Offshore business in Seychelles is growing at a rapid pace. Earlier, tourism and agriculture were the dominant sectors that 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.
Even in 2021, Seychelles continues to display the signs of being a potent and flourishing economy. In the 2021 Index, the country got an economic freedom score of 66.3, making its economy the 60th freest worldwide.
It saw an overall score increase of 2.0 points, mainly because of developments in government integrity. Among 47 countries situated in the Sub-Saharan Africa region, Seychelles is ranked 4th, and its accumulated score is higher than the world and regional averages.
The government in the country is business-friendly; that is why offshore company formation in Seychelles has always been a preferred choice amongst investors.
What is a Tax Haven?
A tax haven is a foreign country that offers individuals and corporations a stable business environment with minimal or no tax liabilities. Offshore businesses in tax haven countries have access to meagre taxation rates and pay only a nominal charge for the jurisdiction’s services. Over the last few decades, there has been a substantial increase in the incorporation of offshore companies in Seychelles.
It is mainly due to the country’s tax privileges to the offshore businesses established in its territory. Various features of a tax haven attract business owners and corporations to start an overseas company.
An offshore industry provides flexibility and control over the business operations, which may not be the case in residential jurisdiction. A tax haven jurisdiction is a bountiful fruit for investors looking to incorporate to avail taxation benefits.
Why Seychelles is a Tax Haven Jurisdiction
Seychelles has turned out to be a favorable offshore tax-haven jurisdiction among business investors. Some of the critical factors that make it a feasible investment destination are as follows:
1. Minimum or No Taxation
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.
Popular offshore jurisdictions attract capital to their banking and financial institutions by encouraging offshore industry in their region. These countries usually charge a nominal fee for their services.
It is always advised to seek experts and advisors’ help for availing offshore taxation services in Seychelles.
2. 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 attracted to tax havens, mainly due to the high level of security that protects company assets.
3. 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 a lack of currency control allows individuals and businesses to avoid complexity with the flow of money on every transaction.
4. 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 help 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 dividends.
5. Corporate Flexibility
Companies in tax haven countries do not have paid-up capital requirements. 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 restrictions 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.
6. Offshore Banking
Another provoking factor that grabs international business investors’ attention to open their offshore business in Seychelles is the offshore banking process. By opening an offshore bank account in Seychelles, the business investors can carry out the transactions at ease in the international market.
An offshore bank account is a must for a business to operate in full capacity offshore. To commence operational activities, a lot of jurisdictions require an offshore bank account to be present beforehand.
Why Should You Choose Seychelles
Starting an offshore business in Seychelles is hugely beneficial for individuals and corporations looking for asset protection. The primary concerns for a business are high tax rates and control, which are 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 of various benefits
- 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.
While proceeding towards the offshore company establishment process, one needs to be sure that the legal procedures are carried out accordingly without any error.
One of the feasible ways to step ahead is by having a word with a professional expert who can guide you accordingly. There are specific core reasons for hiring an Offshore Business Consultant that will help you understand the importance of experts in the incorporation process.
We Can Help You
With a host of benefits available, you can choose Seychelles to get started with your offshore business. We here at Business setup worldwide provide customized business setup solutions for starting a business in Seychelles and various other popular offshore jurisdictions. If you need any assistance regarding business setup or have any questions in general, don’t hesitate to contact us today. We’d be happy to help!