Located in the Indian Ocean, Seychelles is among the most ideal tax havens of choice for both corporations and individuals. If you are looking for an offshore company in a reliable jurisdiction in which you are entitled to attractive business laws with a range of great benefits in terms of taxation and privacy, then fortunately Seychelles is the right place for you.
In this article, we will walk through some typical advantages and key features of Seychelles International Business Company (IBC), which is the most commonly used type of offshore corporation.
1. Introduction to Seychelles IBC
International Business Companies (IBCs) is the most prevalent and flexible offshore formation type in Seychelles. Like most offshore companies, Seychelles IBCs act as an effective vehicle to engage in international trading and investment activities.
Relevant activities of Seychelles IBCs including incorporation, taxation, and structure were well regulated by the International Business Companies Act, 2016. Further amended several times, its latest version is the IBC Amendment Act in December 2020.
Hundreds of thousand Seychelles IBCs were registered, and still, many new offshore companies are being incorporated every year. Wonder why? In what follows, we will see the grounds of what makes Seychelles IBCs the most commonly chosen.
About to start an offshore business? This manual covers all you need to know when going offshore:
- Roadmap to offshore company formation
- How-to guide to offshore bank account registration
- Introduction to international rules in offshore landscapes
2. Benefits of Seychelles IBCs
What makes entrepreneurs prefer Seychelles? Well, the country’s stable economy and political system are one of its strengths. Seychelles is a part of the Commonwealth, but its government is independent and democratic with a stable society, giving an investment-friendly environment for offshore seekers.
Seychelles is a very strict but modern offshore jurisdiction that offers corporations a wide range of attractive services. These services include IBCs incorporation, offshore banking, insurance, management of investment funds, etc.
Furthermore, Seychelles has made its name well known in the offshore world as one preferable choice for offshore investors by dint of its range of good benefits for incorporated companies, such as tax advantages, a high level of privacy, confidentiality, asset protection, and many more.
3. Seychelles International Business Company key features
Below are some key features when it comes to a Seychelles international business company:
3.1. Tax benefits
Is Seychelles tax-free?
Seychelles is a well-known tax haven. The zero-tax regime for offshore companies in the Seychelles tax haven is guaranteed by legislation.
As complied with The Business Tax (Amendment) Act 2018, which came into force on 1st January 2019, the territorial tax system in Seychelles has allowed its IBCs that do not derive assessable income in the country to be exempted from any tax or duty on income or profits.
In other words, any IBC which derives its income outside Seychelles will not be taxed on dividends, interests, royalties, or other payments paid out to its stakeholders. There is also no capital gain tax in Seychelles.
Moreover, Seychelles IBCs are exempted from stamp duty on the formation of company, transfers of properties, or transactions in respect of shares, debt obligations, or other securities of a company unless these transactions relate directly or indirectly to real estate situated in Seychelles.
3.2. No minimum requirements
A plus for registering a Seychelles business company is its minimal requirements. Here are a few:
- No requirement to have any minimum paid-up capital to operate a Seychelles IBC.
- No requirement for a regular Annual General Meeting. The meetings of the board of directors are able to hold outside Seychelles, and by telephone, teleconference, or other electronic means.
- No residency or nationality requirement for the shareholders and directors of a Seychelles IBC. He/she may be either individual or a corporate body.
- Preparing accounts is a must, but there is no obligation for filing an account with authority. No audit requirement.
With regard to the annual fee requirement, it is also worth noting that international business companies established in Seychelles need to pay an annual government license fee, which is much more competitive than that of many other tax havens such as in the BVI.
3.3. Privacy and confidentiality
Privacy and confidentiality are crucial elements that most entrepreneurs and investors often consider when choosing the best place for their offshore company formation. Fortunately, Seychelles is among the most reputable tax havens for its privacy and confidentiality for offshore companies. Information of Seychelles IBCs is well-protected.
- Personal identities of Seychelles IBCs’ beneficial owners, directors, and shareholders are undisclosed to the public, except in obedience to a court order or enforcements by laws.
- Seychelles IBCs related documents are only kept by the Registered Agent and filed with the Registry.
- The Memorandum & Articles of Association is the sole document that a Seychelles company needs to hold on public record.
- Accounting records of Seychelles business companies are kept private. In most cases, offshore companies registered in Seychelles tax haven retain their privacy by keeping internally their financial accounts and accounting records.
On 6 August 2021, Seychelles just made some amendments providing Updates on Seychelles Accounting Records Keeping Obligations. The amendments requires Seychelles IBCs to maintain all accounting records which can be either original records or electronic ones at the registered office in the country.
All records must be kept at an interval of at least two times per year. Companies with turnover of more than US$ 3,750,000 are obligated to keep a Financial Summary along with the accounting records in Seychelles within six months from the financial year end.
Particularly, Seychelles does allow companies to use nominee services to enhance a stronger layer of the level of confidentiality for their personal details.
Recommended reading: why and how to use a nominee director/shareholder service with BBCIncorp
3.4. Fast incorporation
Seychelles is a good option to go, especially when you concern about how fast your offshore company formation can be done. The registration process in Seychelles is regarded as one of the most flexible and fastest. More often than not, a new international business company in Seychelles can be set up for only 24 hours.
3.5. Flexible corporate structure
Ease of incorporation in Seychelles is partly attributed to its flexible corporate structure.
Below are common characteristics of a Seychelles IBC’s structure:
- Separate legal personality with the same powers as a natural person.
- At least 1 shareholder and 1 director required, both can be the same person.
- Directors or shareholders do not need to be Seychellois residents (Foreign persons or corporate bodies are acceptable).
Does Seychelles allow bearer shares? is another common question for IBC features. However, the jurisdiction hasn’t permitted the IBC to issue any bearer shares on or after its Amendment Act 2013. A Seychelles IBC may issue registered shares only.
4. Requirements of Seychelles International Business Companies
Certain restrictions for a Seychelles IBC
In accordance with the Seychelles International Business Companies Act, an IBC is allowed to conduct any business providing that it is in compliance under the law. However, it is a must to have the authority’s permission if your company intends to conduct some licensed activities as below:
- Carry on banking, insurance, and international corporate services business;
- Carry on securities business;
- Carry on business as a mutual fund;
- Carry on gambling business.
Are you planning to engage in financial brokering in Seychelles? Then, this blog Applying for a Seychelles Securities Dealer License will be your useful guide.
Naming requirements for a Seychelles IBC
Company name is one of the most significant steps for registering an international business company in any jurisdiction. Below are several criteria for naming a Seychelles IBC that you should take into account:
- Company name of a Seychelles limited company is required to include other following suffixes: “Limited”, “Corporation” or “Incorporated”, or the abbreviation “Ltd”, “Corp”, “Inc”.
- The name endings of a protected cell company need to include “Protected Cell Company” or with the abbreviation “PCC”.
- A Seychelles IBC’s company name can be rejected if it is similar or the same as another registered name; or include restricted words such as “Assurance”, “Bank”, “Building Society”, “Chamber of Commerce”, “Chartered, “Cooperative”, “Imperial”, Insurance”, etc.; or an offensive or ineligible names as in the opinion of the Registrar.
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5. How to set up a Seychelles International Business Company
With a speedy and simple process, BBCIncorp Limited will help you easily have your business company registered in Seychelles. We offer you an all-in-one service package that will include everything for you – a foreigner to set up a new International Business Company from the beginning.
So, why BBCIncorp?
- Starting from US$ 669, in one day and your IBC in Seychelles is ready to kick off.
- Centralized management portal is where we bring you a streamlined process, great experience, and no worry about key compliance deadlines with auto reminder.
- Various banking options and add-on services to suit your business’s needs after registration.