The Republic of Seychelles gained independence from Great Britain in 1976. This small island country is located in the Indian Ocean off the east coast of Africa. In total, it consists of 115 islands of which only 33 are inhabited.
A while back, Seychelles were heading towards socialism, but over time they managed to make its economy and then the political system more liberal. As a result, it is a modern flourishing country where market mechanisms have been developed and the government cares for its citizens. The Republic is successfully building international relations and is a member of the British Commonwealth of Nations.
Seychelles is also known all over the world as a beach resort and a traditional offshore zone. Since 1994, the number of registered international companies in the country has been growing, and now, according to some reports, they make up 70,000 to 100,000 or more. Such incredible popularity of the jurisdiction among foreign entrepreneurs could not have appeared out of the blue.
Why do entrepreneurs register their business in offshore zones? It is like killing four birds with one stone.
All these goals are relatively easy to achieve if you open an international company in Seychelles.
Besides the main advantages of a traditional offshore, the requirements for the structure of international business and its share capital are also minimised in this country.
In Seychelles, offshore companies are allowed to issue bearer shares. The bearer share certificate can be held by the actual owner. A transfer of ownership of the shares must be recorded in the company’s internal register of shareholders.
Particular attention should be given to the flexible legislation of Seychelles, which combines British law and French civil law. In real terms, the applicable laws and governmental non-interference in business activities turn out to be of maximum convenience. In disputes, you can always count on an unbiased decision of an independent court.
There is no currency control, so you can use not only Seychelles rupees but also any other freely convertible currency.
In recent years, Seychelles, like many other tax havens, has been collaborating with international organisations fighting money laundering. Among other things, this jurisdiction has joined the OECD (Organisation for Economic Cooperation and Development) program for the automatic exchange of tax information.
Registering an offshore company in Seychelles will be a good solution for the following activities:
Seychelles is also known as an extremely convenient jurisdiction for registering ownership of aircraft and ships. Therefore, many air carriers and shipping and leasing companies have settled here.
Since in Seychelles business is clearly distinguished between offshore and non-offshore, foreign businesspeople are offered a special form of incorporation, popular in other tax havens, an IBC (International Business Company).
As it has been emphasised repeatedly, IBCs are exempt from corporation tax and almost free from financial accounting.
This form of incorporation is characterised by significant limitations. An IBC cannot:
If you plan to run a business at the place of registration, you will need another form of incorporation (sole proprietor, limited liability company, partnership, etc.), permission from the regulatory authorities and an official licence. It must be said that the authorities are very sensitive to entrepreneurial activity inside the country, so almost any kind of business is subject to licensing, except for farming, handicrafts and small-scale fisheries.
Companies operating in the islands pay corporation tax from 1.5% (for some licensed activities) to 25-33% (depending on the annual turnover of the company).
The Seychelles VAT rate is 15%. Medications and some food (e.g. vegetables and fish) are exempt from VAT. Local entrepreneurs whose business generates less than 100,000 Seychelles rupees (just under $7,500) are also exempt from paying VAT.
Interest on deposits or bank accounts (5%), dividends and royalties (15%), and income from bonds (33%) are also taxed.
Our advisers can give you more details on taxes and tax optimisation for companies operating in Seychelles.
The first rule of business registration in Seychelles states that a foreign entrepreneur will not be able to open a company without the assistance of a licensed incorporation agent who is a resident.
The agent will not only help you become the owner of an offshore business in Seychelles within 5-7 working days but they will also keep full information about the beneficiaries and management of the company to be registered. As a rule, in Seychelles, in agreement with the agent, the address of their office is specified as the registered address of the newly formed company. The registered address is needed not only to interact with government departments; it is also a location of bookkeeping and accounting records of the company.
The standard registration procedure includes:
Approval of the incorporation documents, payment of the registration fee and the incorporation itself. The exact amount of the registration fee depends on the amount of the share capital of the company.
The offshore company keeps collaborating with its incorporation agent, e.g. hands over six-monthly bookkeeping records, regularly requests incoming official correspondence, etc.
It is advised not to wait until a year has elapsed since the company’s incorporation to renew it. Some entrepreneurs mistakenly believe that the renewal of an offshore company registration requires only the payment of an annual fee. You can add the rent of a registered address to the already listed expenses, as well as payment for the services of the incorporation agent during the year.
It should be borne in mind that the Seychelles authorities are very cautious about any business initiatives of foreign entrepreneurs. Therefore, it is not enough for a person to just register a company to start working directly in Seychelles.
The first step is to provide a brief memorandum outlining the idea for your business. An electronic or printed memorandum must be submitted to a special investment department — Seychelles Investment Board.
If you take your memorandum in person to the office in Victoria, you will receive a response the same day. If you apply online, you will receive a response within 7 days of your application.
To get a permit, you need to describe in as much detail as possible what you plan to do, how the future business will operate and how much you invest in the project at the initial stage.
By experience, the green light is more willingly given to those businesspeople who fully disclosed their idea and are ready to invest a relatively big sum in the business (we are talking about investments above $100,000).
You should also draw up a competent business plan. When it is approved, you will obtain a licence for your business activity. As a rule, the business plan is under review for at least 30 days. During this period, it will be reviewed in detail, and several experts will deliver their opinions.
The steps described above, including obtaining an official licence, will take several weeks. In some cases, it takes 6 to 12 months from the moment of receiving the certificate of registration to the project launch.
Decision-makers are never in a hurry and carefully consider each business in terms of innovativeness and social benefit and how it complies with the general vector of the country’s economic development.
You will significantly simplify the process of offshore business registration in Seychelles if you get legal advice from Imperial & Legal right from the beginning. Our specialists will successfully support you in preparing incorporation documents and opening and renewing an offshore company in Seychelles.
We will provide support if you need to open a current account in one of the Seychelles financial institutions and/or obtain a work permit and licence. To find out more about all the services Imperial & Legal provides for businesses, book an online consultation with our adviser.
The exact set of documents depends on the type of company and other factors, so we will list the documents for an IBC only without nominee shareholders and directors involved.
This package of documents is usually kept by the business founder or by the incorporation agent.
Standard business expenses usually include 15% of the salary as income tax and a 2% contribution to the pension fund.
If the founder of the company is both a director and sole employee, they can inform the tax authorities that they do not wish to receive a salary and will use the proceeds to develop their business. In this case, the foreign director not only does not pay 2% social contributions but is also exempt from personal income tax.
First, your business idea must be approved by the SIB; then you will have to go through a long process of approving a business plan and obtaining a licence.
If your project is considered promising, you will need at least $100,000 in investment to develop it successfully. This amount is indicative and non-committing either for the SIB or the Seychelles Licensing Board.
The share capital of international companies is usually also called stated, or declared, so the founders don’t have to open a special bank account in one of the country’s banks and pay up part or all of the authorised capital.
The Seychelles government sets the standard authorised capital at $100,000. However, this does not necessarily apply to every company and other amounts may be provided depending on the business and the client’s requirements. The standard minimum capital can be just as small as $1.
Tax calculation is based on the following rates:
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
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