Over the past five years, the Seychelles has become one of the choice locations for offshore businesses to base themselves in. Subsequently, this guide will walk you through opening a bank account in the Seychelles and what you need to know.

Introduction to Seychelles as a Banking Destination

The islands of the Seychelles are probably not a place that you immediately visualize when thinking of offshore centers. However, the 90s saw the island reform many of their taxation and company formation laws to become more attractive to investors.

Subsequently, the islands administration passed laws which removed all taxes for those companies with no local operations whilst also implementing significant privacy laws. As part of these changes, bank secrecy was implemented which brought them into line with most of the other major tax havens.

This saw a radical increase in the number of offshore corporations being formed as well as a major increase in license revenues being paid to the state. The Seychelles had officially entered the business of being an offshore financial center.

The Pros and Cons of the Offshore Banking Sector

Despite the nation providing a flexible environment for offshore entities, the banking sector never saw the sort of success that you would have expected.

Unfortunately, many companies might have been established within the country, but they have chosen to bank in other jurisdictions. In short, although the government introduced a flexible legal system, they failed to bring major financial institutions to the island.

Subsequently, you should not expect Hong Kong, or even Singapore, service levels from the local banks. Although reliable, they are often slower to clear transactions and complex arrangements can take time to put into place.

Probably one of the biggest cons is simply the general location, to fly to the Seychelles is no easy feat. Subsequently, if you need to physically attend your bank it can be time consuming and expensive.

However, with all that said, the Seychelle banks are relatively easy to deal with and account opening can often be completed remotely. This is an attractive proposition given how hard it has become opening accounts around the world.

Choosing the Right Bank

Firstly, picking a bank is an incredibly important part of the process. You need to make sure that your business, and risk profile, fits well within the typical operations that the bank sees. This takes research and will, often, require looking at who your competitors bank with.

Additionally, you want to make sure that you have your business plan, your marketing collateral/website, and any other details about your business ready to go. Not all banks will ask for these documents, but they will certainly all want a good explanation of why your business wants to open an account in the Seychelles. Expect to be asked those sorts of questions during the compliance and due diligence process.

It pays to make sure that your bank is aware of the full scope of what you do at all times. This stops any surprises from popping up that could destroy the relationship and jeopardize your account status.

Finally, make sure that what you are seeking is provided by the local offshore banks. Not all standard banking services will be provided and if you want something complex you might be best advised to look at other areas.

Offshore Banks and Opening Requirements

(All banks on this list are licensed by the Central Bank of Seychelles)

• Absa Bank (Seychelles) Limited
• www.absa.sc
• Minimum Account Balance: US$35k
• Proof of Address/Proof of ID and Income required. Remote account opening is also available. Full online banking facilities are also available.

• Mauritius Commercial Bank (Seychelles) Ltd
• https://mcb.sc/
• Minimum Account Balance: US$75k typically
• In person visit, normally, required with ID, proof of address, and source of funds documents.

• Bank of Baroda
• https://www.bankofbaroda.sc/
• Minimum Account Deposit: US$25k
• Remote account opening available. Requires normal compliance and AML documents.

• SIMBC Nouvobanq
• https://www.nouvobanq.sc/
• Minimum Account Deposit: US$25k
• Remote account opening and typical suite of compliance documents required. Extremely easy to deal with.

• Seychelles Commercial Bank
• https://www.scb.sc/
• Minimum Account Deposit: US$500
• The easiest of all the banks to secure a corporate account with. Small initial deposit and standard compliance documents required.

• Al Salam Bank
• https://www.alsalamseychelles.com/
• They do not advertise their minimum deposit amounts, but we understand it is in excess of US$50k for corporate account opening.

How Long Does It Take to Open an Account

In most cases you can normally secure account opening within two weeks. What takes the most time is getting all of your identity documents together, and certified, and approved by the bank. You will also have to sign an account opening mandate and get the original documents across to your bank of choice.

Do You Need to Visit in Person?

In most cases, the answer to this question is a resounding no. Most of the offshore banks on the list that I have provided offer remote account opening. However, if you have a high-risk business it may pay you to visit them in person to explain your operating model.

I have always said that developing a relationship with your bankers is an important aspect to getting and keeping your business accounts open.

What’s the Downside to Banking in the Seychelles?

The reality is that the Seychelles doesn’t have a particularly clean name within the offshore world. There are many reasons for this but, depending on your location, you may find additional scrutiny on any transfers to your business bank account.

Additionally, if you have also registered, or formed, your company on the islands it can be exceedingly difficult to find banking services in other jurisdictions. The Seychelles hasn’t been completely blacklisted by all banks, but it can be very challenging to secure banking services.

Future Risks

Something that you should be aware of is the risk that global pressure poses to offshore banking. The Seychelles has been placed on the EU tax blacklist which is, effectively, a list of non-complying countries. This process is designed to shame countries into compliance through a public ‘outing’.

Thankfully, most of the countries on this list have simply ignored these games and continued their offshore operations. However, it is definitely something that you should be aware of given the rising risk of nations being forced into a minimum tax regime.

Alternatives to the Seychelles

If you find that your company operations don’t fit within one of the offshore banks then you might be wise to look at another jurisdiction. Belize offers reputable banking services similar to the Seychelles and has the benefit of being close to the USA.

If this is the case, you might be wise to take a look at Choice Bank of Belize. It’s run by reputable people and they offer a full range of business banking services.

Final Words

The Seychelles can be a great place to form your company and bank within, but your business use case has to fit its quirks. If you are likely to require significant services from your chosen institution, then you are likely to be best served elsewhere. However, if your company is using it as a simple transaction account, or a pass through, they can be very useful.

Ultimately, obtaining an offshore bank account (corporate) should be relatively easy and pain free as long as you have the requested anti money laundering, proof of identity, address, and funds documentation. Feel free to reach out if you need help in finding an account for your needs.