The investors have a number of options to base an offshore company in a suitable jurisdiction. Each of the options has its own particularities and also has several similarities. The main characteristic that is most similar in many of the offshore jurisdictions is corporate taxation.
All of us know that Belize and Seychelles are among the top offshore locations. When the investors are deciding to set up an offshore company in Belize or Seychelles, they are faced with a series of questions.
Opening an Offshore Company in Seychelles
Most of the offshore jurisdictions that have made a name for themselves in terms of their attractiveness for the investors offer similar types of advantages such as easy company formation, no corporate taxation, a minimum number of directors and shareholders, and a lack of reporting requirements. They apply both to those who open their offshore company in Belize and choose Seychelles as well.
The investors who open an offshore company in Belize benefit from the same advantages in terms of taxation as compared to an offshore company in Seychelles. An important advantage for Belize is that the level of privacy for the investors is perceived as a high one. Belize is not only a tax haven, but It is also a location where the banking requirements are in favor of the investor. There is no need to reveal the name of the bank account holder.
Opening an Offshore Company in Belize
The investors who are looking to incorporate a legal entity that will need a Forex license, then Belize is a very good location for them. Another massive advantage of Belize is that English is the official language here, which eliminates the language barrier for the investors. English is an official language in Seychelles as well, but it competes with French as used among the foreign investors. The Belize jurisdiction ensures top-notch safety and also has one of the highest degrees of confidentiality for the investors.
Differences between Seychelles and Belize Foundations
As we mentioned above, the investors are faced with a series of questions when deciding to set up an offshore company in Belize or Seychelles. The Seychelles Foundation law is very similar to that of Belize’s with a few additional features as below:
- The rights of the founder of the Seychelles Foundations can always be assigned and also enables complete privacy because normally, the founder's name appears in the charter.
- The Seychelles Foundation Law mainly states that the foundation is the legal as well as the beneficial owner of any assets that it holds. This is a really very good tax planning feature. This is because the onshore tax authorities have faced such entities on the on the basis that beneficiaries are the beneficial owners of the entity. It also means that when opening bank accounts that you can avoid your name being the beneficial owner of the company.
- The Seychelles Foundation law also states that the beneficiaries are given no depositary duty by the foundation council. This strengthens the above proposition that is the foundation that owns the assets.
- The Seychelles law also provides additional provisions for asset protection. It mainly says that a property transfer to a Seychelles Foundation shall not be void, voidable, or liable to be set aside or defective in any terms with reference to a foreign rule or any written law of a foreign jurisdiction.
- It also says that a property transfer to a Seychelles Foundation shall not be void as a result of the founder’s bankruptcy or the liquidation of the founder’s property, or any action, claims, and proceedings against the founder brought by any founder's creditor.
Is Belize Offshore Foundation better than Seychelles?
Seychelles introduced the public registry in January 2018. It's not private any longer to have a Seychelles company. We recommend you to register a new Belize company in your name with a real bank account for business. It is obviously better when compared to Seychelles.
We hope that all the above information will give you a clear picture of deciding whether to start an offshore company in Belize or Seychelles.
Business Setup Worldwide is a platform to guide you through this. If you need any assistance, then you can contact us! We’d be glad to assist you.