Seychelles is a popular jurisdiction for offshore activities. It offers lucrative offshore company setup opportunities with the help of an International Business Company (IBC). It is a suitable type of business entity for businesses looking for additional benefits such as security, confidentiality, and lower tax rates.
Seychelles has been one of the leading offshore jurisdictions since the enactment of the International Business Companies Act 1994. Its offshore sector has observed rapid expansion owing to its flexible structure, business-friendly offshore regulations, and easy-to-follow legislation. All of these factors make Seychelles the best jurisdictions starting an offshore company.
The country compromises of one hundred islands and is located in the Indian Ocean. Over the last few years, there has been tremendous growth in its offshore sector. Investors and business owners are preferring this jurisdiction for offshore jurisdiction due to the various benefits associated with it. In this article, we will discuss the offshore sector as well as the procedure to register a yacht in Seychelles.
Offshore Yacht in Seychelles
An offshore yacht in Seychelles sails under the Seychellois flag. It offers optimal solutions in the form of lesser restrictions in terms of navigation, taxes, and other specifications.
To register a yacht under the Seychelles flag, you should either be a Seychelles citizen or have to start an offshore company in Seychelles.
If most of your requirements involve sailing outside the territory, then it is quite essential to set up an International Business Company in Seychelles. A Seychelles IBC is an offshore entity that allows you to own a yacht in the country.
A registered offshore company is mandatory in case of commercial navigation such as a chartered vessel or a cruise. This company will bear the ownership of the yacht that will be registered. The registered company should, therefore, comply with Seychelles offshore and maritime laws. It should also take into consideration the legal provisions regarding taxation and social changes in the jurisdiction.
Offshore Yacht registration in Seychelles
Offshore yacht registration in Seychelles is a sophisticated process and requires help from a professional expert. Experienced professionals can help you with the entire registration procedure without much hassle and that too at affordable fees.
The following documents are necessary and have to be submitted to a registered agent to go ahead with the process:
- A declaration stating ownership of the vessel
- Certificate of Incorporation and Memorandum of Association and Articles of Association
- Application Form duly filled for the registration of the offshore yacht
- Signatures and stamp of the notary agents
- Builder’s Certificate containing yacht specifications and condition
The following are some of the basic requirements that the offshore yacht should qualify to operate legally in the jurisdiction:
- The limiting age of the yacht should be recorded at 15 years post, which should undergo complete maintenance. These limitations can, however, be exempted in the case of well-maintained yachts.
- If the yacht is operating outside the territorial waters of Seychelles, it can be temporarily recorded as a diplomatic representation of the Seychelles flag abroad. However, the provisional recording will only be valid for 90 days post, which should be renewed.
- If the yacht complies with all the required standards, all the necessary authorization for the recording of the yacht can be delivered at the time of its inspection. In this way, the yacht can be recorded directly.
Benefits of Offshore Yacht Registration
The following are some of the benefits of offshore yacht registration in Seychelles:
- It is exempted from all corporate taxes, work permits and social security contributions for foreign nationals
- It provides 100% foreign ownership of the vessel
- There is no requirement to pay taxes on the salaries of officers and crew members of Seychelles yacht operating in international water
- When you register a second ship within twelve months of the first registration, the ownership can be entitled to a rebate of 30% on the latter ship
- There are also no taxes on the profits generated by an IBC which owns the yacht under the Seychelles flag. Further, no tax is imposed on the dividends paid by the offshore company
- No publication of identity in public records
- Also, there are no taxes on the sale or transfer of a Seychelles vessel. It applies to the shares of the offshore company as well
Getting through the entire registration process can be quite hectic. Therefore, it is necessary that you seek professional guidance and support to successfully register your yacht in Seychelles. Business Setup Worldwide is a platform that helps clients with offshore yacht registration as well as offshore company formation in Seychelles. You can contact us today to learn about our services.