Seychelles Company Formation and IBC Registration

A Seychelles VASP license may cover one or more of the following regulated activities:

(a) Virtual Asset Wallet Services – custody, safekeeping and management of customers’ virtual assets or private keys

(b) Virtual Asset Exchange – operating a platform for exchanging virtual assets for fiat currency or other virtual assets

(c) Virtual Asset Broking – arranging or facilitating virtual asset transactions on behalf of customers

(d) Virtual Asset Investment Services – providing investment advice, portfolio management or related virtual asset services

The required license category depends on the company’s products, control over customer assets, transaction flows and role in completing trades. A business carrying out several regulated activities may need authorisation for more than one category.

Issuing tokens or NFTs is not a separate VASP license category. However, an initial coin offering or NFT offering may need to be registered with the Seychelles Financial Services Authority before it is marketed or made available to users.

Publicly tradable tokens that can be transferred or exchanged outside a closed platform generally fall within the registration framework. The promotion of an ICO or NFT offering must also be carried out by an appropriately licensed VASP or an entity authorised under Seychelles securities legislation.

The operation of virtual asset mining facilities, mixers and tumblers is prohibited in Seychelles.

A VASP license can be granted to a Seychelles domestic company or International Business Company. The applicant must demonstrate a genuine operational presence and appropriate management in Seychelles.

Key licensing requirements generally include:

(a) a physical office and principal place of business in Seychelles

(b) at least one resident director

(c) adequate personnel performing the company’s core activities

(d) minimum capital and suitable banking arrangements

(e) professional indemnity insurance

(f) adequate systems for customer onboarding and transaction monitoring

The applicable capital, staffing and technical requirements depend on the type and scale of the proposed virtual asset services.

A licensed Seychelles VASP is a reporting entity and must comply with AML, KYC, sanctions and counter-terrorist-financing requirements. This includes customer and beneficial-owner verification, transaction monitoring, Travel Rule procedures, suspicious-transaction reporting and the maintenance of detailed business records.

The company must also appoint appropriate compliance personnel, maintain complaint-handling procedures in Seychelles and submit the required financial, regulatory and annual compliance reports.

Digital Lawyers reviews the proposed crypto business model, identifies the appropriate license or registration route and coordinates the application with licensed Seychelles lawyers, corporate service providers and compliance specialists. We also assist with the corporate structure, local substance arrangements, AML documentation and preparation of the submission to the Financial Services Authority.

Income that is genuinely foreign-sourced may fall outside Seychelles business tax. Seychelles-sourced assessable income may be taxable and may require tax registration and annual filings.

Withholding tax may also apply to certain Seychelles-source payments made to non-residents, including dividends, interest, royalties and technical service fees. The applicable treatment depends on the nature of the payment, the recipient and any available double-tax treaty.

A Seychelles company does not remove tax or reporting obligations in the countries where its founders, shareholders or group companies are resident or where the business is managed.

According to Seychelles Financial Services Authority guidance, a licensed Virtual Asset Service Provider may benefit from a 1.5% business tax rate on assessable income.

The actual Seychelles VASP tax position depends on the licensed activity, source of income and operating model. Crypto exchanges, wallet providers, virtual asset brokers and investment providers should therefore obtain tax advice before commencing operations.

A Seychelles IBC must generally:

(a) maintain a registered office and registered agent in Seychelles;

(b) pay applicable annual renewal fees;

(c) keep adequate accounting records and supporting documents;

(d) maintain and update statutory and beneficial ownership information; and

(e) complete tax, financial and regulatory filings where applicable.

The exact Seychelles IBC compliance requirements depend on the company’s activities, income, size and regulatory status.

A licensed Seychelles VASP is a reporting entity under AML/CFT legislation and must maintain a compliance framework appropriate to its activities. This generally includes:

(a) appointing a compliance officer and alternate compliance officer;

(b) maintaining customer onboarding, due diligence and transaction-monitoring controls;

(c) implementing risk-management, cybersecurity and record-keeping procedures;

(d) submitting annual compliance, substance and cybersecurity reports; and

(e) reporting suspicious transactions where required.

We help startups, founders and international crypto businesses coordinate Seychelles tax, corporate and VASP compliance with qualified local professionals.