Company Registration

Annual Compliance Insights for Seychelles Holding Company 

The Seychelles holding company, established under the International Business Companies Act 2025, has become one of the most attractive destinations for holding companies. The Seychelles country’s reliable privacy framework, ease of formation, streamlined management and cost-effective annual compliance have attracted holding companies.  

However, with the recent regulatory updates in the International Business Companies Act (IBC Act), 2025, it is now mandatory for Seychelles holding companies to ensure annual compliance.  

This blog provides a clear overview of the essential annual compliance requirements and the practical stepwise process to remain compliant with the updated regulations. After company registration in Seychelles, entrepreneurs should look forward to annual compliance insights for the Seychelles Holding Company.  

What is a Seychelles Holding Company? 

A Seychelles Holding Company is a legal entity that allows you to own and manage assets. These assets are usually shares, intellectual property, real estate, equity interests in subsidiaries and other investments.  

A holding company serves as a structure to separate asset ownership and provide flexibility in controlling subsidiaries and investments globally. The Seychelles holding company structure supports global business growth by offering tax optimisation, international investment management and excellent asset protection measures.  

Benefits of Seychelles Holding Company 

The benefits of incorporating a Seychelles holding company include:  

• Asset Protection 

• Simple Compliance Requirements 

• Tax Benefits for International Structuring 

• Strong Level of Confidentiality  

• Flexible Corporate Structure  

Legal and Regulatory Framework in Seychelles  

The holding companies in Seychelles operate under the International Business Companies Act (IBC Act). The annual compliance is governed by the Seychelles Financial Services Authority (FSA). The authority ensures that the holding companies adhere to the statutory requirements, maintain proper record-keeping and submit essential declarations on time.  

The key legal framework of holding companies under the Seychelles law includes: 

• Companies Act, 1972 (as amended) 

• International Business Companies Act, 2016 

• Beneficial Ownership Act, 2020 

• Economic Substance (Companies and Partnerships) Act, 2019 

• Business Tax Act, 2009  

• Licenses Act, 2010 (For operational or regulated activities) 

• Securities Act, 2007 (If involved in investment-related regulated activities) 

Types of Seychelles Holding Companies  

Entrepreneurs and investors in Seychelles can choose between two types of holding companies, which are:  

• Pure Holding Company: The pure holding company is solely for holding and managing equity in subsidiaries. The main aim is to hold shares, intellectual property, real estate and other assets. However, it does not conduct business activities or engage in any trading services.  

• Mixed Holding Company: A mixed holding company is for both holding assets and engaging in limited commercial and investment activities. This type of holding company is preferred by multinational corporations looking for operational flexibility and investment control. 

Find the key differences between the types of Seychelles holding companies in the table below: 

Feature	Pure Holding Company	Mixed Holding Company
Business Operations	Manufacturing, selling, or offering services is not allowed.	Manufacturing, selling, managing and offering services is allowed.
Revenue Sources	Capital gains, dividends and return on investments.	Business operations and returns on investment.
Complexity	Simple organisational structure.	Complex organisational structure as it involves both business operation and investment.
Risk Exposure	Limited, only in the investment.	Operational and investment risk.
Diversification	Limited to investment portfolio.	It is across operational activities and investments.

Annual Compliance Insights for Seychelles Holding Company 

Annual compliance is a mandatory requirement for Seychelles holding companies. Based on your company’s business activity and turnover, you must keep accurate accounting records. You will also have to submit financial statements and file annual declarations. Ensuring compliance will help you avoid a penalty and heavy fines.  

Accounting Records and Bookkeeping 

The Seychelles holding companies are legally mandated to maintain up-to-date and accurate accounting records. The accounting records must include contracts, invoices, bank statements, and any company documents that reflect the financial position of the business.  

The Seychelles’ International Business Companies (IBC) Act with 2025 Amendment mandates all Seychelles holding companies to maintain the records for a minimum of seven years from the transaction date. This ensures transparency and helps with potential regulatory reviews and audits by the Financial Services Authority (FSA).  

Financial Summary Obligations 

The financial summary obligations vary depending on the holding company’s turnover and size. This approach allows the smaller Seychelles holding companies to enjoy simplified reporting. The larger holding companies face higher standards to ensure that they comply with international tax compliance.  

• Annual turnover exceeding USD 3,750,000  

Companies with an annual turnover of over USD 3,750,000 will have to submit accounting records, including a financial summary. It should include an overview of your holding company’s income, assets, expenses and liabilities for the specific financial year.  

• Companies below the threshold 

The holding companies below the threshold are only mandated to maintain the financial records. Annual submission of these records is not required; however, the Seychelles holding company will have to make the documents accessible for the authorities upon request. 

Annual Declarations and Substance Filings 

The Seychelles holding companies must file annual declarations to ensure compliance with the regulations of the Economic Substance introduced in 2019. Updated guidance of 2025 has further strengthened the enforcement and monitoring of these requirements.  

• Pure Holding Company: Companies that only hold equity investments must submit an annual declaration along with supporting documents that confirm ownership of their underlying assets. 

• Mixed Holding Company: Companies that hold equity and also carry out limited commercial activities are required to file a more detailed declaration. This must include evidence explaining the type and extent of their business activities.  

In addition, both pure holding companies and mixed holding companies of Seychelles must submit an economic substance declaration. This filing explains where key management decisions are made, how many board meetings are held in Seychelles, and whether the company has sufficient local presence for its level of activity.  

The Financial Services Authority (FSA) reviews this information to ensure compliance with OECD and EU standards and to maintain Seychelles’ reputation as a trusted business jurisdiction.  

Documents and Records Required for Compliance  

The Seychelles holding companies must submit essential documents required under the International Business Companies Act and specific regulations on economic substance and beneficial ownership. These documents are: 

• Seychelles IBC Application form 

• Director’s declaration form 

• Director and shareholder’s declaration form 

• Beneficial owner declaration form 

• Accounting records declaration 

The Seychelles Financial Services Authority (FSA) monitor the obligations to ensure that the companies comply. If there is any non-compliance, the company will face a penalty or even be struck off.  

These mandatory records are grouped into three main categories:  

• Accounting Records 

• Corporate Records 

• Beneficiary Records  

Standard Records for All Holding Companies 

The list of standard records that the Seychelles holding company includes:  

• Registers of shareholders, directors and beneficial owners. If nominee shareholders are used, the details of the nominee will also be required.   

• Register of members or shareholders, addresses, listing names, shareholdings, and entry or exit dates.   

• Company constitutional documents, share certificates, Articles or Memorandum of Association, including any amendments.    

• Minutes of board and directors’ meetings, noting down key decisions and creating a part of the economic substance evidence. 

• Proof of registered business address and agent, which is important for correspondence and regulatory inspections.  

Additional Requirements by Company Type  

There will be additional requirements depending on the type of Seychelles holding company. Whether the holding company is a pure holding or a mixed holding, further obligations may be required. 

Pure Holding Company: The pure holding companies will have to submit an annual statement confirming the status of the assets being held. They will also be required to submit proof of documents for holding equity, such as an ownership agreement and subsidiary share certificates.  

Mixed Holding Company: The mixed holding companies must submit an annual financial statement and provide evidence of both permitted business activities and equity ownership. These documents will include financial statements, contracts or invoices.  

Evidence of Economic Substance 

The Seychelles holding companies will have to comply with the economic substance regulations and maintain documents to show proof of physical presence in Seychelles. The documents include: 

• Physical presence of office address space and expenses, such as utility bills or lease agreements.  

• Minutes of the board meeting conducted locally. You must include details of attendance and key decisions.  

• Staff records or employment records for local employees.   

• Local expenditure evidence, including information on bank statements and invoices, is equal to the scale of business activity.  

• Filing Economic Substance Report (ESR), including activities, compliance, and revenue.  

Process for Annual Compliance of Seychelles Holding Companies 

The Seychelles holding companies must comply with the annual requirements to build a sustainable and credible structure. Annual compliance is a simplified process when it is done systematically. Below is a step-by-step guide to ensure that your company is fully compliant.  

Create an Internal Compliance Calendar  

The internal compliance calendar will help you stay on track and prevent penalties. It will also help you avoid compliance lapses. The compliance calendar should include:  

• Annual Filing: Annual declarations, and submission of accounting records and financial summaries.  

• Notification of Changes: Any changes in the shareholders, directors, registered office or beneficial owners must be recorded and reported urgently.  

• Economic Substance Declarations: The economic substance declarations must be filed annually to confirm the substance level, company activities and local presence. 

• Internal Reviews: Companies must schedule periodic audits to ensure records are accurately maintained.  

Maintain Accurate Record-Keeping Practices 

Maintaining accurate record-keeping practices is the backbone of compliance. The following list must be followed to ensure a robust record-keeping to ensure annual compliance, which includes:  

• Make sure that you keep both digital and physical copies of the important company records, such as invoices and contracts.   

• Only use reliable accounting software to track expenses, income and assets to reduce human error.  

• The documents stored must be easily accessible for the regulatory authorities and agents.   

• Well-maintained records will help the Seychelles holding companies ensure proof of local operations.  

Meet Economic Substance Requirements in Practice 

The economic substance requires holding companies to show proof of real business operations in Seychelles. In practice, this means the company must be actively managed and operated within the country, which includes:  

• Appointing local directors or staff who can make key decisions in Seychelles.   

• Holding board meetings in Seychelles and keeping proper records of meeting dates, locations, attendees and decisions made.  

• Maintaining proof of physical presence and local spending, such as office rent, utility bills, employee salaries and other operating expenses.   

These actions help prove to regulators that the company is genuinely operating in Seychelles and is contributing to the local economy, rather than existing only on paper.   

Work with Experienced Professionals 

Managing compliance is easier with the support of qualified professionals who understand local regulations. The role of an experienced professional will include:  

• Maintaining statutory records, tracking compliance deadlines and handling filings.  

• The experienced accountants will prepare financial summaries, maintain accurate books, and record and audit financial statements.  

• Legal advisors interpreting regulatory changes, advising on economic substance requirements and helping prepare annual reports and statements.  

Non-Compliance Risk and Penalties  

Non-compliance by the Seychelles holding companies can lead to serious legal and financial consequences. The list of penalties and risks includes:  

• Financial Penalty: The recent amendments to the Seychelles IBC laws have strengthened enforcement. Companies and directors may face fines of up to USD 10,000 for not updating statutory registers, missing beneficial ownership details, or failing to complete required filings on time.  

• Strike-off and Dissolution: If the annual renewal fees are not paid within 180 days from the anniversary date, the company is automatically struck off on the 181^st day. If dissolved, the holding company will lose its legal standing, cannot continue business activities and is treated as inactive until it is restored.  

• Reputation and Banking Issues: Regulators and banks now place importance on reputation and transparency. A non-compliant company may face difficulties opening or maintaining bank accounts, securing funding, or working with international partners.  

• High Restoration Costs: Restoring a struck-off company requires payment of all pending fees and penalties, along with additional legal and restoration charges. These costs are often much higher than regular compliance expenses.  

Why Enterslice?  

At Enterslice, we provide end-to-end support, including financial statement preparation, bookkeeping and help you file annual declarations. With our structured approach, your compliance journey will be streamlined and manageable. We offer proactive reminders, cost-effective packages and local expertise to help your Seychelles holding company stay compliant with the annual compliance obligations.  

Contact us today to speak with our experts or visit our website to learn more: https://enterslice.com.  

The Bottom Line  

Choosing Seychelles for your holding company is an excellent decision, as the country is widely recognised as an ideal destination for holding companies. Due to the country’s combination of tax benefits, flexibility, privacy, and asset protection, holding companies manage multi-layered holdings efficiently.  

Managing the Seychelles’ Annual compliance requirements can be challenging for new holding companies. If your Seychelles holding company manages accounting record lodgements, substance filings and annual declarations, it is recommended to seek help from experienced professionals like Enterslice.  

Frequently Asked Questions About Seychelles Holding Company Annual Compliance