Since 2015, Seychelles has been classified as a high-income economy. Situated around 1500 kilometers to the east of mainland East Africa Seychelles is an archipelago consisting of 115 small islands.
After introducing offshore services with the start of offshore legislation in 1994, Seychelles has seen a consistent rise in the offshore sector. The main reason for such growth is the business-friendly laws that govern the company functions over there.
Termed as a tax haven, Seychelles is the most preferred business destination for investors who want to expand their businesses by making the tax planning more effective and protecting their assets by forming a Seychelles offshore company. The country is a famous offshore financial center and a growing international company incorporation market.
Seychelles offshore company is a universal instrument for asset protection and tax planning techniques. Offshore company formation in Seychelles requires a low start-up budget and no financial reporting requirements throughout the company’s lifetime.
About Offshore Company in Seychelles
Also known as ‘Seychelles IBC Companies’, Seychelles offshore businesses are only allowed to conduct operations and sign contracts with entities based outside of Seychelles. An IBC registered in Seychelles is tax-free and structured to perform any form of international business with very little record-keeping and recording requirements. An IBC also comprises several features which maintain strict confidentiality throughout.
The Seychelles Business Act introduced in 1994 has seen more than 30,000 Seychelles offshore company IBS with over 600 companies being registered each month.
Seychelles Offshore Company Benefits
When it comes to company incorporation in Seychelles, most business investors prefer to proceed ahead with the option of International Business Company, also regarded as an IBC. The benefits of an IBC business setup in Seychelles are –
- The earnings of an IBC company are fully tax-exempt as this company is not considered a resident for tax purposes
- Investors can register a Seychelles company with a Special License Company (CSL), and such company is tax resident but benefits from a reduced corporate tax rate of 1.5% over its global earnings
- Smooth repatriation of capital outside Seychelles
- No publicly available records of the details of the beneficial owners of a Seychelles formed a company
- No statutory requirements for annual filing of accounts of the company return for IBCs
Characteristics of an IBC in Seychelles
- Only one director and one shareholder are mandatory, who can be the same person. They can be corporate individuals and not necessarily residents of Seychelles
- The offshore companies in Seychelles are not subject to corporate tax, annual returns, and audit requirements
- No requirement to submit financial statements; however, they must be prepared and kept at the office of the company’s registered agent
- No access to Double Tax Avoidance treaties
- One company secretary is required who must be a resident of Seychelles by law
- An IBC must have a registered office in Seychelles, provided by an authorized registered agent
- Annual general meeting of shareholders is not mandatory and can be held anywhere
- There is no minimum subscribed and paid-up capital required, and it may be denominated in any currency
Types of Company Registered in Seychelles
Even if the primary impression is that the foreigners only set up offshore companies in Seychelles, the regulation also provides for other types of entities and structures which can be set up by regional or foreign entrepreneurs, which are –
- Special license companies (CSL) for having onshore financial activities
- Anonymous businesses which can be used for onshore trading activities in Seychelles
- Proprietary companies which are equal to a foreign LLC
- Trusts which can take two methods and can be used for asset security purposes
- Investment funds can also be incorporated by foreigners who come to Seychelles
How to Incorporate a Seychelles Offshore Company
Before starting a company in Seychelles, the investor must consider a few things. One of them is having a registered agent who will handle the incorporation procedure with one of the departments in charge of accepting and issuing the Certificate of Registration for local companies.
Another essential thing to consider is, the investor must choose a local legal address and appoint a resident director for the Seychelles Company.
Once these procedures are completed, you can start the process of offshore company registration in Seychelles. The documents required to complete the process are –
- Trade name registration copy
- Personal information of the shareholder
- Report on the company’s director and proof of their residency must be provided
- The official address of the Seychelles company must be submitted for incorporation
Seychelles offshore company formation is one of the best strategic moves one can ever make to grab high-end profits. However, the incorporation process turns out to be fruitful if carried out under the guidance of business experts.
How Can We Help?
With experts’ guidance, the complete incorporation process gets carried out in a hassle-free manner wherein you can operate the business transactions by opening an offshore bank account that gives you the privilege to invest in the international market.
Business Setup Worldwide is a platform to help you set up an offshore company in Seychelles. We provide services like business formation, bank account opening, IP, accounting and bookkeeping, and much more. Everything can be arranged and completed online or with the assistance of our experienced team. Contact us today to get started.