Tax Haven: Seychelles Offshore Company Formation

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As a Tax haven zone, Seychelles is one of the most preferred jurisdictions to establish an offshore company because of its express International Business Company registrations administered and protected under the Seychelles International Business Authority Act of 1994. This ensures that the business conducted is legitimate and validates it across the world.

Seychelles is a favourable location because of its time zone, government policies which support both domestic and foreign investments, strategically located for trade and manufacture, efficient and skilled labour force fluent in English, connected through sea and air from all over the world, high environmental standards, excellent connectivity of fibre optic and world class IT- infrastructure, diversity and most importantly constructive and favourable tax regimes.

Establishing an offshore company in Seychelles:

According to International Business Authority Act (1994), in order to establish an offshore company in Seychelles, the owner or the promoter register the business at the office of the Registrar General. The Act also specifies that in order to engage in any sort of business activities, a company shall be registered with the Registrar of Companies and a Memorandum and articles of association must be submitted by the company.

There are various legal forms under which a company may be established in Seychelles such as:

  • An individual using his or her name.
  • A partnership in which a minimum of two and maximum of ten individuals may form a partnership. However, the liability of the partners is not limited.
  • A proprietary company, also known as Pty. Ltd. This type is the equivalent of a private company and may include member ranging from two and fifty in number with limited liability.
  • A limited company which is the equivalent of a public limited company and can have an unlimited number of shareholders.

Offshore Company Registration:

Seychelles company formation takes around two working days, for an offshore company, it is recommended to engage Seychelles company formation experts for an effective registration.

Before a foreign company establishes its business in Seychelles it is required to submit the following with the registrar:

  • A certified copy of the certificate of incorporation or registration of the company from the place of incorporation or origin or any other document of similar effect.
  • A certified copy of the company’s charter, statutes, memorandum and articles of association or documents defining the constitution of the company.
  • A list of its directors and their particulars as are required to be submitted in the register of directors, managers and secretaries of the company incorporation under the Act.
  • A memorandum should be submitted stating the powers of the local directors.
  • A power of attorney under the seal of the company stating the names and addresses of two or more representatives who are residents of Seychelles, authorized to accept notices required or service of process on behalf of the company.
  • Information on the number of days and hours the registered office will work and accessible to the public are also to be submitted.
  • A legal statement made by the agents of the company in the prescribed form must be submitted.

Taxation: Business Tax

All businesses are required to register with the Seychelles Revenue Commission within 14 of registration and commencement of the proposed business. A business tax return must be filed each year. The net profit as determined by a business will be reviewed by the Taxation Office through the inspection of the accounts provided by the business, certain standard criteria and additional information obtained.

Business Tax can be paid in three ways:

  • Monthly Provisional Tax – Where a business tax can also be paid in advance at a fixed monthly instalment, this was introduced to relieve a business from the burden of paying a huge amount by the end of the year.
  • Deduction at Source Provisional Tax – It is collected on a pay as you earn (P.A.Y.E.) basis and is applicable mostly to businesses in construction.
  • Per annum – This is collected after the assessment of Business Tax returns.

Seychelles offshore company formation tax rate

Business Tax Rates 

Image Source: sib.gov.sc

For a successful Seychelles Company Formation, you may engage in Offshore Company formation service provider as these firms can also assist a business in filing tax returns, opening bank accounts and many more offshore business related activities.

Reference: sib.gov.sc

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