Seychelles is one of the most appealing offshore destinations in the world which makes many foreign citizens come and set up IBC companies here. However, Seychelles is also an onshore destination in which other businesses can be created, and as such, the local legislation must be respected.
Natural persons and companies failing to comply with certain regulations or pay their debts can be subject to procedures of debt recovery in Seychelles, just like in other jurisdictions.
Our agents in Seychelles explain below how debts are recovered in the insular state. We can help in debt collection matters, but we can also assist those who want to set up offshore companies in Seychelles.
Legislation on debt collection in Seychelles
The main law which provides for debt collection in Seychelles is the Courts Law which dates back in 1968. There are two ways of recovering a debt arisen in Seychelles: the amicable procedure and the court proceedings which are regulated by the Courts Act.
A reasonable period of time is considered before commencing the debt collection process in Seychelles. Also, in the case of commercial claims, specific procedures can be used considering these are usually insured.
In most cases, the amicable debt recovery procedure is the one to render quick and reasonable outcomes.
If you need help in debt collection procedures in Seychelles, you can ask for the support of our local consultants. We can also help with the company formation procedure in Seychelles.
Amicable debt collection in Seychelles
There are several steps to complete when dealing with debt recovery in Seychelles. The amicable procedure implies the following steps:
- – acknowledgement of the debt, a situation which can be brought to the attention of the debtor by the creditor;
- – all documents attesting to the debt must be sent to the debtor (invoices, contracts, unpaid bills);
- – an agreement for the payment of the debt is usually reached by the creditor and the debtor;
- – a new contract can be signed by the parties and the debtor can start to pay the outstanding amount of money;
- – the amicable debt collection procedure can be completed by the creditor, by a debt collection agency or a law firm.
In most situations, the amicable debt collection between Seychelles companies and debtors does not require the involvement of a third-party, such as a law firm or agency. However, you should know that you can rely on us if you need assistance in out-of-court debt collection in Seychelles.
You can also rely on us if you are interested in company registration in Seychelles.
Court debt collection proceedings in Seychelles
It is useful to know that court proceedings related to recovering a debt in Seychelles are usually started when any amicable means have failed. The creditor, who can be a natural person or company in Seychelles, can ask for legal support and file a claim with a Seychelles court.
The court debt collection procedure in Seychelles will imply:
- filing a claim or a petition for debt recovery with the Seychelles court in the creditor’s jurisdiction;
- all evidence connected to the failure of paying the debt must be lodged with the court;
- the Seychelles court will issue a summon order for the debtor to respond to the accusations;
- the debtor will also be given the opportunity to defend their situation by filing evidence in this sense;
- based on the evidence and hearings, the judge will decide for the payment of the debt or clearing of the debtor;
- the first instance court’s decision can be appealed with a higher court by any of the parties.
The debt recovery procedure through court proceedings in Seychelles is usually lengthier, which is why is seldom used. Plus, both the debtor and the creditor will need support from a lawyer.
Our local consultants are acquainted with the Seychelles legislation which covers matters related to debt recovery, should you need any advice.
What to consider when dealing with debt collection in Seychelles
Debt collection is a serious matter for both the Seychelles creditor and the debtor. Most of the times, both the creditor and debtor are Seychelles companies which use arbitration and mediation to settle their legal issues, including those related to debts.
The amicable debt collection procedure is also often used in Seychelles, leaving a court to decide only in cases in which the debtor fails to respond any attempt to an amicable recovery.
If you need help in debt collection in Seychelles, do not hesitate to contact us. We can also help those interested in Seychelles company formation, no matter if it is an onshore or offshore company you decide for.