The business environment in Seychelles

Seychelles is an independent state, part of the British Commonwealth, and has one of the fastest foreign company registration processes worldwide, through the IBC companies. With a prolific development in numerous industries, the government in Seychelles is open to all kinds of investments in the insular state. As it is known, Seychelles is an important transit point for trading purposes between Asia and Africa.

The entrepreneurial framework in the country made the government focus the attention on the overall regulatory productivity, eliminating several taxes and boosting transparency in the business background. Since 2015, Seychelles is known as a “high income” state, according to the World Bank classification. The easy ways of registering businesses in the archipelago state made numerous investors implement and develop their activities in a wide range of performant industries.

For a suitable understanding of how a foreigner can open an IBC company in Seychelles, you may address your questions to our team of company formation agents in Seychelles. Please contact us for details in this matter.

Thus, if you will set up a Seychelles IBC that will need employees, the law states that the company must pay social security.

Social security in Seychelles is charged at a rate of 20% (this rate is imposed to employers), while the employees have to pay a social security tax of only 2.5% from their salaries.

As said above, companies can benefit from the provisions of double tax treaties, and currently, Seychelles has signed 28 such agreements.
Our specialists in company incorporation in Seychelles can provide you with the necessary information and details about Seychelles offshore company formation and the conditions in this matter. We can also offer specialised company formation services to foreigners looking to set up Seychelles offshore companies.

Known as a tax haven, Seychelles is a preferred business destination for investors who want to improve their businesses by making the tax planning more effective and protecting their assets by Seychelles offshore company formation. In this matter, an offshore company in Seychelles can be useful, and a suggested form of business for international entrepreneurs is setting an IBC (International Business Company) offshore in Seychelles.

As a general definition, the offshore company is a business created with the purpose of completing various types of activities outside the country it is registered in. Seychelles offshore company formation represents one of the important ways of protecting one’s personal assets. In order to be considered an offshore company, the founders must establish this in the Articles of Association.

Seychelles is known at a global level for its favourable 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, such as tax exemptions foreign investors can benefit of.

When starting a business in a foreign country, such as Seychelles, it is recommended to request legal representation from specialists who are familiarised with the local commercial legislation, tax system and reporting requirements.

How to open an IBC in Seychelles

The International Business Company or the IBC in Seychelles is the preferred type of offshore company because it has a rapid incorporation process and varied tax advantages. An IBC in Seychelles can be ready within two days and it is a business structure that addresses to persons interested in commencing activities on the internet, as counselors, as traders or for the custody of the real estate properties, but not limited to these. The following requirements are among the most important ones when it comes to setting up an offshore in Seychelles:

•    prepare the Articles of Association and submit them to Registrar Companies in Seychelles;
•    appoint the directors of the IBC in Seychelles;
•    choose a business address;
•    set up a bank account in Seychelles.

IBCs in Seychelles can perform the financial activities in the standard currency, the dollar, but they can also operate under varied types of coins. Likewise, there is no need for a minimum share capital for opening an offshore company in Seychelles, but all the details of this form of business can be obtained from our advisors in Seychelles.

Legislation related to Seychelles offshore company formation

The main law governing the establishment of offshore companies in Seychelles is the International Business Company Law which was last amended in 2016. The name of the law also offers the other name of the offshore company – that of the International Business Company, or IBC in Seychelles.

Another law which provides for the establishment of offshore companies is the Seychelles Commercial Code which presents the legal forms that can be registered as IBC companies. The anonymous company is an example when it comes to a business form which can be used by a foreigner looking to establish an offshore company in Seychelles.

Requirements for setting up a Seychelles offshore company

The IBC in Seychelles Act provides for the requirements which must be fulfilled in order to perform the procedures for Seychelles offshore company formation. These requirements imply having at least one shareholder and one director. There are no restrictions related to the nationality of any of the shareholders and directors. Moreover, the director does not need to be a Seychelles resident. Also, the company can have as many directors as the shareholders want. Corporate directors can also be used for ensuring the management of the offshore company. One of the shareholders can act as a company director. Compared to other types of companies, the Seychelles IBC company does not require a secretary.

The offshore company will need a trade name which can be in any language, however, as a useful tip, most of the times English is used for company names in Seychelles.

Another important requirement for setting up an offshore company is having a registered or legal address in Seychelles. This can be ensured through a virtual office.

Our Seychelles offshore company formation specialists can offer virtual office, as well as nominee services related to the shareholders and company directors. We can also assist with VAT registration in Seychelles.

Documents required to establish a Seychelles offshore company

Foreign enterprisers interested in Seychelles offshore company formation  are required to prepare and submit the following documents with the Companies Registrar:
personal information, such as passport copies which must be certified, in the case of natural persons;
information about the company, such as the certificate of incorporation and articles of association, in the case of legal entities;
proof of having a residential address in Seychelles, such as an utility bill no more than three months older;
in certain cases, the Registrar could request references from a bank showing the good standing of the investor.
Our local agents can help with the preparation of the documents needed to register the Seychelles IBC company.

Restrictions imposed on IBC companies in Seychelles

Even if the requirements related to the registration of an offshore company are quite relaxed, there are also a few restrictions imposed on those who want to set up such an entity. Among these, the most important one is related to not being allowed to complete any commercial activity in Seychelles. It should be noted that such restriction is imposed no matter the country where the company is created.

The offshore company cannot buy any residential or commercial property in Seychelles and cannot operate in the financial sector. Offshore companies cannot be established with the purpose of completing gambling activities. For such activities, onshore companies must be registered with the Companies House in Seychelles.

Another important restriction that needs to be mentioned is that offshore companies cannot issue bearer shares.

Despite these restrictions, offshore companies in Seychelles are allowed to enter any type of activity and partnership with local companies.

We can help foreign investors who are interested in establishing other types of companies in Seychelles.

The advantages of Seychelles offshore company formation

Below, our company formation consultants in Seychelles list the main reasons for opening a company in this location:
No tax: there is no taxation on profits and capital gains for companies incorporated here.
High confidentiality: the identities of the investors are protected because no sensitive information is recorded publicly.
Flexibility: the IBC in Seychelles, the most widely used type of company, can be used for several international business purposes.
Low requirements: these refer to the incorporation requirements, including no paid-up capital.
Management simplicity: there is no need to hold the shareholder’s meetings in the Seychelles and corporate decisions are very easy to make.
These five advantages rank highest among the reasons why investors choose to open an offshore company in Seychelles.

Benefits related to starting an offshore company in Seychelles

One of the first advantages offered by a Seychelles IBC structure is the reduced incorporation time: in a few days the company can be up and running. Also, the offshore company registration requirements are quite simple:
there can be one shareholder;
the company is required to have minimum one director;
the shareholder can be the company director;
there are no restrictions related to the nationality of the directors and shareholders;
no company secretary is required;
no share capital requirements.

The IBC in Seychelles can be used as an investment vehicle by those who want to set up investment funds in this country.

Company administration benefits in Seychelles

One of the greatest benefits related to opening an offshore company in Seychelles is the fact that the annual general meeting of the shareholders does not have to take place in the country, as new technology allows for video-conferences for this meeting.

Also, the reporting requirements for a Seychelles IBC company are minimum, as there are no audits, no tax reporting or filings. No information on company’s accounting documents is available to the public.

Tax benefits when opening an IBC in Seychelles

When it comes to the tax benefits offered by a Seychelles offshore companies, we can mention:
the lack of taxes on profits or any other type of income;
the low maintenance and administration costs;
the repatriation of profits to another country is not subject to any duty.
The characteristics of the Seychelles IBC

The International Business Company, or the IBC in Seychelles, is the most commonly used business form because, as previously highlighted by our agents, it is a versatile business structure. However, investors should be well aware that this type of company is required to comply with several important regulations. Some of the most important aspects to remember are the following:

Limitations on operating in Seychelles: this company cannot engage in business in Seychelles and it cannot own real estate in Seychelles.
Mandatory licenses: activities such as banking or insurance can only be performed with a special license.
Prohibited activities: this company cannot carry out gambling, or securities businesses in Seychelles or operate as a mutual fund, unless it has a special license.
Asset ownership: although it cannot own real estate, the IBC can have vessel or aircrafts registered in Seychelles.
Assistance in opening an offshore company in Seychelles

We can provide foreign enterprisers who want to open offshore companies in Seychelles with the following services:
drafting and vetting the documents required for the company registration procedure;
assistance in opening the corporate bank account for the IBC in Seychelles;
filing the documents with the Trade Register and registration with the tax authorities;
virtual office services can also be provided, in case the investor requires;
accounting services are also available at the request of our clients.
In order to register the company on our clients’ behalf, our Seychelles offshore company formation agents will need a power of attorney.

Hiring personnel for a Seychelles offshore company

Foreign investors who open offshore companies in Seychelles are allowed to hire local workers, however, they can also bring employees from their home country by obtaining work permits on their behalf. The employment procedure is not complicated and can be completed in maximum one month, no matter the residency status of the employees.

Our Seychelles offshore company formation agents can guide foreign investors through the whole procedure of setting up offshore companies. From the preparation of the documentation related to registering the company and nominee services, we can help them set up the company in the minimum period of time possible.

Costs related to starting an offshore company in Seychelles

In order to understand what generates the annual maintenance costs of an offshore company in Seychelles, it is important to first note the costs and fees associated with the registration of such a company.
As a foreign investor, you will need the following:
to appoint a local registered agent to incorporate the company and represent it before the Seychelles authorities;
to have the documents related to the incorporation prepared (these will not incur other costs unless they are amended);
to have a registered/legal address in Seychelles (which will attract annual maintenance costs);
the fee for obtaining the operating license which needs to be renewed on annual basis, therefore will generate annual costs;
the nominee services (many foreign business owners request such services for an easier management of the company).
Another fee which will not generate annual maintenance costs is the company registration fee which will be paid upon the incorporation of the Seychelles offshore company.

Our company registration advisors in Seychelles can provide more information on the requirements which need to be respected in terms of annual maintenance costs for an offshore company.

Annual costs for a registered address in Seychelles

Having a legal address for a business in Seychelles is mandatory, according to the local legislation. When setting up an offshore company the registered address can take the form of a virtual office which can be rented for a few months and up to one year.

The maintenance costs for the legal address of the Seychelles offshore company depend on the services requested by the business owner.

We offer virtual office services in Seychelles at very advantageous rates. You can get in touch with our local advisors for a personalized offer.

Operational fees when opening a company in Seychelles

Opening a company in Seychelles does no imply only registration fees, but also operational costs which must be taken into account. Amon the operational fees related to opening a Seychelles company are:
the accounting fees;
the utilities;
the environmental charge;
the costs generated by employment;
the costs related to the office.

When it comes to offshore or IBC companies in Seychelles, foreign investors need to consider the costs generated the nominee services. They can opt for one or more of the following services:
nominee shareholder: this is an annual fee payable to the company that offers the service.
nominee director; also a fee that is paid annually as per the agreed price with the company offering this professional service.
company secretary: this can be included in a larger package, however, it is also a recurring fee.
other secretarial services: these can include services related to call handling, document custody or storage, and others.
These services are not mandatory, however, the two included in this category (nominee shareholder and nominee director will ensure complete privacy in relation to owning an offshore company in Seychelles.

Some of the fees related to company management in Seychelles will occur as the company starts doing business. In this category, we can mention the certificate of good standing, which is issued by the Registrar of Companies when the business needs this document for submission for different purposes. The certificate proves that the business is registered according to law, that it has complied with all of the administrative requirements up to the issuance date and that it has no dues to the government.

Business owners in Seychelles who request additional documents from the Register will also need to pay certain fees for the release of the document or documents. These fees can vary and one of our agents who specialise in company formation in Seychelles can give you more information as needed.

The maintenance cost of the business license of a Seychelles IBC

No matter the activities to be completed by an offshore company, it will need to obtain a business license which will imply a fee. Considering the license needs to be renewed on an annual basis, this is one of the most important maintenance costs of an offshore company in Seychelles.

The cost of the business license depends in many cases on the share capital of the company. Our consultants can offer more information on share capital and business licensing requirements of an offshore company.

Nominee services maintenance costs in Seychelles
Most offshore companies in Seychelles operate through nominee shareholders and directors. Even if these are not mandatory, they are often requested by foreign entrepreneurs as they have legal representatives who can sign on their behalf and represent them before the authorities.

The nominee services are usually contracted on a yearly basis, which is why they can be considered as annual maintenance costs of the Seychelles offshore company.

Foreign investors can benefit from nominee shareholder, director and account signatory services. We offer such services to all those interested in obtaining them when registering IBC companies in Seychelles.

How we can help you

If you are considering forming a business or you need expert help with company registration in Seychelles, MagickFormations™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.

Please use our Company Wizard if you would like to set up your registered company in Seychelles or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at connect@magickgroup.com