Corporate Law at Seychelles
Here’s a concise overview of Corporate Law in Seychelles:
Corporate Law in Seychelles
1. Legal Framework
Corporate law in Seychelles is governed mainly by the:
Companies Act, 1972 (amended several times)
International Business Companies Act, 2016 (for offshore companies)
Seychelles Commercial Code
Seychelles is known for its flexible and business-friendly offshore corporate regime.
2. Types of Companies
| Type | Description |
|---|---|
| Domestic Companies | Operate within Seychelles, subject to local laws |
| International Business Companies (IBCs) | Offshore companies primarily for non-resident business |
| Public Companies | May offer shares to the public, regulated more strictly |
| Limited Liability Companies (LLCs) | Hybrid entities combining features of companies and partnerships |
| Partnerships | General and limited partnerships available |
3. Company Formation Process
Name reservation with the Financial Services Authority (FSA).
Submit Memorandum and Articles of Association.
No minimum capital required for IBCs; for domestic companies, generally no prescribed minimum.
Incorporation typically completed within 1-3 business days.
IBCs benefit from privacy, with no requirement to file accounts publicly.
Directors and shareholders can be individuals or corporate entities and can be non-residents.
4. Corporate Governance
Minimum one director and one shareholder (can be the same person).
No requirement for local directors or shareholders.
Annual meetings are not mandatory for IBCs unless stipulated by the company’s articles.
Accounting and audit requirements vary: IBCs often exempt from audit unless otherwise required.
5. Taxation
International Business Companies (IBCs) are exempt from local taxation on income earned outside Seychelles.
Domestic companies pay corporate tax at a rate of 25%.
No capital gains tax, no inheritance tax, and no exchange controls.
Seychelles has signed tax information exchange agreements (TIEAs) to comply with international standards.
6. Foreign Investment
Seychelles welcomes foreign investment with minimal restrictions.
Foreigners can fully own companies.
The offshore sector is highly developed, popular for asset protection, international trade, and holding companies.
7. Compliance & Reporting
Domestic companies must file annual returns and financial statements.
IBCs have simplified reporting requirements, often no public disclosure.
Registered agent required for IBCs.
Beneficial ownership information is maintained confidentially but accessible to authorities.
Summary Table
| Feature | Seychelles |
|---|---|
| Governing Law | Companies Act, 1972; International Business Companies Act, 2016 |
| Common Company Types | Domestic companies, IBCs, LLCs, Partnerships |
| Minimum Capital | No minimum for IBCs |
| Corporate Tax Rate | Domestic: 25%, IBCs exempt for offshore income |
| Foreign Ownership | 100% foreign ownership allowed |
| Registration Authority | Financial Services Authority (FSA) |
| Reporting Requirements | Simplified for IBCs, standard for domestic |
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