the Union; no licence is obviously needed for simulated evaluations; real dealing needs a recognised regulator | Anjouan International Business Company (IBC): Agent-quoted licence €1,500 to apply + €18,000 a year; IBC fees vary by agent | 4–8 weeks to licence (agent quotes) | 0% if no business with Anjouan residents (agent claim) |
| South Africa | FSCA (Financial Sector Conduct Authority) | No specific statement | No prop-specific licence; FAIS FSP licence for advice or intermediary services, ODP authorisation to issue CFDs. | Private company (Pty) Ltd registered with CIPC: R125 CIPC registration plus R50 name reservation | Name reserved online; registration via CIPC (timing not published) | 27% corporate income tax; compulsory VAT registration above R2.3 million turnover |
Asia-Pacific
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Australia | ASIC (Australian Securities and Investments Commission) | Has commented | No prop-specific licence; an AFS licence (AUD 7,537 online, retail high complexity) to deal in, advise on or issue CFDs. | Proprietary limited company (Pty Ltd): AUD 636 ASIC registration; AUD 342 annual review; ABN free | Days to register; AFSL decisions 150–240 days | 25% for base rate entities, 30% otherwise; GST registration from AUD 75,000 turnover |
| Labuan, Malaysia | Labuan FSA (Labuan Financial Services Authority) | No specific statement | No prop-specific licence; a money-broking licence (digital assets optional) bars proprietary trading and targets institutional clients. | Labuan company via a Labuan trust company (resident secretary): USD 1,000 annual company fee; licence USD 500 plus USD 5,000–10,000 a year | Licence about 4–6 months (adviser estimate) | 3% of audited net profits for trading activity; 24% without substance |
Caribbean and Atlantic
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| British Virgin Islands | BVI FSC (Financial Services Commission) | No specific statement | No prop-specific licence; an FSC investment business licence only if the firm deals in investments as agent or principal. | BVI business company (BVI Business Companies Act 2004) via a licensed registered agent: USD 550 government fee (up to 50,000 shares) plus registered agent fees | Days via an agent; directors filed within 15 days, members and owners within 30 | 0% corporate income tax; no capital gains or withholding tax |
| Saint Lucia | Financial Services Regulatory Authority (FSRA) | Has commented | No forex licence exists (FSRA, Jan 2026); no FSRA rule found for simulated evaluations; never claim FSRA registration | International Business Company (IBC) or Companies Act company: Companies Act XCD 750 (XCD 1,500 in a day); IBC USD 100–400 by quarter + USD 400 a year (agent-reported) | About 1 day expedited; about 4–7 business days via an agent | 30% on resident companies, territorial since 2019 |
| St Vincent and the Grenadines | Financial Services Authority (FSA) SVG | Has commented | No forex licence exists; forex companies must show licences from where they operate (2023 rule); no FSA rule found for simulated evaluations | Limited liability company (LLC) or business company (BC): USD 125 government registration; agent packages from USD 1,049 | Within 24 hours at the registry; 2–5 days via an agent | 28% for resident companies; non-residents taxed on SVG-source income only |
North America
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Canada | Provincial securities regulators (OSC, AMF, BCSC, ASC) via the CSA; CIRO for dealers | Has acted | No prop-specific licence; provincial dealer or adviser registration if you trade or advise on securities or derivatives for clients. | Federal (CBCA) or provincial corporation: CAD 200 federal online; CAD 300 in Ontario | 1 day federal online (4 hours express) | 15% federal general (9% small business) plus provincial, e.g. Ontario 11.5% |
| United States | CFTC and NFA (futures, forex); SEC and FINRA (securities) | Has acted | No licence written for simulated evaluations; NFA introducing broker registration if you solicit or accept real futures or forex orders. | LLC or C-corporation, formed in a state: USD 100 (Wyoming) to USD 300 (Texas) state filing fee; EIN free | Days to file; EIN issued immediately online when approved | 21% federal corporate tax; LLCs pass-through by default; state taxes vary |
Europe
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Cyprus | CySEC (Cyprus Securities and Exchange Commission) | Has commented | No prop-specific licence; a CySEC CIF licence (€75k–€750k capital) only if you execute client orders, hold client money or deal against clients. | Private company limited by shares (Ltd): €515 Registrar fees on the accelerated route; lawyer, office and audit extra | 7–10 working days to incorporate; 2–4 weeks to trade | 15% corporate income tax from 1 Jan 2026; 5% SDC on dividends for domiciled shareholders |
| United Kingdom | FCA (Financial Conduct Authority) | Has commented | No prop-specific FCA regime; authorisation needed to deal in CFDs or forex with real clients (Category 6 fee £11,260). | Private company limited by shares (Ltd): £100 online at Companies House; £50 yearly confirmation statement | Usually within 24 hours online | Corporation tax 19% to £50,000 profit, 25% above £250,000, marginal relief between |
Middle East
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Dubai (UAE) | CMA (formerly SCA), DFSA in the DIFC, VARA for virtual assets | No specific statement | A free zone trade licence with a defensible activity; a CMA, DFSA or FSRA licence only if the firm brokers real trades. | Free zone company (FZ-LLC / FZCO) or mainland LLC: From AED 12,500 (Meydan) to AED 35,000–50,000 first year (DMCC) | Licence in 1 day to 3 weeks; bank account 1–10 weeks | 9% corporate tax above AED 375,000; 0% for qualifying income of a Qualifying Free Zone Person |
Indian Ocean and Pacific
| Place | Regulator | Regulator stance | What an evaluation firm needs | Company and cost | Time | Tax headline |
|---|---|---|---|---|---|---|
| Mauritius | Financial Services Commission (FSC) Mauritius | No specific statement | No FSC rule found for simulated evaluations; an Investment Dealer licence for real dealing, brokerage or client money | Global Business Company (GBC) for a licensed dealer; Authorised Company for non-licensed offshore business: GBC Rs 3,200 + USD 600 GBL fee; Authorised Company USD 100; agent packages from USD 2,849 | GBC 6–12 weeks to certificate, 10–18 weeks with a bank account (agent estimate) | 15% corporate; 80% partial exemption on some foreign income; no Fair Share Contribution for GBCs |
| Mwali (Moheli), Comoros | MISA (Mwali International Services Authority); not recognised by the Comoros central bank | No specific statement | No prop-specific licence; MISA sells brokerage licences, but the Comoros central bank calls MISA a fictitious structure. | Mwali international business company (IBC) via an agent: Agents quote about €1,200 to apply and €2,400 a year; packages €15,000–25,000 | IBC in about 24 hours; licence 2–4 weeks to 3 months (agents) | Agents disagree (0% or 10%); no official source found |
| Seychelles | Financial Services Authority (FSA) Seychelles | No specific statement | No FSA rule found for simulated evaluations; a Securities Dealer licence if you deal in securities or CFDs for clients or hold client money | International Business Company (IBC); Companies Act company for a licensed dealer: USD 130 government fee + USD 140 a year; agent packages from USD 649 | IBC about 3–7 days via an agent; dealer licence 30 working days on paper, 18+ months reported | 15% to SCR 1m, 25% above; 1.5% on gross for licensed dealers with substance |
| Vanuatu | Vanuatu Financial Services Commission (VFSC) | No specific statement | No VFSC rule found for simulated evaluations; a Class A financial dealer’s licence (with presence rules) if you deal for clients | International company under the Companies Act 2012: USD 150 to incorporate + USD 300 a year (VFSC); about USD 1,000–2,500 first year with an agent | 2–5 business days to certificate; 5–10 weeks with a bank account (agent estimate) | No corporate income tax (except some real estate); VAT 15%; on EU Annex I |
03FAQ
Choosing where.
Which country is best to start a prop firm in?
None is best for everyone. Founders usually trade off banking access, the regulator’s stance on evaluation firms, tax, formation cost and where they and their customers live. Use the table to shortlist, read each place’s page, then confirm with a lawyer in that jurisdiction.
Do prop firms need a licence in these jurisdictions?
In most of them there is no licence written for simulated evaluation firms, and many firms operate without one. A licence becomes relevant when a firm brokers real trades, holds client money, gives investment advice or markets in a way the local regulator treats as a regulated activity. Each page says what that place’s regulator has published.
What does “has commented” or “has acted” mean in the table?
“Has commented” means the regulator has published a warning, guidance, consultation or public comment about prop or funded-trader firms. “Has acted” means enforcement, a ban or a licensing requirement aimed at them. “No specific statement” means we found nothing specific as of the date on the page.
Is an offshore company enough to sell to traders worldwide?
Where the company sits is only half of it: consumer, marketing and gambling or financial-promotion rules in the countries you sell into can still apply. That is why firms publish restricted-country lists and enforce them at checkout and KYC. Ask a lawyer about the markets you target.
Plan your launch
Tell us where you are setting up. We’ll map the route.
Pick your market, place and budget. We reply within one business day with the platform routes that fit, the launch order and a fixed quote for the website. PipValley builds the site whatever platform you choose: PropSuite, a white label, your own stack or a partner firm.
We are a web studio, not lawyers: for licensing and tax we’ll tell you what to ask a qualified adviser.