Offshore Company Formation – Seychelles

Seychelles is a chain of islands located in the Indian Ocean. Its flexible corporate structure and modern offshore legislation make it a suitable jurisdiction for tax avoidance, holdings, intellectual property, protection of assets, investments and other purposes. The legal system is based on French civil law and common law. The main corporate act is IBC Act of 1994 as amended. Offshore companies are incorporated in the form of an International Business Company (IBC)

Basic Information and Calculation of Expenses

Offshore companies should carry out their business activity outside Seychelles. The registered office is necessary, but Corporate Secretary is optional. The minimum number of directors and shareholders is one. Bearer shares issuance is restricted. If a client needs this option, Panama jurisdiction is recommended in this case. Corporate meetings may be held in any part of the world. The Government provides special incentive programs for foreign investors and a wide range of share types which may be issued in any currency.

Incorporation package costs 800-1400 USD depending on a number of services rendered and documents included. Nominee services are 300-600 USD per year. For the following years the annual administration fee which includes Registered Agent and Government fee is 400 USD.

Multicurrency bank account in Seychelles costs from 600 USD. A company may open a bank account in other countries (300 USD in Cyprus, 900 USD in Luxembourg).

Optional services include additional set of documents or certificates (100 USD), courier services (USD 100), Power of Attorney (150-200 USD), corporate seal (100 USD), translation services (100-150 USD), etc.

Setup Procedure

The registration procedure takes 1-2 business days (notary certification takes 2-3 business days, and 3-5 days for delivery of documents).

Incorporation procedure consists of the following steps:

  • Selecting a corporate name for a new company. Clients can also acquire ready-made companies.
  • Considering corporate structure (directors and shareholders, nominee services), the share capital, class and types of shares.
  • Preparation of the documents.
  • Payment of registration fee to the Registrar.
  • Filing the documents to the Registrar of Companies. The documents may be submitted at the same time or within thirty days of incorporation date.
  • Notary certification and Apostille.
  • Delivery of the documents to the client. Translation services if necessary.

Taxation in Seychelles

IBCs are exempted from income, corporate, withholding and any other taxes and stamp duties provided that they carry out their business activity outside Seychelles. Annual tax return is not submitted to the authorities. IBCs have no access to double taxation agreements.

Accounting Requirements

Offshore companies have no audit and accounting requirements. However, IBCs prepare financial statements and keep records for external purposes and reflecting their financial status. Accounts are not publicly accessible.

Advantages of Offshore Companies in Seychelles

  • IBCs are fully exempted from any taxes and stamp duties.
  • Incentive programs for investors.
  • Simple corporate structure.
  • High level of confidentiality and nominee services.
  • Absence of exchange control.
  • Work permits for foreign investors.
  • Banking secrecy.
  • No requirement to appoint auditors and submit accounts.
  • An international trade zone.
  • No requirements in respect of minimum capital.
  • Registration of aircrafts and vessels.
  • Annual Government fee is just 100 USD.