The Seychelles Islands continue to be a top-tier jurisdiction for the registration of offshore companies, with low risk and significant allure for various international business entities. The environment there is especially favorable for you to establish International Business Companies, partnerships, and complex trust structures. This is just another proof of the islands’ status as a globally sought-after destination for business formation.
Strategic benefits of offshore company formation in Seychelles
In comparison with analogous territories and jurisdictions in Europe, registering an offshore company in Seychelles comes with significant perks:
- Global profits are tax-exempt provided your activities are non-licensable and the said profits are made outside of Seychelles.
- High degree of confidentiality.
- Both founder and charter capital requirements for Seychelles offshore companies are minimal.
- Seychelles complies with international standards and is not on the offshore blacklist (removed in February 2024 along with the Bahamas, Belize, and the Turks and Caicos Islands).
- There’s no currency control and no need for physical presence, while a fast-track registration process through a registered agent is available.
To set up a business account in Seychelles, you are welcome to turn to several banks and payment systems in one go. To make things easier and faster, benefit from our PRE-APPROVAL service.
Regulatory roadmap for offshore incorporation in Seychelles in 2024
Before you establish an offshore company in Seychelles, do your homework and closely study all local regulations for non-resident company setup.
This is what you must do to successfully incorporate your company in Seychelles:
- Registered Agent Selection: Essential for non-residents (both individuals and legal entities) wishing to form a company in Seychelles.
- Office Space Rental: A necessary step in the setup process to secure a physical location.
- Company Setup: Registering your offshore entity as an International Business Company (IBC) or Limited Partnership (LP) is recommended for global operations.
- Opening a Bank Account: A vital move for offshore companies to manage their financial dealings.
- Regulatory Compliance: Following the reporting requirements set by Seychelles’ new International Companies Act.
FYI: Companies that conduct licensed activities like insurance, banking, or local trading are considered resident entities and are taxed accordingly. Seychelles also allows cryptocurrency-related operations as of 2024.
Seychelles: new offshore company and beneficiary laws
In 2021, amendments were introduced to the International Business Companies Act (Act No. 63 dated December 10, 2021) by the jurisdiction’s authorities. The revisions were enacted to ensure compliance with the standards set by the Financial Action Task Force (FATF) and the Organisation for Economic Co-operation and Development (OECD) regarding business transparency and the identification of beneficial ownership.
Revised IBC Act
This is how the 2016 Seychelles International Business Companies (IBC) Act amendments impact the operation of offshore commercial firms:
- Company Dissolution: Companies deregistered in Seychelles and not reinstated within a year are now deemed permanently dissolved.
- Director Information: The directors’ registry, confidential and not open to third parties, records details for:
- Individual IBC Directors: Birth date, nationality, service address, and regular residence.
- Corporate IBC Directors: Company registration date, place, and registered office address.
- Accounting Obligations: From February 6, 2022, Seychelles-registered businesses must keep and biannually submit accounting records.
- Financial Documentation: Offshore companies are required to annually prepare financial as well as accounting statements and records and store them at their Seychelles registered office.
- Holding Company Exemption: Holding companies with less than SCR 50 million in turnover (about USD 3.7 million) are exempt from financial reporting. They are only required to submit a corresponding declaration to their registered agent.
For in-depth guidance on these regulations, you are welcome to book a personal consultation with Q Wealth experts.
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Beneficiaries Act in Seychelles
The 2020 update to Seychelles’ Beneficiaries Act covers both direct and indirect business owners (nominees) with significant influence or control.
The BO (Amendment) Regulations 2023 and December 2022’s BO (Amendment) Bill provide comprehensive details. These regulations extend to international offshore companies and other business entities, e.g., trusts, in Seychelles.
Now, there is a requirement for businesses to report any ultimate beneficiary holding or controlling at least 10% of the company’s shares to their registered agent. The term beneficiary is used only in relation to natural persons.
For the Seychelles beneficiaries registry, the required submissions include:
- NIN: National Identification Number.
- TIN: Tax Identification Number.
All documents are stored at the registered agent’s office.
FYI: For trusts registered outside Seychelles, yet holding a stake of 10% or more in a Seychelles-based offshore company, it is mandatory to record the beneficiary details in the Seychelles registry.
Offshore company setup in Seychelles: key regulatory insights
Below, you will find essential management and corporate requirements for Seychelles-based partnerships and offshore entities:
- Registration Period: Companies can be registered through an agent within 3 to 7 days.
- Founder’s Physical Presence: Founders are under no obligation to come to Seychelles for a company registration.
- Roles and Residency: One can hold director and shareholder roles in an IBC or partnership without residency constraints.
- Company Naming: Offshore company names must meet the set criteria and include translations in English or French if not in these languages.
- Real Estate Ownership: IBCs in Seychelles are now allowed to own property.
- Profit Generation: There are no restrictions on where IBCs may generate profits. However, if profits are made within Seychelles, local tax laws apply.
- Licensing for Certain Activities: Companies engaged in banking, investment, credit, and trust management must obtain a license and are treated as resident entities.
- Capital Requirements: The minimum required capital for an International Business Company (IBC) is set at the nominal value of its issued shares, which can be as low as one unit but is commonly set at a minimum of 1,000 units.
Essential documents for Seychelles company registration
To establish a partnership in Seychelles as an International Business Company (IBC), the following steps are a must:
- Legalization and Notarization: Translations of documents must be legalized and notarized.
- Submission of Documents: The legalized documents, along with the personal identification of directors and beneficiaries, and foundational documents like the charter, official appointments, and signatory permissions, need to be submitted to the designated agent.
Each founder will receive a customized list of documents necessary for company formation in Seychelles, tailored to their unique business activities and compliant with the prevailing legal standards.
Choosing the right legal structure for your Seychelles company
The type of entity to form in Seychelles depends on where your profits are generated as well as the specific business sector involved:
- International Business Company (IBC) in Seychelles:
- Tax Benefits: Exemption from taxes on external profits.
- Liability: Shareholder liability is capped at share value.
- Registered Address: A local registered address is mandatory.
- Business Sectors: Suitable for all sectors, except license-specific ones.
- Registration: Must be completed via a Seychelles-based agent.
- Director Requirements: At least one director, who can be a non-resident individual or a foreign entity.
- Secretary: Not required.
- Nominee Services: Permissible.
- Capital Requirements: No minimum paid-up capital necessary.
- Share Issuance: At least one share must be issued.
- Record Keeping: Accounting and financial records to be kept at the registered agent’s office.
- Annual Fees: An annual renewal fee is a must.
- Currency Control: None.
- LPs (Limited Partnerships) and LLPs (Limited Liability Partnerships) in Seychelles:
- Liability: One general partner is fully liable for LP obligations.
- Taxation: Partner taxation is based on individual income.
- Office: A Seychelles-based office is necessary.
- Residency: General partner residency in Seychelles is required (whether for a natural person, an IBC, or a local company).
- Capital: There is no specified minimum statutory fund.
- Participants: At least two participants needed.
- Compliance: In Seychelles, the annual submission of a compliance certificate is mandatory.
- Document Storage: Documents must be stored at the Seychelles registered office.
- Special License Companies (CSLs) in Seychelles:
- Operational Scope: Limited to overseas operations.
- Tax Rate: A favorable tax rate of 1.5% on global profits.
- Capital and Director Requirements: For a company to be licensed, it must have at least USD 100,000 in capital plus two Seychelles-resident directors.
The Beneficial Ownership and the 2021 Companies Act amendments have reshaped the corporate environment in Seychelles. Registered agents are now tasked with beneficiary data management and document storage for 7 years, even post-liquidation.
Taxes in Seychelles for offshore companies and partnerships in 2024
If the profits of an offshore company, structured as a business corporation or partnership in Seychelles, are generated outside the country and there are no commercial ties with the island’s residents, the income tax is zero. The exemption applies to all tax liabilities, including VAT and capital gains tax.
However, any business operations in Seychelles are subject to local taxation according to the country’s established tax rates.
Forming a partnership or IBC in Seychelles in 2024: associated advantages
Recent legislative revisions in the Republic of Seychelles prove that registering International Business Companies (IBCs), partnerships, and commercial entities remains an effective approach for international business and tax planning.
Here’s why an IBC or a partnership registration in Seychelles is an excellent choice for you:
- Tax Efficiency: An IBC, as an international offshore entity, faces no tax liabilities in Seychelles.
- Geopolitical Security: Utilizing a nominee service to register an offshore partnership, trust, or company in Seychelles is recommended for those in search of financial protection from geopolitical uncertainties.
Need further info? Feel free to contact Q Wealth experts for a consultation!
