When you start to begin searching for ways to incorporate your business offshore, you will usually delve into the thought of choosing the perfect jurisdiction for the most part. There are so many valuable jurisdictions that provide attractive benefits to investors and entrepreneurs.
During the search, you will stumble upon locations such as Belize and Seychelles, two of the most sought-after jurisdictions to start a business in. Each of the options has its particularities and also has several similarities. The main characteristic that is most similar in many offshore jurisdictions is corporate taxation.
Belize and Seychelles both have their own set of advantages and disadvantages. The determination process for choosing a destination eventually comes down to what an investor wants in their business. Aligning business needs with the features of specific jurisdiction is the most sound solution to find the perfect jurisdiction.
Once you are done assessing the boon and bane of a location, you can proceed to take the help of a business setup expert for Offshore Company Formation.
Opening an Offshore Company in Seychelles
Most 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 taxation by Seychelles offshore company formation. 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 favour 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 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 and beneficial owner of any assets it holds; this is a really good tax planning feature because the onshore tax authorities have faced such entities. After all, beneficiaries are the beneficial owners of the entity. It also means that when opening bank accounts, you can avoid your name being the company's beneficial owner.
- The Seychelles Foundation law also states that the foundation council gives the beneficiaries no depositary duty. 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.
Offshore Belize vs Seychelles: 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. Even though the balance tips favour Belize offshore company formation, one must always keep in mind that this is subjective.
In the end, what matters is that you are availing yourself of benefits that are helping your business grow and helping you be efficient in every manner possible. Choosing the best jurisdiction should mostly be done by keeping your requirements in mind.
No matter which jurisdiction you choose, seeking the help of a business incorporation expert is always recommended. We here at Business Setup Worldwide provide top-notch customized business solutions to help you with the setup process smoothly.
If you need any assistance, kindly contact us! We'd be glad to assist you.