The Republic of Seychelles is located in the Indian Ocean and is made up of approximately one hundred and fifteen (115) islands. Seychelles has made a name for itself whilst at the same time improving its economy by becoming a growing force in the offshore world. Seychelles as an offshore jurisdiction offers offshore banking, the incorporation of offshore companies or International Business Companies (IBCs), investment fund management, insurance and the registration o vessels and ships. Seychelles is also the tax haven of choice for many corporations and individuals.
Seychelles as a tax haven is one of the most desired tax havens available to date. The government of Seychelles has invested a lot in the country in order to make it the tax haven that it is today. Seychelles as a tax haven has seen the modification of legislation which led to a modern but very strict offshore sector in the islands. The laws which govern the offshore tax haven of Seychelles provide asset protection, reduction of tax liabilities, privacy and confidentiality for individuals and corporations.
The tax havens of the world have long been identified as countries or territories which have zero or low tax rates in place. A characteristic which these countries have always been judged for. As a tax haven Seychelles has no taxes in place for corporations who do not engage in business operation within the territory of the Seychelles. Zero taxation for offshore companies in the tax haven of the Seychelles is guaranteed by legislation. According to the International Business Companies Act a Seychelles offshore company has a twenty (20) year tax exemption from local taxation which begins from the first day of incorporation. International Business Companies in the tax haven of Seychelles are also exempted form Stamp Duty paid on transaction carried out on behalf of the company. All companies incorporated in tax haven Seychelles must pay an annual license fee which is set at US$100.
The tax haven of Seychelles allows for the formation of flexible offshore companies structure. The shareholder and director of an offshore company in Seychelles can be the same person making management easier. Setting up a company is very easy in tax haven Seychelles. There are very little restrictions places on offshore companies in the tax haven of Seychelles.
Privacy and confidentially are two (2) other very important characteristics of tax havens and Seychelles provides both offshore corporations. The beneficial owners of offshore companies can choose to incorporate a company using nominee shareholders and directors ensuring that information relating to the beneficial owners does not become public knowledge as this is filed at the Public Registry. One director and one shareholder are necessary for the incorporation of offshore companies in the tax haven of Seychelles. Seychelles company directors can be corporations.
The financial or accounting records of the international business companies incorporated in the tax haven of Seychelles are private. Seychelles offshore companies are not obligated by law to present their financial statements s to the tax authority of Seychelles. Offshore companies are recommended to keep their financial records for the use of the company. In that way these companies retain their privacy. The financial records of companies in tax haven Seychelles can be kept in any location in or out of the jurisdiction.
The offshore tax haven of Seychelles offers offshore banking services to corporations and individuals. There are many well recognized banking and financial institutions doing business in tax haven Seychelles. Setting up an offshore bank account in tax haven Seychelles is hassle free. There is no reason to travel to Seychelles when setting up an offshore bank account in the tax haven. Tax haven Seychelles has banking secrecy laws in place which protects offshore bank account holders. The leaking of banking and personal information in offshore bank accounts by bank employees and officers is prohibited in tax haven Seychelles. This information can only be disclosed if a Court Order has been sent out and most times this information is only given out in cases of criminal investigations. Divulging client information and bank information has strict criminal and financial consequences. This also applies to the registered agent in the tax haven of Seychelles.
The tax haven of Seychelles has no exchange controls in place. Corporations and individuals can move funds in and out of the country with no restrictions or without having to declare the source of funds. This is an added advantage for Seychelles offshore companies which are heavily involved in trading.
The offshore tax haven of Seychelles has a very stable economy and political system. The investment friendly tax haven provides clients with an avenue to do proper tax planning whilst at the same time protect assets. The tax haven of Seychelles is very rigorous when it comes to providing and maintaining privacy for clients.