Seychelles 101: A Comprehensive Guide to the Jurisdiction

Across industries, regulators are tightening standards. The EU’s Markets in Crypto-Assets (MiCA) regulation now are governing token issuance and service providers, while jurisdictions worldwide are revising frameworks for fintech, virtual assets and online gaming. In this environment, founders need jurisdictions that would balance innovation with compliance.

The Seychelles, an archipelago in the Indian Ocean, have built a reputation as a hub for fintech, crypto and iGaming ventures. Their international business legislation and targeted licences offer entrepreneurs regulatory clarity, operational freedom and favourable tax treatment. This 101 Guide explores how to leverage the Seychelles’ advantages.

Setting Up in the Seychelles

The main vehicle for offshore activity is the Seychelles International Business Company. An IBC is a company incorporated under the International Business Companies Act. Its key features include:

• Ownership and management. Only one shareholder and one director are required; they can be individuals or corporate bodies. There are no nationality or residency requirements.
• Minimum capital. The minimum paid-up share capital is US$1, and capital can be expressed in any currency. Shares may be issued at par or no-par value.
• Incorporation process. A registered agent handles incorporation remotely. Steps include reserving the company name, preparing the incorporation documents (memorandum and articles), providing passports/IDs and proof of address for shareholders/directors, and submitting an application to the Financial Services Authority (FSA).
• Privacy. Beneficial owners’ information is held by the agent and regulator and is not publicly accessible.
• Economic substance. Under the Seychelles’ territorial tax regime, IBCs with purely offshore income are exempt from corporate tax but must maintain accounting records. 

Incorporation usually takes a few business days, making the Seychelles one of the fastest jurisdictions for setting up an international hub.

Taxation

A Seychelles IBC that earns profits outside the islands pays no corporate tax on foreign-sourced income, and there is no withholding tax on dividends, interest or royalties paid to non-residents. 

Capital gains are also not taxed. If an IBC derives income within the Seychelles, profits up to SCR 1,000,000 are taxed at 15%, and income above that is taxed at 25%; certain regulated sectors face higher rates (up to 33%). 

Seychelles Licences

The Seychelles offer a range of licences tailored to financial services and iGaming. Each requires establishing a Seychelles entity (usually an IBC or a company with a Special Licence) and compliance with FSA requirements.

Brokerage / Securities Dealer Licence

The Seychelles’ Securities Dealer Licence allows companies to operate as brokers, dealers or market makers in securities and foreign exchange. Requirements include:

• Capital. The FSA requires at least US$ 100,000 in paid-up capital for a securities dealer, while an investment advisor licence needs US$ 25,000. Forex brokers operating under the Securities Act must deposit around US$ 50,000.
• Local structure. The licence applicant must first incorporate a Seychelles company and appoint at least two directors and two shareholders; a physical office in the Seychelles is required.
• Compliance. The firm must appoint a compliance officer, maintain insurance, conduct regular financial reporting, and adhere to AML/CFT obligations.
• Process and fees. The state fee for a securities dealer application is roughly US$ 6,300, and the approval process typically takes 3–6 months.

This licence is popular because the Seychelles’ regulation is transparent yet less restrictive than major jurisdictions, making it attractive for forex and CFD brokers such as Exness.

Virtual Asset Service Provider (VASP) Licence

The Virtual Asset Service Providers Act 2024 introduced a comprehensive framework for cryptocurrency businesses. Only domestic companies and IBCs may apply; individuals cannot. Key points:

• Permitted activities. The law covers virtual asset wallet service providers, exchanges, brokering, investment services and ICOs/NFT issuance.
• Base fee and activity fees. A base application fee of SCR 75,000 applies, plus activity-specific annual fees: SCR 300,000 for wallet providers, SCR 375,000 for exchanges, SCR 150,000 for broking and SCR 75,000 for investment providers. These fees are paid annually; the licence is perpetual but must be renewed by paying the same amount each year.
• Capital requirements. Guidelines set minimum paid-up capital of USD 75,000 for wallet providers, USD 100,000 for exchanges, USD 50,000 for brokers and USD 25,000 for investment providers (capital must be held in a Seychelles bank).
• Substance and compliance. Applicants must demonstrate economic substance in the Seychelles, maintain a physical office, appoint fit-and-proper directors, prepare an Institutional Risk Assessment to address AML/CFT risks, and maintain indemnity insurance. The Act prohibits mining facilities, mixers and tumbler services.

As of now, there are several pending applications by established brands such as eToro and Bybit; however, no approvals have been granted by the FSA. 

Banking Licence

Offshore banking is governed by the Financial Institutions Act 2004. A bank may deal exclusively in non-resident currencies and must be a local company or a foreign company registered as a tax resident. Notable requirements include:

• Capital. A minimum paid-up capital of US$ 2 million must be deposited before the licence is approved. Banks must also maintain capital equal to at least 12% of total assets.
• Reserve fund. Banks must transfer at least 20% of net profits each year into a reserve fund until it equals the authorised capital.
• Fees. The application fee is USD 2,000, and annual renewal fees range from SCR 250,000 to SCR 1,000,000 depending on total assets.
• Liquidity requirements. Banks must maintain liquid assets and local assets in Seychelles rupees at levels prescribed by the Central Bank.

This licence suits companies offering traditional banking services to corporate and private clients.

Financial Services Licence

Non-bank financial institutions—such as currency exchanges, credit unions, savings and loan companies, brokerages and insurers—must obtain licences from the FSA. Requirements vary by activity:

• Capital. Forex activities require minimum authorised capital of USD 50,000. Investment advisors typically need USD 25,000. Insurers must pay an application fee of SCR 10,000 (domestic) or USD 2,000 (foreign).
• Documentation. Applicants must submit a business plan, specify their business address, describe their activities and satisfy fit-and-proper tests.
• Substance. Licensing often requires at least one resident director, a local office and periodic meetings in the Seychelles.

This licence enables currency exchange, loans, asset management and investment advisory services to non-residents.

Gaming / Betting Licence

The Seychelles’ Gambling Act 2014 and accompanying regulations allow three main categories: slot-machine operations, land-based casinos and interactive gambling (online gaming). Key points:

• Local establishment. An online casino must be incorporated in the Seychelles; servers supporting the gaming platform must be hosted locally and the software must be certified.
• Licence fees and conditions. For betting licences, the Seychelles Licensing Authority charges SCR 50,000 per year. Holders must report monthly on total bets and payouts, keep records of hits, maintain a cash balance equal to prizes offered, and prohibit under-18s from betting. Online casinos require extensive documentation (a company charter, game rules, software certificates, capital proof, physical address) and regular reporting.
• International reach. The Seychelles interactive gambling licences allow operators to serve players in many jurisdictions (excluding those with strict prohibitions). Few licences have been issued so far, so the market remains under-saturated.

Due to regulatory changes in jurisdictions like Curaçao and Malta, the Seychelles are increasingly considered by gaming operators seeking flexibility.

Regulatory Sandbox

To foster innovation, the Financial Services Authority introduced a regulatory sandbox under the Regulatory Sandbox Exemption Regulations 2019. The sandbox enables fintech firms to test novel financial products or services under FSA oversight with temporary exemptions from certain licensing and disclosure requirements. This mechanism provides for experimentation while ensuring consumer protection.

Who Should Consider the Seychelles?

The Seychelles suit entrepreneurs and enterprises seeking regulatory flexibility, confidentiality and a territorial tax regime. It is especially attractive for:

• Start-ups and early-stage projects needing agile regulatory processes to test new concepts without high capital outlay.
• Fintech and crypto companies (e.g., payment processors, online banking, crypto exchanges, token issuers) aiming to operate under a clear licensing framework and benefit from 0% tax on foreign income.
• iGaming operators looking to diversify into new geos.
• Digital commerce businesses requiring a low-tax jurisdiction for international trade.
• International financial service providers seeking to offer brokerage, advisory or asset management services to global clients.
• Entities prioritising confidentiality and asset protection, thanks to strict privacy rules for beneficial owners. 
• Projects that value innovation which can be applied to the FSA’s sandbox to trial emerging technologies.

Why the Seychelles?

In a world of increasing regulatory complexity, the Seychelles stand out for combining sound supervision with operational freedom. Their territorial tax regime means offshore profits remain untouched, and their IBC legislation offers low-cost, confidential structures. Yet the FSA provides clear licensing pathways for forex, securities, crypto, banking, finance and gaming ventures, aligning with the international AML and tax transparency standards.

By establishing in the Seychelles, founders gain a foothold in a forward-looking jurisdiction that balances innovation with compliance. Whether launching a crypto exchange, an online casino or a fintech start-up, the Seychelles’ blend of a strategic location, investor-friendly regulations and prudent oversight makes it a compelling choice for building tomorrow’s ventures.