Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
What are the main advantages of incorporating a company (business) in Seychelles?
- Attractive Tax Regime
The Seychelles offers one of the most favorable tax environments in the world. Offshore companies are exempt from corporate income tax and taxes on dividends, royalties, and capital gains. This allows entrepreneurs to retain more profits and streamline their cost structures.
- Confidentiality of Owners and Directors
The jurisdiction ensures a high level of confidentiality—details of ultimate beneficial owners are not included in public registers. This provides an added layer of privacy for business owners. However, compliance with local anti-money laundering (AML) and know-your-customer (KYC) regulations is essential to ensure the legitimacy of operations.
- Stable Legal System Based on English Common Law
The legal framework in the Seychelles is rooted in English common law, complemented by elements of civil law. This offers entrepreneurs a familiar, predictable, and transparent legal environment. Businesses can rely on the effective protection of their rights and enforcement of commercial agreements.
- Flexible Corporate Structure
Seychelles International Business Companies (IBCs) benefit from a highly flexible setup. There is no requirement for more than one director or shareholder, no obligation to hold annual shareholder meetings, and no minimum capital requirement. This allows entrepreneurs to tailor their company structure to their specific needs without unnecessary burdens.
- International Recognition and Evolving Regulatory Framework
The Seychelles is actively aligning its legislation with international transparency standards, including those set by the FATF and OECD. These efforts enhance the jurisdiction’s reputation and facilitate smoother cooperation with banks and business partners. For companies that operate within the legal framework, the Seychelles remains a stable and legitimate base for international business.
How to register a company in Seychelles and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Choosing a company name;
- Appointing directors and shareholders;
- Appointing a local registered agent;
- Opening a preliminary banking account for contribution of the shared capital;
- Preparation of the future company’s documents;
- Entry of company data into the Commercial Register.
Requirements for registering a company in Seychelles on the example of a an International Business Company (IBC):
- Shareholders: at least one shareholder (no residency requirements; may be a natural or legal person).
- Director: at least one director (may be a natural or legal person).
- Company secretary: no requirements.
- Minimum share capital: there is no minimum capital requirement.
- Legal address: registered office is required in Seychelles.
- Registered agent: is required.
- Liability: limited to the amount of capital they have invested in the company through their shares.
- Accounting: mandatory accounting and financial record-keeping, and requirements for annual returns.
What do you have to know about taxes when registering a company in Seychelles:
Corporate income tax (CIT):
Seychelles implements a territorial tax system. Thus taxes are levied only on income sourced within Seychelles.The company benefits from 0% CIT on foreign-earned income.
The CIT rates for local companies:
- 15% on the first SCR 1 million (~€70,000).
- 25% above SCR 1 million (~€70,000).
Personal income tax (PIT):
The rates of income tax payable by a citizen and non-citizen employed person in respect of taxable emoluments are as follows:
- from SCR 0 to SCR 8,555.5 (~€580) – 0% (for citizen) / 15% (for non-citizen);
- from SCR 8,555.51 (~€580) to SCR 10,000 (~€680) – 15% of the amount in excess of SCR 8,555.5 (~€580) (for citizen) / 15% of the amount not exceeding SCR 10,000 (~€680) (for non-citizen);
- from SCR 10,000.01 (~€680) to SCR 83,333 (~€5,700) – SCR 216 (~€15) plus 20% of the amount in excess of SCR 10,000 (~€680) (for citizen) / SCR 1,500 (~€100) plus 20% of the amount in excess of SCR 10,000 (~€680) (for non-citizen);
- over SCR 83,333 (~€5,700) – SCR 14,883.28 (~€1,000) + 30% of the amount in excess of SCR 83,333.00 (~€5,700) (for citizen) / SCR 16,166.6 (~€1,100) plus 30% of the amount in excess of SCR 83,333 (~€5,700) (for non-citizen).
An employer shall be liable to pay tax at the rate of 15% of the value of a non-monetary benefit provided to an employed person and such tax shall be computed in accordance with Schedule 4 of the Income and Non-Monetary Benefit Tax Act in respect of each non-monetary benefit provided to the person employed. The schedule also provides for certain exemptions on benefits.
Value-added tax (VAT):
The VAT rates applicable on taxable supplies:
- the 15% standard rate applied on most imported goods or services sold in Seychelles;
- the 0% applied on exports of goods and on specific items as specified in Schedule 2 of the Value Added Tax Act, 2010 (pharmaceutical products, infant formulae, pampers and certain basic necessities and services such as education, health and financial services.).
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Seychelles. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Seychelles, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Seychelles and pave the way for your business success!
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
