Seychelles

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Seychelles is one of the upper middle class economies of the world. The economy mainly depends upon tourism and the fishing sector. The employment, foreign earnings, construction, banking and commerce is mainly depended on these two sectors. The government implemented several measures to liberalize the economy in 2005 – 06.The steps taken were to liberalize the trade regime, privatization of the state owned entities and the liberalization of the restrictions on foreign trade. Though these measures were taken they were limited in their outlook and thus were insufficient to address longstanding macroeconomic imbalances and vulnerabilities.

Seychelles’ foreign trade policy aims at promoting an interdependent trade regime. Seychelles is a member of the regional tradingblocks such as COMESA, SADC,  IOC and  also the multilateral trade regime that is the WTO.

Population:92,000 (2012)
Form of government:Presidential Republic
Official languagesFrench, English, Seychellois Creole
Other spoken languagesCreole
CurrencySeychellois Rupee (SCR)
Country code+248
Time zoneUTC +4, Daylight saving time UTC +4
Life expectancy: Female 78.98 years, Males 69.66 years
GDP (PPP):$2.34 billion (2014)
GDP (PPP)/per capita:$24,522, (2014)
Public debt:78.8% GDP 
Unemployment:5.5%
Average salary:$1.887/kk
Economy:Agriculture and primary production 20 %, Retail and travel 50%, Financial services 22%
Major trading partners:-

 

Advantages

  • Zero or absolute minimum taxation on profits and capital gains;
  • confidentiality, due to no sensitive personal information registered on public file;
  • protection, due to secrecy provisions enshrined in the law and no information-sharing agreements;
  • corporate flexibility: no paid-up capital, no requirement to declare operational objects, minimum requirements on directors and shareholders, speedy incorporation, and so on;
  • simplicity of management – shareholders` meetings can be held anywhere, and also by electronic means, the corporate decision making process is extremely flexible;
  • minimum reporting – no audit, no tax reporting, no financial information on public file.

Disadvantages

  • Small home market
  • No tax treaties
  • Well known tax haven and often black listed

Doing business and working in Seychelles

Who can start a new business in Seychelles:

  • Any person or legal entity who can provide documentation required by the law for incorporation

Who can own property or shares of Seychelles company:

  • Any legal entity (Companies, private individuals, trust or fund)

Who can act as a director or member of the board:

  • Any person or legal entity who can provide documentation required by the law.

Business entities in Seychelles

  • IBC (The Seychelles offshore company / International Business Company), Company tax 0%
  • CSL (The Seychelles Special Licence Company), Company tax  1.50%
  • LLC (The Seychelles Limited Liability Company), Company tax  33%
  • Limited Partnership
  • Foundation
  • Trust
  • PCC (Protected Cell Company)
  • Company registered in SITZ tradezone, Company tax  0%
  • Branch Office, Company tax  33%

Reguirements to incorporate in Seychelles:

  • At least 1 owner (Private individual or company, nominee shareholder allowed)
  • At least 1 director (Private individual or company, nominee director allowed)
  • Owner and director may be the same person and/or company.
  • Registered address on Seychelles not required but advisable for tax purposes
  • Most common paid-up share capital USD1000 payable after company registration

Opening a bank account:

  • Incorporation documents and articles of association (Certificated in Seychelles)
  • Board of directors meeting minutes
  • Proof of identity, address and skills of signatories
  • Registration certificate (Certificated in Seychelles)
  • List of shareholders and directors (Certificated in Seychelles)

Public register of shareholders and directors:

  • The identities and personal details of the beneficial owners, directors and shareholders are NOT part of public record for a Seychelles IBC.

Allowed trades:

  • It may not carry on business in Seychelles.
  • It may not own real estate in Seychelles.
  • It may not do banking, insurance and registered agent business without special license.

However

  • 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 hold 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 also own a vessel or and aircraft registered in Seychelles.
  • Shares in a Seychelles IBC may also be held by a person resident in Seychelles.

Accounting and reporting regulations in Seychelles:

  • IBC company required to store accounting material at companies registered address. Auditing or final balance sheet not required
  • Bookkeeping not required
  • Financial statement not required
  • Auditing not required
  • IBC company registration is required to renew yearly

How funds can be withdrawn from company?

  • Company may transfer money to another company based on sales of services and goods.
  • Company can lend money to another company and / or person given that loan agreement with minimum interest and payment terms have been made. Owners cannot owe money for the company in the end of the book year.
  • Company can pay dividends from it´s own capital to shareholders after end of the book year
  • Company can pay salary to it´s employees given it has registered in the Tax Administration´s employer register. Employer is obliged to pay tax withheld at source from all wages paid to employees, along with making employer´s social security contributions.
  • Company can pay tax free allowance, such as kilometre allowance for using they own car, per diem and meal money, to owners in order to cover their temporary business travel expenses as defined in the official Decision of the Tax Administration on Allowances for Travel Expences
  • Company can pay meeting allowances for its directors, members of the board and owners
  • Profits may be transferred (if certain requirements are met) between group companies through group contribution system
  • Company can invest in shares, funds or real property.

Can you transfer Seychelles company to another jurisdiction?

  • Yes, given that another jurisdiction approves the transfer

How to terminate business in Seychelles?

  • Company may be sold
  • Not renewing company registration
  • Filing bankruptcy

The World Bank “Ease of doing business ranking”:

Overall rank:rank 85 (+2 since 2014)
- Starting a business: rank 127 (Average processing time 38 days)
- Dealing with construction permits:rank 48 (Average processing time 119 days)
- Getting electricity: rank 89 (Average installation time 137 days)
- Registering property:rank 78 (Average processing time 33 time)
- Getting credit:rank 171
- Protecting minority Investors:rank 56
- Paying taxes:rank 43 (Average company tax from profits 31.68%, average time used for taxation 88 hours year)
- Trading across borders:rank 42
- Enforcing contracts:rank 103 (Average 915 days, Average cost from standing amount 15.4%)
- Resolving Insolvency:rank61 (Average time processing bankcruptcy: 2 years)

New businesses registered in 2012: No public information

Freedom Index

Overall rank: 66  (58/100 points)
- Property:50/100 points
- Taxes:77/100 points
- Speech:69/100 points
- Government:62/100 points
- Guns:50/100 points
- Drugs:20/100 points
- Corruption:54/100 points
- Inflation:75/100 points
- Business:68/100 points

Corporate taxation in Gibraltar

Taxable income0% / 1,5% / 33%
Taxation of divident
VAT registration Not applicable
Rates - 
Tax at source0%
- Dividents0%
- Royalties0%
- Interest0%
- Technical services0%
Transfer tax0%
capital gains taxTreated as normal income. Taxable only on dividents
Real property tax0%
Social security-
Capital duty0%
Stamp duty0%
Vehicle tax-
Tax treatiesNo tax treaties
CFC (Controlled Foreign Company) rulenot applicable

Services for corporations interested in Seychelles

  • Consultation and advisory (business, tax, legal) services before incorporation / during your business operations in Seychelles
  • Assistance in incorporation process: Tailor made company formation or shelf companies available
  • Administration services available for new Seychelles companies incorporated through Novasigma

For corporations operating in Seychelles

  • Banking and financial solutions for a Seychelles company
  • Accounting and Audit services for a Seychelles company
  • Legal services for a Seychelles company

For individuals and families interested in Seychelles

  • Consultation and advisory (tax, legal) services before re-located to Seychelles
  • Assistance in immigration process when moving to Seychelles (residency permanent, work permit, tax residency)
  • Incorporation and administration services for your privately held Seychelles holding company

For individuals and families who hold the Seychelles residency

  • Banking services in Seychelles for private persons
  • Local and international accounting services for Seychelles tax residents
  • Local and international legal services for Seychelles residents

Interested in Seychelles? Please leave us a message and we will come back to you shortly.

In cases KYC or/and Due Diligence process required Novasigma requires a personal meeting with all its new clients before proceeding any assignment

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