Companies registered in the Seychelles have a flexible structure as with most offshore jurisdictions, with no minimum or maximum capital requirements and a minimum of just one director and one shareholder (one person can be both, meaning a company can be set-up and ran by just one person). Another option which can be exercised is one that can often cause confusion in that the sole director can be another corporate entity. So the owner and director can be another local or international company which if it is another Seychelles company, could potentially be owned by another corporate entity and so on, and so on.
Unlike in the UK, Seychelles registered companies are not required to submit annual accounts or hold AGM's (Annual General Meetings) and should they opt to hold an AGM anyway, it can be done anywhere and by any means. In fact, almost all of the general administrative duties associated with running a company became optional and unsupervised. However, while the fees for the incorporation of the company are higher than the amount required to register a UK company, the tax benefits will soon make the original start-up costs pale in comparison. In contrast to the UK, there are annual renewal fees that come in the form of the registered address required in order to own a Seychelles based company, government fees and where necessary the nominee service charges.
Just because you register a company in the Seychelles does not mean that you are required to bank within the jurisdiction. However, it is generally a good idea to do so as not only does it further verify the credibility of your organization having both it registration and bank in one location but would also bode well for you or the company if ever you wish to further your activities on the island – such as sourcing investment from residents and / or banks etc. The local banks also offer a strict privacy system protecting any earnings from both local and international authorities unless they have reason to suspect criminal activities. So whilst the option is there to bank elsewhere the majority of new corporations opt to bank with one of the many secure banks on the island.
As with other International Business Companies registered in offshore jurisdictions, there are certain restrictions for a Seychelles company incorporation . The first is that they are unable to do business with individuals and companies based in the Seychelles or own property within the Seychelles, although they are able to own other Seychelles companies. They are also unable to operate as an insurance company or investment trusts without the appropriate licenses although these licenses are significantly easier and cheaper to obtain than in the UK or USA. Whilst they can not sell to locals, they are able to use local businesses such as lawyers and accountants. Whilst companies are unable to own property, a strange feature is that they can own boats and other vessels that are registered and located on the island.
The company formation itself can be quite quick and painless if appropriate advice is obtained and can often be completed within 5 working days, under the name of your choice. To be able to incorporate a company in the Seychelles, you are required to have a registered address on the island.