Offshore Companies in Seychelles – the benefits and advantages
The Republic of Seychelles is an island group in the Indian ocean. The country comprises 115 natural island formations. The economy of Seychelles is based on tourism industry, agriculture, fishing and seafood industry. At the same time, the level of state revenues from the financial services sector has significantly increased in recent years.
Seychelles has become a rapidly developing offshore jurisdiction. One of the reasons is the adoption of several legislative acts that regulate corporate relationships. Today, the Republic of Seychelles is a relatively stable country with a good international reputation.
The Seychelles Jurisdiction: legal system and its features
An International Business Company is the best choice for carrying out offshore activities in the jurisdiction of Seychelles. The activities of the offshore companies are regulated by the “International Business Companies Act”, which was adopted in the beginning of 1994. This regulatory act has allowed registration of the companies with a zero tax rate.
It is worth noting that since that time the thousands of international business companies are registered every year in the jurisdiction of the Republic of Seychelles.
In addition to the international business companies, the norms of the corporate law also provide for some other options for carrying out international commercial and economic activities
Confidentiality policy as a key to economic success
The Republic of Seychelles is an independent sovereign state, which completely excludes the possibility of a bilateral international exchange of information between fiscal authorities. The maximal confidentiality of the information about investors is the major priority of the state. It makes this country attractive for foreign entrepreneurs. The guarantee of protection of the personal information and information about the company assets, which is ensured at the legislative level, is a favourable characteristic of the international business entity.
It is not a secret that the policy of maximum confidentiality of information about business and a favourable tax climate are the decisive factors for many entrepreneurs when choosing an international offshore jurisdiction. When the local authorities attract foreign investors, they simultaneously ensure new inflows of the foreign financial assets into the national economy. As the result, the local economy is growing and the island infrastructure is being improved, which is equally favourable both for the authorities and for entrepreneurs.
Offshore company registration
The official procedure of registering an offshore company in Seychelles requires submission of the following documents into the registration authority:
- Incorporation documents of the offshore company (Memorandum and Articles of Association);
- Resolutions on the appointment of the director and the issuance of securities;
- Information about the place of keeping financial accounts and the legal address of the offshore company;
- Registry of the managers and shareholders of the offshore company.
If a business scheme provides for the involvement of the nominee employees and shareholders, some additional documents will be required, in particular:
- Agreement on the provision of nominee services;
- Exemption letters of nominee employees;
- Declaration of trust of the company.
Based on the overview of the main areas of using international offshore companies, the most popular types of international activities can be singled out:
- Implementation of the intellectual property rights;
- International commercial transactions;
- Commercial activities related to the telecommunications and the Internet;
- Optimization of the inheritance tax system;
- Provision of the consulting services.
Taxation system and other opportunities
In fact, it is unreasonable to talk about the taxation of offshore companies in the Seychelles as the offshore companies are completely exempted from taxation in the case of meeting certain requirements. Among the obligatory conditions, there is a prohibition of carrying out any economic and commercial activities on the local market and a prohibition of purchasing movable and immovable island property in the name of an offshore company.
Offshore companies must obtain the appropriate state license in order to carry out investment, banking and insurance activities.
The offshore companies, which are registered in Seychelles, may take the advantage of the following opportunities:
- Registering and using personal accounts in the local banking institutions;
- Using the services of the local highly qualified specialists (doctors, lawyers, engineers, etc.);
- Renting office space on the territory of the island.
The following factors can be singled out among the numerous peculiar advantages of registering an international offshore company in the jurisdiction of Seychelles:
- Relatively low government fee for the annual registration renewal;
- Simplified registration procedure;
- Possibility of involving nominee shareholders and directors;
- Favourable tax climate;
- Government support of the offshore business;
- No restrictions on the capital repatriation and the lack of foreign exchange regulations.
If you are interested in registering an international offshore company, we will provide you with the entire necessary legal assistance. Use the contact us form and get a free consultation.