Seychelles is an island state located in the Indian Ocean. Since the country’s independence in 1976, economic growth has been led by offshore banking and financial services, offshore incorporation in Seychelles. This has attracted several wealthy investors to the country.
Seychelles enjoys the highest nominal per capita GDP of any African state. It also has the highest rating in the Human Development Index for the region. It’s also one of two African countries that are considered a “high-income economy “by the World Bank. This makes Seychelles company incorporation a wise choice.
However, Seychelles is an attractive offshore destination that hosts the investments and the assets of numerous foreign investors who are looking for business privacy, and a stable political and economic environment. Here are some of the reasons why Seychelles is an attractive centre for foreign investors.
They include;
a. Name Restrictions for an Offshore Company in Seychelles
There are some name restrictions to take into account when you opt for company incorporation in Seychelles. These include ensuring it is not the same as, or similar to an already registered entity. You can also not use words like “assurance”, “bank”, “cooperative”, “chamber of commerce”, “trust”, “imperial”, or “insurance”. Words similar in meaning or appearance to those above are also restricted. It is also prohibited to include words connected to the Seychelles government, a government in another jurisdiction, or “Seychelles”.
b. Taxation in Seychelles
Taxation is also one of the reasons why Seychelles remains an attractive centre for foreign investors and business ventures. The country has a Territorial Tax System, which means any income you earn outside the country is not subject to taxation. Zero taxation also applies to capital gains, interest, and stamp duties on business transactions. To comply with this taxation law, your company must not earn any income within Seychelles.
Additionally, your business can’t own property or may need a specific license (usually for companies in the financial sector). It is important to remember that you may be subject to resident taxes in your country of residence depending on regulations there. There is no stamp duty payable on the transfer of shares. In terms of government taxes and fees, an annual fee of USD 100 plus 7.5% is required, regardless of Authorized Capital. Seychelles is a party to some 28 double taxation treaties worldwide. These include Barbados, Bahrain, Belgium, and Kenya among others. An offshore company in Seychelles owned by entrepreneurs from these countries can benefit from the treaties in place.
c. Political and economic stability
The future success of your business is directly tied to the economic situation of the country in which you choose to incorporate. Economic growth has been steadily increasing in Seychelles and shows no signs of stopping. Additionally, the government has been focusing on debt reduction to ensure further stability. Political stability is as equally important as economic stability. For example, a study by the London School of Economics has shown that a change from a democratic government to an autocratic one can harm businesses in the tourism industry.
Seychelles is a free democracy and is also very stable politically. The likelihood of a political uprising, revolution, or any other activity that would affect how business is conducted in the country is very low, meaning your company and its assets are safe.
d. Disclosure of Beneficial Owner
Any information about the identity of beneficial owners of an offshore company in Seychelles is not made public or publicly accessible. In addition to this, the personal information of beneficial owners is not filed with any government office but is instead held by the corporate service provider such as Fast Offshore. Shares in the Seychelles Company can also be held by a nominee for the beneficial owner. This provides several layers of confidentiality for beneficial and ultimate beneficial owners.
e. Capitalization Requirements for Offshore Company in Seychelles
The Seychelles government stipulates that the standard authorized share capital is USD 100,000. However, this does not have to be the case for every company and other amounts can be submitted depending on business and client requirements. The standard minimum issued capital is just USD 1. The Act that governs incorporation requires that any issued shares are paid up before the company incorporation in Seychelles. For that reason, this has drawn more investors to open offshore companies in the country.
f. Modern banking facilities
Seychelles offers some of the most modern banking facilities in the world, meaning you’ll have access to premium services when it comes to your business banking and any other financial services. This makes it an attractive country to foreign investors looking forward to setting up offshore companies. For IBCs, it is legally required to have the main bank account in Seychelles. There is a wide range of bank accounts available, including multicurrency.
Naturally, internet banking is a standard and is known for being highly secure. The best part is that you can open an account from abroad; no in-person visit to the bank is necessary. Additionally, there are no or very low minimum balance requirements for accounts. Once again, there is no restriction based on nationality aside from international sanctions lists.
Summary
Seychelles remains an attractive centre for any foreign investor looking forward to opening an offshore company. Most foreign investors are attracted to Seychelles because of the tax benefits and the upcoming modern banking facilities and many more benefits.