Setting up an offshore company in Seychelles has many benefits for foreign investors. From enhanced protection related to their personal assets to some of the lowest taxes in the world, the Seychelles offshore company represents one of the best ways of setting up a business. However, the establishment of an offshore company in Seychelles also comes with the responsibility to comply with the requirements imposed by the local legislation. Among these requirements are the ones related to ensuring a minimum share capital for the offshore company in Seychelles.
Our company formation agents in Seychelles explain below the main requirements related to the share capital when setting up an offshore company. We can also assist with the registration of such company, in accordance with the legal requirements imposed by the International Business Companies Act which came into effect in 1994 and has undergone a continuous modernization ever since.
The registration of an offshore company in Seychelles implies respecting a few requirements, among which:
As seen above, a Seychelles offshore company must have a minimum paid-up capital, an authorized capital and a subscribed capital. Our local consultants can offer more information on the share capital requirements related to setting up an IBC company in Seychelles.
According to the International Business Companies Law, there are 3 types of share capital available for offshore companies in Seychelles. These are:
It is important to know, however, that the law does not impose a minimum amount of money to be deposited in a bank account as a share capital when opening an IBC company in Seychelles.
Under the law, the authorized share capital of an offshore company in Seychelles is represented by the amount of money prescribed by the business’ Memorandum and Articles of Association. The authorized share capital is decided by the shareholders and usually represents the amount of money used for the operations of the company until it starts to make profits. It should be noted that there are no specific requirements for an authorized share capital when setting up an offshore company in Seychelles.
The subscribed share capital is another type of capital an offshore company can have. The main difference between the subscribed and the authorized share capital of a Seychelles offshore is that the former is deposited by the shareholders in return for the shares they will be issued. This means that the greater number of shares issued for a shareholder, the larger the share of the company will be owned by the respective shareholder.
The paid-up capital is the actual amount of money deposited in the Seychelles offshore’s bank account upon registration. Even if the law does not impose a minimum amount of money, each shareholder is entitled to contribute to the amount of money they want in the company. This is also when the subscribed capital turns into the paid-up capital of the Seychelles IBC company. This will also the time when the shareholders earn the right to make decisions in the company. In other words, the paid-up share capital allows the shareholders to make decisions in relations to the activities and future of an offshore company.
The share capital of an offshore company is divided into shares. Compared to other countries, IBC companies cannot issue bearer shares to their shareholders, however, it can issue registered shares which can take the form of:
For assistance in registering an offshore company in Seychelles, please feel free to contact us.