SEYCHELLES OFFSHORE COMPANIES
Seychelles Offshore Companies – Seychelles IBC
KGN Services specializes in Seychelles Offshore Companies and opening bank accounts.
Seychelles Offshore Companies – Overview
The Seychelles is an archipelago located in the Indian Ocean east of Africa. In 1994, this island nation passed legislation known as the International Business Companies Act. This created a system for offshore companies to be formed in the Seychelles. These International Business Companies, more commonly known as IBCs, allow foreign individuals and companies to form a limited liability company in Seychelles with all the powers of a natural person. All this with zero corporate tax and strong privacy provisions.
Features of a Seychelles tax haven
Strong protection against disclosure of information
The ultimate reasons for forming a Seychelles IBC can be quite varied. However, most parties share one thing in common in forming one, they want and expect a high level of privacy and absolute confidentiality. A Seychelles tax haven offers one of the highest degrees of privacy. At no time is the identity of the beneficial owners, directors or shareholders ever disclosed. In Seychelles, the public registration records for a Seychelles IBC are registered by the Registrar of Companies. When a Seychelles IBC is formed, the only information kept by this registrar is the name and address of the registered agent, the memorandum of association and the articles of association. The names of shareholders and directors are kept only by the registered agent. The registered agent is retained by you to receive communications. The registered agent is a third party that has no direct connection with the Registrar of Companies. Any documentation kept in their custody is treated as confidential to you and cannot be disclosed to anyone. The laws regarding the release of such information by a registered agent are very strict.
Seychelles is not a party to any double taxation agreement with any other country. They are also not party to the EU savings tax directive. This makes it very difficult, some would say impossible, for a legally operating Seychelles IBC to ever have their information shared with a foreign government or institution.
This makes the Seychelles tax haven one of the tax havens with the tightest level of privacy in the world.
A Seychelles tax haven is truly tax free
The basic element of a tax shelter is to minimize the tax burden. A Seychelles IBC is not liable for any tax on earnings of any kind. These include profits, dividends and capital gains. Even when property is transferred by the Seychelles IBC, no stamp duty is levied. It really is a tax free entity.
All that is required to maintain this tax-free status is that the Seychelles IBC does not own real property in Seychelles and that it does not conduct business in the country. Apart from that, the only other restriction is that the Seychelles IBC cannot engage in banking or insurance related business activities without an accredited license for those activities. This means that for the vast majority of individuals and companies seeking tax relief, a Seychelles tax haven is open to them.
A Seychelles tax haven is more accommodating than other tax havens
The three restrictions above are literally the only requirements imposed by the Seychelles government. Unlike other tax havens which often impose other limitations and restrictions, a Seychelles tax haven is free to engage in the following activities:
- Company records and books of account may be kept either in Seychelles territory or abroad
- It can open bank accounts in Seychelles or abroad
- Accounting, legal and investment advisory services located in Seychelles may be retained
- Office space for management level communication and registration is available for rent on the territory of Seychelles
- It can own an aircraft or boat even if it should be registered in Seychelles. Many other tax havens require such vessels to be registered in another jurisdiction
- It may own shares or debt in another Seychelles IBC or domestic Seychelles company
- Directors’ meetings may be held either abroad or in the territory of Seychelles, although not required by law
- Shareholders of a Seychelles IBC can be resident in Seychelles. Almost all other tax havens prohibit residents of their jurisdiction from owning a Seychelles IBC. Seychelles is an exception.
Strong anti-confiscation provisions with a Seychelles tax haven
Along with tax reduction and privacy, another important purpose of a Seychelles tax haven is to offer solid asset protection. In this regard, the Seychelles court system offers a strong defense against the lien and confiscation of a Seychelles IBC’s assets. Seychelles courts basically preclude any foreign government authority from ever seizing any interest or asset in a Seychelles tax haven.
This level of sanctioned protection secures an IBC’s assets against creditors, lawsuits, inheritance claims, and even against confiscatory divorce settlements. Simply put, a Seychelles tax haven is a solid shield against confiscation.
Effective use of a tax haven in the Seychelles
Now that the main features of a Seychelles tax haven are known, it is easier to see how such an entity can be of enormous support in a variety of circumstances.
Business operations through a tax haven in the Seychelles
The absence of any tax on earnings makes a Seychelles IBC ideal for a company looking to reduce its exposure to such taxes in their home jurisdictions. Since a Seychelles IBC can engage in any commercial or trade transaction with any company or person outside Seychelles, it can process any type of transaction and any earnings generated from such business activity would be completely tax free. This works exceptionally well for service-related businesses. It can also work well for independent consultants and freelancers.
Investing and trading with a Seychelles tax haven
Seychelles does not apply capital gains or trade tax to an IBC. Provided that the Seychelles IBC trades or invests its own money and does not manage a fund for other parties, it is an ideal means of eliminating all taxes imposed on capital gains and dividends in other jurisdictions.
Protecting intellectual property using a Seychelles tax haven
Intellectual property, like any other asset, can be owned by a Seychelles IBC. It can hold onto the intellectual property and then sell it at a premium at a future date, and regardless of the amount realized in the transaction, no tax will be charged. Likewise, the intellectual property can be out-licensed and license fees and royalties collected. These revenues would constitute earnings for the Seychelles IBC, but would also be completely tax free.
Originally, this method was primarily used by those individuals and companies who owned intellectual property such as software, music, published media, and digital media. Over time, however, the royalty model has expanded to include business models such as franchising and variations of profit-sharing agreements.
Asset protection with a tax haven in the Seychelles
As explained when Seychelles’ strong anti-disclosure and anti-confiscation laws were presented above, a Seychelles tax haven is one of the strongest devices available to protect assets. The degree of inviolability of assets held by an IBC makes it ideal for those companies and individuals who may feel confiscation pressure in their home jurisdictions.
Summary
The level of asset protection offered by a Seychelles tax haven exceeds that of most other tax havens. Their additional features greatly benefit the owners in terms of tax reduction. Whether for an individual or a business, for tax reduction or asset protection, the Seychelles tax haven is certainly one that can be adapted to a wide range of situations and deserves full consideration.
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Seychelles IBC Formation Awards
The Seychelles IBC training package includes:
- Check company name
- Initial business approval
- Preparation of application documents
- Company registration fee
- Registered office address for 1 year
- Registered agent service for 1 year
- State application fee
- Memorandum & articles of association
- Minutes from the first meeting with the appointment of director(s)
- Share certificate(s)
- Register of shareholders
- Register of directors
From: $1790
Why choose KGN Services?
We have been helping business owners since 1996
Incorporating your company is our focus
We make a complex process quick and easy
We work closely with business registries to guarantee our service
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Services in the Seychelles tax haven
KGN Services provides the following services in the Seychelles tax haven:
- Formation of a Seychelles IBC
- Registered office and agent services
- Seychelles Company Secretary Service
- Nominated shareholder / Nominated director
- Opening bank accounts in Seychelles
- Complete management of the Seychelles business
- Postal address in Seychelles
- Virtual office in Seychelles
- Trademark registration
- Yacht registration
Cyprus – General information
Location: Archipelago in the Indian Ocean, northeast of Madagascar.
Area: total: 455 km2, land: 455 km2, water: 0 km2. …
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Natural resources : Fish, coconuts (copra), cinnamon trees.
Population: 93,920 (July 2017 est.).
Capital: Victoria.
Time zone: UTC+4.
Languages: Languages: Seychellois Creole (official) 89.1%, English (official) 5.1%, French (official) 0.7%, other 3.8%, unspecified 1.4% (2010 est.).
Government Type: Presidential Republic.
Legal system : Mixed legal system of English common law, French civil law and common law.
International organization participation: ACP, AfDB, AOSIS, AU, C, CD, COMESA, EITI (candidate country), FAO, G-77, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFAD, IFC, IFRCS , ILO, IMF, IMO, InOC, Interpol, IOC, IOM, IPU, ISO (correspondent), ITU, MIGA, NAM, OIF, OPCW, SADC, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer).
Economy : Since independence in 1976, per capita output in this Indian Ocean archipelago has expanded to about seven times its pre-independence level, almost subsistence, moving the island into the high-income group of countries. Growth has been led by the tourism sector, which directly employs approx. 26% of the workforce and directly and indirectly account for more than 55% of GDP, and of the tuna fishery. In recent years, the government has encouraged foreign investment to upgrade hotels and services in the tourism industry. At the same time, the government has taken steps to reduce dependence on tourism by promoting the development of the offshore finance, information and communication sectors and renewable energy.
As a very small open economy dependent on tourism, Seychelles remains vulnerable to developments such as economic decline in countries that supply tourists, natural disasters and changes in local climate conditions and sea temperature. One of the biggest challenges facing the government is implementing strategies that will increase Seychelles’ long-term resilience to climate change without weakening economic growth.
Currency: Seychelles rupee (SCR).
KGN Services | Seychelles tax haven | Seychelles IBC
