Choosing the Best Legal Structure for Your Seychelles Business

Published on September 30, 2025 and written by Cyril Jarnias

The Seychelles, a paradise archipelago in the Indian Ocean, is not just a dream destination for tourists. This island nation also offers a business-friendly environment, attracting numerous international entrepreneurs. If you’re considering starting a business in the Seychelles, choosing the right legal structure is a crucial step that will significantly influence the success of your entrepreneurial venture. In this article, we’ll explore the different options available to you and guide you through this important decision.

The Seychelles: A Haven for Entrepreneurs

Before diving into the details of legal structures, it’s essential to understand why the Seychelles has become a popular destination for business formation. This small Indian Ocean country offers numerous advantages to foreign entrepreneurs, including:

– An attractive tax environment – Political and economic stability – Simplified administrative procedures – Legislation favorable to foreign investment – A strategic geographical location between Africa and Asia

These advantages have helped make the Seychelles a leading offshore jurisdiction, attracting investors from around the world. In 2024, the country had over 200,000 registered international businesses, an impressive figure for a nation of only 98,000 inhabitants.

Main Legal Structures in the Seychelles: Make the Right Choice

When it comes to starting a business in the Seychelles, several options are available to you. Each has its advantages and disadvantages, and the choice will depend on your objectives, the nature of your business, and your personal situation.

1. International Business Company (IBC): The Premier Choice

The International Business Company (IBC) is by far the most popular legal form in the Seychelles for foreign entrepreneurs. It offers a unique combination of tax benefits, flexibility, and confidentiality. Here are its main characteristics:

– Complete tax exemption on profits earned abroad – No requirement to maintain accounting records or file annual accounts – Possibility of having a single shareholder and a single director – High confidentiality (shareholder and director names are not public) – Minimum share capital of only $1

The IBC is particularly suitable for international activities, e-commerce, wealth management, or holding foreign assets. In 2024, over 90% of foreign companies registered in the Seychelles were IBCs, demonstrating their popularity.

2. Limited Liability Company (LLC): For Local Presence

If you plan to have a physical presence in the Seychelles or conduct business locally, the Limited Liability Company (LLC) can be an interesting option. Here are its main characteristics:

– Members’ liability limited to their contributions – Ability to conduct business within Seychelles territory – Requirement to maintain accounting records and file annual accounts – Subject to corporate tax (25% rate in 2025) – Need for a resident director in the Seychelles

The LLC is more suitable for businesses that want to have a real presence in the Seychelles, such as hotels, restaurants, or local service companies. Although less numerous than IBCs, LLCs represented about 5% of foreign companies registered in the Seychelles in 2024.

3. Limited Partnership (LP): For Partnership Structures

For entrepreneurs who want to establish a partnership structure in the Seychelles, the Limited Partnership (LP) can be an interesting option. This legal form offers unique flexibility by combining the advantages of a partnership and a capital company. Here are its main characteristics:

– At least one general partner (unlimited liability) and one limited partner (limited liability) – Flexibility in profit distribution among partners – Possibility to benefit from tax-transparent status – High confidentiality (partner names are not public) – No minimum capital requirement

The LP is particularly suitable for investment fund structures, family businesses, or professional partnerships. Although less common than IBCs or LLCs, LPs are gaining popularity in the Seychelles, with a 15% increase in registrations in 2024 compared to the previous year.

Sole Proprietorship or Company: Which to Choose in the Seychelles?

The decision between creating a sole proprietorship or a company in the Seychelles depends on several factors. Let’s examine the advantages and disadvantages of each option to help you make the right choice.

Sole Proprietorship: Simplicity and Total Control

The sole proprietorship, although less common in the Seychelles for foreign entrepreneurs, can be an interesting option in certain cases. Here are its main advantages:

– Simple to create and manage – Total control over the business – No minimum capital requirement – Flexibility in decision-making

However, the sole proprietorship also has major disadvantages:

– Unlimited liability of the entrepreneur for personal assets – Difficulty raising funds – Less professional image than a company – Less favorable taxation than some corporate forms

The sole proprietorship may be suitable for small-scale or freelance activities, but it’s rarely the preferred choice for foreign entrepreneurs in the Seychelles.

Company: Enhanced Protection and Credibility

For the vast majority of foreign entrepreneurs, creating a company in the Seychelles is the most advantageous option. Here’s why:

– Limited liability for members or shareholders – Better image and credibility with partners and clients – Easier to raise funds and attract investors – Possible tax optimization (especially with IBCs) – Business continuity independent of its founder

The disadvantages of creating a company are generally minor in the Seychelles:

– Slightly more complex creation procedures than for a sole proprietorship – Slightly higher creation and maintenance costs – More significant administrative obligations (depending on the type of company)

Creating a company, particularly as an IBC, remains the preferred choice for the vast majority of foreign entrepreneurs in the Seychelles. In 2024, over 99% of new foreign business registrations in the Seychelles were companies, with 90% being IBCs.

Key Factors for Choosing the Right Legal Structure in the Seychelles

To make the right choice of legal structure for your business in the Seychelles, several factors must be considered. Here are the main elements to take into account:

1. Nature of Business and Location

The nature of your business and its geographical location are determining factors in choosing the legal structure. If your business is purely international with no physical presence in the Seychelles, the IBC will likely be the best choice. Conversely, if you plan to have a local presence and conduct business within Seychelles territory, an LLC might be more appropriate.

2. Taxation and Optimization

Tax benefits are often a major motivation for starting a business in the Seychelles. The IBC offers complete tax exemption on profits earned abroad, making it a preferred choice for many entrepreneurs. However, it’s crucial to also consider taxation in your country of residence and any applicable tax treaties.

3. Confidentiality and Asset Protection

If confidentiality is a priority for you, the IBC or LP offers a high level of discretion, as shareholder and director names are not public. These structures can also be effectively used for asset protection.

4. Capital Needs and Financing

If you plan to raise funds or attract investors, a corporate structure will generally be more appropriate than a sole proprietorship. The IBC, with its flexibility in terms of capital and shareholding, is particularly suited to facilitate investor entry.

5. Management Complexity and Administrative Obligations

Consider the level of management complexity you’re willing to assume. The IBC offers simplified management with few administrative obligations, while an LLC involves more formalities and reporting.

6. Growth Prospects and Future Evolution

Think long-term and choose a structure that can adapt to your business growth. An IBC offers great flexibility to evolve and restructure if necessary.

Key Steps to Start Your Business in the Seychelles

Once you’ve chosen the legal structure best suited to your project, here are the main steps to follow to start your business in the Seychelles:

1. Choose a Name for Your Business

The first step is to choose a unique name for your business and have it approved by the Seychelles Companies Registry. The name must not be already in use or too similar to an existing business. It’s recommended to propose several options in case your first choice isn’t available.

2. Prepare the Incorporation Documents

Depending on the type of company chosen, you’ll need to prepare different documents:

• For an IBC: Company statutes (Memorandum and Articles of Association)
• For an LLC: Statutes and internal regulations
• For an LP: Partnership agreement

It’s strongly recommended to use a local professional to ensure these documents comply with Seychelles legislation.

3. Appoint Directors and Shareholders

You’ll need to provide information about your business’s directors and shareholders. For an IBC, a single director and a single shareholder are sufficient, and they can be the same person. For an LLC, you’ll need to appoint a resident director in the Seychelles.

4. Open a Bank Account

Opening a bank account is a crucial step for your business. You can choose between a local bank in the Seychelles or an international bank. The process can take from a few days to several weeks, depending on the bank and your profile.

5. Register Your Business

Registration is done with the Seychelles Companies Registry. For an IBC, the process can be completed in 24 to 48 hours. For an LLC or LP, the timeframe may be a bit longer.

6. Obtain Necessary Licenses

Depending on your business activity, you might need to obtain specific licenses. For example, financial activities generally require a license from the Seychelles Financial Services Authority (FSA).

In conclusion, choosing the right legal structure for your business in the Seychelles is a crucial decision that will greatly influence your entrepreneurial success. The IBC remains the most popular choice for foreign entrepreneurs, offering a unique combination of tax benefits, flexibility, and confidentiality. However, depending on the nature of your business and your objectives, other options like the LLC or LP may be more appropriate.

Whatever your decision, it’s essential to get proper information and be accompanied by experienced professionals to navigate the subtleties of Seychelles legislation and optimize your business structure.