Seychelles Offshore Company: the Main Characteristics
The Republic of Seychelles is an archipelago that consists of more than a hundred of separate island formations. Foreign visitors are allowed to visit a country without getting a visa. Upon arrival at the airport, you will get an entry permit, which will allow you to stay in Seychelles legally. The validity period of the permit is one month, but you can extend it to one year at any time.
The competent policy of the government and a favourable geographic location provide an opportunity for attracting significant foreign investment into the local economy. International experts note that the Seychelles jurisdiction offers ideal environment for foreign investors. It is primarily a favourable tax policy and the possibility of registering offshore companies. Such a state policy actively encourages the development of financial services and local private entrepreneurship. This can be proved by a huge number of the offshore companies that are currently registered in Seychelles. Moreover, in the case of using our services, you can register such a legal entity at our office in Dubai, the UAE.
Seychelles Offshore Zone
The history of Seychelles as a significant offshore zone and an international financial centre starts in the 90-ies of the last century. It was a time when the government has adopted a number of legislative acts in the sphere of a corporate law, in particular:
- Legislative act on the activities of international business companies;
- Legislative act regulating foreign trust corporations, etc.
The reformation of the corporate legislation allowed the Republic of Seychelles to enter a completely new level in the international business community and to bid to become the largest business centre of the region.
The amendments to the legislation were aimed at providing a favourable climate for carrying out international business. As a result, today, the registration of an offshore company in Seychelles provides business with the following advantages:
- No taxation and requirements to the annual financial reporting and audit;
- Possibility of issuing shares of an offshore company to bearer;
- No requirements to the annual financial reporting and audition of the commercial activities of a company;
- The authorized capital of an offshore company can be kept in any foreign currency;
- Annual fees on the prolongation of the company’s term of registration are strictly fixed;
- Registration and legalization of the company’s Articles of Incorporation are allowed in any convenient language.
- Confidentiality and secrecy of information concerning owners and managers of the company;
- No territorial restrictions for holding meetings of shareholders as there is a possibility of holding meetings via telephone or Internet connection;
- The minimum annual license fee starts from 100 USD;
- The opportunity of holding positions of a manager and shareholder of an offshore company by one person;
- No customs duties on certain product groups;
- No state foreign exchange controls. Such a company can open a bank account in any convenient currency either on the territory of the jurisdiction or outside;
- The legislation does not set restrictions on the way of storing commercial and incorporation documents. There are also no requirements to the place of residence of employees, shareholders and founders of a company.
Seychelles Offshore Company: Restrictions
The corporate law of the Republic of Seychelles imposes restrictions on the activities of offshore companies in some economic sectors, including insurance, trust and banking activities. The implementation of such activities requires an obligatory availability of a state license. Any economic activity, which is conducted without the appropriate state license is considered illegal and is punishable by the applicable law.
These the restrictions also apply to the economic and commercial activities of the offshore companies on the territory of the jurisdiction. The offshore companies are not allowed to participate in transactions related to the island real estate and land lots, with the exception of the transactions related to the rent and utilization of office real estate.
In all other respects, the jurisdiction of the Republic of Seychelles holds leading positions among the similar tax havens owing to the availability of numerous advantages and opportunities for businesses.
Registration of an International Offshore Company
Speaking about the rules of the Seychelles corporate law it should be noted that they are based on the norms of English law. A well-developed tourism sector remains to be the main item of national incomes. Besides, a there is a significant increase in the number of offshore companies registered in the Seychelles. International companies are allowed to carry out any business activity that does not contravene the applicable legislation. Besides, there are no territorial and currency restrictions, and the tax rate is zero.
The registration of an offshore company in Seychelles provides for a payment of an annual registration fee and getting the appropriate licence. The cost of such a fee depends directly on the size of the authorized capital of a company.
Mandatory Requirements to the Registration of an Offshore Company in Seychelles
The applicable legislation provides for certain requirements to the international offshore companies. Among the major requirements there are:
- Compulsory availability of both legal address and a physical office on the territory of the jurisdiction;
- Conclusion of an agency agreement with a local agent;
- The minimum number of managers and shareholders is one.
The Seychelles offshore companies are registered as International Business Companies. The name of an offshore company may include the corporate initials both in the abbreviated and in the full form (Corporation, Limited, etc.). The whole registration procedure can be carried out at our office in Dubai.
The Seychelles offshore company can be dissolved by the decision of the relevant public authority, due to the non-payment of the annual license fee. This fact serves a strong reason to prolong a licence annually. Otherwise, the company reconstitution is possible only after three years’ period. Besides, you will have to pay some additional fees and penalties.