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Advantages of establishing a company in the Republic of Seychelles
Setting up a company in the Republic of Seychelles should be on every entrepreneur’s radar of options today. Looking at the advantages, International Business Companies (IBC) are subject to 0% corporate income tax on foreign income, only one shareholder is required to start the company, the island nation has extraordinarily high commitment on confidentiality and political independence from international pressure, just to mention a few.
To offer entirely new ways of running a business, we have partnered with the government of the Republic of Seychelles, and offer incorporation of Smart Companies (SC), which run on the Blockchain and is legally recognized by FSA Seychelles, in the same way as a traditional IBC. We speed up the process to real-time, protect ownership structures and shares through smart contracts and offer error-proof technical resilience with significant cost-advantages. The setup provides entrepreneurs with the type of agility and speed needed in the 21st century.
For more information, please contact us: firstname.lastname@example.org
What are the tax benefits of Seychelles?
There are several tax advantages in incorporating your business in the Republic of Seychelles. The law that governs all International Business Companies incorporations is the Seychelles IBC Act, which allows all International Business Companies (IBC) to be legally exempt from taxes and duties on all foreign source income and profits. In other words, IBCs are subject to 0% corporate income tax, as long as they do not conduct business or are fiscally resident within the borders of Seychelles. On top of that, non resident IBCs are not subject to taxation on royalties and dividends received or sent abroad.
Why is it convenient to establish a company in Seychelles?
In addition to no corporate taxes paid, incorporating a Seychelles IBC is also fast and easy: no filings of annual tax returns, no need for local directors, only one shareholder is required to start an IBC and a high level of privacy from public records.
Our model is a bit different from the traditional IBC as we incorporate companies directly onto the Blockchain technology with smart contracts i.e. Smart Companies (SC). Legally, it has the same recognition and compliance as a traditional IBC, but on the technology side we’re able to provide our clients a method to transfer ownership and changes in a decentralized system that happens in real-time, is error and temper-proof and significantly lower in costs. Ultimately, this changes the way our legal, financial, human resources and payment processes can be managed.
Does Seychelles tax worldwide income?
No. Both Seychelles residents and IBCs are only taxed based on the income generated within the borders of Seychelles. This also applies to Smart Companies.
However, it is important to comply with the basic rules of an IBC in the Seychelles, which restricts an IBC from conducting business onshore, owning property or real estate in the Seychelles and operate certain businesses without appropriate licences. It is also important to remember that while Seychelles IBCs and SCs are not to subject to Seychelles corporate tax, foreign individuals may be subject to taxes in their home countries in accordance with their domestic tax regulations.
What is the corporate tax rate in Seychelles?
This depends on the company type you have incorporated in the Seychelles. Here are some examples:
Generally speaking, corporate tax (business tax) is levied on taxable profits at 25% on the first SCR1,000,000 and 30% on the remainder except for some financial institutions, telecom companies, alcohol producers, etc., which are taxed at 33%.
International Business Companies (IBCs) and Smart Companies (SC) are exempt from corporate income tax in Seychelles. This applies when the IBC does not conduct any business or own property within the borders of Seychelles.
Special License Companies (CSLs), which are residents in Seychelles, are taxed at a flat rate of 1.5% on their worldwide income.
what are the benefits for foreign individuals who own a company in Seychelles? And what are the benefits for individuals who have acquired residency/citizenship in Seychelles?
When you set up a non resident IBC in Seychelles, your IBC is not subjected to taxes or duties on its income or profits, nor taxes on royalties or dividends. Same thing with Smart Companies (SC). This means, if you are the only shareholder in the IBC or SC, you as a non resident individual are not liable to pay corporate tax from the income generated through your IBC.
In addition to the 0% corporate tax rates, one of the competitive advantages of incorporating in the Seychelles is also the country’s high level of confidentiality. Politically, the country is considered stable and independent from international pressure. The government of Seychelles even has a provision against confiscation. This means that if there is a political unrest, the Seychelles courts are duty bound to uphold the rights of the IBCs and protect them against imposition of taxes and confiscation of assets. These are all important things to think about when setting up your next venture.