Known as a tax haven, Seychelles is a preferred business destination for investors who want to improve their businesses by making the tax planning more effective and protecting their assets by Seychelles offshore company formation. In this matter, an offshore company in Seychelles can be useful, and a suggested form of business for international entrepreneurs is setting IBC (International Business Company) offshore in Seychelles.
As a general definition, the offshore company is a business created with the purpose of completing various types of activities outside the country it is registered in. Seychelles offshore company formation represents one of the best ways of protecting one’s personal assets. In order to be considered an offshore company, the founders must establish this in the Articles of Association.
Our specialists in company incorporation in Seychelles can provide you with the necessary information and details about Seychelles offshore company formation and the conditions in this matter. We can also offer specialized company formation services to foreigners looking to set up Seychelles offshore companies.
How to open an offshore in Seychelles
The International Business Company or the IBC is the preferred type of offshore in Seychelles because it has a rapid incorporation process and varied tax advantages. IBCs in Seychelles can be ready within two days and it is a business structure that addresses to persons interested in commencing activities on the internet, as counselors, as traders or for the custody of the real estate properties, but not limited to these. The following requirements are among the most important ones when it comes to setting up an offshore in Seychelles:
• prepare the Articles of Association and submit them to Registrar Companies in Seychelles;
IBCs in Seychelles can perform the financial activities in the standard currency, the dollar, but they can also operate under varied types of coins. Likewise, there is no need for a minimum share capital for opening an offshore company in Seychelles, but all the details of this form of business can be obtained from our advisors in Seychelles.
Legislation related to Seychelles offshore company formation
The main law governing the establishment of offshore companies in Seychelles is the International Business Company Law which was last amended in 2016. The name of the law also offers the other name of the offshore company – that of the International Business Company, or IBC.
Another law which provides for the establishment of offshore companies is the Seychelles Commercial Code which provides for the legal forms which can be registered as IBC companies. The anonymous company is the best example when it comes to a business form which can be used by a foreigner looking to establish an offshore company in Seychelles.
Requirements for setting up a Seychelles offshore company
The IBC Act provides for the requirements which must be fulfilled in order to perform the procedures for Seychelles offshore company formation. These requirements imply having at least one shareholder and one director. There are no restrictions related to the nationality of any of the shareholders and directors. Moreover, the director does not need to be a Seychelles resident. Also, the company can have as many directors as the shareholders want. Corporate directors can also be used for ensuring the management of the offshore company. One of the shareholders can act as a company director. Compared to other types of companies, the Seychelles IBC company does not require a secretary.
The offshore company will need a trade name which can be in any language, however, as a useful tip, most of the times English is used for company names in Seychelles.
Another important requirement for setting up an offshore company is having a registered or legal address in Seychelles. This can be ensured through a virtual office.
Our Seychelles offshore company formation specialists can offer virtual office, as well as nominee services related to the shareholders and company directors. We can also assist with VAT registration in Seychelles.
Documents required to establish a Seychelles offshore company
Foreign enterprisers interested in Seychelles offshore company formation are required to prepare and file the following documents with the Companies Registrar:
- personal information, such as passport copies which must be certified, in the case of natural persons;
- information about the company, such as the certificate of incorporation and articles of association, in the case of legal entities;
- proof of having a residential address in Seychelles, such as a utility bill no more than 3 months older;
- in certain cases, the Registrar could request references from a bank showing the good standing of the investor.
Restrictions imposed on IBC companies in Seychelles
Even if the requirements related to the registration of an offshore company are quite relaxed, there are also a few restrictions imposed on those who want to set up such an entity. Among these, the most important one is related to not being allowed to complete any commercial activity in Seychelles. It should be noted that such restriction is imposed no matter the country where the company is created.
The offshore company cannot buy any residential or commercial property in Seychelles and cannot operate in the financial sector. Offshore companies cannot be established with the purpose of completing gambling activities. For such activities, onshore companies must be registered with the Companies House in Seychelles.
Another important restriction that needs to be mentioned is that offshore companies cannot issue bearer shares.
Despite these restrictions, offshore companies in Seychelles are allowed to enter any type of activity and partnership with local companies.
We can help foreign investors who are interested in establishing other types of companies in Seychelles.
We invite you to watch our video on Seychelles offshore company formation:
The advantages of Seychelles offshore company formation
No tax: there is no taxation on profits and capital gains for companies incorporated here.
High confidentiality: the identities of the investors are protected because no sensitive information is recorded publicly.
Flexibility: the IBC, the most widely used type of company, can be used for several international business purposes.
Low requirements: these refer to the incorporation requirements, including no paid-up capital.
Management simplicity: there is no need to hold the shareholder’s meetings in the Seychelles and corporate decisions are very easy to make.
These five advantages rank highest among the reasons why investors choose to open an offshore company in Seychelles.
Benefits related to starting an offshore company in Seychelles
One of the first advantages offered by a Seychelles IBC structure is the reduced incorporation time: in a few days the company can be up and running. Also, the offshore company registration requirements are quite simple:
- there can be one shareholder;
- the company is required to have a minimum of one director;
- the shareholder can be the company director;
- there are no restrictions related to the nationality of the directors and shareholders;
- no company secretary is required;
- no share capital requirements.
The IBC company can be used as an investment vehicle by those who want to set up investment funds in Seychelles.
Company administration benefits in Seychelles
One of the greatest benefits related to opening an offshore company in Seychelles is the fact that the annual general meeting of the shareholders does not have to take place in the country, as new technology allows for video-conferences for this meeting.
When it comes to the tax benefits offered by a Seychelles offshore companies, we can mention:
- the lack of taxes on profits or any other type of income;
- the low maintenance and administration costs;
- the repatriation of profits to another country is not subject to any duty.
The characteristics of the Seychelles IBC
The International Business Company, or the IBC, is the most commonly used business form because, as previously highlighted by our agents, it is a versatile business structure. However, investors should be well aware that this type of company is required to comply with several important regulations. Some of the most important aspects to remember are the following:
•Limitations on operating in Seychelles: this company cannot engage in business in Seychelles and it cannot own real estate in Seychelles.
•Mandatory licenses: activities such as banking or insurance can only be performed with a special license.
•Prohibited activities: this company cannot carry out gambling, or securities businesses in Seychelles not can it operate as a mutual fund, unless it has a special license.
•Asset ownership: although it cannot own real estate, the IBC can own vessel or aircrafts registered in Seychelles.
Assistance in opening an offshore company in Seychelles
accounting services are also available at the request of our clients.
In order to register the company on our clients’ behalf, our Seychelles offshore company formation agents will need a power of attorney.
Hiring personnel for a Seychelles offshore company
Foreign investors who open offshore companies in Seychelles are allowed to hire local workers, however, they can also bring employees from their home country by obtaining work permits on their behalf. The employment procedure is not complicated and can be completed in maximum one month, no matter the residency status of the employees.
Our Seychelles offshore company formation agents can guide foreign investors through the whole procedure of setting up offshore companies. From the preparation of the documentation related to registering the company and nominee services, we can help them set up the company in the minimum period of time possible.
Costs related to starting an offshore company in Seychelles
In order to understand what generates the annual maintenance costs of an offshore company in Seychelles, it is important to first note the costs and fees associated with the registration of such a company.
As a foreign investor, you will need the following:
- to appoint a local registered agent to register the company and represent it before the Seychelles authorities;
- to have the documents related to the incorporation prepared (these will not incur other costs unless they are amended);
- to have a registered/legal address in Seychelles (which will attract annual maintenance costs);
- the fee for obtaining the operating license which needs to be renewed on annual basis, therefore will generate annual costs;
- the nominee services (many foreign business owners request such services for an easier management of the company).
Another fee which will not generate annual maintenance costs is the company registration fee which will be paid upon the incorporation of the Seychelles offshore company.
Annual costs for a registered address in Seychelles
Having a legal address for a business in Seychelles is mandatory, according to the local legislation. When setting up an offshore company the registered address can take the form of a virtual office which can be purchased for a few months and up to one year.
We offer virtual office services in Seychelles at very advantageous rates. You can get in touch with our local advisors for a personalized offer.
The maintenance cost of the business license of a Seychelles IBC
No matter the activities to be completed by an offshore company, it will need to obtain a business license which will imply a fee. Considering the license needs to be renewed on an annual basis, this is one of the most important maintenance costs of an offshore company in Seychelles.
The cost of the business license depends in many cases on the share capital of the company. Our consultants can offer more information on share capital and business licensing requirements of an offshore company.
Nominee services maintenance costs in Seychelles
Most offshore companies in Seychelles operate through nominee shareholders and directors. Even if these are not mandatory, they are often requested by foreign entrepreneurs as they have legal representatives who can sign on their behalf and represent them before the authorities.
The nominee services are usually contracted on a yearly basis, which is why they can be considered as annual maintenance costs of the Seychelles offshore company.
Foreign investors can benefit from nominee shareholder, director and account signatory services. We offer such services to all those interested in obtaining them when registering IBC companies in Seychelles.
FAQ on offshore company maintenance costs in Seychelles
Are there any mandatory annual maintenance costs for an offshore company?
Yes, the government imposes a few mandatory fees for the maintenance of an offshore company.
What happens if I don’t pay these annual maintenance fees?
In case you don’t pay the maintenance fees, the activities of the company will be shut down.
Are the maintenance costs of a Seychelles offshore expensive?
Is there a specific timeframe for paying the maintenance fees?
The mandatory fees need to be paid prior to the anniversary of the company’s registration date.
Why is Seychelles an attractive jurisdiction?
Seychelles archipelago is a preferredoffshore jurisdiction due to its attractive financial sector and business environment which suit the needs of numerous investors worldwide. Because there are no taxes foropening offshore companies in Seychellesand due to complete privacy and protection of the assets, more than 100,000 firms are registered in the country.
Offshore companies in Seychelles are also protected in cases of litigation. One should know that the company registration process of an offshore company in Seychelles is less time consuming and can be done in a few working days.
For those wondering how long it takes to perform the procedures for Seychelles offshore company formation, the answer is that it takes one or two days to be completed, however, the opening of the bank account can take longer.
If you have any questions related to the requirements related to creating an offshore company or if you simply need assistance in starting on, our agents in Seychelles are here to offer specialized assistance.
For complete information about how to set up an offshore company in Seychelles, we invite you to contact our representatives in company incorporation in Seychelles. If you want to start a business in other countries, such as Qatar, we can put you in touch with our local partners.
Call us now at +248 4321018 to set up an appointment with our business consultants in Victoria, Seychelles. Alternatively you can incorporate your company without traveling to Seychelles.
As a Valsen Fiduciaries client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Seychelles.