Seychelles economic substance requirements in 2024

In January 2019, the Seychelles government passed new Economic Substance Requirements (ESRs) for companies registered in the country. However, the government has yet to enforce the rules on local companies, and in February 2020 the country was added to the European Union’s tax non-cooperative jurisdictions list.

• ESR rules

  • From January 2020, tax-resident Seychelles LLCs must supply to the government evidence they have a physical office, staff and active directors in the Seychelles.
  • Non-resident Seychelles LLCs must also annually supply the government evidence the entity is tax-resident overseas including i) foreign tax registration numbers and ii) foreign tax returns.
  • ESRs apply to Seychelles LLCs that are i) trading companies (distribution and services centres) ii) holding companies iii) fund management companies iv) financing and leasing companies v) IP holding and licensing companies vi) shipping companies, and vii) banking and insurance companies.

• Problems and solutions

  Healy Consultants Group will help multi-national Clients as follows:

  New legal requirement	Simple, practical low cost solution
  Seychelles companies engaged in relevant activities must i) conduct income-generating activities in the Seychelles ii) rent physical office space in the Seychelles iii) hire staff in the Seychelles and iv) have active directors in the Seychelles.	Healy Consultants Group will assist you to: Locate a small shared physical office space in the Seychelles for a one-time fee of US$950. Rental fees are then paid by our Clients directly to the landlord. Recruit a local, low-salary admin employee for a one-time fee of US$4,950. Secure your local visa for a one-time fee of US$4,950.
  In February 2020 the Seychelles was added to the European Union’s non-cooperative jurisdictions list for its failure to enforce ESRs on local companies. As a result, in 2020 and 2021 i) there is a 50% probability that the Seychelles will continue to be blacklisted by the EU or other western governments and ii) it will become even more challenging to secure and maintain multicurrency corporate bank account numbers for Seychelles LLCs.	We help our Client re-domicile the Seychelles entity to alternative reputable zero tax jurisdictions, including Singapore or Delaware.

• Conclusion

  As a short-term solution, engage Healy Consultants Group to register your Seychelles company for tax, and complete its international accounting and tax filing obligations.

  As a long term solution, engage Healy Consultants Group to re-domicile your Seychelles company or register a new company in a reputable zero tax country.