The government has made clear measures in this development for many years. Seychelles' offshore business started in 1994 when the government launcheda series of initiatives created to establish the country as a modern and world-class international financial center. The majority of the legislation was based on that of other successful jurisdictions such as the Bahamas and the British Virgin Islands.
In 1994 important legislation was enacted that covered the registration of offshore companies, offshore trusts and the licensing of international trade zone companies. This was a major success and helped the country attract a multitude of international businesses. More legislation was introduced that focused on the licensing of international banks, offshore insurance companies and the establishment of a securities industry.
During the same year, the government established the Seychelles International Business Authority (SIBA) that was set up to administer the offshore sector and deals with registration.
In 2003 the island's government created different types of companies:Limited Partnerships, Protected Cell Companies, and Special License Companies. In May 2003, the government announced that it wanted the country's offshore center to become a hird pillar of the economy. The government's efforts at that time led to a 40% increase in offshore incorporations compared to 2002.
A revised Mutual Fund Act 2007, Securities Act 2007 and Insurance Act 2007 were implemented as catalysts to transition the island from a typical offshore jurisdiction to a full fledged Offshore Financial Center (OFC).
Towards the end of 2010, SIBA began its move to create a dedicated securities authority called Securities and Financial Markets Section (SAFMS) of SIBA. That sector was established to implement regulations, rules and guidelines in respect of the legislation covering the financial markets, businesses and products. As one can easily see, Seychelles' government has put in a lot of effort to implement policies, laws and organizations to foster its financial offshore hub.
Recent Legislation That Supports Its Offshore Center.
The Afican Island has continued to pursue its goal of being a major offshore financial hub in Africa. In 2011, the government proposed the ompanies Bill 2011. If the bill passes, it will consolidate and update the current Companies Ordinance 1972, International Business Companies Act 1994, Protected Cell Companies Act 2003 and Companies (Special License) Act 2003. The government also proposed the nternational Trust Bill 2011. This will modernize the trust law, which includes provisions such as private trust companies, doing away with perpetuity periods and much more.
Benefits Dealing with Seychelles' Offshore Center.
There are many benefits doing business in Seychelles. First you can feel safe if your money and business is in Seychelles. Seychelles is in good standing with international regulatory bodies; this includes the Organization for Economic Cooperation and Development's (OECD's) Global Tax Forum. The island is not on any blacklists published by international regulatory bodies. The financial services sector is well regulated with more than 15 years of refining, and Seychelles has been on the OECD white list since it was first published. In addition to this it has solid relationships with international organizations and nations. The country provides a high level of privacy for its investors, citizens and business owners. All financial services sector participants are required to follow all of the Financial Action Task Force (FATF) guidelines for the prevention of money laundering and terrorist financing.
The main benefits for International Business Company (ICB) are that they do not pay any tax. A Seychelles IBC, by the definition of the law, is not subject to any tax or duty on income or profits. Shareholders also do not pay any taxes on his income derived from the IBC. These laws are clearly stated in Article 109 (1).
If a company wants to qualify as an IBC, it must satisfy the three criteria. It may not carry on business in Seychelles. It may not own real estate in the country. It may not do banking, insurance and registered agent business without special permits.
However, a Seychelles IBC may still engage in eight important activities:
- It may maintain Seychelles-based bank accounts and deposits.
- It may maintain books and records within Seychelles.
- A Seychelles IBC may maintain professional relationship in Seychelles with attorneys, accountants, trust and management companies, investment advisers or other similar persons.
- It may hild meetings of its directors in Seychelles.
- It may lease a property in Seychelles to use as office from which to communicate with members and where books and records can be kept.
- It may hold shares, debt obligations or other securities in another Seychelles IBC or in a Seychelles domestic company.
- A Seychelles IBC may own a vessel or and aircraft registered in Seychelles.
- Shares in a Seychelles IBC may be held by a resident in Seychelles.
(Source: Fidelity Corporate Services (Seychelles) Ltd is a specialist offshore company formation agent)
Secrecy, privacy and confidentiality are some of the main benefits to Seychelles' ICBC. Company beneficial owners, directors and shareholders are not on public record. When registering for a new ICB, the Register of Companies does not require any data on who is the real beneficial owner of the company. Internal files of the IC, such as the Register of Directors, Register of Members, and Minutes and Resolutions are all kept at the offices of the Registered Agent and are also kept private.
According to the island's laws, the only documents of a Seychelles IBC that are held on public record are the Memorandum of Association and the Articles of Association. These documents do not contain any indication as to the actual shareholders or the beneficial owners of the company.
Seychelles has spent years avoiding s i gning any informa t ion- sha r ing agreements with other countries or organizations. Client confidentiality is highly protected and can be found in the country's business and corporate laws. The island's financial services sector is a significant part of the country's economy. The government has an interest to maintain and develop the country's status as an offshore financial hub.
There are many provisions inSeychelles' laws that protect businesses against confiscation. Whenever a foreign force or government authority attempts to confiscate, nationalize, nationalize a share or interest of a Seychelles' IBC, a court order in Seychelles will protect the rights of the shareholder and prevent the confiscation.
Another major benefit of doing business in Seychelles is that it has one of the fastest Registries of International Business Companies in the world. New IBC`s are usually incorporated within 24 hours.
Seychelles has very competitive government license fees. An ICBC only pays a yearly government fee of $100 for registration. This outcompetes the majority of offshore jurisdictions, because the majority of other offshore hubs requi re highe r gove rnment registration fees if the authorized capital of the ICB exceeds certain amount, which is usually $50,000 or $100,000. There are not any of these restrictions in Seychelles. This means that you can have your IBC registered in Seychelles' with an authorized capital of a billion dollars and pay just $100.
The benefits to setting up an IBC in Seychelles are clear.
The company does not have to pay taxes on its profits and neither does its shareholders. Just about everything about the business in Seychelles is confidential, including the board of directors. The laws that protect against confiscation are enforced. Registering for an IBC is extremely quick, and the registration fees are perhaps the most competitive in the world.
Setting up an IBC in Seychelles could be one of the best ways to save money, keep your information private, and gain an edge in business.
Chinese Opportunities in Seychelles.
There are many different opportunities for Chinese investors in Seychelles. First of all, Chinese investors can find privacy and confidentially in its markets. Seychelles' government and laws prohibit disclosing information on directors of companies and profits earned by a company. So in other words, Chinese investors may want to consider investing extra funds in the country, as it is highly protected.
Seychelles has become one of Africa's most prominent financial offshore hubs. There are a variety of investment instruments that Chinese investors may find lucrative.
These range from mutual funds, fixedincome investments, to hedge funds. Many of these funds are focused on African companies, but some funds are also focused on other international markets, including China. These investment instruments are also highly protected by the government.
Chinese investors and especially business owners will find Seychelles an easy and safe place to start a new company or build a new branch or office there. Registration fees are some of the lowest in the world, and businesses' assets are thoroughly protected from foreign confiscation.
