Starting a Business in Seychelles
Formation of International Business Company (IBC) in Seychelles
With no requirements to file annual returns, no taxes or stamp duties, no US or IRS interference, no public records, formation of IBC in Seychelles is easy. Usually Seychelles IBC is ideal for international trading operations, investments and holding purposes, leasing of vehicles or aircraft, marketing and financial activities.
INFO ABOUT SEYCHELLES:
Formed under the International Business Companies Act 1994 IBCs in Seychelles can be private, companies limited by guarantee, or hybrid companies or public companies. Foreign companies can re-establish themselves in the Seychelles by way of continuation without the necessity for reciprocal arrangements in the original country of incorporation. An IBC wishing to leave the Seychelles may do so. Special License Companies, Protected Cell Companies and Limited Partnerships. Seychelles companies are based on English Common Law and French Civil Law can also be formed. A Seychelles IBC cannot provide registered office facilities in the Seychelles, or sell its shares to the public, or own real estate and cannot have banking or insurance related businesses.
Seychelles companies’ names must end with one of the following words: Limited, Corporation, Incorporated, Société Anonyme or their abbreviations. A wide variety of other suffixes such as BV, GmbH, and SARL may also be used. Any other kind of name requires licensing and names related to local, state or national governments are generally prohibited. The name can be in any language, but must be accompanied by a translation in English or French.
MEMORANDUM AND ARTICLES OF ASSOCIATION
To form a company an application must be made to the Registrar of Companies. Along with the fees Memorandum and Articles of Association must be lodged where the Memorandum dictates the activities in which the company might engage and Articles of Association states the rules of the internal management.
At least one shareholder is needed which may be a person or a body corporate. Details of company shareholders are not part of the public record.
The usual share capital is US$ 100,000 with no minimum specified. The minimum issued capital may be one share of no par value or one share of par value. As from 1st of January 2014, IBCs are no longer permitted to issue bearer shares but other kinds of equity are permitted.
DIRECTORS, OFFICE, MEETINGS, INCORPORATION TIME
One director either as a single person or an agency is mandatory. Director maybe of any nationality and director’s details are not essentially public. There must be a registered office in Seychelles or there must be a registered agent. A company secretary is an optional choice of the company. There are no specific rules around meetings. It generally takes one business day to have an IBC incorporated and registered.
FINANCIAL STATEMENTS, AUDIT AND TAXATION
As per International Business Companies Act, amended in 2012, all IBC’s are required to maintain their accounting records. Accounting records shall be maintained for a period of 7 years and if the same is not maintained in the registered office then the same must be notified. IBC is not subject to any tax or duty on income or profits. It is also exempt from stamp duties on transfer of property and any exchange controls.