Seychelles is a popular offshore financial center and a growing international company formation market. Seychelles is known at a global level for its favorable regime available for foreign investors. This jurisdiction is also one of the most appreciated business destinations for offshore company formation, providing a set of tax advantages, offered in the form of various tax exemptions foreign investors can enjoy.
Prior to registering your business, you must first understand the forms of business entities available in the country. This is so that you can choose the best-suited one for your business. There are multiple forms of business entities available including offshore companies, Limited Liability Company, Limited Partnerships, and more.
Seychelles International Business Company (IBC)
A Seychelles IBC company is incorporated under the International Business Companies Act 1994 and it is one of the most common and cost-efficient structures. Because of this, many international clients choose to set up an International Business Company for their offshore entities.
IBCs are not required to pay taxes in Seychelles on their foreign income and there is no stamp duty on the transfer of shares. A Seychelles IBC is only subject to a minimum government license fee of US$100 and 7.5% tax regardless of its authorized capital.
There are however a number of business activities that foreign investors are not allowed to conduct with their Seychelles IBCs such as business activities related to banking, and regulated financial services such as securities dealing, insurance, or reinsurance.
Details of directors/shareholders/beneficial owners are not publicly accessible and therefore, cannot be found through the Republic of Seychelles company search. Shares of the IBC can be held by a nominee shareholder.
Beneficial owner details are not required to be filed with Seychelles Companies Registry. However, there is a requirement to submit the details of the beneficial owner to the Seychelles Financial Intelligence Unit.
This type of business entity can be incorporated under the Companies Act 1972. It is also known as a “proprietary company” which essentially is a private company whose shareholders have limited liability. This type of company can be completely owned by foreigners with minimum requirements:
This type of company can be used to conduct business not only outside Seychelles but also within the country. Due to this, resident LLC is subjected to income tax.
Other common types of Business Entities include:
An offshore company is subject to 0% corporate tax and no tax liabilities on all overseas profits. In addition, the offshore company is exempted from withholding taxes, capital gain taxes, inheritance taxes, and stamp study. Individuals and companies in Seychelles are still subjected to a personal income tax of 15%. For this, the person must live in the country for more than 180 days in one year. Foreigners are not subjected to tax on dividends, interests, and royalty incomes as a result of the double taxation agreements signed by the government with other nations. Companies are not required to file annual audited accounts but must keep their own accounting and financial records. The annual meeting also does not need to be held within the country and can be held in any location.
