Seychelles Tightens the Rules for IBCs: What 2026 Changes Mean for New Company Owners
The Seychelles has spent 2026 rebuilding its reputation as a transparent offshore centre, and the effects are already visible for anyone planning Seychelles company formation. The jurisdiction left the EU’s tax watch list in February, while its financial regulator has stepped up supervision of international business companies (IBCs) ahead of an anti-money-laundering evaluation. Private Financial Services (pfser.com), a corporate services provider operating since 1998, registers and maintains Seychelles companies for international clients and tracks these developments.
Off the EU list, under closer review
On 17 February 2026 the EU Council removed the Seychelles from Annex II of its list of non-cooperative tax jurisdictions, following a “Largely Compliant” rating on tax information exchange from the OECD Global Forum. For owners, this eases some reputational and banking friction linked to the listing.
The next test is the third-round mutual evaluation by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). In July 2026 the government put an IBC Amendment Bill and a Trusts Amendment Bill before the National Assembly as part of that preparation.
FSA Circular No. 5 of 2026
On 14 August 2026 the Financial Services Authority (FSA) issued a formal reminder to IBCs. Its key messages:
- Incorporation is not a licence. Banking, insurance, securities, funds, trust services, gambling and virtual asset activities require a licence in the Seychelles or in the country where they are carried out.
- IBCs may not offer virtual asset services, issue ICOs or NFTs, or run mixing services from the Seychelles without FSA authorisation under the VASP Act 2024.
- Websites and contracts must state clearly under which authority an IBC operates, and must not suggest FSA regulation where none exists.
Penalties are significant: up to USD 50,000 under the IBC Act and up to SCR 5.25 million, about USD 370,000, per offence under the VASP Act.
Ongoing obligations every owner should know
- Registered agent. Each IBC must keep a Seychelles-licensed registered agent, which holds statutory registers and files beneficial ownership data.
- Accounting records. Records are kept at the registered office, updated twice a year and retained for at least seven years. Larger companies also prepare an annual financial summary.
- Nominees. Since July 2025, nominee shareholders must file a declaration identifying the nominator within 21 days of appointment, and registers must show nominee status.
- Beneficial ownership. Ultimate owners must be recorded under the Beneficial Ownership Act 2020 and kept up to date.
Why the Seychelles still attracts founders
The core advantages remain in place for legitimate structures. An IBC can be formed with one director and one shareholder, with no local residency requirement and no minimum paid-up capital. Taxation is territorial, so income sourced outside the Seychelles is generally not taxed locally, subject to rules for multinational groups. Holding, trading, IP and international service companies continue to use the jurisdiction widely.
For regulated businesses, the Seychelles also offers its own licensing, including securities dealer and VASP licences, which many forex and crypto companies use as a step up from lighter offshore regimes.
Outlook for 2026–2027
The direction is clear: the Seychelles is keeping its role as a practical base for international business, but with less tolerance for shell companies used to run unlicensed activities. Owners should review what their companies actually do, align websites with their licensing status and keep records in order before the mutual evaluation. Providers such as Private Financial Services assist with incorporation, registered agent and secretary services, bank account opening and structuring licensed activity correctly from day one.
