How to choose a company in the Seychelles
June 3, 2016
Everyone, who has ever tried to deal with offshore proposals independently, knows that the favorable tax jurisdictions offer registration of several types of companies to choose from. Seychelles is not an exception: it is possible to register an international business company, international trust, foundation, special license company, protected cell company and even limited partnership.
According to data of international research centers, about 160 000 international business companies are registered in the Seychelles every year. Such kind of entities is the most popular vehicle for carrying out offshore business outside the Seychelles, as their income is not taxable and the registration process takes about one day.
However, it should be noted that special license companies with favorable tax rate also deserve attention, because the number of such enterprises is growing (up to 300 companies are registered a year). We offer to understand the main reasons for choosing “top” companies for offshore incorporation in Seychelles.
Thus, an international business company is preferred vehicle for quick and efficient tax solutions, because IBC’s registration fee in the Seychelles is much lower than in other jurisdictions and at the same time Seychelles is recognized the fastest IBC registrar in the world!
At the same time, registration of a CSL is not a formal, one-step process. In order to receive a Certificate of Incorporation, in addition to the standard set of documents it requires filing of detailed client Application which must contain business plan indicating company background, objectives of the company, type of activity the company will engage in, market details, details of Capital investments to be made in setting up operations in Seychelles, logistical Requirement in setting up operations in Seychelles, audited accounts for last accounting period (if applicable), detailed 3 year cash flow forecast, date of proposed commencement of business etc. Company Registrar can execute such Application; however, the customer has to provide the full amount of data directly.
Besides the IBC’s registration process is easier, this company is much cheaper to have and maintain (lower government and administration fees, absence of the requirement to file accounts and returns and does not need complicated management structure).
In fact the IBC is usually preferred by management consultants, network engineers, software developers or other professionals who tend to spend most time abroad. Likewise this type of company is acceptable for carry out internet businesses (trade in goods and services). An IBC may also be sufficient if the company will only or mainly operate with the same offshore formations (international trade in goods) and there is no need to use a complex tax-planning instrument or in case when the company is simply used as a personal asset-protection vehicle to passively hold some property or investments.
Nevertheless the CSL is preferred if the business circumstances require approval that the company is actually a taxpayer in country of registration. The CSL is also the right vehicle if clients expect to make use of the benefits from the double-taxation avoidance treaties. The Seychelles ratified similar agreements with China, South Africa, Indonesia, Thailand, Oman, Botswana and Mauritius. Should be noted that the treaty with China is of particular current interest in order to provide international trading or engage import/export operations.
And finally, it is important to remember that a single offshore company for a successful business is usually impossible to do. A huge number of listed companies reflect not so much about an overvalued level of popularity as of the registration of several companies by the same person. Thus, simple calculations show that the international business companies often use disposable, while special license companies can be considered a long-playing. Anyway, the choice of company type often depends on the business goals.