Foreign investors can set up local or offshore companies in Seychelles
, according to their needs. While the offshore company is cheaper and attractive option, enterprisers can also choose to create a domestic company under the form of a special license company
, shortly known as the Seychelles CSL
Requirements to open a special license company in Seychelles
Opening a CSL company in Seychelles is subject to simple requirements, just like the IBC company, the only difference being the special license which is issued by the Business Authority in the country, hence its name.
- the company must have at least two shareholders;
- it must have at least two directors;
- a company secretary is required;
- the company must have a Seychelles registered address;
- the minimum share capital is 1 US dollar and at least 10% of the capital must be deposited upon registration.
Registration steps for a CSL company in Seychelles
The registration process of a Seychelles CSL
implies filing the required documentation with the Trade Register, however it should be noted that the special license company
can also be used for investment purposes, case in which a special license from the Central Bank is required.
Taxation of CSL companies in Seychelles
will be subject to the corporate income tax of 1.5% in Seychelles
. Even so, the special license company can benefit from double taxation agreements signed by the countries of origin of foreign investors with the Republic of Seychelles which is one of the greatest advantage of this type of structure.
How is a Seychelles CSL taxed?
Before explaining the tax benefits of a Seychelles special license company
, foreign investors must know that this type of business is considered a tax resident, therefore it will be subject to the income tax applicable in this country.
The first tax advantage of the CSL is the income tax which is applied at one of the lowest rates in the world: 1.5%. The CSL is also subject to a 0% dividend tax which applies to both resident and non-resident shareholders.
As mentioned earlier, the CSL is a Seychelles tax-resident company
, which compared to an IBC company
, has access to many international tax treaties signed by the authorities. Among the double tax treaties Seychelles has signed we remind the ones signed with:
Our local agents
can help you set up a CSL or an offshore company in Seychelles
Other tax advantages offered by a CSL in Seychelles
There are also a few tax exemptions applicable to CSL companies in Seychelles
. These are:
- the stamp duty exemption;
- the exemption from the employer social security payment;
- import and export duty exemptions related to equipment and furniture;
- the exemption for the occupation permit fee for foreign workers.
The CSL is required to file annual returns with the local authorities within 90 from the end of the financial year.