Seychelles Private Fund

Seychelles mutual funds (“Seychelles investment funds”) are a popular choice for private equity funds (“private funds”). In Seychelles, mutual funds are governed by the Seychelles Mutual Fund and Hedge Fund Act 2007 and are licensed by the Seychelles Financial Services Authority.

A Private Fund” is a mutual fund which;

  1. the constitutional documents of which specify that it will have no more than 50 investors; or
  2. the constitutional documents of which specify that an invitation to the public to subscribe for or purchase equity interests in the mutual fund is prohibited.

Key Features

Seychelles Private Fund Corporate Details
General
Permitted Fund Vehicles IBC (International Business Company), CSL (Special License Company), Trust, PCC (Protected Cell Company) and domestic company.
Directors Requirements For a Company – One natural person as directors, which is resident in or outside Seychelles.

 

For a Partnership – One natural person as general partners or one natural person as directors of one or more corporate general partners which is resident in or outside Seychelles.

 

For a Unit trust – One natural person as trustees or one natural person as directors of corporate trustees, which is resident in or outside Seychelles.

 

 

Shareholder requirements The licensee will need at least 1 shareholder to hold management shares. This can be either and individual or a corporation from any jurisdiction with the exception of UN sanctioned jurisdictions.
             Investor Requirements  The Minimum number of investors should not be more than 50.
             Fund Administrator A Seychelles licensed fund must be administered by a licensed Seychelles Fund Administrator or an approved Foreign Administrator
             Custodian A Seychelles private fund is required to appoint a custodian to entrust with the safekeeping of its investor assets. The custodian may be:

I.            A licensed bank

II.            A licensed trustee services provider or

III.            Such other financial institution or person in or outside Seychelles, as may be approved by the Authority

              Auditor         I.            The Act mandates the licensee to appoint an FSA approved auditor. The auditor can be a foreign auditor or a Seychelles based auditor.

 

II.            Every private licensed fund must have its accounts audited annually according to the International Financial Reporting Standards.

 

 

             Accounts         I.            Every licensed private fund must maintain adequate accounting records and prepare financial statements in respect of each financial year in accordance with generally accepted accounting principles.

II.            Every private fund is required to conduct NAV calculations at least once a year and report the same to all investors.

              Tax The Business Tax Act does not apply to licensed and exempt funds unless the licensed fund is a Special License in which case a tax rate of 1.5% will be applicable on the income of the fund.