Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Seychelles. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
|No.||Procedure||Time to Complete||Associated Costs|
|1||Verify uniqueness of company name||1-2 days||no charge|
|2||Notarize signatures of the Memorandum and obtain declaration by notary or attorney that company documents comply with the Companies Act.||1 day||Between SR 5000 to SR 15000|
|3||Deposit documents at Companies Division of Registrar General for stamp duty assessment||3-4 days||see comments|
|4||Pay stamp duties at the Registry||1 day||included in procedure 2|
|5||Obtain registration certificate||6-10 days||no charge|
|6||File particulars of the directors and company, and the registered office||approximately 7 days||SR 50 per document|
|7||Obtain business license||7 to 21 days||SR 1,000 (for retail)|
|8||Register for taxes at the Revenue Commission||1 day||no charge|
|9||Register as an employer with social security division||1 day||no charge|
|10||Register with Employment Services Bureau||1 day||no charge|