Business Start Up

The Benefits Of Starting A Company In The Seychelles

When it comes to starting an offshore company, you might wonder which country will be the best. The Seychelles is actually a very good location for any business and you need to know why. There are a lot of benefits to having a company in the Seychelles that you need to know about which you might not be able to get in other countries or your home country.

It Is Cost-Effective

A lot of people do not think about the costs of setting up a company, but this is important. The costs will vary depending on the country you are in and the type of company that you want to open. The Seychelles has been found to be one of the most cost-effective when compared to other areas such as the European Union and the United States.
The cost for the registration is relatively low and the fees for the first year will be included in this cost. The yearly fees after this are also lower than in many other areas. However, it is not the just the monetary costs that you need to consider.
Company incorporation in the Seychelles is much faster than in other countries. The process of incorporation and the check of the company name will only take 3 to 5 working days to complete. This is much faster than in many other countries and ideal if you need a company quickly.

The Level Of Privacy

Privacy is one of the main reasons why people look at opening a company in the Seychelles. The country does not have a public registrar of shareholders which means that there are no accessible records of the details of beneficial owners. Additionally, the law in the country guarantees the privacy of companies.
There are also no statutory requirements in terms of the annual filing of accounts. Company returns for International Business Companies is not a legal requirement which is ideal for many people. This means that there are fewer costs per year which will increase the holdings of the company.
Of course, this does not mean that companies do not have to keep proper accounting records. While there is no reporting, a law in 2012 made it a statutory requirement that companies do so. However, you do not have to have the accounts audited or submit them to the relevant authorities. This will ensure that your accounting costs are kept to a minimum which is better for the business.
The Seychelles also has no ties to the United States or the European Union. This means that there is no sharing of tax information at all. This improves the overall privacy of the company that you start and is seen as essential to the privacy of the company.

Nominees Acting As Director Or Shareholder

In the Seychelles, it is possible for a nominee to act as the director or the shareholder of the company. Additionally, another offshore company can act as the nominee director or shareholder of the company. As there are no reporting requirements, this will not show in the filings in any other country.

The Tax Situation

The biggest benefit of setting up a company in the Seychelles is the fact there no taxes. These offshore companies will be fully tax-exempt in the Seychelles because the company will not be considered as resident for tax purposes. Of course, you will need to open the right kind of business to get this benefit and that is the International Business Company.
You will not only have no taxes, but you will also not have to pay any tax on the selling and transferring of shares. This is guaranteed for 20 years from the date you set up the company. Of course, there are certain company structures that you can look at which will have very low tax rates.
If you open a Special License company, it will be tax resident in the Seychelles. However, it will benefit from a reduced corporation tax rate. The reduced tax rate is around 1.5% on all the global earnings of the company which is much lower than in other countries.
When working with this type of company, you should consider appointing 2 resident directors. This will enable the company to access the double taxation avoidance treaties that the Seychelles has. This will reduce or waive withholding tax on earnings remitted from the list of 20 countries that have signed the treaty.
You will not only avoid tax on company earnings, but you will also avoid tax when repatriating your earnings outside of the country. This is due to the fact that earnings from offshore companies will be exempt from withholding tax. The country also has no foreign exchange or capital controls.
You can also choose Dubai if you want to benefit from low taxation in one of its free zones that also offer other attractive incentives for foreign investors.
There are many reasons why you should look at starting a company in the Seychelles. The country is politically stable and offers a range of benefits for companies. These benefits include fast opening, tax exemptions, and lower accounting costs.