So, you finally decided to plunge into the world of business. Congratulations, it is one of the most important ventures in your life. But have you thought about where to set up the business? And why you might want to consider setting up an offshore company, right away? When you first start a new company, you are focused on many things. From the products and services you are offering to your marketing channels, etc. You must think critically about the location too. You plan on being successful, right? Well, start right.
In the recent past, many off-shore entrepreneurs have been investing heavily in the Seychelles Islands. This has contributed greatly to the economy. Seychelles is a country comprising a total of 115 islands in the Indian Ocean. It lies on the eastern side of mainland East Africa. Victoria, on Mahe Island, is its capital. But why has Seychelles become a hub for foreign business owners to set up international companies?
There are numerous benefits to having a company in Seychelles. The straightforward legal provisions for off-shore businesses have contributed to the swell in foreign investments. Interestingly, some of these benefits might not even exist in your motherland, leave alone in other countries. This article details the top 5 reasons that make business owners decide to start a company in Seychelles; and why you should too.
It is arguably one of the major magnets for foreign business owners. The International Business Company or IBC is the most common type of company formation in Seychelles. It acts as an effective channel to engage in international business operations. When you open an International Business Company in Seychelles, you get an exemption from all taxes. Of course, business management and dealings must happen within the state borders. In addition to stamp duty and normal taxes, you will also not pay taxes when selling or moving shares. The business enjoys this provision for twenty years from the time of inception.
Seychelles’ law guarantees the total privacy of off-shore companies. The country does not consent to share any company information with other foreign organizations for financial aid. The company’s shareholders, directors, and beneficiaries remain unknown to the public. The only documents that can be disclosed to the public are the Articles of Association and the Memorandum of Association. No worries though, since these documents do not contain any private information of the company. You will not have to worry about providing annual account reports and audited statements since it is not a legal requirement. Filing of returns is usually a sensitive matter for many International Business Companies. Seychelles’ provisions make it efficient and ideal for the majority of business owners. Thus, the investor’s confidentiality and anonymity are adequately protected by the statutes of Seychelles.
Starting up an off-shore company in Seychelles is both fast and simple. For your company to be up and running, the paperwork will take a maximum of three days. It can even take just one business day if you are lucky. International Business Companies in Seychelles are not required by law to make a share capital deposit. Overall, registration cost, which includes set up and maintenance, is quite low too. The annual fee for the first year is usually included in the registration cost. For subsequent years, the annual fee is also lower in Seychelles than other foreign locations.
The legal process for incorporating a company in many countries is a hard nut to crack. However, this is not the case in Seychelles. The list of requirements necessary for company registration is short, making the process straightforward and simple. A trading name is the first requirement needed is a trading name which can be in any language. English is the primary language used for trading names, but names in other dialects are permitted too. A registered legal address in the country is another mandatory requirement. No physical address is required; hence the company can be set up in the virtual space. A business plan, type of company, and licensing are among the other requirements that must be ready for the incorporation process.
Seychelles has a stable economic climate that is business-friendly. Most processes necessary for setting a business in this region are straightforward and fast. Business owners prefer working in locations with quick service delivery in various offices. Regulatory bodies in the various sectors are efficient, contributing to the stable economic environment present in the different islands. The requirements for registering and operating a company are clear-cut, making the entire process a walk in the park. This country has the best ratings regarding company incorporation with numerous resources in place to support business owners in their journey. Additionally, this country has a network of experts in the different sectors, including finance, law, and real estate that makes settling in more relaxed than in most states. The country also enjoys a sense of calm with no political or religious wars ripping through the country, making it perfect for businesses to prosper.
There are so many reasons why business owners choose to start a company in Seychelles. The above reasons are very practical for any serious business owner who needs to start an off-shore company.
Offshore banking has become popular with the increased ease of opening these accounts and the increased need for safeguarding capital and assets. People will offer varying advice concerning offshore accounts. It is best when you conduct in-depth due diligence concerning the offshore account that you are interested in, to determine if the account is in line with your goals.