HomeOffshoresNavigating New Legislation in Seychelles: What Businesses Need to Know in 2025

Navigating New Legislation in Seychelles: What Businesses Need to Know in 2025

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Originally published in November 2019. Updated in November 2025 for accuracy and relevance.

Navigating New Legislation in Seychelles: What Businesses Need to Know in 2025

Seychelles has long been a preferred jurisdiction for international business due to its relatively straightforward company formation process and attractive tax regime. However, recent legislative changes in Seychelles are reshaping compliance requirements for companies, directors, and beneficial owners. This guide explains the key aspects of the new Seychelles legislation, its impact on business operations, tax optimization, and practical steps for compliance.

Key Changes in Seychelles Legislation

The New Legislation in Seychelles aligns the jurisdiction with international transparency standards and anti-money laundering regulations. Companies operating in or considering Seychelles must now comply with stricter requirements in several areas:

1. Enhanced Due Diligence

Companies will face more rigorous due diligence during incorporation and ongoing operations. This includes:

  • Providing detailed information on company activities.

  • Disclosing sources of funds and intended purposes.

  • Ensuring all corporate records are accurate and complete.

2. Beneficial Ownership Disclosure

The new legislation strengthens requirements for identifying and verifying beneficial owners:

  • Companies must maintain up-to-date registers of beneficial owners.

  • Authorities may access beneficial ownership information for regulatory purposes.

  • The definition of “beneficial owner” has been broadened to include individuals with ultimate ownership or control, even through complex corporate structures.

3. Officer Responsibilities

Directors and company officers now have heightened obligations:

  • Ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

  • Maintaining accurate corporate records and verifying ownership information.

  • Facing potential penalties for non-compliance, including fines or other enforcement actions.

4. Economic Substance Requirements

Seychelles continues to enforce economic substance obligations:

  • Companies must demonstrate physical presence, qualified personnel, and real business operations in Seychelles.

  • The new legislation may strengthen economic substance rules, making shell companies with no genuine activity non-compliant.

Impact on Tax Planning and Optimization

While Seychelles remains attractive for international business, the new legislation reduces anonymity and increases compliance obligations:

  • Reduced Anonymity: Enhanced disclosure requirements make aggressive tax avoidance more difficult.

  • Focus on Genuine Operations: Only companies with real substance and business activities can benefit from Seychelles’ tax advantages.

  • Higher Compliance Costs: Maintaining records, conducting due diligence, and professional advisory services will increase operational expenses.

Is Seychelles Still a Viable Jurisdiction?

Yes, Seychelles remains a stable and reputable international business hub, but companies must adapt to the new regulatory environment. Compliance, transparency, and economic substance are now central to successfully operating in Seychelles.

Key Considerations for Businesses:

  1. Embrace Transparency: Ensure all beneficial ownership and company information is accurate and up-to-date.

  2. Establish Substance: Demonstrate genuine business operations and maintain adequate local presence.

  3. Seek Professional Advice: Legal and tax experts are crucial for navigating the complexities of Seychelles’ new legislation and avoiding penalties.

Conclusion

The New Legislation in Seychelles represents a major shift towards international compliance and transparency. While it impacts traditional tax optimization strategies, Seychelles remains a valuable jurisdiction for businesses prioritizing:

  • Transparent operations.

  • Compliance with international standards.

  • Genuine business activities with local substance.

Companies looking to incorporate or maintain operations in Seychelles should carefully assess the legislative changes and seek expert guidance to ensure full compliance in 2025 and beyond.

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If you wish to register a company in Seychelles Republic our team will be happy to help you there and provide you with more detailed information, you can contact us at [email protected]

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New Legislation in Seychelles

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