Seychelles is a popular jurisdiction for starting an international business and doing business in Seychelles, regularly updates and improves legislation to meet international standards and requirements.
In 2024, several key changes were adopted that can significantly affect the activities of companies operating in this jurisdiction. It is important to pay attention to these innovations to ensure full compliance and avoid fines.
Periodic review of beneficial ownership
On 1 October 2024, an important change in the legislation regarding the periodic review of beneficial owners of Seychelles companies will come into force. According to the amendments, every legal entity incorporated in Seychelles must verify and update its beneficial ownership information at least once a year. In accordance with these requirements, all companies must ensure that their details in the register of beneficial owners are up-to-date and accurate.
Key Points:
Annual Review: Legal entities must verify and update the information on beneficial owners at least once a year.
Timeframe for submitting the Declaration: After completing the verification, companies must submit a Declaration of Compliance to the registration agent no later than one month after the anniversary of the company's registration.
Get started on the verification now: For companies incorporated between October 1 and December 31, 2024, the beneficial ownership verification requirement does not apply, however, from January 1, 2025, it will become mandatory for all Seychelles companies.
Failure to comply with this requirement may result in severe sanctions from the Seychelles Financial Services Authority (FSA), so Maira Consult recommends that you carefully monitor these deadlines. If necessary, we can help you open an offshore company in the Seychelles.
The Virtual Asset Service Providers (VASP) Act
On September 1, 2024, the new Virtual Asset Service Providers (VASP) Act came into force. This is an important change as it regulates the activities of companies that deal with virtual assets, including services such as virtual asset wallets, exchanges, brokerage and investment services.
Key Points:
Register by December 31, 2024: All existing virtual asset service providers operating as International Business Companies (IBCs) in Seychelles must apply for registration by the end of 2024. This is necessary to continue their operations in Seychelles.
Inclusion in the register of authorized VASP providers will allow your company to operate in accordance with the new requirements, including obtaining a license to provide virtual asset services.
Important! If your company is engaged in any virtual asset-related activities, please check if it is subject to the new requirements and contact us to apply for the appropriate application.
Temporary suspension of TIN issuance for banking purposes
The Seychelles tax legislation has also undergone changes: the issuance of a Taxpayer Identification Number (TIN) for international business companies (IBCs) that use this number for banking purposes only has been temporarily suspended. Instead, an offshore company in Seychelles can obtain a Tax Residence Certificate to perform banking operations.
Key Points:
The issuance of TINs for banking purposes only has been suspended.
A Certificate of Tax Residence is issued, which is an alternative for banking operations.
If you need this information for banking purposes, please contact us and we will help you obtain the relevant documents or open company in Seychelles.
How do these changes affect your business?
The above changes can significantly affect companies registered in Seychelles. It is important to verify beneficial ownership data in a timely manner, comply with the requirements for registration of virtual asset service providers and adapt to the new tax environment. Offshore registration in Seychelles must be in line with the new realities.
We advise all our clients to check the compliance of their business with the new requirements and, if necessary, contact us for advice and assistance in meeting these requirements. An offshore company in the Seychelles that complies with the new rules will help you avoid fines and ensure stable operations.
Maira Consult - we provide a full range of legal services in Seychelles, including assistance with compliance with the new legal requirements. If you have any questions or need any assistance, please do not hesitate to contact us!
