Seychelles is one of the best tax havens for both businesses and individuals. So, if you’re looking for an offshore company in a reputable country where you’ll have access to favourable business legislation and various tax and privacy advantages, then Seychelles or Seychelles IBC is the ideal destination for you. Regarding offshore business, it is one of the most popular places.
In this post, we’ll review some of the top benefits and characteristics of a Seychelles International Business Company (IBC), one of the most popular offshore company structures.
A Glimpse of Seychelles International Business Company
Seychelles IBC is the top choice for investors seeking offshore company formation. This structure offers similar benefits to a Seychelles offshore trust, a standard Seychelles company, and a Seychelles limited partnership.
Under the Seychelles International Business Companies Act, any corporation, individual, or business can establish a company in Seychelles. The Seychelles IBC is a flexible legal entity in Seychelles, with no minimum share capital requirement. Hundreds of thousands of Seychelles IBCs have been established, and many new offshore businesses are formed yearly.
Does an Offshore Company uplift the Seychelles Economy?
One of the biggest misconceptions about Seychelles International Business Companies is that they’re only ‘offshore companies’ that do not contribute to the country’s local economy. So, let’s set the record straight:
Following the global financial crisis in 2008, the offshore industry played a critical role in reviving the Seychelles economy. Business investors and high-net-worth individuals favour Seychelles because it offers several offshore company-related perks. Seychelles allows for the incorporation of a variety of business entities. The International Business Company is one of the most popular business structures (IBC).
Moreover, offshore companies significantly boost Seychelles’ economy by generating government revenue through registration fees, license renewals, and professional services. The offshore sector also attracts foreign investment, creates jobs in legal, accounting, and corporate services, and strengthens Seychelles’ reputation as a global financial hub.
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Why Entrepreneurs or Investors Should Consider in Seychelles IBC?
One of the country’s strengths is its steady economic and political environment.
Seychelles is a Commonwealth nation, yet its government is independent and democratic, with a stable society, making it an attractive investment destination for offshore investors.
Seychelles is a strict yet modern offshore jurisdiction that provides businesses with various appealing services. These services include IBC formation, Seychelles banking, and investment management.
Furthermore, Seychelles has established itself as a preferred alternative for offshore investors due to various favourable features for incorporated firms, including tax advantages, high secrecy, confidentiality, asset protection, and many others.
Advantages of Doing Business in Seychelles
The innovative solution provided by Seychelles International Business Company (IBC) has prompted some investors to consider this island nation as a potential location for setting up a company.
Some of the key benefits of forming a Seychelles IBC are,
1. Tax Benefits
Is Seychelles tax-free? Seychelles is well known as a tax haven. The Seychelles tax haven does not levy any tax on income earned from abroad. Moreover, Seychelles similarly has no capital gains tax.
Furthermore, unless the transactions relate directly or indirectly to real estate located in Seychelles, Seychelles IBCs are free from stamp duty on the formation of the business, transactions in respect of shares, debt obligations, transfers of properties, or other securities of a company.
2. Privacy and Confidentiality
When forming an offshore business, privacy and secrecy are essential factors that most entrepreneurs and investors consider. Fortunately, Seychelles is one of the most respected tax havens for offshore corporations due to its secrecy and confidentiality.
The identity of the beneficial owners, directors, and shareholders of Seychelles IBCs is not disclosed to the public unless a court order or regulations are required.
Accounting records of Seychelles-based businesses are kept confidential. Offshore firms registered in the Seychelles tax haven typically maintain their secrecy by maintaining their financial accounts and accounting records internally.
3. Fast Incorporation
Seychelles is a good choice, especially if you are worried about how quickly your offshore company may be formed. The Seychelles registration procedure is one of the most flexible and quick. In most cases, a new foreign business corporation may be established in Seychelles within 2-3 days.
Criteria to be Followed Before Opening a Seychelles IBC
Before you can start the process of establishing a Seychelles IBC, you must first meet the following requirements:
- It cannot do business in Seychelles.
- The company must not own any property in Seychelles.
- Without a separate license, no banking transactions may be carried out.
- There will be no securities business undertaken
In addition to the above criteria, understanding how to start an anonymous company in Seychelles would give you a clear picture of how to set up a business.
Certain Restrictions for a Seychelles IBC
An IBC can engage in any business if it complies with the Seychelles International Business Companies Act. However, if your organisation plans to engage in any of the following licensed activities, you must first obtain authorisation from the authority:
- Carry on business in banking, insurance, and foreign corporate services
- Carry on business in securities
- Carry on business as a mutual fund
How can I set up a Company in Seychelles IBC?
The following are the processes that must be taken to incorporate an IBC in Seychelles:
1. Choose a Business Activity
Business activity is the first and most important consideration when establishing an offshore firm. Initially, one should determine what business activities are permitted. After deciding that, one should focus on the next step.
2. Select a Certified Business Consultant
After choosing the business activity, one should focus on finding a certified business consultant. The business consultant makes your entire incorporation process easier. If you choose a wise one, you can start the business hassle-free. Moreover, know about the reasons to hire an offshore business consultant.
3. Finalise a Trading Name
After finding the best business consultant, you should next consider finalising a trading name. One should follow various formalities while choosing a trading name. When choosing a trading name, avoid hurting any religious beliefs or using offensive terms.
4. Apply for Business Setup
After selecting a company name, applicants must complete an application form and compile a collection of supporting documents, including the shareholders’ and directors’ addresses and identity proof, a well-written business strategy, passport copies of the shareholders and directors, and the shareholders’ CV.
5. Submission of the Documents
After gathering the required documents, they must be given to the proper authorities, who will analyse them and provide the necessary licenses.
6. Open a Bank Account
The last step is to open an offshore bank account, which enables business owners to execute transactions more efficiently. An offshore company with a bank account can be very valuable for the management.
Documents Required for Opening an Offshore Company
Below are the documents required if you wish to start an offshore company.
- Copies of all shareholders’ passports
- Shareholders’ curriculum vitae
- Proof of address (the lease agreement, utility bills, etc.)
- If needed, a bank reference letter or a bank statement from the previous six months should be submitted.
- Three corporate names for the company
It is an essential and valuable business plan component, regardless of which country you choose for your offshore company. So, whether you’ve selected or still need help deciding on a location, our experienced professionals at Business Setup Worldwide can guide you through the process.
Our Role
By enlisting the help of specialists, you can ensure that you’re starting on the right foot and following all of the necessary laws and regulations. So, contact us immediately for Seychelles offshore company registration to begin your offshore journey and create an asset protection strategy that will endure eternally.
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