Seychelles, an offshore jurisdiction licensing crypto businesses, is a gem that many entrepreneurs overlook when choosing the licenser for their next blockchain project. On this page, we will take a closer look at the benefits you can reap from registering your company in the Seychelles.
What are the primary benefits of registering a crypto project in Seychelles?
For starters, Seychelles has one of the most enabling and flexible frameworks for regulating crypto businesses: the Seychelles crypto license works in perfect synergy with the Forex license in the country, which allows entrepreneurs with complex business structures to conduct several different activities at the same time while staying fully legally compliant. In addition, despite having a fast and comparatively cheap licensing procedure, Seychelles is a jurisdiction that doesn’t lack prestige: in the upcoming year, the country is projected to gain even more visibility on the international market, especially, among startups looking for less costly but reliable licensing solutions.
What are the specific types of crypto projects that are well-suited for registration in Seychelles?
Seychelles is a country remarkable for its flexibility when it comes to licensing crypto projects. There are a whole lot of activities you can perform and services you can offer to customers while you secure a legal permit in the Seychelles: among them are crypto-to-crypto and crypto-to-fiat exchange activities and vice versa, custodial and non-custodial services, transfer and conversion services, investment management, and even advisory services. However, note that the country has 4 distinctive license tiers, and you have to choose the one that covers the business activities implied by your company in full.
What are the regulatory requirements for registering a crypto project in Seychelles?
There are not a lot of regulatory conditions to meet in order to be able to register your company in the Seychelles and launch a crypto venture. For starters, you have to establish economic substance in the Seychelles by registering a local company and hiring all the responsible personnel. From there, you can move on to choosing the license type and fulfilling the listed requirements. It would be best to consult an experienced lawyer to know for sure which license type suits you best and covers all the business models involved in your project.
What are the tax implications for crypto projects registered in Seychelles?
In case you register an IBC (International Business Company) in the Seychelles, you can get the advantage of being exempt from general taxation. However, as a rule, there are several domestic taxes your company is still likely to be subjected to: the standard tax rate is 15% on the first 1M Seychelles Rupees and 25% beyond this sum. In addition, there is a withholding tax rate set at 15% in the Seychelles.
What are the potential challenges and risks associated with registering a crypto project in Seychelles?
Seychelles’ taxation incentives can also hinder its reputation on the international scene. Still considered a tax haven by many other jurisdictions, the Seychelles can pose a certain reputational risk, especially for already established companies deciding to secure an additional license for crypto activities. Besides, the lack of clearly defined crypto-related regulations in the Seychelles can create regulatory uncertainty and ambiguity for some entrepreneurs. Finally, companies with Seychelles-only licenses can face difficulty operating globally and expanding their international presence.
How does Seychelles’ regulatory framework compare to other popular jurisdictions for crypto projects?
Seychelles can be compared to several other, both offshore and onshore, crypto-licensing jurisdictions. For example, unlike Seychelles, Malta has a more defined and strict regulatory framework for crypto projects, but the licensing and operational costs are also significantly higher. The Cayman Islands, like Seychelles, have an allowing taxation policy, but the country is slightly more established and reputed on the international crypto scene. Finally, any onshore jurisdiction, like, for example, Estonia, has a long-standing and brilliant reputation on the international crypto scene, but might not be affordable to startups due to extremely high registration and licensing costs, as well as other financial requirements.
What are the specific steps involved in the registration process for a crypto project in Seychelles?
The licensing process for a crypto project in the Seychelles can be slightly slowed down by the obligation to have economic substance, that is, a registered company with a legal address, in the Seychelles. In order to register an IBC, you will have to compile a set of the required legal documents, including, among other things, identity documents of the owners, directors, and shareholders, and deposit the required initial share capital of 50,000 USD. From there, you can pick up with the licensing process: prepare the AML/CFT compliance documents, write a business plan, appoint an AML compliance officer, get professional insurance approved by Seychelles’ Financial Services Authority (FSA), and submit the licensing application for a review by the FSA.
What are the estimated costs associated with registering a crypto project in Seychelles?
The main cost you should consider when registering a company in the Seychelles is the requirement to deposit an initial share capital of approximately 50,000 USD. Besides, there will be obligatory incorporation and licensing fees of around 1,000 USD each. These numbers are very vague, though, and in order to know the price of opening a crypto company in the Seychelles for sure, we recommend consulting an experienced legal expert/
