The most employed type of legal entity used to start a business in Seychelles is the offshore or the international business company (IBC). There are several reasons for which foreign companies and individuals are attracted by Seychelles as a jurisdiction for domiciliating their companies, among them the confidentiality offered to the shareholders in offshore companies. However, the list of benefits of opening an IBC company in Seychelles is more comprehensive.
Below, our company formation consultants in Seychelles list the main reasons for opening a company in this location:
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.
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.
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.
Also, the reporting requirements for a Seychelles IBC company are minimum, as there are no audits, no tax reporting or filings. No information on company’s accounting documents is available to the public.
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 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.
The IBC can have a Seychelles bank account and deposits and it can keep its books and records in this jurisdiction. It can also hold the director’s meetings in Seychelles. As far as business engagement in Seychelles is concerned, it may not engage in business but is can maintain a professional relationship with local attorneys, accountants, trust companies, management companies, investment advisors and others. Also, the IBC is allowed to hold shares or other securities in a Seychelles IBC or in a domestic company.
The IBC is a type of company that allows a high degree of confidentiality for the founders. There is no requirement to disclose the identities of the beneficial owners, the company directors and shareholders of this company and this information is not part of the public records. Only the licensed registered agent is the one who is well aware of the identity of the beneficial owner. The details about the company owners are kept internally and are to remain confidential.
One requirement for the IBC is to file the Registrar of Directors with the authorities. However, this information is not accessible to the public, like it would be in other countries with the trade registers.
Nominee services for shareholders, directors and even secretary are permitted in Seychelles. In fact, the use of these services is widespread and many investors choose to do so in order to keep some of their investments private. The relationship between the beneficial owner and the nominee director is a fiduciary one and the appointed director will act under the indications of the beneficial owner.
An important issue to take into consideration for those interested in company formation in Seychelles is to observe the applicable Government license fees. A general fee of 100$ applies when registering the company and every ear afterward. Many other offshore jurisdictions have a registration fee that depends on the company’s incorporation capital. This is another benefit of opening an offshore company in Seychelles: the registration tax does not change if the share capital is larger.
Companies in Seychelles need to have a unique business name and the ending of the name contains the short form of the business type. The abbreviation used for a limited liability company is commonly the Ltd or it can include the name limited, ending or corporation.
Seychelles IBCs are required to comply with a minimum number of management and record keeping requirements, however they are not subject to taxes and thus they do not need to comply with accounting and annual reporting requirements. A flexible business structure, that can be incorporated by a single individual and with no minimum share capital, the International Business Company is a business structure that offers many benefits and it a suitable type of legal entity to engage in international business activities.
The International Business Companies Act is the one that regulates the formation of these types of entities and one of our agents can give investors complete information on the legal provisions stipulated in this Act.
For full information on all the benefits which come to setting up an offshore company, please contact our Seychelles company registration agents. Please note that you can also rely on us if you want to register a company in Seychelles or need nominee services.