Ever since its independence in 1976, the Republic of Seychelles (“Seychelles”) has experienced constant growth and has developed into one of Africa’s most prominent financial centres. In addition to being a low-tax jurisdiction whereby many companies are subject to zero taxation, Seychelles has become a key destination for multinational companies to conduct business. To further emphasize Seychelles’ role in the global economy, the Seychelles company formation processes and Seychelles company law has become among the most business-friendly in the world.
For Seychelles company formation purposes, a business must have a minimum of one shareholder and one director. These positions can be held by either an individual or a corporation and may be held by non-residents. Furthermore, the position of a company secretary is not required and there are no residency requirements for any of the above positions. Lastly, with a minimum issued share requirement of USD 1, company formation in Seychelles is among the cheapest in the world.
No. Seychelles company formation can be executed from abroad with the help of a professional service provider!
If you are forming a Seychelles company as an individual, a residential address is required. For companies who wish to form a subsidiary in Seychelles, a registered office address or business address is required.
The ES Laws were introduced by the Organisation for Economic Co-operation and Development (“OECD”) with the intention to address profits being earned by offshore companies in low-tax jurisdictions such as Seychelles. The laws state that profits being earned by offshore companies need to be aligned to where the business or profit-generating activities are being carried out, thus potentially affecting the tax outcome.
Effective from 1 January 2019, the law stipulates that companies who carry out “relevant activities” in the countries where the ES Laws are applicable, will be required to maintain an increased level of substance in their incorporated jurisdiction. Such activities are broadly defined to include a wide range of business activities, including fund management, distribution and service center businesses, holding company businesses, finance and many more. In the past, most companies did not maintain much substance in their jurisdiction. Seychelles companies must now take this new law under consideration.
To determine if your company registered in one of the above jurisdictions is conducting “relevant activities” applicable under ES Laws, one must determine whether they meet the various criteria set for each industry.
As the laws and criteria for each “relevant activity” vary among each industry, it is recommended to obtain assistance from a recognised company incorporation specialist such as FastLane to help determine how the ES laws affect your business and long-term plans.
