Seychelles

INTRODUCTION

The Seychelles group of islands in the Indian Ocean comprises over one hundred named islands, most being situated between four and five degrees South of the equator. The largest island is Mahé.

Although discovered by the Portuguese explorer Vasco de Gama in the 1550’s, it was the French who established the first permanent settlement (on St. Anne Island) on 27th August 1770. Two years later this was followed by a settlement on Mahé on the site of what is now the capital city, Victoria. In 1814 the Seychelles, along with Mauritius of which it was a dependency, were ceded to Great Britain under the terms of the Treaty of Paris. The Seychelles became a British Crown Colony in 1903 before gaining full independence in 1976.

Today Seychelles is an independent sovereign republic within the British Commonwealth. It is governed by a directly elected National Assembly based on the Westminster model but with the President as its joint head of state and head of government. The legal system is a hybrid of English Common Law and the French Napoleonic Code. The judicial and legal system is peculiar to the country with no well-established precedent laws and so there can be concerns in the minds of some lenders as to the ease with which contacts can be enforced. The official languages are English and French with Creole also widely spoken.

INTERNATIONAL BUSINESS COMPANIES

The Seychelles International Business Companies Act of 1994 is and is modelled on the earlier British Virgin Islands legislation. There is little to choose between the jurisdictions although the BVI has a better reputation and established legal system. For general trading purposes, particularly in Asia, it is a useful jurisdiction but Seychelles IBCs can experience delays and problems if they try to borrow money to finance property or other assets. These problems can usually be overcome by having detailed legal opinions and undertakings prepared by AR Corporate Services but this can be costly and will limit the range of potential lenders.

The main features of the IBC are that there is no requirement to file details of directors, shareholders, mortgages or charges. There is a requirement to maintain a registered office and an authorised and licensed registered agent in the Seychelles. AR Corporate Services provides this service as standard and we also provide a mailing address service, again as standard.

TAXATION/FISCAL REGIME

IBCs pay a flat annual filing fee of US$100 upon incorporation and on each anniversary thereafter. There are substantial fines for late payment. There is domestic taxation in the Seychelles, but IBCs do not pay tax so long as they do not conduct any business within the Seychelles. There is no requirement to file financial statements, but a company must keep records to accurately reflect its financial affairs.

INCORPORATION TIMESCALE/NAMES

Suffixes such as Limited, Ltd, Incorporated, Inc, SA, GmbH or most others are permitted. Allowing for time differences, names can be checked and reserved instantly and incorporation takes place on the same day. Certain words are prohibited or subject to licensing requirements such as “Royal”, “Trust”, “Bank” and “Insurance”. Even using courier services it can take up to 2 weeks to receive documentation from the Seychelles. Because of this it is our practice to try and keep a number of “Stock” or “Shelf” companies available for instant transfer once we have received completed application forms and payment.

FEES FOR SEYCHELLES COMPANIES

We charge £450 to incorporate a Seychelles IBC. This includes the first year’s registered office and registered agent fees and all government fees. Thereafter there is an annual fee (due on the anniversary of he formation) of US$420 again including registered office, registered agent and government fees.

We can help and advise you in respect of the opening and management of bank accounts and the provision, if required, of company officers or managers.

HOW TO ORDER

Simply call us on 01952 270270 or send an email to:

ymf@arcorporatesecretaries.co.uk

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Prices are subject to change.