Amendment of the International Business Companies Act 2016
In December 2018, the Seychelles authorities have amended the International Business Companies Act 2016 and the International Business Companies (Amendment) Act 2018 (IBC 2018) came into operation on the 1st January 2019.
One of the main changes is that Seychelles IBC can have activities in Seychelles. In this respect, the section 5(2) (a) to (h) was repealed and replaced by the following paragraphs:
A company shall not –
- carry on banking business as defined in the Financial Institutions Act (Cap 79) in or outside Seychelles
- carry on insurance business as defined in the Insurance Act (Cap 98) in Seychelles or, unless it is licensed or otherwise legally able to do so under the laws of the country in which it carries on such business, outside Seychelles;
- carry on business providing international corporate services, international trustee services or foundation services as defined in the International Corporate Service Providers Act except
- to the extent permitted under the International Corporate Service Providers Act; and
- in the case of carrying on such business outside Seychelles, if the company is licensed or otherwise legally able to do so under the laws of each country outside Seychelles in which it carries on such business
- carry on securities business as defined in the Securities Act (Cap 208) in Seychelles or, unless it is licensed or otherwise legally able to do so under the laws of the country in which it carries on such business, outside Seychelles;
- carry on business as a mutual fund as defined in the Mutual Fund and Hedge Fund Act (Cap 285) unless it is licensed or otherwise legally able to do so under the Mutual Fund and Hedge Fund Act or under the laws of a recognised jurisdiction as defined in the Mutual Fund and Hedge Fund Act; or (f)carry on gambling business as defined in the Seychelles Gambling Act, 2014 (Act 29 of 2014), including interactive gambling business, in or outside Seychelles unless it is licensed or otherwise legally able to do so under the laws of the country in which it carries on such business.
It is also noted that the section 361 (1) of the IBC Act which stated that “A company, including all the income and profits of a company, is exempt from the Business Act” has been substituted as follows:
1. Notwithstanding any provisions of this Act, where a company incorporated, continued or converted under this Act derives assessable income in Seychelles, it shall
- within one month of deriving the first assessable income, notify the Registrar in writing that it is deriving assessable income and the nature of the activities giving rise to this assessable income; and
- within one year of deriving the first assessable income, file with the Registrar an Annual Return accompanied by the documents to be annexed to this Annual Return as required under the Companies Act (Cap 40).
Contact details
For more information on IBC Act 2018, please contact your Relationship Manager or the Business Development Team by email bd@mitcoworld.com or phone them on + 230 404 8000.