- There present many common mistakes which might take place while registering the company in Seychelles which might be avoided if you consult Tetra Consultants. To register company in Seychelles, you will require knowledge about regulations, licenses, documentation, taxation, and more. Due to the incorporation process having several stages, individuals and business owners can be prone to making mistakes which could possibly result in an overall delay of the process or possibly even a detrimental mistake impacting the future of the business. However, our team here at Tetra Consultants with their experience in incorporation, corporate bank account opening, tax, and accounting, aims to prevent any mistakes from occurring since registering your company in Seychelles is an important stage and contributes to building a strong foundation for the business itself.
7 Mistakes to Avoid When Registering Your Company in Seychelles
With that said, in this article, we discuss 7 mistakes that might take place while registering your company in Seychelles as well as how to avoid them altogether.
Incomplete or Incorrect Documentation
- In order to prevent the application of licenses, registration from being rejected. It is vital to ensure all documentation that is required to be submitted is fully completed, has accurate information, and is addressed correctly. Examples of instances of incomplete or incorrect documentation include everything from outdated addresses to expired identification documents, incorrect company names, lack of signatures, and more.
Choosing an Appropriate Business Name
- It is vital to select a suitable business name that does not infringe on trademarks that can lead to legal complications and that it is culturally suitable. In order to prevent this, research on existing company names and the culture of the country of incorporation should be done before selecting the final business name of the company.
Inadequate Understanding of Legal and Regulatory Requirements
- Registering your company in Seychelles will involve dealing with lots of local regulations and legal matters. As a result, it is vital to have a basic understanding of certain Acts and governing bodies in order to stay compliant with the regulations. Some examples of Acts and governing bodies in Seychelles are:
- Companies Act: The Companies Act is the primary legislation governing the establishment and operation of companies in Seychelles. It states the requirements for companies when dealing with matters such as company registration, corporate governance, shareholder rights, and other key aspects of company law.
- International Business Companies Act (IBCA): The International Business Companies Act provides a legal structure for the process of company incorporation and operational matters for international businesses in Seychelles. The International Business Companies Act (IBCA) states the requirements for these companies to comply with and the benefits achieved through participation in international trade and investment.
- Financial Intelligence Unit (FIU): The FIU is responsible for the enforcement and implementation of anti-money laundering (AML) and counter-terrorist financing (CTF) measures in Seychelles. It lays out the specific guidelines and regulations that companies have to comply with, especially those in the financial sector.
- Registrar of Companies: The Registrar of Companies is the government authority responsible for the registration and regulation of companies in Seychelles. It oversees the incorporation process, maintains the company registry, and enforces compliance with relevant legislation.
- Financial Services Authority (FSA): The Seychelles Financial Services Authority (FSA) is the regulatory body overseeing the financial services sector in Seychelles. It is a regulatory body in charge of ensuring that companies are compliant with financial laws and regulations, including licensing requirements for certain financial activities and maintaining financial stability.
- Seychelles Revenue Commission (SRC): The Seychelles Revenue Commission (SRC) is responsible for administering tax laws and collecting taxes in Seychelles. It sets out tax requirements, including corporate income tax, value-added tax (VAT), and other tax obligations that companies must comply with.
- Data Protection Act: The Data Protection Act establishes the regulations involved with the processing and use of personal data in Seychelles. It outlines the rights and responsibilities of data controllers and data subjects, data transfer regulations, and requirements for data security and confidentiality.
- Seychelles Investment Board (SIB): The Seychelles Investment Board (SIB) promotes and regulates investment activities in Seychelles. It provides guidance and assistance to investors, ensures compliance with investment regulations, and grants investment approvals for certain projects.
Lack of Clear Corporate Structure
- Having a clear corporate structure is vital in ensuring the success of a business. It impacts decision-making processes, investor confidence, liability issues, ownership matters, and more. A clear corporate structure should be done during the initial stages of incorporation and involves defining the roles and responsibilities of each stakeholder, outlining decision-making processes in the company, and documenting ownership percentages and voting rights. The document containing the details of the corporate structure should be accurate, updated, and aligned with the Seychelle’s legal requirements.
Neglecting Annual Compliance Regulations
- When registering your business in Seychelles is completed, the company must fulfill annual compliance matters if they wish to continue operating. Failure to comply with these annual compliance requirements may result in severe consequences for the business. Examples of these consequences include financial penalties, legal consequences, loss of good standing with regulatory authorities, deregistration, inability to access financing or credit, difficulty forming contracts or business relationships, and more.
- Some general annual compliance regulations required for a company incorporated in Seychelles are:
- Annual Returns: Every company registered in Seychelles must file an annual return with the Registrar of Companies. The annual return filing will include up-to-date information on the company’s registered office address, details of directors and shareholders, and share capital. The annual return must be filed within 30 days of the anniversary of the company’s incorporation.
- Financial Statements: Seychelles companies are generally required to prepare and submit financial statements annually. The specific reporting requirements depend on the size and type of the company. Small companies may be exempt from certain reporting obligations, while larger companies may need to comply with more comprehensive financial reporting standards.
- Annual General Meeting (AGM): Unless exempted, companies incorporated in Seychelles are required to hold an AGM each year. The AGM provides an opportunity for shareholders to discuss company matters, review financial statements, appoint or reappoint directors, and make important decisions. The timing and requirements for holding an AGM are outlined in the company’s articles of association.
- Record-Keeping: Companies in Seychelles are required to maintain proper accounting records, as well as keep records of all financial transactions, invoices, and bank statements. The retention period for accounting records is generally seven years.
- Tax Obligations: Companies operating in Seychelles have tax obligations depending on the type of business structure they incorporated as. The actions required involve the submission of annual tax returns, payment of corporate tax, and other taxes such as VAT taxes if applicable.
- Renewal of Licences and Permits: Depending on the nature of the business and the industry it is in, companies may have to renew their business license annually to keep operating. This applies to certain regulated industries or specific activities that require licensing, such as financial services, tourism, or specialized trades.
- Compliance with Employment Laws: Companies must comply with employment laws and regulations in Seychelles, including annual obligations related to employee contracts, payroll taxes, social security contributions, and other employment-related requirements.
Conclusion
- In conclusion, it is vital to be aware of the regulations involved during registering your company in Seychelles as well as after your incorporation has been completed. This is to prevent the occurrence of any delays, or negative consequences on the business itself. Aside from ensuring complete, accurate documentation is submitted to government authorities and regulatory bodies, companies should also be aware of the accounting and tax obligations that they are required to comply with.
- Contact us to know more about company registration in Seychelles and our team will revert within 24 hours. Our team here at Tetra Consultants well experienced in the fields of offshore company incorporation, corporate bank account opening, nominee director services as well assisting with the process of applying for various.
