Setting Up a Company in Seychelles: Offshore IBC Formation, Costs and Tax Advantages

Setting up a company in Seychelles remains one of the lowest-cost offshore options in 2026: 0% corporate tax on foreign-sourced income, a flat annual government fee that does not depend on share capital, and registration completed within 1–3 business days. The Seychelles International Business Company (IBC) is used by e-commerce sellers, consultancies, software and digital-service businesses, holding structures and IP-owning companies run by entrepreneurs who trade internationally. There is no need to travel to Seychelles, no minimum paid-up capital and no local partner requirement; one shareholder and one director are enough, and they can be the same person.

Alongside those advantages, the rules have tightened since 2020: beneficial-owner reporting, accounting records that must be lodged in Seychelles twice a year, automatic striking-off on day 181 if the annual fee is unpaid, and controlled-foreign-company (CFC) taxation for owners resident in Turkey and many other countries. This guide covers the legal framework of the Seychelles IBC, the step-by-step incorporation process, the real cost items, the bank-account reality and the tax warnings owners should not skip, based on circulars of the Seychelles Financial Services Authority (FSA) and primary legislation.

What Is a Seychelles IBC? The Legal Framework of the Offshore Company

A Seychelles IBC (International Business Company) is a limited-liability company incorporated under the International Business Companies Act 2016 and designed to carry on business outside Seychelles. Seychelles entered the offshore market with its first IBC Act in 1994; the law was rewritten in 2016 and aligned with OECD and FATF standards through the 2024 and 2025 amendments. Today Seychelles is not on the FATF grey list and, as of 17 February 2026, has been removed from Annex II (the "grey list") of the EU list of non-cooperative jurisdictions for tax purposes.

An IBC can only be incorporated through a licensed registered agent; the FSA does not accept applications directly from foreign founders. The company must at all times have a licensed registered agent and a registered office address in Seychelles.

What an IBC can do

• Carry on any lawful business outside Seychelles (trading, consulting, e-commerce, software, holding)
• Open bank accounts anywhere in the world and transact in multiple currencies
• Hold shares in other companies, real estate abroad and intellectual property rights
• Work with lawyers, accountants and the registered agent in Seychelles and hold board meetings there

What an IBC cannot do

• Trade with persons or companies resident in Seychelles
• Own real estate in Seychelles
• Carry on banking, insurance, fund management or securities business without a special licence
• Issue bearer shares (registered shares only)

IBC or CSL? Seychelles also offers the Company Special Licence (CSL), which pays 1.5% business tax but can access double-tax treaties. For the vast majority of international trading and holding companies the right vehicle is the IBC; a CSL only makes sense where treaty benefits are essential.

Advantages of Setting Up a Company in Seychelles

0% tax on foreign income. Seychelles applies a territorial tax system: an IBC pays no corporate tax, capital-gains tax, dividend withholding tax, interest or royalty withholding on income earned outside Seychelles. There is no stamp duty on share transfers. Only Seychelles-sourced income is taxable.

Flat, low government fees. Under the FSA's published fee schedule the IBC registration fee is USD 130 and the annual fee USD 140, whether the authorised capital is USD 1,000 or USD 10 million. In the BVI and the Cayman Islands fees rise with the capital band.

Fast incorporation. With a complete file, FSA registration is usually completed within 24 hours; the company kit and apostilled documents are ready within 1–3 business days. No travel to Seychelles is required.

Privacy. The names of directors, shareholders and beneficial owners do not appear on any public register. They are held by the registered agent, and beneficial-owner data is filed with the non-public database of the Seychelles Financial Intelligence Unit (FIU), accessible only to competent authorities.

Minimal corporate burden. No annual audit, no mandatory company secretary, no minimum capital; shareholder meetings can be held in any country or online, and capital can be denominated in any currency.

Flexible use cases. Seychelles IBCs are most often used for:

• Consulting, software and digital-agency businesses invoicing clients abroad
• E-commerce operations selling on Amazon, Shopify and global marketplaces
• Holding structures that own an operating company in Hong Kong, Dubai or Estonia
• Ownership and licensing of intellectual property (trademarks, software, licences)
• Asset-protection vehicles consolidating real-estate and portfolio investments

How to Set Up a Company in Seychelles: Step by Step

The process runs through the registered agent and, with a complete file, the company kit is in your hands in 3–5 business days on average. The bank account is a separate process and takes an additional 2–8 weeks.

1. Structure and activity analysis: Your business model (trading, services, holding, IP), client geography and banking needs are assessed. Whether Seychelles will be used standalone or as a holding layer is decided at this stage.
2. Company name reservation: Three alternative names are proposed and checked against the FSA register. The name must end with a limited-liability suffix such as "Ltd", "Limited", "Inc", "Corp" or "S.A.". Words such as "Bank", "Insurance", "Trust", "Fund" or "Royal" require special approval.
3. KYC and due diligence: Passport, proof of address and a source-of-funds declaration are collected for every shareholder, director and beneficial owner holding more than 25%. The registered agent is legally obliged to carry out these checks; incomplete KYC is the most common cause of delay.
4. Drafting the incorporation documents: Memorandum and Articles of Association, the resolution appointing the first director, the share-allotment resolution and the beneficial-owner declaration are prepared and signed by the subscribers.
5. Filing with the FSA: The registered agent submits the file to the Registrar and pays the registration fee. The Certificate of Incorporation is normally issued within 24 hours.
6. Setting up the statutory registers: The register of directors, register of members and register of beneficial owners are kept at the registered office; beneficial-owner data is uploaded to the FIU database via the agent.
7. Delivery of the company kit: Certificate of Incorporation, M&A, share certificates, first resolutions and, on request, an apostilled set are couriered to your address. Banks almost always require the apostilled set.
8. Bank account and payment infrastructure: The application to a bank or electronic money institution (EMI) is filed with the company kit and business plan. See the bank-account section below.

Preparing a notarised and apostilled passport copy, a proof of address issued within the last 3 months and English-language (or sworn-translated) documents in advance speeds up the process considerably.

Documents Required for Seychelles Company Formation

Documents fall into three groups: personal KYC documents, corporate-shareholder documents and the post-incorporation company kit. Because the registered agent must identify every beneficial owner under the Beneficial Ownership Act 2020, this list is not negotiable.

The post-incorporation company kit includes the Certificate of Incorporation, Memorandum & Articles of Association, resolutions appointing directors and allotting shares, share certificates, the register of directors, register of members and register of beneficial owners and, on request, an apostilled set together with a Certificate of Incumbency.

Seychelles Company Formation Cost 2026 and Annual Obligations

In 2026 the cost of setting up a company in Seychelles is USD 950–2,500 for the first year and USD 850–1,500 for renewal in subsequent years. Government fees are a small part of that figure; the main items are the registered agent, registered office and compliance services. You will see packages advertised from USD 439; they usually exclude the apostille, courier, beneficial-owner filing and accounting-record custody, and the real first-year total ends up roughly double.

Annual compliance calendar

• Incorporation anniversary: The annual government fee and agent renewal are paid. The FSA applies late-payment penalties.
• Day 181: Under the IBC (Amendment) Act 2024 and FSA Circular No. 2 of 2025, a company whose annual fee is still unpaid 180 days after the due date is struck off and dissolved on day 181. The old year-end waiting period has been abolished; restoration is possible within 5 years and costs upwards of USD 500 on top of arrears.
• July: Accounting records (bank statements, invoices, contracts) for January–June are lodged at the registered office in Seychelles.
• January: Accounting records for July–December are lodged.
• 6 months after financial year-end: IBCs other than small holding companies prepare a financial summary and keep it at the registered office.
• 21 days: Under the 2025 amendment, where a nominee shareholder is used, the nominator (the real owner) must be declared within 21 days.
• 7 years: All accounting records are retained for 7 years from the transaction date.

Failure to keep accounting records can cost the company up to USD 10,000 in penalties and puts the registered agent's licence at risk, which is why reputable agents stop working with clients who do not deliver their records.

Opening a Bank Account for a Seychelles Company

Opening a bank account is the step that takes longer than incorporation itself and is rejected most often. Local banks in Seychelles do not, in practice, open accounts for IBCs; the account is opened in a third country or with an electronic money institution (EMI). A realistic expectation for a standalone Seychelles IBC is 4–8 weeks at a traditional bank and 1–3 weeks at an EMI, and both will want evidence of genuine operations: client contracts, invoicing history, a website and the director's country of residence. You can review the broader options on our offshore bank account page.

What the bank will ask for: Apostilled company kit, Certificate of Incumbency (issued within the last 3 months), passports and proof of address of directors and beneficial owners, source-of-funds documents, a business plan, the first client or supplier contracts, a website and the expected monthly transaction volume.

Three factors that raise the acceptance rate: documented activity (real invoices, real clients), a link between the director and the country where the account is opened, and no nominee arrangements. Banks place Seychelles companies with nominee directors in the high-risk category and often require the beneficial owner to be the director personally.

Tax and Legal Warnings for Owners Resident Abroad

Owning a Seychelles company is legal in Turkey and in almost every other country; what is illegal is failing to declare the income at home. If the owner is tax-resident in Turkey, the following four rules apply, and most OECD countries have close equivalents. Reviewing them with a tax adviser before incorporation determines whether the structure delivers any advantage at all.

1. Controlled foreign company (CFC) rules – Turkish Corporate Tax Law art. 7

A foreign company in which Turkish-resident owners hold, directly or indirectly, at least 50% of the capital, dividend rights or voting rights is treated as a controlled foreign company, and its profit is taxed in Turkey even if not distributed, when all three of the following conditions are met:

• 25% or more of the foreign company's gross revenue consists of passive income such as interest, dividends, rent, licence fees or gains on securities
• The effective tax burden in the company's home jurisdiction is below 10% (0% for a Seychelles IBC, so this condition is always met)
• The company's annual gross revenue exceeds the foreign-currency equivalent of TRY 100,000

In practice: a Seychelles holding or IP company with mainly passive income is almost certainly a CFC for a Turkish-resident owner. An IBC earning active trading and service income stays outside the CFC regime as long as passive income remains below 25% of revenue, but dividends are still taxable in Turkey when distributed.

2. Place of effective management

If every decision is taken from an office in Istanbul, the director lives in Turkey and the bank account is operated from Turkey, the Turkish Revenue Administration can argue that the company's place of management is in Turkey and tax the IBC as a fully resident company. A nominee director does not remove this risk; a general power of attorney can be treated as written evidence that effective management is in Turkey.

3. Automatic exchange of information (CRS)

Seychelles is a participant in the OECD Common Reporting Standard. If the country where the IBC holds its account is also a CRS participant (including Mauritius, the UAE, Hong Kong, Switzerland and all EU member states), the account balance and income are reported annually to the tax authority of the beneficial owner's country of residence. The era of the "secret account" is over: the confidentiality Seychelles offers is from the public, not from tax authorities.

4. Transfer pricing and disguised profit distribution

Every invoice between your home-country company and the Seychelles IBC must be at arm's length. Billing services actually produced in Turkey through Seychelles at an undervalue is treated as disguised profit distribution under art. 13 of the Corporate Tax Law and leads to a penalised assessment plus withholding tax.

Three principles that keep the structure safe: a genuine commercial purpose with documented activity, management records showing that decisions are taken outside your home country (board minutes, the director's residence) and an annual review of your home-country filings with a tax adviser. World Company Setup reviews these four points with your accountant before incorporation and, where appropriate, recommends Dubai or Hong Kong instead of Seychelles.

Seychelles vs BVI vs Dubai: Comparing Offshore Jurisdictions

Seychelles is the cheapest and fastest option; Dubai and Hong Kong lead on bank access and reputation. Which jurisdiction suits you depends on your banking needs and where your clients are. For a broader overview see our guide to the ideal countries for setting up an offshore company.

A common combination: a Seychelles IBC as the holding company with an operating company in Dubai or Hong Kong beneath it. This keeps the low cost and privacy of Seychelles while benefiting from the operating company's bank access and reputation. For resident owners, the CFC analysis must be carried out separately for each layer. For comparable offshore centres, see our Belize and Cayman Islands pages.

Frequently Asked Questions About Setting Up a Company in Seychelles

Is it legal to set up a company in Seychelles?

Yes. A Seychelles IBC is a lawful company incorporated under the International Business Companies Act 2016, and owning a foreign company is legal in Turkey and most other countries. The legal obligation lies in declaring the income correctly in your country of residence.

How much does it cost to set up a company in Seychelles?

In 2026, USD 950–2,500 for the first year and USD 850–1,500 for renewal. Government fees are USD 130 on registration and USD 140 per year; the balance covers the registered agent, compliance and apostille services.

How long does Seychelles company formation take?

FSA registration usually takes 24 hours and delivery of the company kit 3–5 business days. A bank account takes a further 2–8 weeks.

Do I have to travel to Seychelles?

No. Incorporation, KYC and document signing are completed entirely remotely. Some banks may require a video call or branch visit when opening the account.

Does a Seychelles IBC pay tax in Turkey?

The IBC itself pays 0% tax in Seychelles. For a Turkish-resident owner the CFC rules, the place-of-effective-management test and dividend reporting apply; structures with mainly passive income are taxed in Turkey.

Are the owners of a Seychelles company confidential?

From the public, yes: directors, shareholders and beneficial owners do not appear on any open register. From tax authorities, no: beneficial-owner information is held by the FIU and account data can be reported to your home country under the CRS.

Can I invoice clients in Turkey from a Seychelles company?

Technically yes, but the Turkish buyer becomes liable for reverse-charge VAT (VAT return no. 2) and withholding tax, and it increases the place-of-management risk. For the Turkish market it is better to incorporate in Turkey.

Is bookkeeping mandatory for a Seychelles IBC?

Yes. Since 2021 accounting records must be lodged at the registered office twice a year (in July and January) and kept for 7 years. There is no audit and no public financial-statement filing.

Can I use Stripe or PayPal with a Seychelles company?

Stripe does not list Seychelles among its supported countries. PayPal Business may be opened under limited conditions. If payment processing is critical, a US LLC, UK Ltd or Hong Kong company is the better choice.

Is buying a shelf company in Seychelles worthwhile?

Since incorporation takes only 1–3 days, a shelf company saves no time. An "older" company is no advantage with banks either; they look at trading history, not the company's age.

Can a Seychelles company be closed?

Yes. Voluntary dissolution takes 4–8 weeks and costs USD 600–1,200. Simply not paying the annual fee and waiting to be struck off is not recommended, as it can create personal liability for the director.

How World Company Setup Supports Seychelles Company Formation

With offices in Dubai, Istanbul and Hong Kong, World Company Setup has supported more than 8,000 entrepreneurs with company formation and bank accounts in over 50 countries. For a Seychelles IBC the process runs as follows:

• Free initial consultation: Your business model, target markets and home-country tax position are assessed; whether Seychelles suits you and, if so, whether it should be a standalone company or a holding layer is decided.
• Transparent quote: Government fees, registered agent, apostille, courier and compliance items are listed separately; first-year and renewal costs are clear from the start.
• Incorporation and document management: The KYC file, M&A, beneficial-owner filing and FSA registration are completed in 3–5 business days.
• Bank and payment infrastructure: Suitable bank or EMI alternatives are identified for your structure, the application file is prepared and the process is followed through to a decision.
• Post-incorporation compliance: Reminders and support for annual renewal, lodging accounting records in Seychelles, the annual declaration and the home-country CFC review.

Sources

• Seychelles FSA – Licensing and Registration Fees (IBC registration and annual fee schedule)
• Seychelles FSA – Circular No. 2 of 2025: IBC New Striking-Off Process (day-181 rule)
• Seychelles FSA – Circular No. 9 of 2021: Implementation of Accounting Records Obligations
• Seychelles FSA – Circulars (current list)
• Seychelles Ministry of Finance – Seychelles Removed from Annex II of the EU List (17 February 2026)
• Turkish Revenue Administration – Corporate Tax General Communiqué No. 1 (Controlled Foreign Company Income, section 7)
• Corporate Tax Law No. 5520 – art. 7 (CFC) and art. 13 (Transfer Pricing)

This content is for general information only and does not constitute tax or legal advice. Before deciding to incorporate, review your CFC and reporting obligations with a tax adviser in your country of residence.