The first and most difficult step of an expansion is establishing a subsidiary. You have to incorporate in Seychelles before you can set up your payroll, hire employees, and give out compensation and benefits. However, the incorporation process can take a significant amount of time and resources.
G-P is a global Employer of Record (EOR) that can change how you expand to another country. You won’t have to set up a subsidiary when you work with us.
How to set up a Seychelles subsidiary
Before you start figuring out how to set up a Seychelles subsidiary, it can help to consider the following: Your location within Seychelles matters, as different cities or regions have their own Seychelles subsidiary laws. We recommend researching your target location before settling on a physical office space to see how easy or difficult an expansion would be there.
A subsidiary in Seychelles can take on many forms, including an offshore company, special license company, limited liability company (LLC), or branch office. Each structure has its own rules and regulations that will impact the level of work you can do in Seychelles. Many companies choose to incorporate as an LLC.
Setting up your Seychelles subsidiary as an LLC will include the following steps:
- Filing information about the parent company, including a copy of the certificate of incorporation with the Companies Register.
- Drafting articles of association and filing them.
- Providing information about the subsidiary’s directors and company secretary.
- Paying registration fees.
- Opening a local bank account to pay workers.
Seychelles subsidiary laws
Seychelles subsidiary laws depend on the entity you pick. LLCs require a minimum of USD 1 in paid-up capital as well as certain executives, including:
- 2 shareholders who can be corporations and non-residents
- 2 individual resident directors
- 1 resident company secretary
Every subsidiary in Seychelles must pay corporate income tax of 33% on its earnings. Once you set up your Seychelles subsidiary as an LLC, you can trade in all sectors with residents and non-residents as long as you obtain the right license for regulated industries.
Benefits of setting up a Seychelles subsidiary
Although it can take weeks or months to set up your Seychelles subsidiary, the process will allow you to start working in the country. LLCs also benefit the parent company, as it will have limited liability from the subsidiary and won’t have to worry about any costly litigation or other issues. The subsidiary is also free to operate separately from the parent company and institute a company culture that matches Seychelles’ culture.
Other important considerations
If you decide to set up a subsidiary on your own, you should set aside the time and money you’ll require to succeed. You’ll need to understand all of Seychelles’ subsidiary laws to stay compliant. If you don’t already have someone in your company who’s well-versed in these laws, you should either choose someone within your company to learn them or work with a consultant or lawyer.
We also recommend setting aside a month or longer to oversee the Seychelles subsidiary setup process. If you don’t have the time to help with incorporation, work with another company executive who can travel back and forth to Seychelles. Certain steps of the process also involve fees, so you should work with your finance department ahead of time to set aside the funds for a successful incorporation.
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