Firms that are already registered or qualified for immediate registration are referred to as “shelf” or “ready-made” companies. It is important for investors to know how to purchase a Shelf Company in Seychelles. Such businesses are readily available for acquisition. These businesses have not engaged in any transactions, agreements, or other legal commitments. Companies marked as “Approved” have simply had their names reserved for registration; they have not yet begun to exist legally.
The main benefits of shelf companies include (A) time savings if an especially quick turnaround is required, (B) provision for a slightly earlier registration date, which may be required in some business situations, and (C) assistance with the sometimes challenging task of coming up with a new company name.
Know more about Seychelles company formation and read about other types of companies too.
FACTS ABOUT SHELF COMPANIES IN SEYCHELLES
- The businesses with a stated registration date are already registered, are real legal organizations, and are up for sale.
- The “approved” company names have been given the Registrar’s approval for registration, but they still need to be entered into the Registrar of Companies. An accepted company name must typically be registered within one business day.
- Purchasing a ready-made company (also known as a “shelf company”) does not guarantee that the paperwork will be sent right away.
- Typically, a shelf firm has an “open” structure. As a result, it would still be necessary to elect the directors, distribute shares, create the appropriate internal Registers and Resolutions, etc.
- The paperwork for a shelf corporation is not notarized or apostille-legalised. In most cases, these certificates are necessary for the corporate paperwork to be useful in any foreign jurisdiction at all. The applicant will need to wait for an additional one to five business days before the documents can be dispatched if they need these certifications.
- The following annual renewal payment (Government duty, Registered Agent, Registered Address, and other annual maintenance fees, if applicable) for an existing shelf business may become due and payable much sooner than for a newly incorporated company. This is a result of the amount of time that has passed from the shelf company’s initial incorporation date (the amount of time the company was “on the shelf”). The buyer of a shelf business must pay the usual annual maintenance fees for the entire time since the company’s first registration date. This becomes especially crucial when buying “vintage” businesses—those that were already more than a year old at the time of purchase.
Refer to Seychelles annual filing requirements to know more.
HOW TO OPEN A SHELF COMPANY IN SEYCHELLES
Opening a shelf company in Seychelles typically involves the following steps:
Step 1: Choosing a Company
The first step is to choose a shelf company that suits your requirements. You can search for available shelf companies through registered agents, who maintain a list of companies that are available for purchase. You should choose a company that aligns with your business objectives and has a name that you like.
Step 2: Re-Register the Company
Once you have chosen a shelf company, you need to re-register it with the Seychelles International Business Authority (SIBA). You will need to submit the necessary documents, including the memorandum and articles of association, to the SIBA. The registered agent will handle the paperwork and ensure that the company is registered under your name.
Step 3: Make Management Changes
After re-registering the company, you can make changes to the management structure of the company. You can appoint directors and officers to manage the affairs of the company. You can also define the roles and responsibilities of the management team.
Step 4: Allocation of Shares
You will need to allocate shares to the shareholders of the company. The shares can be allocated based on the ownership structure of the company. The shareholders can be individuals or other entities, such as companies or trusts.
Step 5: Internal Regulations Preparation
Once the management structure and share allocation are in place, you should prepare the internal regulations of the company. The internal regulations should outline the rules and procedures for conducting business, including the procedures for holding meetings, appointing directors, and distributing dividends.
Overall, opening a shelf company in Seychelles requires some legal and administrative work, and you may need to engage the services of a registered agent such as Relin Consultants to help you through the process. However, once the company is set up, you can start conducting business immediately, as the company is already registered and ready to trade.
ADVANTAGES OF OPENING A SHELF COMPANY IN SEYCHELLES
- Faster Incorporation – A shelf company is already incorporated and registered with the authorities, so you can start your business operations immediately. This saves time and money compared to the process of incorporating a new company from scratch.
- Good Reputation – Seychelles has a good reputation as an international business centre, with a stable political environment and a sound legal system. By opening a shelf company in Seychelles, you can take advantage of this reputation to build credibility with customers and partners.
- Low Taxation – Seychelles has a low taxation system, with no corporate tax, no capital gains tax, and no withholding tax. This can result in significant cost savings for businesses.
- Confidentiality – Seychelles offers a high level of confidentiality for companies and their owners, with strict regulations on the disclosure of information.
CHALLENGES OF OPENING A SHELF COMPANY IN SEYCHELLES
- Limited Control – When you purchase a shelf company, you may not have full control over the company’s history, structure, and assets. You may need to accept the existing management structure and shareholders, which can limit your decision-making ability.
- Hidden Liabilities – When you purchase a shelf company, you may inherit the company’s liabilities and obligations, which may not be apparent at the time of purchase.
- Higher Costs – Purchasing a shelf company may be more expensive than incorporating a new company from scratch. You may also need to pay additional fees to change the company’s name, directors, and shareholders.
- Limited Name Choices – When you purchase a shelf company, you may be limited in your choice of company name, as the name of the company is already registered.
Reach out to us at Relin Consultants for further assistance with opening a shelf company in Seychelles.
What is a shelf company?
A shelf company is a company that has been registered and incorporated but has not traded or conducted any business activities.
Why should I open a shelf company in Seychelles?
Opening a shelf company in Seychelles can be advantageous because it offers faster incorporation, a good reputation, low taxation, and confidentiality.
Can I change the name of a shelf company in Seychelles?
Yes, you can change the name of a shelf company in Seychelles. However, you may need to pay additional fees and go through a formal process to change the company’s name.
Do I need to visit Seychelles to open a shelf company?
No, you do not need to visit Seychelles to open a shelf company. You can engage the services of a registered agent who can handle the paperwork and represent you in Seychelles.
How long does it take to open a shelf company in Seychelles?
The time it takes to open a shelf company in Seychelles depends on various factors such as the complexity of the company’s structure, the availability of the necessary documents, and the efficiency of the registered agent. However, it typically takes between one to two weeks to complete the process.
Do I need to have a local director to open a shelf company in Seychelles?
No, you do not need to have a local director to open a shelf company in Seychelles. However, you must appoint at least one director, who can be a foreigner.
Can I open a bank account for my Seychelles shelf company?
Yes, you can open a bank account for your Seychelles shelf company. However, you will need to provide the necessary documents, including the company’s memorandum and articles of association, to the bank.
Can I sell my Seychelles shelf company?
Yes, you can sell your Seychelles shelf company. However, you may need to comply with certain legal and regulatory requirements before selling the company.