The Republic of Seychelles is a stunning island nation in the Indian Ocean. Independent from Britain since 1976, now it has a stable and successful democratic government. The largest island Mahe is where the capital city Victoria is to be found.
Seychelles’ economy relies on 2 main industries, namely, tourism and financial services. What makes it special is an impressive growth in the offshore financial and corporate industry since 1994 when the International Business Companies Act was passed. The 2016 International Business Act further improved this. As a result, Seychelles has become a top choice for offshore company incorporations.
Thanks to its breathtaking beauty and attractive business opportunities, Seychelles has become a highly desired destination for tourists and offshore investors alike. It has firmly established itself as a significant player in the region’s economy, which raises the status of the jurisdiction even higher.
Why choose Seychelles for company incorporation?
In recent times, Seychelles has become a popular place for registering companies, and there are good reasons for this. One big advantage is that you can form a company in Seychelles quickly, usually within just 24 hours. The most common type of business ventures formed here is the International Business Company (IBC), which is specifically designed for international business.
One of the main reasons for company incorporation in Seychelles is that the jurisdiction offers excellent privacy for company owners. Unlike many other offshore jurisdictions, Seychelles doesn’t require the names of directors, shareholders, or beneficial owners to be made public, so everything remains confidential.
Seychelles offers multiple company names to choose from, making it easier for businesses to find the ones that are unique and suitable for them.
Setting up a company in Seychelles is flexible and easy. Owners don’t have to be physically present there to do it. All they need to accomplish it is a registered agent with a registered office in Seychelles.
Seychelles is independent of Great Britain, the British Crown, and EU member states. This means the republic can set its own rules, especially when it comes to public filings and beneficial owner requirements. This independence is advantageous for businesses that want to operate with fewer regulations.
Considering all these great reasons, it’s not surprising that Seychelles has become a favorite destination for company incorporation, attracting entrepreneurs and businesses from around the world.
Benefits of setting up a company in Seychelles
Setting up a company in Seychelles offers a number of benefits. Firstly, companies registered there are exempt from paying taxes on profits and capital gains, which allows them to retain more earnings. Secondly, investors’ personal data is kept confidential, ensuring privacy and security. Seychelles’ International Business Company (IBC) structure enables companies to engage in various international business activities and entrepreneurs enjoy greater flexibility.
The process of starting a company in Seychelles is hassle-free due to minimal requirements, and there is no need to invest a large amount of capital upfront. Seychelles does not mandate companies to hold shareholder meetings within the country, which results in more convenient decision-making.
Foreign companies that want to operate in Seychelles have 2 choices: branch offices and subsidiaries. The main difference between the options is how the parent company is liable for the operations in Seychelles.
If a foreign company chooses to set up a branch office, it will be fully responsible for the debts and obligations of the branch. On the other hand, if they establish a subsidiary in Seychelles, the Seychelles company will function as an independent business entity, taking on its own liabilities and responsibilities.
Foreigners can establish a range of company types and structures in Seychelles, not limited to offshore companies. Some of the options include special license companies for onshore financial activities, anonymous companies for onshore trading, proprietary companies that are almost synonymous with foreign limited liability companies, trusts for asset protection, and investment funds.
Understanding the Seychelles IBC: key characteristics and perks
The Seychelles International Business Company is a popular and flexible way of doing business in the jurisdiction. However, investors need to be aware of the specific regulations the above company must follow.
Firstly, the IBC is not allowed to conduct business activities within Seychelles or own real estate in the country. Secondly, certain activities, such as banking or insurance, require special licenses to be performed by the IBC. Thirdly, engaging in gambling, securities businesses, or operating as a mutual fund in Seychelles is prohibited for the IBC unless it obtains a special license. On a positive note, while the IBC cannot own land, it is allowed to register boats or planes in Seychelles.
It is due to their numerous benefits that the Seychelles International Business Companies are highly favored by investors. Seychelles IBCs enjoy tax exemptions on profits, capital gains, and other income, resulting in significant savings for global businesses. The IBC ensures privacy by keeping information about shareholders, directors, and beneficial owners confidential. It offers versatility and flexibility for entrepreneurs who enjoy an opportunity to engage in various international business activities. The reporting and record-keeping requirements are simple, which reduces administrative costs. Asset protection is a key feature: safeguarding assets from potential legal issues in foreign countries is among the main goals that IBCs in Seychelles are incorporated for.
Seychelles IBCs are free to conduct transactions in any currency. Setting up a Seychelles IBC doesn’t require much time at all and typically takes just a few days. Neither shareholders nor directors or officers are required to reside in the jurisdiction which makes company management flexible.
Seychelles is respected globally and not regarded as a tax haven, this is why local IBCs enjoy enhanced credibility in international business. Establishing and maintaining the Seychelles IBC is cost-effective, hence it is an excellent choice for small to medium-sized businesses. With its tax advantages, privacy protection, and operational flexibility, the Seychelles IBC presents a favorable business environment and an attractive option for companies seeking to engage in international business.
At International Wealth, we will provide you with all the information and assistance you need to form an offshore company in Seychelles. Let us make your business venture a success!