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.
How to set up a branch in Seychelles in 2021
The main rules of establishing a branch in Seychelles in 2021 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 2021
At the level of 2021, 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 in 2021.
FAQ on branch offices in Seychelles
- Is it hard to register a branch in Seychelles?
No, the registration process is quite simple as long as the parent company has all the documents in place.
- How long does it take to register a branch in Seychelles?
It takes around 4 weeks to have the branch office up and running.
- Must the representative of the company be a Seychelles resident?
In fact, both branch representatives must be Seychelles residents.
- How are Seychelles branch offices taxed?
Branch offices are imposed with the corporate tax of 33%.
- Do I need to travel to Seychelles if I want to open a branch?
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.
- Are there any share capital requirements for a Seychelles branch office?
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.