What is a Seychelles subsidiary company?

A Seychelles subsidiary is a Seychelles company - in most cases an International Business Company (IBC) under the International Business Companies Act 2016 - that is wholly or majority owned by a foreign parent company. The parent holds the shares, and the Seychelles company becomes a separate arm of the group. Because the subsidiary is its own legal person, it can contract, hold assets, open accounts and trade in its own name, while the parent stays in control through ownership. Corporate shareholders and corporate directors are both permitted, so your existing company can sit directly at the top of the structure. Once the parent's documents pass KYC, the subsidiary is usually registered within one to three business days.

Why set up a Seychelles subsidiary?

• 100% corporate ownership - a foreign company can own the Seychelles subsidiary outright, with no local shareholder or director required.

• Limited parent liability - the subsidiary is a separate legal person, so the parent's exposure is generally limited to its shareholding rather than the subsidiary's debts.

• Ring-fence a business line or region - isolate a product, brand or territory in its own entity so risk and accounting stay contained.

• Hold regional assets or IP - park intellectual property, equity stakes or holdings under a dedicated company in the group.

• No tax on foreign income - Seychelles uses a territorial system, so an IBC subsidiary pays no Seychelles tax on income earned outside the country.

• Fast, low-cost setup - US$850 all-in for year one, registered in days rather than weeks, with no minimum paid-up capital.

Is a Seychelles subsidiary right for you?

Good fit:

• groups expanding internationally that want a clean offshore arm

• companies ring-fencing a business line or a region in its own entity

• holding structures for shares, property or IP

• technology and online groups setting up a separate operating company

• founders building a multi-entity group under an existing parent

Not a fit: trading physically inside Seychelles (that needs a domestic company and licence, and is taxed locally), regulated activities such as banking, insurance, securities or gambling without the relevant FSA licence, or any group hoping to sidestep tax at home - a subsidiary doesn't override the parent's own country tax-residence, transfer-pricing and reporting rules.

What You'll Need

For the parent company:

• A certified copy of the parent's Certificate of Incorporation

• The parent's Memorandum & Articles of Association (or equivalent constitution)

• The parent's register of directors and register of shareholders / UBOs

• A Certificate of Good Standing (usually required if the parent was incorporated more than a year ago)

• A board resolution authorising the parent to set up and own the subsidiary

For the people behind the parent (ultimate beneficial owners and directors):

• A certified copy of each individual's passport

• Proof of residential address dated within the last 3 months (utility bill or bank statement)

• Beneficial-owner details and source of funds (for KYC)

For the new company:

• One to three proposed company names

• A short description of the subsidiary's intended business activity