Investing in Seychelles
With a general illusion that islands are workshops of evolution, it’s undoubtedly more reason island lovers crave for the serene island life where they feel the glassy sand run between their toes, the palm trees swaying in a rhythmic movement of pride and to look over at a turquoise-coloured ocean, as the sun, massage your skin.
The works of creation prides itself in the beauty it presents to the world. Have you ever wondered how islands came to be? Maybe they are the oceans, heartbeats, or the priceless diamonds quoted in the promised land. Anyway, to each their own, I would love to accord myself a beachy life on a prestigious island.
It should be everyone’s desire to interact with the Seychelles islands located In the Indian Ocean between 480 and 1600 kilometres from the East Coast of Africa. Regarded as the paradise on Earth, the islands have an approximate population of about 98,462(2020) with 115 islands.
With its lush greens and Crystal Blue Waters, Seychelles is a place of interest for investors. Advisably it’s wise to take the whole haystack rather than looking for a needle in it and this explains the interest in investors to shift their minds to the island.
The Financial Service Authority (FSA) has a responsibility in the regulation of non-banking financial services in order to protect civilian interests. It helps guide in a legal framework for the industry and news regarding financial services. Under the terms of the FSA act (2013), the FSA has responsibilities like:
- Issuing Seychelles licenses to non-banking financial service firms looking to establish themselves and operate out of Seychelles.
- Registering international business Companies, foundations, limited partnerships and international trusts in Seychelles.
Consequently, with the blue economy concept, which refers to the economic activities taking place in the ocean, either directly or indirectly, and whose ultimate goal will be directed to the economic growth, cultural, social, environmental wellbeing, the Seychelles government goals are:
✓ Economic diversification. ✓Creation of high-value jobs. ✓Ensure food security.
This concept would therefore come in handy with some investment opportunities in this sector like;
- Stainable fisheries
- Biotech research
- Port services.
- Laboratory services
- Ship repair.
Another investment venture is in the tourism sector where tourism in Seychelles is characterized by heavy private investment with ownership in the hands of foreigners and local elites.
Any employment that requires interaction with tourists demands personal qualities usually associated with elites. The ability to understand, communicate, act like and entertain tourists, foresee and manage their needs are valuable skills in service industries – skills that Western-oriented elites most often have.
Therefore, in the wake of the government encouraging investment into the tourism sector as per 2015 some rules and regulations were laid down where;
- The government of Seychelles placed a moratorium on large hotel projects of 25 rooms and above on the Seychelles main inhabited islands of Mahé and the inner islands.
- Accommodations (hotel, guest house, self-catering establishments) between 1 to 15 rooms are reserved for Seychellois only.
- There is a growing demand for eco-lodges and eco-boutique hotels
The policy to foreign investment in accommodation was then limited to;
✓ Hotel, guest house, self-catering establishment, motel of 16 to 24 rooms (Foreign equity limited to 80%)
Having been rated as the second-best country in information and communication technology (ICT) development in the African region as per the International, the current ICT opportunities available in Seychelles are:
- E-Business Solution Providers
- Website providers
- Cyber Security
- Multi Media development (Software/videos/animation/website/audio)
- Data Centers
- Submarine Cable Links
- Wireless Technology
- Television Service Providers
- Internet Service Providers
- Mobile Service Operators
- Application Development
Why Then Would One Consider Investing in Seychelles?
Importantly, it’s crucial to note that the ‘archipelagos’ governing body aims at keeping the tropical island from over-commercialization, making it internationally one of the most environmentally conscious.
Each house built on the island is vetted and overseen by an official to ensure compliance with the national regulations. Therefore, relations with the Seychelles government to allow foreigners to easily invest was made by major property development firms. Anyone across the globe can hence share a slice of the little heaven on earth through residency as part of their retirement or relocation plan.
Seychelles is regarded as a tax haven because it offers a wide range of benefits. The country excludes capital gains tax, interest, dividends, inheritance, or property tax, making it a well-guaranteed entity for offshore companies by legislation.
There is also no minimum share capital requirement, which means that offshore companies will enjoy a tax-free structure whose profits are not levied as well as benefit from complete privacy in regards to owners and assets.
An unpopular opinion is that you can have your cake and still eat it in Seychelles because it allows absolutely no restrictions on directors or shareholders and 100% foreign ownership is permitted.
If putting your eggs in one basket was a destination, Seychelles would qualify perfectly because it allows a minimum of one director and one shareholder, and this can be the same person.
Ever been stuck in a boring meeting that only yields to yawns from tired members? Worry not as in Seychelles, there is no requirement for regular general meetings because the board of Directors can hold meetings via telephone teleconferences or other electronic means outside Seychelles.
If I was to actualize a fantasy based on a Marvel superpower character, I would choose to be invisible with zero accountability for my physical absence. Just a tip to the iceberg, Seychelles allows no residency or nationality requirement for shareholders and 100% foreign ownership is permitted.
Speed in all aspects of life and living is very important. We all want to be adequately serviced within a short period. Seychelles allows the luxury for a fast offshore company formation with the country’s registration process regarded as one of the fastest and flexible. It is possible to set up an international business within 24hours.
As impossible as it is for a camel to pass through a needle hole, and so is the case in determining the owner of a Seychelles IBC. Also, annual accounts are only filed with the registered agent and are therefore not made public thereby adding a layer of confidentiality.
INVESTMENT PROCESS
- Doing your research
You are required to go to SIB for all necessary information on laws, regulations and policies for your intended project
- Submitting your project
After submission of your business plan with all required documents, your project is registered with the SIB and an acknowledgement letter is issued within 48 hours, should all your documents be in order.
- Project consultation
Comments and recommendations from relevant government agencies are sought by circulating your project to them.
- Present your project
A project presentation is organised with you by SIB should it be requested by a referral agency.
- Project go-ahead
Subject to meeting all conditions from the referral agencies, the project is given the go-ahead.
- Start your business
You are set to start your business
- New investment project
To grow your business, you can benefit from the SIB post-investment support services.
CONCLUSION
Just as Warren buffets advises ‘never invest in what you don’t understand. I choose to echo his words. One of the easiest ways to make an avoidable mistake is getting involved in overly complex investments. However, you can avoid costly mistakes with the guidance of an experienced local investment consultant such as AAA Management Services.