Seychelles: A Top Choice For Offshore Company Formation

If you are seeking a destination that offers low risks and is favorable to non-resident businesses, look no further than Seychelles. Entrepreneurs from across the globe flock here to set up complicated tax structures, partnerships, or International Business Companies without encountering too many problems or paying large amounts, which makes the islands a recommendable offshore jurisdiction.

Seychelles Company: Main Advantages

The destination offers tangible incentives as compared to European countries and territories:

If your company is engaged in a non-licensed activity and you generate your income outside Seychelles, your profits will be tax-exempt.
The destination provides a high degree of privacy.
Authorized capital requirements are minimized to simplify company formation.
Seychelles complies with all international requirements, and it is no longer on the blacklist since February 2024.
Currency control is nonexistent.
You will not have to pay a personal visit to the country to set up a company, as you can quickly do so via a registered agent.

Let’s consider the main steps you will have to take to launch your business from Seychelles.

Seychelles Company: How-To

Here are the main actions you will need to take to set up a company in Seychelles as a non-resident:

Choosing a registered agent. No matter whether you are an individual or a legal entity, this is a mandatory step to take.
Renting an office. To successfully set up a company, you need to establish a physical presence in the country.
Company registration. If you plan to engage in global operations, we recommend forming a Limited Partnership (LP) or an International Business Company (IBC).
Bank account creation. You must approach this matter carefully to ensure reliable banking services to keep your business going.
Regulatory requirements. The Seychelles’ updated and revised International Companies Act sets some reporting requirements you will need to comply with.

If something sounds too complicated, do not hesitate to get more information by reading this comprehensive guide or use expert assistance. A properly established company will spare you the trouble, so it’s better to approach the initial stage with due care.

Regulatory Requirements

A Seychelles-based company is required to comply with the regulatory requirements below:

Legal entities are registered via an agent in a matter of 3 to 7 days.
The founder is not obliged to fly to Seychelles to complete the company registration process.
You can appoint one person to simultaneously occupy the director’s and shareholder’s positions in your Seychelles company.
The name you select for your company should comply with certain requirements, and you will need to have it translated into English or French if it is in a language that differs from these.
Seychelles IBCs have no right to own local real estate.
A Seychelles non-resident company can generate its profits anywhere without any restrictions. However, if it works locally, it will be subject to the same taxes as resident companies.
If your company is engaged in licensed activities, such as investment, banking, trust management, or credit, it will naturally be required to obtain a license, and, most importantly, it will be treated as a resident company.
The capital requirements are not tight: you can even issue one share, and your authorized capital will equal its nominal value. However, non-resident Seychelles companies usually issue at least 1,000 shares.

Requirements for Documents

The requirements for a package of documents to be submitted are pretty standard:

You will need to have them legalized and notarized.
As soon as you have done that, you will have to submit the whole package to the registered agent (along with the directors’ and beneficiaries’ ID documents, foundation documents, signatory permissions, and official appointments).

Each founder has to submit a customized set of documents depending on the specifics of the Seychelles company he or she is going to establish.

How to Choose an Appropriate Legal Structure

Let’s consider three company structures you can choose from: International Business Company (IBC), Limited Partnerships (LPs) or Limited Liability Partnerships (LLPs), and Special License Companies.

International Business Company

Here are the main characteristics of this type of company to help you decide whether it is suitable for you:

No taxes on the profits derived outside Seychelles are payable.
The liability of shareholders is limited by the cost of shares possessed.
The company is required to have a local registered address.
You can form an IBC to engage in any business activities except for those that require a license.
An IBC is registered using the services of a Seychelles-based agent.
You will need to appoint at least one director who can be a resident or a non-resident, an individual, or a legal entity.
There is no need to appoint a secretary unless you want to.
You can officially use nominee services to enhance confidentiality.
You are not required to have any minimum paid-up capital.
The minimum number of shares to be issued is one.
The company’s accounting and financial records have to be kept at the office of the registered agent who deals with your company’s affairs.
You will be required to pay an annual renewal fee to keep your company operational.
There is no currency control.

Limited Partnerships and Limited Liability Partnerships

You will need to appoint at least one general partner who will bear full liability for all the LP’s obligations.
Partners are taxed on the basis of their individual income.
You will need to rent a physical office in Seychelles.
The general partner has to be a Seychelles resident, and it can be an individual, an IBC, or a local company.
No minimum authorized capital is required to establish a partnership.
The minimum number of participants in a partnership is two.
You will be required to file a compliance certificate on an annual basis.
The partnership’s documents must be kept at a local office.

Special License Companies

The scope of operations for this company type is limited to overseas operations.
The tax on global profits is set at a favorable rate of 1.5%.
You will need to have two Seychelles-based directors to set up a company.
The minimum capital required to start a company equals USD 100,000.

If you struggle with the choice, you can follow the above link to discuss the details with a seasoned expert at no charge.

Seychelles as an Offshore Jurisdiction in 2024

Seychelles remains an excellent choice for company setup if you are planning to carry out international business and want to optimize taxes legally. If geopolitical security is one of your major concerns, this destination may become your safe haven in times of turmoil and uncertainty.