Offshore companies

Seychelles

Basic information

Type of offshore companyIBC
Amount of share capitalis not specified, may not be repaid
Nominee service optionYes
Business Registernot public
Bearer SharesNo
Tax identification numberon reques
Obligation to keep accountsyes, it must be deposited in Seychelles
Tax obligationsIBC companies can be fully exempt from tax
Difficulty in administration and administrationminimal
Time of establishmentwithin 48 hours

Seychelles as a tax haven

Types of companies in Seychelles

Seychelles and their tax regimesy

Seychelles and accounting

International contracts

Establishment of a company in Seychelles

News

Seychelles as a tax haven

The Republic of Seychelles or Seychelles is an offshore country (tax haven) on the Indian Ocean archipelago, east of Africa and north of Madagascar.

Despite its exotic location, it is a country with a very elaborate legal system and well-functioning public institutions. In particular, the colonization powers of France and the United Kingdom, which took place in the Seychelles during the second millennium, and had their territory under the administration until 1976, when Seychelles gained independence from the merits. The French and British political influence has been very important for shaping and building modern and functional.

In addition to an effective regulatory regime and a very friendly business environment, this tax haven also includes a number of other attractions that demonstrate its exceptional nature in the field of international financial centres. The fundamental advantages of this jurisdiction include tax exemption for income from foreign sources, the lawful arrangements for personal data protection, the minimum administration and low operating costs.

Types of companies in Seychelles

The basic document for the modification of corporate structures in the Seychelles is the (Companies Act) of 1972, which is important mainly for companies doing business on the domestic market. However, for offshore companies and for international use, (the International Business Companies) Act, which was adopted in 1994 and which Seychelles has filled open to the world of offshore business, will be more fundamental.

International bussines comapny ( IBC )

The most popular and most widely used type of company that the Seychelles legal order can offer is clearly the International Business Company, or IBC. IBC is a universal type of company that can be likened to a Czech s.r.o or an English ltd .. However, in contrast to the company’s s.r.o or ltd, IBC lawmakers were created specifically for the degree of offshore business, with the result that many of the advantages that many offshore enthusiasts would have taken.

The very flexible legal requirements for setting up a company in conjunction with the minimum administrative requirements for the management of the company makes IBC a very attractive company for a wide range of interested parties.

Incorporation requirements include:

  • at least one director and one shareholder;
  • the name of the Seychelles IBC must end with a word, phrase or abbreviation that indicates the limited liability of the company (Ltd. or Limited);
  • no minimum amount of capital is set;
  • shares can be both registered and bearer, and can be issued in any currency.

Advantages

  • shareholders, directors or employees need not be residents of Seychelles and there are no conditions as to their nationality;
  • no remuneration may be paid out of profits to shareholders, directors or employees;
  • meetings of shareholders and directors need not be held in Seychelles and may be held by telephone;
  • zero taxation applies if the profit was made outside Seychelles

disadvantages

  • Seychellois is required Company secretary;
  • An IBC may not carry on business within Seychelles;
  • IBC may not carry on banking or “fund business”;
  • An IBC may not engage in insurance or reinsurance activities.

SPECIAL LICENCE COMPANY (CSL)

Special license companies are the second type of company that can be incorporated in Seychelles for offshore business. Its establishment is administratively more demanding, but in terms of usability it is a more complex type of company and can be a welcome alternative for more demanding entrepreneurs in some cases. One of the main differences between an IBC and a CSL is the ability to do business in Seychelles and moderate corporate taxation. Legislatively, it is regulated in the Companies Act of 1972.

Legal requirements

  • a minimum of two directors and two shareholders are required to establish an SCL. (Directors can be shareholders of the company at the same time);
  • the company name, as with an IBC, must indicate the limited liability of the company;
  • the company must be domiciled in Seychelles (including the Seychelles Company Secretary);
  • it is obliged to hold general meetings every year (online option);
  • it takes two to four weeks to set up a company;
  • there is a minimum capital requirement of $1,000, of which at least 10 percent must be paid up at incorporation;
  • he financial result, including the audited financial statements, must be submitted.

Limited partnership (lp)

Another possible type of company that can be established in Seychelles is a limited partnership. This type of company is particularly suitable for international joint venture activities, as well as for mutual funds or for private capital purposes.

LP combines the advantages of an IBC company and the advantages associated with a partnership type of company.

Trust

Trusts are also a very popular entity established in Seychelles. The legislative framework for Seychelles trusts is enshrined in the International Trusts Act 1994.

Trusts are exempt from Seychelles taxes and only a fixed fee of US$100 is payable on registration. A Seychelles trust can trade in securities, manage bank accounts and can even trade in government bonds. For more information visit our trusts only page.

Seychelles and their tax regimes

Seychelles has a territorial system of taxation: meaning that profits are only taxed if they are derived or deemed to be derived from a source in Seychelles.

The Seychelles offshore companies we introduced above are only required to pay a fixed fee in the hundreds of dollars every year, but this is a tolerable amount in exchange for zero taxation. (The exception here is CSL, which, despite the fixed fee, is subject to moderate taxation depending on the amount of income.)

In terms of costs, the most optimal solution for tax optimization is the establishment of an IBC. According to the Seychelles tax laws, the IBC will be completely exempt from corporate income tax, capital gains tax and the shareholders themselves will be exempt from dividend taxation.

The above only applies to Seychelles offshore companies, the rules are different for companies doing business in the domestic market (with the exception of CSL).

Seychelles and accounting

All Seychelles companies are now required to physically keep their accounting records at their registered office in Seychelles following the amendment of the International Business Company Act 2021. As most IBCs operate outside of Seychelles, this means that they will now be required to send their accounting records to their registered office address at least twice a year.

This will mainly be bank statements, lists of income, invoices, contracts and more.

International contracts

International Conventions Against Money Laundering and the Financing of TerrorismYes
Agreement on the avoidance of double taxation with the Czech RepublicNo
Agreement on the exchange of tax information with the Czech RepublicNo
Multilateral Convention of the Council of Europe on Mutual Administrative Assistance in Tax MattersNo
White list OECDYes

Establishment of a company in Seychelles

If you are thinking about setting up a company in Seychelles and are not sure if you can do it yourself, do not hesitate to contact us. We will help you set up the ideal corporate structure, explain the tax benefits associated with doing business with a Seychelles company and ensure that your company meets all the legal requirements required by Seychelles law.

The establishment of a company (including an apostille and registered office for 1 year) costs EUR 850 with us and in most cases takes place within 48 hours of the binding confirmation of the order. The annual costs will then come to EUR 750. (For a complete price list of services, you can visit the page here.)

News

AUGUST 2021 – AMENDMENT OF IBC ACT 2021

  • the periods for the automatic termination of IBCs are reduced from 7 years to 1 year
  • introduction of the obligation to keep and keep physical accounting records in Seychelles for all IBCs, foundations and trusts (from 6/2/2022)

Novelization

  • the periods for automatic termination of Foundations are reduced from 3 and 10 years to 1 year

Interested in more?

Complexity

Establishment of the company, its settlement, delivery of apostilled documentation, bookkeeping. All under one agency.

Support

Do you have a foreign company and don’t know if you have fulfilled all your legal obligations? We can help you to check and comply with all government requirements.

Management

Are you dissatisfied with the performance of your directors? Are they not meeting deadlines? Try us.

Fair price

Do you already have an offshore company? Do you want better conditions? Change your registration agent.

Parker & Hill

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