The Seychelles International Business Companies (Amendment) Act 2013

Seychelles, a popular offshore jurisdiction for offshore company formation, has introduced changes to the Seychelles International Business Companies Act 1994.  The following provisions were introduced which came into effect on 5 December 2013.

Bearer shares have been abolished and no bearer shares will be issued by International Business Companies from the effective date of the Act.  Seychelles follows other popular low tax jurisdictions which have already abolished bearer shares.

An International Business company that has issued bearer shares must cancel them and  issue registered shares within a period of six months.  If any bearer shares remain at the end of the six month period then these will be void.  All information relating to the bearer shares and the new shares must be recorded in the International Business Company’s share register.

Furthermore, by the year ended 31 December each year, each Seychelles International Business Company must provide a declaration to the registered agent that confirms that

–          According to the Act, the company maintains accounting records and these records are available from the registered agent

–          The Share Register is complete, up to date and accurate

–          The Share Register is held by the registered agent and is located at the registered office.

Any International Business Company that does not comply with the above requirements will be liable to a penalty of US$100 and an additional US$25 for each day for which the contravention continues.

Directors of the company will face similar penalties.

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