Interview - Seychelles Overview

1. Industry research suggests that China will soon rank first in the world as a source of new incorporations. Traditionally, which regions of the world has your jurisdiction been most popular for? What types of business activity is most suitable for incorporating in your jurisdiction.
   
   Around 210,000 international business companies (IBCs) have been registered in Seychelles since 1995, including over 8,000companies registered in 2018, making IBCs one of the world’s most popular global business companies.The two largest markets for IBCs are Europe and Asia, especially Hong Kong, China and Singapore. While business in Europe is declining, Asian business continues to grow. IBCs are well suited for holding of investments and assets (such as real estate, shares and intellectual property), for commercial transactions and international trading operations.IBCs have a role in asset protection and for use as consultancy and personal service companies.

2. What is the single most important advantage your jurisdiction provides for Chinese clients?

The single most important advantage of Seychelles’ IBCs is value for money. Other major competitive advantages include ease of administration, time zone and enhanced privacy. Details of shareholders and beneficial owners are not filed with the Registrar and are not publicly accessible. Details of directors are filed with the Registrar but are not publicly accessible.

3. It has been suggested that price remains a major factor for consideration for clients when choosing an offshore jurisdiction. Do you agree with this statement, and how do you think this will change in the years to come? Are you noticing a shift in emphasis on price to an emphasis on the quality of offshore structures? What other factors should someone looking to incorporate in your jurisdiction consider when choosing a provider?

Cost-effectiveness continues to be a significant factor for clients in the global corporate services market. Nonetheless, with increasing regulation and transparency, clients are steadily placing more emphasis on the quality of offshore structures and obtaining prior expert legal and tax advice in their place of residence and domicile. When choosing a corporate service provider, clients should also consider experience, expertise and capacity to provide value-added corporate services.

4. Do you agree that as the industry comes under increasing regulatory pressure, e.g. CRS, AEOI, FATCA, etc., Chinese business will gravitate to jurisdictions that are perceived as more transparent?

It is likely that some Chinese business will shift to more transparent jurisdictions, particularly in respect of trading business and other activities involving significant staff and dealings with customers, though demand for well-regulated jurisdictions which offer privacy will continue for passive asset holding companies. Growing transparency is likely to increase demand for value-added corporate services, including director services providingfor offshore ‘management and control’ for commercial and tax planning purposes. We also foresee that demand will continue and grow for offshore trusts and foundations, which provide for stronger asset protection and outside estate succession planning resulting from the founder’s divestment of ownership and control of trust or foundation assets.

5. Setting up a bank account for newly set-up companies has been a challenge for some jurisdictions in the past few years. Is it the casein your jurisdiction? How quickly can a company in your jurisdiction have their bank account set up?

Seychelles IBCs are widely accepted for account opening and financing by international banks worldwide. While several Seychelles banks open IBC bank accounts, as IBCs are typically used to conduct business outside Seychelles, most IBCs open bank accounts overseas, including in places such as Hong Kong, Singapore, London, Switzerland and Dubai. Typically, it takes around two to four weeks to open a bank account.Additionally, with the new legislative amendments relating to Base Erosion and Profit Shifting (BEPS), IBCs can now apply for a Tax Identification Number (TIN) making the IBCs more attractive.