Seychelles Offshore Company Formation: The Ultimate Guide

The Seychelles have become a major hub for international entrepreneurs seeking flexible corporate structures. With its clear regulations, favourable tax rules, and an ongoing commitment to global standards, this East African island nation appeals to a wide range of business owners. Many choose a Seychelles offshore company because the jurisdiction combines efficiency, affordability, and confidentiality. Seychelles company formation remains relevant, backed by legal provisions ensuring proper transparency and compliance.

In this guide, we will walk you through the fundamental elements of Seychelles offshore company formation, covering legal frameworks, registration steps, taxation, record-keeping, and more. 

Overview of Seychelles Offshore Company Formation

The Seychelles provide a range of legal entities for forming offshore companies. The most popular option is the International Business Company (IBC), which is ideally suited for offshore operations. Other structures available include domestic companies, Special Licence Companies (CSLs), Limited Partnerships (LPs), and asset-holding vehicles such as foundations and trusts.

The table below outlines the key features of these entities – covering taxation, legal structure, reporting obligations and activity restrictions – and shows why IBCs are generally the best option for offshore entrepreneurs.

Entity & Legal Framework	Structure & Activities	Taxation	Compliance & Limitations
Domestic Company Companies Act 1972	For onshore, local business; licensed activities (e.g. banking, insurance) and international trade. Separate legal entity; minimum 2 shareholders and 2 directors required.	Tax‐resident; pays standard Seychelles business tax on any Seychelles‑source income under the territorial system. Tax rates are progressive – generally 15% on taxable profits up to SCR 1,000,000 and 25% on profits above that threshold, with certain regulated sectors (e.g. banking, insurance) subject to rates up to 33%. Offshore income is exempt from Seychelles tax.	Annual returns, audited financial statements filed publicly; registers maintained in Seychelles. Must obtain additional licences for regulated sectors. Must maintain beneficial ownership registers, accurate local record‑keeping, and timely director updates.
International Business Company (IBC) International Business Companies Act 2016, as amended 2018/2021	Primarily for offshore trade, investment, and asset holding; now allowed to operate locally and own Seychelles property. Flexible structure; can be single‑member with confidential directors/owners; no minimum capital.	Operates under a territorial tax system. Offshore income is tax‑free provided the IBC maintains sufficient economic substance in Seychelles, while any Seychelles‑source income is taxed at domestic rates (15% on the first SCR 1,000,000 and 25% thereafter). IBCs incur no capital gains tax and are exempt from stamp duty on typical offshore transactions.	Not required to file annual returns if no local income, but must maintain accounting records in Seychelles; update director & beneficial ownership registers with its registered agent. Cannot engage in regulated financial services (banking, insurance, securities, gambling, corporate services) without proper licence. Must have a local registered agent and office, meet economic substance requirements, and comply with AML/beneficial ownership rules.
Special Licence Company (CSL) Companies (Special Licences) Act 2003, as amended 2021	A hybrid onshore‑offshore company used for both domestic and international business; historically had tax concessions (abolished in 2021). Formed under a special licence; may be incorporated with one shareholder and one director; aligned with domestic company structure.	Now treated as a standard tax‑resident company. CSLs pay Seychelles business tax on all Seychelles‑source income at the normal rates. Foreign‑sourced income remains tax‑free under the territorial regime if economic substance is met. The previous 1.5% preferential rate has been abolished.	Must file audited financials and annual returns (within 6 months); maintain records locally. Requires an FSA‑issued special licence; must not perform regulated activities without additional licences. Subject to enhanced FSA oversight, mandatory beneficial ownership registration, and strict local record‑keeping; convertible to a domestic company if the licence is surrendered.
Limited Partnership (LP) Limited Partnerships Act 2003 (amended)	Used mainly for investment funds, private equity, or joint ventures; designed for offshore purposes. Consists of at least one general partner (a Seychelles entity) and one or more limited partners.	Generally a pass‑through entity; not taxed unless income is sourced in Seychelles (then taxed at partner level)	Registration with the Registrar; partnership agreement filed; records maintained by the general partner. Prohibited from carrying on local business (except incidental activities to support offshore operations). Must have at least one Seychelles‑based general partner; required to maintain proper accounting and partnership registers
Trust (Offshore Trust) Trusts Act 2021	For asset holding, estate planning, and wealth protection; not intended for day‑to‑day commercial trading. An arrangement governed by a trust deed; managed by a licensed Seychelles trustee or private trust company.	A properly structured offshore trust is generally tax‑exempt on foreign‑sourced income. Should the trust derive Seychelles‑source income or hold local assets that generate income, such income is taxed at the standard domestic business tax rates. Trusts are not subject to capital gains tax.	Must register with the FSA; maintain confidential records of beneficiaries and accounts (kept for at least 7 years). Cannot engage in commercial trading; typically restricted from owning Seychelles real estate if set up as an offshore structure. Requires a licensed trustee, rigorous AML/CFT compliance, and proper local record‑keeping.
Foundation (Seychelles Foundation) Foundations Act 2009 (as amended)	A non‑profit entity for asset protection, wealth management, or estate planning; not for active commercial trading. A separate legal person with no shareholders; governed by a charter and managed by a Foundation Council.	Foundations are typically tax‑exempt on income derived from offshore investments and asset holdings. If a foundation earns income from Seychelles‑based activities, that income is subject to the standard business tax rates. No capital gains or withholding tax is applied to distributions made to non‑resident beneficiaries, provided the income is offshore.	Must register its charter/regulations with the FSA; maintain accounting and beneficiary registers at its registered office. Cannot directly engage in profit‑making activities; may only own investments or companies that operate commercially. Must adhere to AML regulations, maintain accurate local records, and meet any disclosure requirements for the Foundation Council.
Protected Cell Company (PCC) Protected Cell Companies Act 2003 (operating under Companies Act 1972 or IBC Act 2016)	Enables segregation of assets and liabilities into independent “cells”; used in insurance, fund management, or complex asset structuring. A single legal entity divided into a core and multiple cells; cells are not separate legal entities.	Taxation depends on the underlying corporate form (IBC = territorial; domestic = standard tax)	Must file periodic financial statements (especially in regulated sectors); separate cell‑by‑cell accounts must be maintained. Business activities are governed by the underlying company’s licence; regulated activities require FSA approval. Must ensure strict segregation of cell assets/liabilities, have at least two individual directors, and appoint a licensed local company secretary; detailed cell‑specific records are required.

IBC: The Core of Seychelles Company Formation

International Business Companies (IBCs) are central to Seychelles offshore company formation. They retain enduring appeal because of their low administrative costs, straightforward registration, and ability to conduct lawful business globally. Their structure is flexible, and they do not involve stringent share capital requirements. Many entrepreneurs look to IBCs when they need quick Seychelles company registration without the burden of complex taxation.

According to the Financial Services Authority (FSA) Annual Statistical Bulletin 2022, Seychelles had more than 195,000 active International Business Companies on its registry.

IBC legislation in Seychelles includes the International Business Companies Act 2016. This Act defines core requirements — such as the mandatory registered agent — and clarifies naming rules. For a typical Seychelles offshore company, there is no obligation for local shareholders or directors. Any individual or corporate entity may serve as a director or shareholder if they meet the due diligence checks. The easy incorporation process usually takes around three working days once all documents are presented to the registered agent.

Below is a concise table illustrating some major features of Seychelles IBCs:

Aspect	Details
Minimum Directors	One (can be individual or corporate).
Minimum Shareholders	One (can also be the director).
Bearer Shares	Prohibited.
Public Disclosure	Directors, shareholders and beneficial owners are not on the public register.
Taxation	Territorial principle (0% on foreign-sourced income).
Annual Reports	Required to confirm and update basic company information.
Mandatory Audit	Required only if there is Seychelles-sourced income.
Share Capital	No minimum authorised share capital requirements. The typical authorised share capital of a Seychelles IBC is around USD 100,000, though there is no strict minimum. Bearer shares are illegal under existing laws. Shares must be registered, and you can designate them as voting, non-voting, or otherwise. Start-ups often issue only one share to a single shareholder, but more complex ownership structures are also possible.

Because of these features, Seychelles offshore company formation stands out for those seeking a streamlined structure with robust confidentiality. This flexibility ensures that IBCs remain a compelling choice for entrepreneurs wanting international reach, low fees, and simple administration.

A Seychelles IBC can engage in any legal activity abroad without special licensing, although involvement in financial services, insurance, or gambling requires additional approval from the relevant authority. Most IBCs hold straightforward business models, such as consultancy or import-export. There is no requirement for an annual general meeting, and directors may hold meetings anywhere.

Within Seychelles, an IBC can maintain accounts in local or international banks, hire professional services (e.g., legal or audit), and hold meetings of directors and shareholders.

Legal System and Financial Centre

The Seychelles draw its legal inspiration from both English common law and French civil law. This combination establishes a flexible and transparent framework, useful for international entrepreneurs looking at Seychelles offshore company registration. The Constitution of 1993 underpins the local legal system, while updates to corporate regulations keep pace with international standards for compliance and transparency.

In 1976, the Seychelles gained independence, later becoming a republic and member of the Commonwealth. The country joined various international agreements that influence financial oversight. It participates in tax treaties and anti-money laundering conventions, helping maintain a stable environment for Seychelles offshore company incorporation.

The capital, Victoria, is on the island of Mahé, and it serves as the administrative and commercial hub. The Financial Services Authority (FSA) regulates offshore activities, including licensing registered agents and overseeing trust and fund services. The Seychelles have modernised key regulations to address evolving global demands. This has helped it move off external “blacklists” that scrutinise countries with perceived lax tax or compliance measures.

International tourism and commercial fishing significantly contribute to Seychelles’ GDP. In 2021, the financial services sector contributed around 8.7% of Seychelles’ GDP, second only to tourism as the largest economic pillar (Central Bank of Seychelles Data). The financial sector, though comparatively smaller, plays a notable role by attracting international business.

In practice, the local regulator ensures that each Seychelles offshore company complies with legislation on annual reporting, beneficial ownership disclosure, and record-keeping. However, the regime remains user-friendly, making the jurisdiction appealing to businesses seeking cost-effective incorporation.

Corporate Reforms in the Seychelles

The authorities in the Seychelles implemented sweeping changes to the International Business Companies Act and relevant tax laws between 2020 and 2021. These reforms serve to align local corporate standards with the latest global frameworks. The developments respond to pressure from international bodies, which demand robust due diligence, tax transparency, and anti-money laundering processes for all financial centres.

Key amendments include the following:

1. Beneficial Ownership Act 2020: This legislation mandates each Seychelles offshore company to maintain a register of beneficial owners and keep it up to date. This information is not publicly accessible but must be provided to the Financial Intelligence Unit (FIU) through the appointed registered agent.
2. Enhanced Reporting Obligations: IBCs that do not generate Seychelles-sourced income still need to update their registered agent about the location of core accounting records. Companies generating local income are subject to filing financial statements and possibly to audits.
3. Storage of Accounting Records: From the 2021 amendments onward, accounting documentation needs to be maintained at the registered office. If the records are held overseas, IBCs must transfer them to the Seychelles every six months.
4. Economic Substance Rules: Entities forming part of international groups must show sufficient business presence in Seychelles to enjoy certain tax benefits. A lack of economic presence can trigger domestic taxation, even when income is generated offshore.

The Financial Services Authority enforces these rules. Violations can lead to penalties and de-registrations. Most entrepreneurs appreciate the balance between robust compliance and low administrative burdens, noting that abiding by the new requirements remains relatively straightforward.

These reforms aim to prevent money laundering, tax evasion, and other fraudulent uses of a Seychelles offshore company. They also reflect international obligations under the Convention on Mutual Administrative Assistance (MCAA) in Tax Matters and the Multilateral Competent Authority Agreement for Automatic Exchange of Financial Account Information.

Steps to Seychelles Company Formation

We at Uniwide guide clients through each stage of Seychelles company registration. The process is usually quick and methodical, supported by licensed registered agents who liaise with the regulator. Below is a concise outline of what you can expect:

1. Choose a Company Name

• It must be unique and cannot resemble existing names. Once your company is incorporated, the name is protected from duplication. 
• Forbidden words include “Bank,” “Police,” and “Government,” which could mislead the public or imply public authority. Other words like “Bitcoin,” “Charity,” “State,” and “Union” require written consent from the Registrar.
• The name should reflect the company’s legal form, using “Limited,” “Corporation,” “Inc.” or similar endings.

2. Provide Basic Corporate Details

• A Seychelles offshore company must specify its director(s) and shareholder(s).
• You must also identify any ultimate beneficial owners. A single individual can fulfil all these roles if desired.

3. Prepare Documents

• Directors and shareholders must supply proof of identity and residential address.
• If a corporate entity is involved, present its incorporation documents and the personal data of individuals within its ownership structure.
• Evidence of source of funds may be requested if required by due diligence protocols.

4. Draft Articles and Memorandum of Association

• The registered agent prepares these corporate governance documents.
• Once finalised, the documents go to the Registrar for approval.

5. Incorporation and Certificate Issuance

• The Registrar typically completes company registration in around three working days.
• A Certificate of Incorporation confirms the new entity’s existence.

6. Post-Incorporation Formalities

• After receiving the certificate, the IBC can open a bank account, keep its financial records at the agent’s office, and proceed with any required post-registration tasks.
• The company must also maintain a register of directors, shareholders, and beneficial owners at its registered office.

This swift path to Seychelles offshore company registration—often completed in under a week—demonstrates how user-friendly and efficient the jurisdiction has become.

Directors, Shareholders, and Disclosure

A Seychelles offshore company must have at least one director and one shareholder. There are no residency or nationality restrictions, making the jurisdiction flexible for diverse international arrangements. Corporate shareholders or corporate directors are permitted, although banks and other service providers might request extra documentation during account opening.

Under the International Business Companies Act 2016, companies keep an internal register of directors and members. This must be lodged with the registered agent but is not accessible to the public. Only state authorities, courts, or law enforcement entities can request the data if connected to a formal investigation or legal proceeding.

The Beneficial Ownership Act obliges each IBC to present its beneficial owner details to the agent, who then updates the national database. Although the data remain confidential, non-compliance triggers substantial fines for both the agent and the beneficial owner. In 2022, the Seychelles FSA recorded a 35% increase in beneficial ownership updates compared to the previous year, reflecting stricter compliance enforcement (FSA Compliance Report 2022). The reforms clarify that ultimate beneficiaries must be traceable to prevent misuse of Seychelles offshore company structures.

To formalise corporate decisions, a company must keep minutes of board and shareholder meetings or written resolutions. These records help demonstrate that directors and shareholders carry out actual oversight of the IBC. If a company is part of a larger group, holding regular meetings and maintaining robust documentation can prove valuable in global compliance checks.

Taxation and Accounting Standards

Seychelles introduced territorial taxation, meaning income generated within Seychelles is subject to local taxes, while offshore earnings remain exempt. This principle was adjusted through recent legislation to examine whether a company belongs to an international group and whether there is adequate economic activity in Seychelles to justify the tax exemption on foreign income.

Taxation & Compliance Aspect	Seychelles IBC Treatment
Corporate Income Tax (Offshore Income)	0% – No corporate tax on foreign-sourced income under Seychelles’ territorial tax system. IBCs earning profits outside Seychelles pay no local tax, maximising offshore earnings.
Corporate Income Tax (Local Income)	15% – 25% (standard local rates) – Only applies if an IBC does business in Seychelles. Local-sourced profits up to SCR 1,000,000 are taxed at 15%, with income above that taxed at 25%. Certain regulated sectors are subject to rates up to 33%. IBCs must notify authorities and file taxes/audits if engaging in domestic business.
Withholding Taxes	None on foreign income – No withholding tax on dividends, interest, royalties or other payments to non-residents, provided the income is not from a Seychelles source. (There are also no capital gains taxes in Seychelles on business profits.)
Annual Government Licence Fee	Low, fixed annual fee payable to the Seychelles government. The fee is due on each incorporation anniversary to maintain the company in good standing.
Audited Accounts Requirement	None – No mandatory audit for Seychelles IBCs unless the company has taxable operations within Seychelles that trigger local filing obligations. Purely offshore IBCs do not need to appoint auditors or submit audited financial statements, saving cost and effort.
Annual Tax Filing	None required – IBCs that earn no Seychelles-source income are not required to file annual tax returns or financial statements locally. The 0% tax status is automatic. (If an IBC does have taxable local income, it must file returns and accounts for that year.)

Official FSA data from 2022 shows that over 90% of Seychelles IBCs declare no local income, relying entirely on offshore earnings (FSA Annual Report 2022).

Accounting Requirements

All IBCs must maintain accounting documentation that:

1. Demonstrates transactions and asset/liability positions.
2. Allows the company’s financial status to be determined with reasonable accuracy.
3. Supports the preparation of annual statements if requested by the authorities.

Where records are held outside Seychelles, a company must forward them to the registered office twice annually. The records need to be retained for at least seven years for due diligence purposes, ensuring the company can produce financial statements if ever required by regulators or for its own management needs.

Economic Substance and Compliance

The Seychelles have introduced updated economic substance rules to align with international standards. These rules apply primarily to multinational groups and companies that receive passive foreign-sourced income. When a Seychelles International Business Company (IBC) falls within both these categories, it must show adequate local presence.

IBCs that do not meet these conditions remain exempt from Seychelles corporate tax on foreign income. They do not need to establish local offices, hire staff, or hold board meetings in Seychelles. In other words, an IBC that is not part of a multinational group, or does not receive passive income (such as dividends, interest, rents, or royalties), is out of scope. These “standard” IBCs may continue to be managed and controlled from abroad and still enjoy tax exemption on their foreign-sourced earnings.

For example, if an IBC is engaged purely in providing services or trading overseas (active trading income) and has no passive investment income, the new rules do not force it to establish substance in Seychelles.

However, an IBC that is both part of a multinational enterprise and generates passive income during the year becomes a “covered company.” It must satisfy several key substance criteria:

• Meet local filing obligations (such as annual corporate filings).
• Maintain a Seychelles presence (registered office, possibly staff or directors).
• Conduct strategic management in Seychelles (board meetings and decision-making occur locally).
• Incur reasonable local expenses proportionate to its income-generating activities.

Pure holding companies, which only hold equity or real estate, are subject to a lighter standard. They mainly need a registered Seychellois office and agent. By contrast, companies handling more complex activities may require directors or staff based in Seychelles.

Consider a holding company registering in Seychelles to manage overseas property investments. If it has real governance structures in Seychelles, including active directors meeting locally and local expenditure, it might not be taxed on income gained from renting or selling properties in another country. However, if all critical decisions and administrative tasks occur elsewhere, the authorities might treat the income as partially Seychelles-sourced, subjecting it to corporate tax.

Non-compliance triggers taxation of that passive income at Seychelles corporate tax rates. The Seychelles Revenue Commission may impose penalties and interest for failure to disclose, and can share information with foreign authorities. Thus, it is vital for passive-income IBCs within multinational groups to ensure their economic substance in Seychelles to maintain the zero-tax advantage.

Opening a Bank Account for a Seychelles Offshore Company

Despite the low taxes offered by Seychelles, banks worldwide have tightened compliance. They now examine offshore entities more carefully to ensure that transactions do not mask money laundering or finance illegal activities. This adds complexity to the process of opening an account for a Seychelles offshore company. We at Uniwide advise that clients prepare a complete set of documents to meet these due diligence demands.

Banks often demand the following:

• Full corporate documents, including an incorporation certificate and memorandum.
• A clear explanation of the business plan and geographic markets served.
• Detailed information on shareholders, directors, and beneficial owners, including their source of funds.
• Copies of contracts or invoices that demonstrate legitimate business transactions.

You can expect to answer questions regarding the nature of your customers, where you plan to operate, and how you handle profits. Furthermore, some jurisdictions carry out automatic exchange of information under the Common Reporting Standard (CRS). This means that your bank may share details about corporate accounts and their owners with the relevant tax authority where owners are considered residents.

Most institutions now subscribe to global watchdog agencies. They screen company owners and managers against sanctions lists and politically exposed persons records. Ensure you declare any relevant ties or roles before beginning the account opening process.

Although the bank account opening phase is more complex than registering the IBC itself, timely preparation of documents and transparent disclosure often leads to success. Several bank and financial institutions provide “offshore” accounts suitable for Seychelles-based companies. Many users still view Seychelles as an advantageous jurisdiction, given the straightforward renewal fees and the flexible guidelines for foreign trade.

Confidentiality and Information Exchange

The confidentiality features of a Seychelles offshore company have historically been a prime attraction. Director and shareholder details are not visible to the public. Beneficial ownership information is centrally recorded but remains inaccessible except to the regulator, courts, and law enforcement.

However, the Seychelles signed multiple international treaties to support tax cooperation:

• Convention on Mutual Administrative Assistance in Tax Matters (extended in 2015)
• Multilateral Competent Authority Agreement on the Common Reporting Standard

Under these agreements, banks must share financial account data with relevant tax authorities where beneficial owners reside. This transparency ensures legitimate business operations but does not eliminate the confidentiality benefits within Seychelles itself. The Seychelles exchanged financial account information with tax authorities in 43 partner jurisdictions in 2023 under the Common Reporting Standard (OECD Automatic Exchange Portal).

The Seychelles were removed from the European Union’s “blacklist” in 2021 as part of efforts to conform to international standards. This reaffirms the jurisdiction’s credibility for businesses wishing to limit compliance risks.

Double Taxation Agreements

The Seychelles have double taxation avoidance agreements with numerous countries, including China, Cyprus, Luxembourg, Mauritius, and the United Arab Emirates. If a Seychelles offshore company does generate Seychelles-sourced income, it can sometimes benefit from reduced withholding taxes on cross-border transactions. The terms of these agreements vary, so professional advice is recommended.

Filing Periods and Central Register

From our observations, many clients appreciate the clarity: if no Seychelles-derived income exists, minimal tax filing is required. Nonetheless, the central register of directors and beneficial owners must remain accurate. Neglecting these obligations can result in fines or the company’s removal from the register.

VASP Regulations and Licensing for Seychelles Company Formation

In January 2025, the Virtual Assets Service Providers Act 2024 (VASP) came into force in the Seychelles. It targets businesses involved in digital currency exchange, wallet services, and other crypto ventures. Any Seychelles offshore company carrying out such services must apply for a license through the Financial Services Authority. New entities cannot begin related operations before obtaining the relevant approval.

Under this law, key crypto business types include:

• Wallet Service Providers managing customers’ digital assets
• Exchange Service Providers facilitating trades between virtual assets and fiat currencies
• Brokering or investment services offering digital tokens
• Issuing tokenised securities, NFTs, or running Initial Coin Offerings

Compliance involves demonstrating robust Anti-Money Laundering (AML) safeguards, segregated client holdings, and tested cybersecurity. Authorities also require that at least one director be resident in Seychelles, with a physical office in the country. These conditions aim to prevent money laundering and financing of illicit activities.

Impact on Existing IBCs

If an established Seychelles offshore company expands into crypto-related services, it must either convert into a licensed provider or form a new VASP-approved entity. Failing to comply can lead to penalties, blacklisting, and possible withdrawal of the company’s operating licence. Obtaining a legal opinion on whether your activity falls under the VASP Act is advisable in uncertain cases.

Despite heightened scrutiny, the VASP framework can widen opportunities for those in the blockchain and digital asset sectors. Seychelles has positioned itself to welcome innovative businesses, provided they adhere to modern regulations and protect customer interests. A well-prepared application can transform a standard IBC into a licensed crypto platform operating within an internationally recognised regulatory framework.

Redomiciliation and Conversion Options

For businesses that wish to move an existing entity to the Seychelles, redomiciliation is permitted. This streamlined approach allows a foreign corporation to continue its legal existence under Seychelles law without dissolving in its original jurisdiction. It retains its name, contracts, and assets, simplifying transitions. For example, if a company faces rising costs or tight regulations elsewhere, redomiciliation to Seychelles can help maintain operational continuity.

Seychelles legislation also allows for an IBC to convert into a standard domestic company if it wants to carry out domestic activities. Conversely, a local Seychelles entity can switch to an IBC if it aims to operate primarily offshore.

Below is a brief look at common scenarios:

• Redomiciliation from High-Cost Jurisdictions
  Businesses that find corporate upkeep expensive or administratively burdensome in another location can re-register in Seychelles. They avoid losing brand identity, vital contracts, or other intangible assets.
• Conversion to Local Company
  If an IBC decides to conduct local commerce—for instance, investing in real estate or offering services within Seychelles—it can convert to a domestic enterprise without losing its basic corporate identity.
• Conversion from Domestic Entity to IBC
  Some established local firms pivot to offshore activities when global expansion becomes a priority. By switching to an IBC, these entities can benefit from the territorial tax principle.

Specifics of Redomiciliation

1. Companies from recognised jurisdictions usually qualify for continuation in Seychelles.
2. The transferring entity must provide constitutional documents (Articles, Memorandum, etc.), director and shareholder details, and a certificate of good standing.
3. The Seychelles FSA confirms that the incoming entity meets the necessary compliance standards before granting approval.
4. Once redomiciled, the new Seychelles IBC is subject to Equally effective laws, including beneficial ownership registers and territorial tax provisions.

In practical terms, redomiciliation helps preserve existing business relationships and contractual obligations. It often offers cost savings too, since the organisation avoids re-establishing from scratch in another locale. For owners who value legal continuity and stable regulation, a shift to Seychelles can be a logical decision.

Maintaining Good Standing

An annual renewal is mandatory for each Seychelles offshore company. This includes paying the government registration fee, as well as maintaining the registered agent and office. Failure to renew on time can lead to a penalty and eventual strike-off from the register. However, companies struck off for non-payment can usually be restored by settling outstanding fees, provided this happens within a certain timeframe (currently up to 10 years after strike-off).

Below is a concise explanation of standard yearly IBC upkeep:

Requirement	Details
Government Registration Fee	Paid each year to keep the company on the register. Late payment leads to penalties or possible deregistration.
Registered Agent and Office	Must be maintained in Seychelles. They handle official notices, store records, and keep track of compliance.
Accounting Records Submission	If no local income is generated, full financials are not always filed. However, half-yearly record updates are required.
Beneficial Ownership Register	Must stay current. The authorities can access it if needed, yet it remains confidential from the general public.

Even if the business is not active, renewing ensures the company retains its existence. Overlooking renewal leads to a strike-off, meaning the company loses its legal standing. It may be restored later upon settling outstanding fees, but the process can be more cumbersome, and additional penalties may apply.

Challenges might arise for companies handling complex business models, such as cryptocurrency trading or cross-border regulated services. However, timely coordination with the registered agent and honest disclosure of business activities reduce the risk of compliance breaches. In many cases, a fresh annual certificate of good standing helps reassure trading partners, banks, or tax authorities.

Seychelles Company Formation Versus Competing Offshore Jurisdictions

Let us compare company formation in the Seychelles with other popular offshore jurisdictions, focusing on key factors such as taxation, fees and compliance obligations.

Factor	Seychelles	BVI	Belize
Taxation	Zero tax on foreign‐sourced income; only locally derived income is taxed (at up to 33%). Companies with insufficient economic substance on passive foreign income may be subject to standard corporate rates (approximately 15–25%). An option exists to elect tax residency in Seychelles to benefit from its network of double tax treaties – a benefit not available in BVI or Belize.	Tax-neutral regime: no corporate income, capital gains or withholding taxes on either domestic or foreign income. Owing to the zero-tax system, companies in the BVI do not benefit from tax treaties. Compliance focuses on regulatory reporting (including economic substance for certain activities) rather than taxation.	Belize IBCs (now re‐branded as “Belize Business Companies”) are subject to a business tax on all income (domestic and foreign) at low rates. Standard rate is approximately 1.75% on gross receipts, with higher rates (e.g. 3% for rental income and 6% for professional services). Companies may claim exemption if they demonstrate tax residency and substance in a foreign jurisdiction, but this is strictly regulated.
Privacy	High confidentiality: no public register of directors or shareholders; details are maintained privately by the registered agent.	High confidentiality: director and shareholder details are not publicly accessible; beneficial ownership information is held in a confidential system accessible only to authorised authorities.	High confidentiality: company details and beneficial ownership information are maintained by the registered agent and are not disclosed publicly.
Regulatory Requirements	Minimal requirements: only one shareholder and one director (who may be the same person) are necessary. A local registered agent and office in Seychelles is mandatory. Bearer shares are not permitted, which adds to transparency.	Minimal requirements: one director and one shareholder are required, with no local residency requirement for directors. A local registered agent and office are compulsory. Bearer shares have been phased out.	Minimal requirements: one director and one shareholder suffice; a local registered agent and office in Belize are mandatory. Bearer shares have been phased out in favour of enhanced transparency.
Incorporation Speed	Fast – incorporation can typically be completed within one day once all due diligence documents are in order.	Fast – registration is usually completed within 24 hours to one working day.	Fast – the process is straightforward and is often finalised within 24 hours.
Costs	Very competitive.	Relatively higher fees.	Low costs.
Compliance Obligations	Light ongoing compliance: an annual renewal with the registered agent and maintenance of basic corporate records are required. There is no requirement to file detailed financial statements publicly unless specific substance rules are triggered.	Moderate obligations: a registered agent and annual fee are necessary; a simplified annual financial return must be submitted. Enhanced reporting (including economic substance returns) is required for companies engaging in designated activities.	Increased obligations under the new regime: mandatory Tax Identification Number (TIN) registration, annual business tax returns (due by 31 March each year), and submission of financial statements (audited if revenue exceeds specified thresholds). Compliance with economic substance and other new record-keeping requirements is strictly enforced.
Accounting & Audit	Accounting records must be maintained and kept locally, but there is no mandatory requirement for routine audits or public filing of financial statements.	Companies are required to maintain proper books and records and submit a simplified annual financial return; audits are not mandatory except for regulated sectors or as decided by the company.	Proper accounting records must be maintained; annual financial statements are required with the tax return, and audits are mandatory if revenue exceeds designated thresholds.
Economic Substance	Economic substance rules apply primarily to multinational groups and companies generating passive income. Standard IBCs remain tax-exempt on foreign income if managed and controlled outside Seychelles, although inadequate local substance may trigger taxation on passive income.	Strict economic substance requirements are enforced for companies undertaking “relevant activities” (e.g. banking, insurance, fund management, etc.). Holding companies benefit from reduced requirements, but affected companies must file an annual substance report.	Economic substance rules apply to designated relevant activities. Companies managed and controlled outside Belize and which can prove foreign tax residency may qualify for exemption from local substance obligations. Non-compliance with substance rules may affect the ability to claim tax exemption and result in penalties.

Company formation in the Seychelles offers a competitive offshore environment with zero tax on foreign income, low fees, and minimal compliance obligations. In contrast, the British Virgin Islands have higher fees and stricter substance rules, while Belize now imposes a low business tax with increased reporting requirements.

Choosing a Registered Agent for Seychelles Company Formation

Selecting a registered agent is pivotal for Seychelles company incorporation. You are required by law to have a locally licensed agent. In January 2025, there were 60 licensed corporate service providers in the Seychelles, ensuring moderate competition and varied expertise.

The agent’s duties include preparing key corporate documents, handling government filings, and maintaining compliance records. Here are the essential steps:

Verify the Licence

Check a prospective agent’s standing with the Financial Services Authority. Visit the official Seychelles FSA registry and confirm they hold valid licences (e.g., international corporate service licence). We at Uniwide hold an international corporate service licence, as well as an international trustee services licence and an international foundation services licence.

Review Reputation

Search for independent feedback and online reviews. Read analytical articles and sector news. We at Uniwide have numerous positive testimonials and transparent publications on our website, reflecting our longstanding record in corporate services.

Assess Expertise

Ensure service providers have comprehensive knowledge of Seychelles offshore company formation. They should be able to clarify local laws, economic substance rules, and beneficial ownership requirements to prevent compliance risks.

Check Communication Channels

Timely communication with a registered agent is critical. Look for straightforward lines of contact, whether by phone, email, or online chat, to stay updated on regulatory changes or requests for data.

Conclusion

Seychelles company incorporation retains its popularity for large and small enterprises. The IBC framework offers straightforward formation, low administration costs, and potential zero taxation for income generated outside Seychelles. Its integration into the international compliance network enhances the country’s credibility, even if banks and regulators ask for extensive due diligence disclosures.

The Seychelles remain a strategic choice for global business. This jurisdiction strikes a balance between supporting privacy and meeting modern obligations for tax transparency. For those looking to set up or relocate a business, the Seychelles continue to provide a flexible corporate environment with dependable legal foundations.

You Might Also Like:

• Business Setup Consultants in Dubai: Key to Your Company Formation
• Seychelles: corporate and tax legislation reform
• Seychelles Offshore Company Registration in 2025