Executive Summary
115 islands form the archipelago situated near equator outside the cyclone belt, the population of Seychelles reaches 80,000 inhabitants the most part of which lives on the main island Mahe, which contains Victoria ? the capital of Seychelles. English and French are widely used languages especially in business circles, and Creole is generally used as well.

Seychelles gained its independence from Great Britain in the middle of 1970ies and today it is a democratic republic following the presidential governing model.

Economy is based on services, mainly tourism, commerce, fishing and farming activities as well as small-manufacturing. However, it is the most highly indebted country (calculated per capita), from which only around 35% is an external debt. A high debt is determined by the overvalued exchange rate, thus being forced to make international and local borrowings.
It is the smallest country in the world having its own currency ? Seychellois Rupee (SCR).

The country is situated to the North-East of Madagascar and to the East of Kenya. It covers 444 sq km land, the main island of which, Mahe, is 25 km long and 8 km wide. The islands are of granitic and coralline characteristics.

The country has a tropical climate with minimal variation between seasons, with temperatures ranging between + 24 C and + 29 C. There is an elevated humidity, but constant winds help overcome hot temperatures. There are rainfall periods as well as some draught months, that might even cause water shortage. Seychelles has a beautiful nature rich with diversified vegetation and animal life.

Map, Flag and Coat of Arm


Types of Company

International Business Company

It is the most popular structure for offshore business in Seychelles. It usually applies the form of a company limited by shares, and the statutory obligations have a high level of flexibility.

Only one shareholder and one director are necessary to establish a company with no limitations of their nationality. Accounts do not have to be kept and do not have to be audited. There is no minimal capital required to establish a company, and its shares may be registered or bearer.

Such a company must not conduct any business on the territory of Seychelles or with any of its residents, and it must apply for a government license in case it is supposed to conduct banking, insurance or trust business.

Special License Company (CSL)
This company is permitted to conduct either international as local business activities. This company obtains a government license and has significant tax advantages. Directors can be non-residents, however a Secretary is required to be a resident of Seychelles. Bearer shares are not allowed, and in case nominees are used, beneficial owners should be disclosed with the Registrar. The company must submit annual accounts that must be audited.

Protected Cell Company (PCC)
This company is allowed to constitute its cells in order to separate and protect its owned assets. No cell has an independent legal entity structure and rights. It is an appropriate structure for insurance and collective investment business. Usually the approval of this company incorporation is limited only to these activities being conducted outside the jurisdiction.

Limited Partnership
This structure is widely used for the purposes of international joint venture business. At least one general partner, the resident of Seychelles, and at least one limited partner should form a limited partnership together. The limited partnership is supposed to have a registered office in Seychelles, but it must not carry business activities on the jurisdiction territory as a general rule with only very few an rare exceptions.

The Court and Seychelles International Business Authority regulate trust structures and business. A trust is created in a written or an oral form. The settler must be a non-resident, but at least one trustee should be a resident of Seychelles, and a trust must not have Seychelles assets as its property. The trust perpetuity is 100 years and accumulation of income is allowed. An international trust is exempt from Seychelles taxes.
Private and Public Limited liability (by guarantee, by shares or hybrid) companies are also available for incorporation and business management in Seychelles.

The tax year coincides with the calendar year. A tax return form should be submitted with the authorities up to the end of March.

There is no income tax, and the only significant and constant tax individuals are liable for is a social security tax. A resident of Seychelles is a person that spends more than 180 days on the territory of the country. If an individual (both resident and non-resident) generates income on the territory of Seychelles, he/she is liable to the Business Tax, however it is not applied in case a withholding tax or social security taxes have already been levied. Income generated from international business activities is not taxed.

As a social security tax employees pay 2.5% of the salary, but employers are liable to pay 20%. Employer pays both its own and employees tax liabilities to the authorities on a monthly basis.

Income is taxed only in case it is generated on the territory of Seychelles. There are no capital gain tax, interest, dividends, no gift, inheritance, property or estate taxes. However, there are import duties and since 2003 VAT is applicable.

Both resident and non-resident, private and corporate entities are liable to Business Tax (up to 40%) on income generated exclusively on the territory of Seychelles. A company is considered to be resident if it has been incorporated in Seychelles, if its central management is conducted from within the jurisdiction, or shareholders having the voting power are residents of the country. There are several activities and companies (such as those from the International Tax Zone) that are exempt or have privileges for the purposes of Business Tax.

Withholding tax ranges from 10% up to 40% depending on each particular case and kind of business.

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