Those interested in setting up business operations at a large scale can open holding companies in Seychelles by respecting the Company Law. Foreign investors coming to Seychelles can set up various types of companies, with the offshore being the most employed business entity in this country. Foreign investors can open holding companies in Seychelles by respecting the Company Law. Below, our agents for setting up a company in Seychelles explain how to create a holding and the benefits of running such a business in the insular state.
| Quick Facts | |
|---|---|
| Legal entities used | Seychelles International Business Company (IBC) |
|
Incorporation method |
– the company's constitutive documents mentioning the purpose of the company; – no minimum paid-up capital; – a government license fee; – a registered agent and address are mandatory |
|
Incorporation time |
1-2 business days |
| Advantages |
– no income and business tax for holding activities outside of Seychelles; – full foreign ownership; -the registers are not public; – holding companies can be re-domiciled to Seychelles |
| Precautions |
FATCA (Foreign Account Tax Compliance Act) signed between Seychelles and the US and other international exchange of information agreements are in force. |
| Shareholding structure |
The holding company can own a controlling interest in several business units incorporated in other jurisdicions (subsidiaries) |
| Minimum Capital |
– |
| Taxation | No tax for non-Seychelles income |
| Control | Foreign |
| Accounting and Reporting |
– minimum accounting records to be kept; – no reporting or annual filing when business is conducted outside of Seychelles |
| Number of double taxation treaties | 28 |
Table of Contents
Legal forms under which a Seychelles holding company can operate
Onshore and offshore companies are governed by different laws in Seychelles. This is why a holding company can take various forms, including that of an offshore company when seeking to own assets in other enterprises conducting operations outside Seychelles.
Here are the main legal entities under which a holding can be registered in Seychelles:
- the International Business Corporation (IBC company);
- the anonymous company;
- the special license company (CSL);
- the proprietary company (limited liability company).
In most cases, the limited liability company is preferred to create a holding company in Seychelles as it enables full foreign ownership including for foreign enterprises seeking to open other subsidiaries.
If you want to open a company in Seychelles, our local specialists are at your service with tailored advice, including for the creation of a holding.
Steps to open a holding company in Seychelles
Foreign investors who want to open holding companies in this country need to respect the same regulations applicable to domestic enterprises. They also need to complete the same steps which imply:
- drafting the incorporation papers (Memorandum and Articles of Association);
- reserving a company name;
- securing a registered address for the company;
- filing the papers with the Seychelles Public Register;
- registering for taxation with the Seychelles Tax Authority.
When it comes to the documents to be filed with the Trade Register, the following need to be carefully prepared:
- – the personal identification papers of the shareholder;
- – the personal identification papers of the directors;
- – a business plan.
In terms of registered addresses, a virtual office can be a good starting point until the company finds a suitable location for its headquarters.
The opening of a holding company in Seychelles also implies setting up a bank account with a local financial institution.
The procedure of creating such an enterprise can be entirely overseen by our company registration consultants in Seychelles.
The main characteristics of a holding company
Generally speaking, a holding company will complete activities that are strictly related to ownership of various assets in other entities, called subsidiaries. Seychelles does not have a special regime for holdings, which is why setting up such an entity will follow the same regulations as for any other company.
The main features that should be considered when deciding to open a holding in Seychelles are:
- it can own and dispose of assets held in its subsidiary/subsidiaries;
- it can have one or more subsidiaries in Seychelles and outside it;
- it controls its subsidiaries, however, it cannot make management decisions;
- it can use the resources of its subsidiaries for various purposes.
The holding company can be the main shareholder in its subsidiaries. However, it can also be a participant alongside other holding enterprises. It is also possible for the holding itself to be a subsidiary of another business.
A Seychelles holding can own assets like real estate, intellectual property, and movable property. So, setting up such an enterprise comes with several advantages.
Seychelles is a popular jurisdiction for establishing offshore entities, including holding companies. If you decide to open an offshore company in Seychelles and need assistance, you can rely on our local representatives.
A Seychelles offshore company benefits from numerous tax exemptions. Tax deductions are also available as per the double tax treaties signed by the authorities of the country.
Tax agreements have been signed with countries such as: Luxembourg, Malaysia, Sweden, Norway, Cyprus, Monaco, Indonesia, etc. Please mind that if you will hire employees, you will need to pay employment taxes.
Types of holding companies
Investors can open multiple types of holding companies in Seychelles, depending on their business objectives. The main types of holding companies are the following:
- Pure holding company – it is possible to set up this type of holding company in Seychelles, which is suitable for international investors looking to manage their assets and investments. A pure holding company can be established to hold shares in other companies without engaging in any business activities of its own. It is one of the most commonly used types of companies for Seychelles offshore holdings;
- Mixed holding company – this type of holding company can operate its businesses while holding interests in other entities. It is recommended for companies that want to engage in both active business and investment activities. Our specialists in company formation in Seychelles can assist investors interested in this type of holding company;
- Immediate holding company – a more complex type of holding company in Seychelles that can own shares in another company controlled by a third party;
- Intermediate holding company – this type is suitable for larger corporate structures that wish to control smaller subsidiaries through intermediate holding companies in Seychelles.
All types of holding companies have different advantages. Our specialists in company incorporation in Seychelles can further explain each other’s characteristics if you are interested.
Why open a holding company in Seychelles
There are multiple reasons why investors should set up a holding company in Seychelles, thanks to the jurisdiction’s favorable tax and legal regimes.
Investors can receive dividends from subsidiaries and reinvest the profits or distribute them to shareholders in a tax-efficient manner. Therefore, the holding company in Seychelles is a strategic financial management decision.
Another key advantage of establishing a holding company in Seychelles is that the debts and obligations of individual subsidiaries do not extend to the holding company or its other subsidiaries. This allows investors to manage their risks and protect their overall corporate structure.
Lastly, opening a company in Seychelles is also a straightforward procedure, accessible for international entrepreneurs and investors. There is no requirement for a minimum capital investment and the jurisdiction allows for various types of company structures, including a Seychelles IBC and holding companies.
Seychelles’ economic development
Seychelles is one of the most performant economies in the African region, as statistics indicate its Gross Domestic Product (GDP) reached 16.7 billion USD in 2023. Other significant data includes:
- The tourism sector accounts for 46.2% of GDP and 42% of exports;
- Tourist arrivals increased by 5.7% in 2023 compared to 2022;
- The construction sector also grew by 7%, driven by new hotel and resort projects, compared to 2022;
- There was also an impressive increase in the telecommunications sector, which grew by 15% compared to 2022.
Our team can explain more about the advantages of offshore companies in Seychelles and how to incorporate them.
If you want to set up a holding company in Seychelles and need assistance, do not hesitate to contact our local agents.