The Republic of Seychelles changed its legislation

17.01.2012 At the end of 2011 the Government of the Republic of Seychelles adopted several amendments to the corporate law of non-resident entities (companies, trusts, foundations and partnerships). Changes affected such acts as Companies Ordinance Act, International Business Companies Act, International Trusts Act, Foundations Act, Limited Partnerships Act. Also, some changes were made in the law that regulates the activities of registrars of companies and providers of corporate services - International Corporate Service Providers Act.

However how these changes will be realized in practice is not clear yet. In coming days legislators are planning to comment on the adopted amendments.
For example, according to the major changes in International Business Companies Act international business companies are required to prepare accounting records, accounts of the company, keep such accounting records for 7 years. Also, there is obligation of the company and its directors to pay the penalty in the amount of 25 USD for each day of non-compliance with the law. To the questions: how such provisions will be realized actually, for which companies now there is an obligation to prepare reports – answers will be given in the near future.

All the changes and amendments to the legislative acts of the Republic of Seychelles came into effect on the 27th of December 2011, the text is available on www.siba.net.

Expert’s opinion

“Let’s recall that the Seychelles are located in the white list of jurisdictions of the OECD, which affects the process of the state statutory provisions compliance with the standards of the international organization. Experts name this fact the main driving force of the changes in the legislative basis of the country.

Since the legislative changes have come into effect recently and are in force for less than a month, it's hard to talk about the consequences of such innovations.

However, in connection with the possibility of appearance of international business companies obligation to prepare accounting reports we can predict an increase of price to maintain such companies for investors”.

On the basis: www.siba.net

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)