Amendments to Seychelles Investment Act to protect local industry

(3 minutes read)

• Foreign businesses will now have to undergo an evaluation before setting up their ventures in Seychelles according to the amendments being made to the Seychelles Investment Act

Foreign businesses will now have to undergo an evaluation before setting up their ventures in Seychelles according to the amendments being made to the Seychelles Investment Act.

This was revealed  by the principal secretary for investment, Michael Nalletamby, while  talking to a group of licensing and registration officers about the Seychelles Investment (Economic Activities) Regulations, 2022. The new regulation established clear guidelines on economic activities in Seychelles that a non-Seychellois may invest in. The guidelines were framed after a series of meetings with the investment department and other relevant institutions.

Since July this year, the regulations have been changed. According to the new rules, a foreigner desirous of establishing a business in Seychelles, has to undergo an economic needs test, which will be conducted by the Seychelles Investment Board (SIB).

The SIB will evaluate applications by non-Seychellois to carry out activities, in which a non-Seychellois may wish to invest, based on a needs test. That will take into consideration the development of the economic activity in Seychelles, the extent it may be considered in the interest of the domestic economy and consumers.

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The changes allow foreign nationals to invest in businesses that include architectural services, legal services and taxation services without having to partner with a Seychellois national. However, to open other businesses such as those of tourism establishments with less than 25 rooms, they must partner up with a Seychellois who in turn must have the majority of shares in the company. There will be a series of clear criteria put in place to properly evaluate investments in various segments and how they are conforming to the guidelines set.