Besides anonymous offshores or IBCs (International Business Company) which are suitable for investors, foreign companies can establish branches of foreign companies. These are legal business entities for which the parent companies are fully reliable for the registered profits and losses. The company formation in Seychelles is less restrictive and has fewer formalities, but for complete support at the time of registration, you may ask our specialists in company formation in Seychelles.
| Quick Facts | |
|---|---|
| How branches work |
Branches in Seychelles operate as extensions of a foreign company. They are not considered separate legal entities, but rather an integral part of the parent-company. |
|
Physical presence required for incorporation (YES/NO) |
No, our company formation specialists can handle the entire incorporation process on your behalf. |
|
Minimum capital required |
None |
| Differences from a subsidiary |
– different types of entities, – the parent-company’s liability is limited to its investment in the subsidiary, – the subsidiary’s operations and decisions are independent from the parent company |
| Minimum shareholders |
1 |
| Can it hire employees? |
Yes |
| Accounting |
Report the financial transactions and activities of the branch as part of the parent-company’s financial statements. |
| Documents required to open a branch in Seychelles |
– business address and share capital of the parent-company, – Memorandum and Articles of Association, – director information, etc. |
| Liability |
The liability of the branch is essentially an extension of the parent-company’s liability. |
| Incorporation time (approx.) | 4 weeks |
| Representative required (YES/NO) |
Yes, you need to appoint at least 2 representatives. |
| Taxation of branches |
corporate income tax (33%) |
| Number of double taxation treaties signed by Seychelles (approx.) |
22 |
| Advantages of opening a branch in Seychelles |
– fast and easy registration, – simple procedure, – no share capital required, – low taxes, – no physical presence required |
| Assistance | We can help you with company incorporation in Seychelles, including establishing a branch in the country. |
How to set up a branch in Seychelles in 2023
The main rules of establishing a branch in Seychelles in 2023 are the same as for any kind of non-resident companies in any state. The parent documents are necessary at the time or branch registration in this jurisdiction, and furthermore, a local representative must be appointed. Entrepreneurs should consider the following conditions when opening a branch in Seychelles:
- offer complete details about the parent company such as the business address, the share capital;
- the parent company’s memorandum and articles of association must also be filed with the Trade Register in Seychelles;
- information about the parent company’s directors and the appointment of 2 local representatives of the parent company in Seychelles (a power of attorney for the representative is required in this case);
- information about the branch office – its registered address in Seychelles and the schedule.
All the documents of the company must be translated into the English language and then notarized. We can offer comprehensive support and guidelines for foreigners who want to register a company in Seychelles, including branches.
How branches work in Seychelles
Branches are normally subject to lower expenses and are seen as permanent establishments from a taxation point of few, remembering the fact that such entities are not considered separate legal structures. Likewise, branches in Seychelles must obtain approvals from the parent company for all the operations in the insular state.
As for the annual financial statements of a branch in Seychelles, these must be submitted to the Trade Register, alongside with the ones of the parent company. It is good to know that branches are considered reasonable entities which present low risks and have fewer obligations compared to separate legal entities.
Why open a Seychelles branch office in 2023
At the level of 2023, the branch office is ideal for foreign companies who seek to have an established presence in Seychelles without registering a new company.
The Seychelles branch office is also a more suitable option than the representative office which cannot undertake any type of commercial activity.
From an accounting point of view, the branch office is a Seychelles resident company only if it is managed from an office located in the insular state, a regulation that is required in 2023.
Please mind that if you want to open a branch office in Seychelles in 2023 you must apply for a license provided that the entity is set up by a financial institution operating abroad. Although the entity is a subdivision of the parent company, it must have a bank account opened at a local bank in Seychelles.
If you will start the procedure in 2023, you can obtain a corporate bank account in a period of 3 weeks.
The video below presents the steps for opening a branch in Seychelles:
FAQ on branch offices in Seychelles
No, the registration process is quite simple as long as the parent company has all the documents in place.
It takes around 4 weeks to have the branch office up and running.
In fact, both branch representatives must be Seychelles residents.
Branch offices are imposed with the corporate tax of 33%.
No, the registration process of the branch office can be completed remotely through a power of attorney granted to our company formation representatives in Seychelles.
No, there are no such requirements related to the opening of a branch office in Seychelles.
If you want to know more details about how branches are established in Seychelles or about the company registration in Seychelles, please feel free to contact our team of consultants at any time.