Business investors looking to engage in profitable commercial ventures would find Seychelles a stable and appealing country. Establishing an offshore business here would allow entrepreneurs to engage in various business activities, including trading, consulting, and e-commerce. Investors could benefit from numerous advantages of Seychelles company formation.
Considerations before Seychelles Company registration
You are subject to certain restrictions when conducting business in Seychelles under the International Business Company Act, including:
- Prohibition from conducting business with people or organizations residing in Seychelles
- Ineligibility to own property in Seychelles, except for rental space meant for use as an office
- Prohibited from undertaking office supply business for other companies
- Inability to conduct trust business
- Unable to conduct business in banking or insurance.
It is important to consider these things while registering an offshore company in Seychelles.
Types of Companies in Seychelles
- A special license company
A Special International Business Company, established under the Companies Act of 1972, is a kind of corporate legal entity that is referred to as a special license company (IBC). The corporate entity is in a better position than an ordinary IBC because it can take advantage of multiple double-taxation agreements.
- An anonymous company
Another extremely popular business structure is the anonymous company. This kind of business structure is chosen by entrepreneurs who wish to form an organization to safeguard their wealth and assets from competitors.
To increase security when establishing an anonymous company in the Seychelles, nominee director services are preferred by the majority of business owners.
- Trusts
Trusts are another tax-saving option that foreign business investors frequently select when forming an offshore company in the Seychelles. This legal business unit functions primarily as an agent or fiduciary on behalf of an individual or corporate entity, managing the business and distributing assets to the company beneficiaries.
- Holding company
To own the majority of the shares in a particular company, a lot of foreign investors prefer to establish their own holding companies. Apart from having a minority controlling interest, the main advantage of this incorporation is that you can directly take on control and decision-making of other businesses. Furthermore, a holding company is a type of domestic business entity that resembles a trust and can own other businesses.
- Investment/ Hedge Fund Company
Investing in hedge funds is linked to strategies that take into account both short- and long-term funds.
If it fits the requirements of your business, you can incorporate any of the aforementioned entities as foreign business investors.
Documents required for Seychelles company formation
- Information about the company, such as the Articles Of Association and certificate of incorporation in the case of legal entities;
- Personal information, such as certified copies of a passport in the case of natural persons;
- Proof of a Seychelles residential address, such as a utility bill that is no more than three months old;
- The Registrar may occasionally ask a bank for references attesting to the investor’s good standing.
Process of setting up an offshore company in Seychelles
- Reserve a company name
Use a Seychelles Financial Service Authority company search to see if your preferred company name is available and then reserve it. An authorized suffix, such as Limited, LTD., Corporation, Corp., Incorporated, or Inc., must come at the end of an IBC’s name.
- Create a business plan
Find the most suitable location for your business. After that, you can draft a business plan. The business plan should fully disclose the requirements, budget, and other specifics of your company.
- Choose a suitable business structure
Decide an appropriate business structure for your business. Make sure you know the most popular business structure utilized by the majority of entrepreneurs before selecting one.
- Submit the documents
Fill out and submit the application form for company registration. Submit the required documents mentioned above.
- Register for taxation
Register with the Seychelles Revenue Commissioner to obtain the Tax Identification number.
- Open a bank account
It is important to open a Corporate bank account in Seychelles to conduct the business transitions. The time required for this procedure will vary depending on the availability of the required documents.
