Advantages and disadvantages of Seychelles company registration

Advantages

Register new business in Seychelles - steps, legal requirements, fees

  1. Healy Consultants can register an offshore company in Seychelles within two weeks, with just one director and one shareholder. The minimum share capital is US$1;
  2. It is simple to register an offshore company in the Seychelles because:
    • Seychelles International Business Companies (IBC) are the most common type of offshore companies in the country. They can be registered with only i) one shareholder ii) one director and a capital of US$1;
    • Seychelles IBCs can be managed from abroad: resident directors are not required and a resident registered agent will be responsible to maintain company records after Seychelles business registration;
    • Our Clients registering a Seychelles IBC will not have to file i) annual returns nor ii) annual financial statements, although the latter must be prepared and kept at the company office in the Seychelles;
    • French and English are official languages in Seychelles. Most of our Clients will hence not face any translation related costs when registering their company in the Seychelles.
  3. A Seychelles offshore company enables our Clients to minimize taxation on their global earnings because:
    • The earnings of a Seychelles IBC company are fully tax-exempt in the Seychelles, as this company is not considered as resident for tax purposes;
    • Alternatively, our Clients can register a Seychelles Company with a Special License company (CSL). Such company is tax resident but benefits from a reduced corporate tax rate of 1.5% over its global earnings;
    • By appointing two resident directors, owners of a registered Seychelles CSL will also enable the company to access Seychelles’ double tax avoidance treaties, henceforth reducing or waiving withholding tax on earnings remitted from the list of twenty countries which have signed a DTA with the Seychelles;
    • Our Clients will be able to easily repatriate their earnings outside Seychelles, as earnings from offshore companies are exempted from withholding tax and the Archipelago does not implement any i) foreign exchange or ii) capital controls.
  4. Protection of the company privacy and its details:
    • There are no publicly accessible records of the details of the beneficial owners of a Seychelles incorporated company;
    • There are no statutory requirements for annual filing of accounts of the company’s returns for IBCs;
    • The IBCs therefore enjoy an added advantage of incurring less costs per year along with the benefit of having privacy for the company’s asset holding and financial records.

Disadvantages

  1. Our Clients willing to start a business in the Seychelles should be aware that this place is perceived as a tax haven jurisdiction. Foreign tax administrations will subject the owners of companies registered in the Seychelles to close scrutiny to prevent tax evasion. Earnings remitted to Seychelles will also suffer higher than standard withholding tax rates;
  2. Seychelles SLCs must appoint i) two resident directors and ii) one resident company secretary. If needed, Healy Consultants will be pleased to provide our Clients with nominee services;
  3. The local currency (the Seychellois rupee) is highly volatile. Entrepreneurs interested in establishing a business in the Seychelles should be cautious of the exchange rate risk.
  4. Seychelles is not a globally competitive economy for conducting business. Seychelles’ 107th rank in the 2017-2018 Global Competitiveness Index proves the same. Being a tourism-dependent economy along with having an under-developed financial market, Seychelles’ has not been successful in achieving competitiveness and global presence for its economy.

Contact us

For additional information on our business registration services in Seychelles, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen
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