Seychelles Companies
Seychelles: International Business Company IBC
INTRODUCTION
The Seychelles Islands are strategically located in the Indian Ocean, between the east cost of Africa and India. The independent Republic of Seychelles is considered to be a progressive offshore centre in the world with competitive legislation. This consequently leads to relatively simple incorporation of companies and simultaneously warrants Investor confidence and privacy. As is the case with other offshore companies, Seychelles IBC is a tax free corporation designed for engagement into all forms of international business. There are many advantages associated with Seychelles IBC, including but not limited to comprehensive confidentiality features.
The Seychelles IBC is a flexible tax free company ideal for a wide variety of uses. Seychelles IBCs are commonly used for:
ADVANTAGES OF THE SEYCHELLES COMPANY FORMATION
Incorporating a Seychelles IBC carries many advantages which are described below. Seychelles IBC’s have increased dramatically both in profile and popularity over the years since over 30,000 Seychelles IBC’s have been incorporated following the enactment of the International Business Companies Act 1994.
ZERO TAX
One of the major advantages of a Seychelles IBC is the fact that no taxation is levied on income and profits made by an offshore company [IBC]. The International Business Act 1994 specifically states this within Article 109. (1). Additionally, according to Article 109. (2), Seychelles IBC’s are exempt from any stamp duty on transactions regarding it’s business such as transfers of property to or by the company and on any transactions in respect of the shares, debt obligations or other securities of the Seychelles IBC.
For qualification purposes, a Seychelles IBC may not carry on business in Seychelles, it may not own real estate in Seychelles and it may not do any banking, insurance and registered agent business unless a special licence has been obtained.
Despite the above restrictions, a Seychelles IBC can do the following:
INTRODUCTION
The Seychelles Islands are strategically located in the Indian Ocean, between the east cost of Africa and India. The independent Republic of Seychelles is considered to be a progressive offshore centre in the world with competitive legislation. This consequently leads to relatively simple incorporation of companies and simultaneously warrants Investor confidence and privacy. As is the case with other offshore companies, Seychelles IBC is a tax free corporation designed for engagement into all forms of international business. There are many advantages associated with Seychelles IBC, including but not limited to comprehensive confidentiality features.
The Seychelles IBC is a flexible tax free company ideal for a wide variety of uses. Seychelles IBCs are commonly used for:
- the holding / ownership of investments and assets, such as real estate or shares or other property.
- commercial transactions and international trading operations
- asset protection vehicles
- consultancy and personal service companies
ADVANTAGES OF THE SEYCHELLES COMPANY FORMATION
Incorporating a Seychelles IBC carries many advantages which are described below. Seychelles IBC’s have increased dramatically both in profile and popularity over the years since over 30,000 Seychelles IBC’s have been incorporated following the enactment of the International Business Companies Act 1994.
ZERO TAX
One of the major advantages of a Seychelles IBC is the fact that no taxation is levied on income and profits made by an offshore company [IBC]. The International Business Act 1994 specifically states this within Article 109. (1). Additionally, according to Article 109. (2), Seychelles IBC’s are exempt from any stamp duty on transactions regarding it’s business such as transfers of property to or by the company and on any transactions in respect of the shares, debt obligations or other securities of the Seychelles IBC.
For qualification purposes, a Seychelles IBC may not carry on business in Seychelles, it may not own real estate in Seychelles and it may not do any banking, insurance and registered agent business unless a special licence has been obtained.
Despite the above restrictions, a Seychelles IBC can do the following:
- Maintain Seychelles-based bank accounts and deposits.
- Maintain books and records within Seychelles.
- Maintain professional relationship in Seychelles with attorneys, accountants, trust and management companies, investment advisers or other similar persons.
- Hold meetings of its directors in Seychelles.
- Lease a property in Seychelles to use as office from which to communicate with members and where books and records can be kept.
- Hold shares, debt obligations or other securities in another Seychelles IBC or in a Seychelles domestic company.
- Own a vessel or and aircraft registered in Seychelles.
- Shares in a Seychelles IBC may also be held by a person resident in Seychelles.
SEYCHELLES DOUBLE TAX TREATY
According to the Seychelles Investment Bureau, the Seychelles has Double Tax Agreements in force with the following countries: Barbados, Botswana, China, Cyprus, Indonesia, Malaysia, Mauritius, Oman, South Africa, Thailand, the United Arab Emirates, and Vietnam.
Double Tax Agreements with the following countries have been signed but are not in force: Belgium, Qatar and Zimbabwe.
Negotiations have been concluded with Egypt, Bahrain, Namibia and Zambia, and, in the first quarter of 2009, were awaiting signature. A second round of negotiations is being held with the Czech Republic, Tunisia, Russia and Lesotho. Tax treaty discussions have also taken place with Philippines, Malta, Burundi,
Ivory Coast, Morocco, Uganda, Israel, Portugal, Turkey, Kenya, Spain, Pakistan, and Jamaica.
The Government sees such treaties as being an important part of its scheme to develop as a key financial hub in the Indian Ocean, and is actively seeking to expand its tax treaty network. To this end, requests for DTA negotiations have been sent to: Tanzania, India, Sweden, COMESA/SADC member states, Brazil, Greece, Netherlands, Poland, Japan, Mexico, Slovak Republic, Malawi, Germany, Maldives, Saudi Arabia, New Zealand, Italy, Singapore, Korea, France, UK, Cuba, Sri Lanka, Denmark, Australia, Ireland, South Korea and the Bahamas.
SECRECY / CONFIDENTIALITY
Confidentiality is one of the key features of a Seychelles IBC. The reason for this is due to the fact that the details of the Seychelles IBC’s beneficial owners, directors and shareholders are not part of the public record. This information is only kept at the offices of the Registered Agent in complete confidence. Unlike other jurisdictions, upon registration of a new Seychelles IBC, the Registrar of Companies requires the Memorandum of Association and the Articles of Association. These documents specify the activities in which the company will engage the rules governing the internal management of the company respectively. They do not mention the names of the shareholders nor do they mention who the beneficial owners of the company are. Furthermore, Shareholder(s) and Director(s) nominee services are allowed to ensure confidentiality of beneficiaries
Equally important is the fact that the Seychelles are not subject to the EU Savings Tax Directive, unlike some of the offshore tax havens related to the EU member states (primarily UK and its overseas territories).
PROVISIONS AGAINST CONFISCATION
It is not possible for a governmental authority, whether it is legally constituted or not, in any jurisdiction outside the Seychelles by or in connection with a nationalisation, expropriation, confiscation, coercion, force or duress, or similar action; or by or in connection with the imposition of any confiscatory tax, assessment or other governmental charge to seize any shares or other interest in a Seychelles IBC.
SPEEDY INCORPORATION
Incorporating a Seychelles IBC is something that can be done within two working days. The Seychelles Registry is one of the fastest Registries of International Business Companies worldwide.
GOVERNMENT LICENCE FEES
The government fee payable by a Seychelles IBC is fixed at $ 100 upon registration and is also paid for each year of its existence. This fee is fixed irrespective of the authorized and paid up capital.
CAPITAL
There are no minimum or maximum capital requirements regarding Seychelles IBC’s. Normally, Seychelles IBC’s are incorporated with an authorised share capital of $100,000 divided into 100,000 shares of $1.00 each. The authorised share capital may be expressed in any legal currency. A Seychelles IBC can issue registered or bearer shares (not recommended), preference shares, redeemable shares, shares with or without par value and shares with or without voting rights. The minimum issued capital is either one share of no par value or one share of par value.
A Seychelles IBC is not required to have any minimum paid up capital before starting any business operations.
NO FINANCIAL REPORTING
Seychelles IBC’s do not have an obligation to prepare and file any financial accounts. A Seychelles IBC can arrange it’s accounts in any manner that the owners deem to be appropriate for them.
CORPORATE STRUCTURE
A Seychelles IBC only needs to have one Director, who may be either a physical person or a corporate body. It also needs one shareholder who can be the same person (either physical or corporate body). The Director and Shareholder of a Seychelles IBC do not necessarily have to be local – they can be of any nationality. Meetings of directors or shareholders may be held anywhere in the world and there is no obligation for a regular general annual meeting or a board meeting.
A Seychelles IBC is required by law to have a Registered Office in Seychelles. Although, it is not obligatory for a Seychelles IBC to have a secretary, appointment of such secretary is possible.
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