Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the FSCA decision, including banking and payment rails.
Get an investment license in South Africa.
Africa's asset-management capital: the FSCA financial services provider licence under FAIS - Category II for discretionary portfolio mandates, Category IIA for hedge funds, key individuals examined against Board Notice 194's fit-and-proper chapters, in the continent's deepest pool of institutional and pension capital.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
South Africa in brief
The licence over Africa's deepest pool.
South Africa licenses investment managers as financial services providers under FAIS, with the FSCA as conduct authority. The category defines the business: Category I covers advice and intermediary services; Category II is the discretionary FSP - portfolio management on mandate, and Category IIA the hedge fund FSP. The examination runs on Board Notice 194 of 2017's fit-and-proper chapters: honesty and integrity, competence with prescribed regulatory examinations, operational ability, and financial soundness with liquid-asset buffers scaled in weeks of annual expenditure by category - sized precisely at filing. Key individuals - the people who actually direct the licensed business - are assessed personally, with experience requirements matched to each category.
The commercial case is unmatched on the continent: South Africa runs Africa's deepest asset-management industry - pension and institutional capital measured in trillions of rand, the JSE's listed universe, and a professional services bench of global standard at rand cost. The licence reads as the continental credential: managers building African mandates, distribution into SADC wealth and offshore-onshore structures anchor them in Johannesburg or Cape Town. Corporate tax runs at 27%, dividends carry a 20% treaty-reducible withholding, VAT at 15% exempts financial services, and exchange control is engineering, not folklore - structured deliberately at design. We build the file - categories, key individuals, soundness and mandates - end to end.
Africa's manager licence: FSCA FSP under FAIS - Category II discretionary mandates, IIA hedge funds, Category I advice; BN 194 fit-and-proper across honesty, competence, operational ability and soundness with liquid buffers by weeks of expenditure.
27% tax, 20% treaty-reducible dividends, VAT-exempt core - over the continent's deepest institutional pool. Built end to end from Johannesburg.
The category builds
The Category II discretionary FSP - or the hedge fund IIA.
FAIS categories by business: advice at Category I, discretionary mandates at Category II, hedge funds at Category IIA. The model sets the category. We fix it first.
The Cat II discretionary FSP - or the hedge fund IIA.
01 - CATEGORY II · DISCRETIONARY FSP
The portfolio manager
Discretionary mandates over client portfolios. The manager's category, with key individuals experienced in discretionary business, mandate documentation per the rules and financial soundness sized to the category.
Discretionary mandates over client portfolios. The manager's category, with key individuals experienced in discretionary business, mandate documentation per the rules and financial soundness sized to the category.
- ✓Discretionary portfolio mandates
- ✓Key individuals - discretionary experience
- ✓Mandate rules and client agreements
- ✓Liquid-asset soundness buffers
- ✓Regulatory exams (RE) passed
- ✓Category I added for advice arms
02 - CATEGORY IIA · HEDGE FUND FSP
The hedge fund build
Managing hedge fund portfolios under the stricter IIA overlay. The category for leverage and short exposure, stacked on Category II with deeper experience and soundness requirements.
Hedge fund portfolios under the IIA overlay. Deeper KI experience and soundness on top of Category II, institutional distribution ready.
- ✓Hedge fund portfolio management
- ✓Stacked on Category II
- ✓Deeper key-individual experience
- ✓Enhanced soundness buffers
- ✓Regulated fund structures alongside
- ✓Institutional distribution ready
Categories and fit-and-proper per FAIS and Board Notice 194 of 2017 as of 2026. Soundness buffers and fees are sized per category at filing.
Why South Africa
Six reasons managers choose Johannesburg.
✓
Africa's deepest pool
Pension and institutional capital in the trillions of rand. The only African market with allocators at global scale.Trillions of rand.
✓
The continental credential
The FSCA licence is the reference standard across the continent. African mandates are won from inside it.Continental reference.
✓
A real profession
Global-standard auditors, administrators and counsel at rand cost. Institutional substance without institutional invoices.Global standard cheap.
✓
Categories that fit
Advice, discretionary and hedge fund categories stack precisely. The licence matches the model, not the other way round.Licence fits model.
✓
The JSE universe
Africa's deepest exchange with derivatives and listed property. A full local product set to manage.Full product set.
✓
Offshore pairing
Johannesburg mandates pair naturally with offshore vehicles. The two-centre structure we build routinely.Two-centre standard.
How it compares
How South Africa differs from other routes.
The comparison that matters: continental depth and rand-cost substance. Inside an exchange-control system that rewards design.
South Africa vs other jurisdictions
| Feature |  South Africa | Other jurisdictions |
|---|---|---|
| Regime | FAIS categories - FSCA | Activity licences |
| Soundness | Liquid buffers by category | Fixed capital floors |
| Market | Africa's institutional pool | Saturated OECD pools |
| Currency | Rand - managed deliberately | Hard-currency native |
Regime
South AfricaFAIS categories - FSCA
Other jurisdictionsActivity licences
Soundness
South AfricaLiquid buffers by category
Other jurisdictionsFixed capital floors
Market
South AfricaAfrica's institutional pool
Other jurisdictionsSaturated OECD pools
Currency
South AfricaRand - managed deliberately
Other jurisdictionsHard-currency native
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| South Africa | Cat II FSP - FSCA | 27% | BN 194 fit-and-proper |
 Mauritius | Investment dealer - FSC | 3% effective possible | MUR 1M capital |
 England | Investment firm - FCA | 25% main rate | MIFIDPRU £75k-£750k |
 Dubai - DIFC | DFSA Cat 3C / 4 | 9% · 0% qualifying | US$500k · US$10k advisory |
South AfricaLicense typeCat II FSP - FSCA
Taxation27%
RequirementsBN 194 fit-and-proper
MauritiusLicense typeInvestment dealer - FSC
Taxation3% effective possible
RequirementsMUR 1M capital
EnglandLicense typeInvestment firm - FCA
Taxation25% main rate
RequirementsMIFIDPRU £75k-£750k
Dubai - DIFCLicense typeDFSA Cat 3C / 4
Taxation9% · 0% qualifying
RequirementsUS$500k · US$10k advisory
Before you apply
Requirements for the South African licence.Requirements for the licence.
The FSCA examines the four fit-and-proper chapters. The checklist below is what a passing file contains.
01
South African entity. Locally incorporated with a real operating base.
02
Category map. I, II and IIA scoped to the actual business before filing.
03
Key individuals. Personally assessed, with experience matched to each category's requirements.
04
Honesty and integrity. Clean regulatory, criminal and financial histories, disclosed fully.
05
Competence. Prescribed regulatory examinations passed; qualifications recognised.
06
Operational ability. Systems, premises and processes to deliver the licensed services.
07
Financial soundness. Assets over liabilities plus liquid buffers in weeks of expenditure, sized per category.
08
Mandate documentation. Client agreements per the discretionary rules.
09
Compliance officer. Approved and reporting per FAIS.
10
AML/CFT programme. FIC Act compliance with a named officer.
11
Exchange-control design. Cross-border flows structured deliberately from day one.
01
SA entity, real base.
02
Categories scoped first.
03
KIs matched to category.
04
Clean histories disclosed.
05
RE exams passed.
06
Operational ability shown.
07
Soundness buffers sized.
08
Mandates documented.
09
Compliance officer set.
10
FIC Act programme live.
11
Exchange control designed.
Reflects FAIS and Board Notice 194 of 2017 as of 2026. Buffer weeks and fees are confirmed per category at filing.FAIS + BN 194, as of 2026.
How it works
From first call to the FSCA register.
01
Category strategy
The business mapped to categories and buffers. Scope fixed before the build.Scope and buffers.
02
Entity and KIs
South African company, key individuals secured, RE exams and experience evidence sequenced.Bench built first.
03
The application
The FSCA file across all fit-and-proper chapters. Soundness, operations and mandates complete.Chapters complete.
04
FSCA assessment
Queries answered, KI assessments passed. The four chapters defended where they are tested.KIs pass personally.
05
Licence and launch
FSP number issued, mandates live, exchange-control routes open. Managing Africa's capital.Over the pool.
Quick facts
RegulatorFSCA
FrameworkFAIS · BN 194
Portfolio mandatesCategory II
Hedge fundsCategory IIA
Advice armCategory I
SoundnessLiquid buffers by weeks
Realistic timeline6-10 months
Corporate tax27%
Key individuals are the file: their experience, exams and histories decide Category II outcomes. We build the bench first.
On the ground in South Africa
Run from our Johannesburg office.
Prifinance - South Africa
Johannesburg · South Africa
Johannesburg, South Africa
01
Category strategy
I, II and IIA mapped to the real business. The licence fits the model from the first draft.Fits from draft one.
02
Key-individual bench
KIs sourced, RE exams sequenced and experience evidenced. The personal assessments that carry the file.Evidenced to standard.
03
The FSCA file
Fit-and-proper across all four chapters, soundness computed and mandates drafted. Complete at filing.Four chapters complete.
04
Structure and launch
Exchange-control design, offshore pairing and institutional distribution. The manager live over the pool.Offshore paired.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of investment firms in South Africa.
Full-rate numbers with treaty relief and deliberate exchange-control design. Engineered, not endured.
27% corporate tax
The company rate on management and performance fees. Africa's price of admission to its deepest pool.Admission price.
Dividends tax 20%
Withholding on distributions, treaty-reducible. Group structures route it down deliberately.Treaty-reducible.
VAT-exempt finance
Core financial services sit outside the 15% VAT. Fees carry no indirect pad.15% on overheads.
CGT inside income tax
Company gains tax at an effective rate below the headline. Portfolio structures planned accordingly.Below headline.
Exchange control by design
Cross-border flows are approval architecture. Structured once, they run; improvised, they block.Design, then run.
Treaties 70+
Deep coverage across Europe, Asia and Africa. The relief map for continental mandates.Continental map.
Tax summary
Corporate tax27%
Dividends tax20% · treaty-reducible
VAT15% · finance exempt
Exchange controlStructured deliberately
Tax treaties70+
*Figures as of 2026 per SARS. Exchange-control and group outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: South African company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed FSP.
Follow Prifinance
Active across our channels.
South Africa · FSCA
Launch your investment firm in South Africa with expert support.
Full-service assistance - from category strategy and key individuals to the FSP licence and exchange-control design - run through our Johannesburg office.
Get a consultation →Free legal opinion
Is South Africa the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The South African investment licence: quick answers.
What licence does an investment manager need in South Africa?+
A financial services provider licence from the FSCA under FAIS - Category II for discretionary portfolio mandates, Category IIA for hedge fund portfolios, with Category I covering advice and intermediary services where the model includes them.
What are the fit-and-proper requirements?+
Board Notice 194 of 2017's four chapters: honesty and integrity, competence including prescribed regulatory examinations, operational ability, and financial soundness - each examined per category, with key individuals assessed personally.
What financial soundness applies?+
Assets exceeding liabilities plus liquid-asset buffers scaled in weeks of annual expenditure, stepping up for discretionary and hedge fund categories - we size the exact buffer for your category at filing.
Who are key individuals?+
The people who direct or manage the licensed business - assessed personally on experience, exams and histories, with Category II demanding provable discretionary track records. The KI bench is the single biggest determinant of the outcome.
How long does licensing take?+
Realistically 6-10 months including preparation - KI readiness, exam sequencing and complete soundness evidence decide the pace.
How are South African investment firms taxed?+
27% corporate tax, 20% treaty-reducible dividends withholding, VAT-exempt core services against a 15% standard rate and a 70+ treaty network.
How does exchange control affect a manager?+
Cross-border flows - offshore allocations, foreign clients, dividend routes - run through approval architecture that rewards upfront design. Structured at day one it is machinery; improvised later it is friction. We build it in from the start.
Why license in South Africa rather than manage offshore?+
The pool: African pension and institutional capital allocates through FSCA-licensed managers, and the licence is the continental credential. The standard structure pairs a Johannesburg FSP with offshore vehicles - both ends built properly.
South Africa or Mauritius for the African base?+
Different instruments: South Africa is the market itself - the pool, the JSE, the credential; Mauritius is the offshore pairing at 3% effective. Most serious African managers end up with both - we build the pair.
Why Prifinance for South Africa?+
Category strategy before the build, a KI bench evidenced to BN 194 standard and exchange-control design from day one - the file the FSCA can approve without a second round.
What licence?+
FSCA Cat II FSP.
Hedge funds?+
Category IIA stack.
Fit-and-proper?+
BN 194, four chapters.
Soundness?+
Liquid weeks, sized.
KIs?+
Personal assessment.
How long?+
6-10 months realistic.
Taxes?+
27%; dividends 20%.
Exchange control?+
Engineered day one.
Or Mauritius?+
Market vs pairing.
Why you?+
Bench-first files.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which South African route fits your project and what it will cost.
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of FSCA or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.