Seychelles is known all over the globe because of its pro-business regime that makes growing companies easy and fun. Its taxes are impressively low, meaning that you get to keep the bulk of profits made or stored in your bank accounts. All about Seychelles company formation just below.
To enjoy these unique benefits, and a lot others, you need to make the first step—register your company. In this guide we will tell you about the simplified Seychelles company formation with the help of experts at ICD Fiduciaries.
Seychelles in Numbers
Seychelles is an island state spanning an archipelago of about 115 islands in the Indian Ocean. It is located east of mainland Africa and its closest country is Madagascar.
The country’s economy is largely based on tourism, fishing, and processing of agricultural products, such as vanilla, and coconuts. The government is the major employer and the primary source of gross revenue.
Since 1976 when it got independence from Britain, Seychelles GDP per capita has expanded rapidly because of the government investment in the tourism sector.
According to the 2018 estimates, Seychelles has a GDP (nominal) of $1.583. Its GDP growth in the same year, 2018, was 4.1%, a slight decline from the previous 4.3% reported in 2017. Other important numbers that you need to know about when considering Seychelles company formation are:
- The country’s exports are approximately $564 million per year. Most of the exports are canned tuna, petroleum products, and frozen dishes. The country is expected to continue growing its exports as it shifts focus towards diversifying its economy.
- The imports per year for the country average $1.55 billion. Most of the products imported into the country are machinery, foodstuffs, equipment, petroleum products, and other processed goods.
- The major import partners of Seychelles are United Arab Emirates, France, Spain and South Africa.
- Following the passing of the Insurance Act 2007 and Mutual Fund Act 2007, Seychelles is now one of the fastest emerging offshore financial centers.
- The country has also emerged as a center for offshore oil and gas explorations following the discovery the country could be sitting on huge offshore petroleum reservoirs.
Seychelles company formation : Why Seychelles?
If you have a company in your home country or want to invest your money offshore, here are some of the main reasons you should consider Seychelles as opposed to other jurisdictions.
Offers Excellent Privacy and Confidentiality to Investors
Privacy is one of the issues that has been very sensitive for investors, especially those considering going offshore. After working so hard, whether, through employment or business, you should be allowed to enjoy your resources in total confidentiality.
The lovely thing about Seychelles is that it guarantees you of total privacy by law.
Apart from the identity and personal info of the initial company director, all the other details, such as directors and beneficial owners, are kept off the public Seychelles company register. So, no matter where you are from, Seychelles has your privacy covered.
Fair Taxation Regime
Perhaps the major advantage of Seychelles company formation is subtle taxation practices. The county uses a Territorial Tax System, which implies that income earned away from the country attracts 0% tax. The country has zero tax policy on capital gains, stamp duties, interests, and business transactions.
Seychelles Boasts of a Flexible Entity Structure
To spur growth and help make its economy more successful, Seychelles wants to ensure that every investor interested in the country can join.
This is why they have a flexible business structure for investors. For example, you only need to have one shareholder and one director to open an international business company (IBC). Indeed, the shareholder and director can also be the same person.
Another impressive thing is that if you maintain your IBC’s accounting records, no mandatory tax filing is required. This means that you do not have to worry about the complex procedures for audits, which can be pretty expensive. Note that this exemption is only allowed for IBCs that do not carry local operations in Seychelles.
When you get your enterprise in Seychelles company register, it will not be required to hold an annual general meeting on the island. This can save your company a lot of money that could have gone into booking flights, and booking hotels for shareholders. Instead, it is okay to simply hold the meeting via video or phone.
Seychelles has some of the Best Banking Facilities on the Globe
Today, Seychelles has some of the best banking facilities on the globe, implying you get top-notch services for your enterprise. For international business companies, you must have a bank account on the island to start operations after Seychelles company formation.
Most investors prefer internet banking because it is considered more secure, faster, and reliable. Another unique thing about getting your business in the Seychelles company register is that you do not have to travel in person to open a bank account.
So, if you are a US, Canada, or UK investor, among others, you can have an account opened right from your home country. Again, Seychelles does not have restrictions on people who can open bank accounts based on nationalities.
Political and Economic Stability
The future success of a business is directly related to a country’s economic situation. With the country’s economic growth showing no sign of slowing down, it implies this is an excellent opportunity to jump in and grow together.
By following a free democracy type of economy, Seychelles has enjoyed impressive stability, meaning that you are sure that you can better plan for the company’s growth and its assets on the island.
It is Possible to Register a Company in Seychelles without Flying There
If you look at most jurisdictions across the globe, registering a company requires investors to take a flight or several. This makes it pretty complicated and expensive.
However, Seychelles is different. Here, you can get an agency to help you register the company on your behalf.
Most investors find this very convenient because of the following:
- It makes it easy to have all the documents prepared professionally.
- The process of registering a company in Seychelles is completed faster.
- You are able to focus on other things, such as looking for more capital for company operations or marketing.
- Expert agencies can help you with crafting god strategies for entry into the new market for faster growth.
Excellent Business Ideas in Seychelles
As we have showed, Seychelles is an emerging country (as Mauritius), which means your enterprise has a higher chance of becoming more successful.
As we mentioned earlier, the island country is perfectly located off the coast of East Africa, implying that it enjoys excellent potential for tourism.
Therefore, you might want to target offering hospitality-related services. Other top business opportunities include:
- Import and export businesses.
- Oil and petroleum-related services.
- Machinery important to the local businesses, farmers, and government agencies.
- IT services. You can target the banking services or other sectors that are looking forward to enhance the efficiency of their operations.
Note that it might be a good idea to start by comprehensively studying the targeted market to determine its potential for the selected activity. This is one of the reasons why you should work with experts when identifying business opportunities.
Seychelles company formation : Types of Companies You can Form
When getting your firm to the Seychelles company register, it is important to go for the model that perfectly meets investment needs. The good thing about Seychelles is that there are many types of companies that you can form, including the following:
- Special license companies (CSL): These companies are mainly used for conducting onshore businesses in Seychelles.
- Proprietary companies: These are equivalents to limited liability companies. This implies that your liability to the company only extends to the shareholding you have in it.
- Trusts: This is another common type of company that a lot of investors coming to Seychelles prefer, especially for asset protection.
How to Register Your Company in Seychelles?
Now that you know the main types of companies that you can register, how do you get your Seychelles company register? The application for company incorporation is done in line with ABC Act and upon payment of the required fees.
The two most important components of company registration in Seychelles is the Memorandum of Understanding and the Articles of Association, which must be submitted to the Registrar of Companies in Seychelles for review:
Memorandum of Understanding
According to the IBC Act, the memorandum of understanding can be done in either English or French. If it is done in a language other than the two, you are required to provide a translated copy.
The memorandum of understanding is required to be subscribed by at least one person in the presence of another (witness).
Once it is registered, it is expected to be legally binding to all the members. Here are the main content that should be included in the memorandum of understanding:
- The company’s name.
- The address of the company in Seychelles.
- The aim or the purpose for which the business was incorporated.
- The currency in which shares of the company are issued.
- A statement about the authorized company’s capital setting forth the aggregate of par value of the shares.
- Statement about the series and classes of shares for the company.
- A statement showing that the liability of the members is limited.
- If you are opening a company that is limited by guarantee, with or without share capital, make sure the information is captured on the post.
Articles of Association
Like the memorandum of understanding, the articles of association should be signed in the presence of a witness. Once it is registered within 30 days of incorporation, it becomes a legally binding document for your company.
In addition to the articles of association, you should look whether there are other legal requirements or permits that your company might require.
This is usually the case for most companies that will be based in Seychelles. If your company will be running its operations outside Seychelles, you might not require additional permits.
If you wish to change the name of the company, it must be communicated in writing to the Registrar of Companies in Seychelles for changes. However, you cannot take a name that can has already been taken by another company to avoid conflict of interest.
Why You Should Work with an Agency to Register Your Seychelles Company?
Although Seychelles offers investors a lot of flexibility, both in terms of the company selection and registration, many are the people who still find it a challenging process. This is mainly because of the different documents that are required during the process of registration.
However, you do not have to give up because you can use expert agencies to help you with company registration. Here are the major advantages of working with professionals:
- They help you to understand the Seychelles business environment more effectively.
- You are assisted to pick the best business format for faster growth and success.
- With an agency of experts, you will be helped to take advantage of zero-tax when operating in Seychelles.
- To increase the chances of success, the selected agency will also come in handy in helping you to craft good strategies for success. See – they have helped other top companies to join the Seychelles company register, and this is your turn.
- If your company will have most of its operations in Seychelles, the agency of experts will also be there to assist with secretary services, such as filing tax returns and payroll management.
As you can see, the best way for Seychelles company formation is using an agency of experts. With experts holding your hands, you are sure of avoiding the common mistakes that other investors make when expanding their operations offshore.
One of the best agencies to consider is ICD Fiduciaries, a trusted firm that you can count on for the entire process of company registration. Call them now for help with company registration in Seychelles. With a professional on your side, you can never go wrong!