Why Seychelles Offshore is a Tax Haven?

Offshore business in Seychelles is growing at a rapid pace. Earlier, tourism and agriculture were the dominant sectors which contributed to the economy of the island country. But ever since the establishment of the offshore industry back in 1994, offshore business has become a driving factor for the country’s growth. Seychelles International Business Authority regulates and authorizes offshore activities in the jurisdiction.

What is Tax haven? 

A tax haven is a foreign country that offers individuals and corporations a stable business environment with either minimal or no tax liabilities. Offshore business in tax haven countries have access to extremely low taxation rates and pay only a nominal charge for the services offered by the jurisdiction. Over the last few decades, there has been a substantial increase in starting an offshore company in Seychelles.

It is mainly due to the tax privileges offered by the country to the offshore businesses established in its territory. Various features of a tax haven attract business owners and corporation to start an overseas company. An offshore business provides flexibility and control over the business operations, which may not be the case in residential jurisdiction. If you are looking to start an offshore company, then read further to know about the factors that make Seychelles a tax haven for conducting overseas business.   

Factors that make Seychelles tax haven

Minimum or no tax liability

Tax exemption is a crucial factor that makes Seychelles a tax haven country. Offshore companies in Seychelles are exempted from corporate taxes. The capital resources of the company can thereby be used in the economic expansion of the business. Tax haven countries attract capital to their banking and financial institutions by encouraging offshore business in their jurisdiction. These countries usually charge a nominal fee for their services. 

Confidentiality and privacy

Sensitive information regarding the offshore business such as personal and financial information is not published on public records. Confidentiality is a crucial aspect of offshore business as it ensures complete secrecy of company activities and practices. Business owners are drawn to tax havens, mainly due to the high level of security that helps in the protection of company assets.

Absence of currency control

There are no limitations on currency exchange control for transactions to and from the territory of Seychelles. You can freely send money from the jurisdiction without any limits. The absence of currency control provides confidence to investors. It assures that investments are secure and accessible whenever required. Investing in these jurisdictions with lack of currency control allows individuals and businesses to avoid complexity with the flow of money on every transaction.

Favourable tax treaties

Seychelles has double tax agreements with 28 countries. It is beneficial for investors to start a wide range of businesses in the territory. Double tax treaties are agreements between countries that helps investors to avoid paying taxes twice. There are several provisions of double tax treaties in Seychelles such as lower tax rates for worldwide profits, no capital gains tax, and tax exemption on interest, loyalties and dividents.  

Corporate Flexibility

Companies in tax haven countries do not have paid-up capital requirement. There are also not required to declare operational objects involved in their business activities. The corporate policies in Seychelles are flexible for offshore companies. The company shareholders and directors have minimum restriction on ownership of their business. The business incorporation process requires less time and resources. Also, accounting and reporting are not compulsory for offshore companies in Seychelles.

Conclusion

Starting an offshore business in Seychelles is hugely beneficial for individuals and corporation looking for asset protection. The primary concern of a business is high tax rates and control, which is not available in the residential country. Therefore, tax havens act as a refuge to these companies in the form of an offshore business that lets businesses avail various benefits.

Key highlights:

  • Tax haven countries can be ideal for offshore business as it helps in tax saving.
  • Seychelles has flexible policies and regulations regarding offshore business setup in its jurisdiction.
  • Offshore companies can be assured of privacy and confidentiality as the regulating authorities protect company-related information.
  • Companies can benefit from the provisions of double tax treaties.
  • Company incorporation requires fewer resources and can be set up in a lesser time frame.

With a host of benefits available, you can choose Seychelles to get started with your offshore business. We at Business setup worldwide provide business setup solutions for starting a business in Seychelles. If you need any assistance regarding business setup, then you can contact us today. We’d be happy to help!

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