SEYCHELLES COMPANY incorporation

Seychelles one of the oldest tax jurisdiction used for tax planning purposes, offers three company solutions for businesses; the Seychelles International Business Company, the Seychelles International Trust and the Seychelles Partnership.  Each company serves different purposes with the exception of the Seychelles Partnership which is no longer attractive (we rare use partnerships for any jurisdiction) hence not analysed or explained below. 

Seychelles Company options

  • The Seychelles International Business Company ("IBC")
  • The Seychelles International Trust
  • The Seychelles Partnership

The Seychelles International Business Company (IBC)

The IBC is commonly used by international investors and tax group structures primarily because of its tax free status, zero filing or audit requirements and the ease and convenience of set up.

Advantages

  • Zero Tax *
  • Non public record disclosure of directors, shareholders, company secretary
  • No audit requirement ( only management accounts)
  • Incorporation within 24 hours
  • English main language
  • Nominee services allowed
  • No paid up capital required
  • Re-domiciliation to and from Seychelles is allowed
  • Low set up fees to incorporate

Note: * To Maintain the 0% tax rate the Seychelles International Company should not conduct any business in the island namely;

it can not conduct business in Seychelles

  • it can not own property or real estate in Seychelles
  • it requires a license to conduct banking, insurance and registered agent business
  • it may not conduct services in Seychelles if licensed for the provision of such services outside Seychelles (securities, gambling)

Disadvantages

  • Accounting records must be prepared and kept anywhere in the world
  • Banking could be of an issue, especially for incomings in the Euro zone
  • It is commonly known and considered a "tax heaven" 
  • Local registered agent is required

Characteristics

  • Minimum one director and shareholder is allowed from any nationality, physical or legal persons
  • No minimum or maximum share capital requirements
  • Minutes and resolutions must be provided to the local agent
  • Share capital; bearer shares are not allowed

The Seychelles International Trust

Like otheprp common law jurisdictions, the Seychelles offer International Trust creations. The characteristics of these trusts are similar to other jurisdictions trusts;

  • require a settlor, a protector and a beneficiary
  • a trust deed is required
  • it is an agreement between parties (not an entity, company or anything else)
  • it is commonly used for anonymity, asset protection and tax purposes
  • it is a fairly standardised process

Advantages

  • Income derived outside Seychelles is permanently exempt from any type of tax
  • Trust deed is not filed to public record

Common Applications of Trusts

  • Asset protection
  • Confidentiality
  • Estate planning
  • Tax planning
  • Avoidance of forced heirship

The Island (Wikipedia)