As an entrepreneur with quite some business experience under their belt, you certainly always assess the risks of your capital investments. When choosing to set up an offshore company, you also look for any hidden taxes in the offshore jurisdiction, don’t you?
That’s why it makes perfect sense to consider a company launch in Seychelles. It is a convenient instrument that protects your money and privacy. With it, you will enjoy the benefits of no audits, reports, taxes, or authorized capital.
One of the most popular ways to run a business in Seychelles is by establishing an international business company (IBC). Incorporated under the International Business Companies Act of 2016, IBCs in Seychelles are recognized for their tax efficiency and remarkable flexibility. This legal structure is an ideal choice for trading, investment, holding, or consultancy activities. Moreover, it typically takes only a few days to complete all incorporation procedures, and you’ll face minimum requirements and associated costs.
What you can achieve with an IBC in Seychelles
Are there any other perks associated with IBC formation in Seychelles? Well, get ready to be wowed:
- Tax exemptions: In Seychelles, IBCs enjoy exemption from corporate, income, withholding, capital gains, and stamp duty taxes, provided they do not carry any business activities in the jurisdiction. Not bound by either exchange controls or currency restrictions, local IBCs offer enhanced flexibility and ease of operation for businesses.
- Confidentiality: An IBC maintains confidentiality by not mandating the disclosure of its beneficial owners, directors, or shareholders to the public or authorities, except in the case of a criminal investigation. To bolster privacy and asset protection measures even further, these legal structures have the option to utilize nominee services or trust arrangements.
- Simplicity: Potentially, IBCs in Seychelles may be incorporated with a single shareholder and just one director, who may be the same person or a corporate entity. To be incumbent and legal, IBCs do not need to have a physical presence, a secretary, or an auditor in Seychelles. Besides, they are not required to file annual returns, financial statements, or tax returns, unless they opt to do so.
- Flexibility: Permitted to engage in any lawful business activity, except for banking, insurance, or gambling, without it being necessary to obtain a special license, IBCs in Seychelles are authorized to issue various share types, including bearer, preference, or redeemable shares. They are also free to denominate their capital in any currency of choice. Seychelles IBCs enjoy the flexibility to modify their name, structure, or jurisdiction at their own discretion, provided they meet certain conditions.
Offshore company types in Seychelles
In addition to the IBC, Seychelles also offers other types of offshore companies for you to set up:
Special License Company (CSL)
A CSL, known as a Company Special License, blends the characteristics of an IBC with those of a domestic company. This hybrid entity may engage in both offshore and onshore business ventures, ranging from financial services to intellectual property and franchising. Benefiting from a modest corporate tax rate of 1.5%, a CSL also gains access to Seychelles’ extensive network of double taxation agreements, spanning over 20 countries.
Protected Cell Company (PCC)
A PCC is a single legal entity that can create multiple cells, each with distinct assets, liabilities, and shareholders. This structure is particularly advantageous for enterprises seeking to compartmentalize risks, as seen in insurance, fund management, or securitization. Depending on its specific business goals and tax considerations, a PCC may register as either an IBC or a CSL.
Limited Partnership (LP)
A limited partnership (LP) is a contractual agreement involving two or more partners, who may be individuals or entities. Typically, an LP comprises one or more general partners responsible for managing the business and assuming liability for its debts, alongside one or more limited partners who contribute capital and bear liability only up to the extent of their investment. This structure offers flexibility as an LP may be registered as either an IBC or a CSL, allowing it to benefit from tax advantages and maintain confidentiality.
Is incorporation in Seychelles beneficial for your business?
Launching a Seychelles company is advantageous for a diverse array of businesses and individuals in search of a competitive edge in the global market. Nonetheless, certain sectors and activities may find greater benefit from the advantages Seychelles provides:
E-commerce Businesses: These gain significant advantages from the tax exemption, confidentiality, and flexibility offered by Seychelles. Through the incorporation of an IBC in Seychelles, e-commerce enterprises can circumvent taxes on their online sales, safeguard customer data and intellectual property, and seamlessly navigate multiple markets and currencies.
Trading Companies: Capitalizing on Seychelles’ strategic location, tax efficiency, and simplicity, trading companies gain some competitive advantages on the market. Through the incorporation of an IBC or CSL in Seychelles, they can harness the proximity and connectivity of the jurisdiction to Asian and African continents, minimize tax burdens and operational expenses, and make their administrative and reporting procedures more efficient.
Investment Vehicles: Seychelles investment firms eagerly reap the benefits of asset protection, confidentiality, and flexibility offered by the jurisdiction. By establishing a PCC or LP in Seychelles, these firms have the opportunity to segregate their assets and liabilities into separate cells or partnerships, thereby enhancing the security of investor data and fund performance. Moreover, they are free to expand their portfolio and strategies across different geographical regions and industry sectors if they wish.
Holding Structures: Seychelles offers holding companies significant advantages in tax exemption, asset protection, and operational simplicity. By establishing an IBC or CSL in Seychelles, holding companies avoid taxes on dividends, interest, and royalties, protect their assets and subsidiaries from creditors and legal proceedings, and lower compliance and maintenance responsibilities. Moreover, they benefit from the country’s network of double taxation agreements, which reduce or eliminate withholding taxes on the income received from foreign subsidiaries.
Are you here because you need help with offshore company formation? For expert advice and assistance on this matter, don’t hesitate to get in touch with International Wealth experts. Assisted by us, you will set up an offshore business remotely with no worries in the world. Be sure, all your individual needs and preferences will be accounted for!
