Seychelles is one of the jurisdictions where offshore companies are exempted from taxes. In the current uncertain geopolitical situation, Seychelles remains a neutral country that is equally friendly to citizens of all states. At the same time, Seychelles is a UN member state and it has to play by the rules. Sanctioned individuals are not welcome to register offshore companies in Seychelles.
In addition to offshore services, Seychelles offer wonderful opportunities to vacationers. There they find pristine nature, beautiful sandy beaches, clear water of the Indian Ocean, and friendly local people. There are direct flights to Seychelles from Dubai, Abu Dhabi, Addis Ababa, Doha, Nairobi, Mauritius, Johannesburg, and other cities. A vacation in Seychelles is an unforgettable experience.
Seychelles as a jurisdiction to register an offshore company in 2024
The island state sitting to the east of Africa is not only a fantastic holiday destination for affluent people but also a wonderful jurisdiction for registering an offshore company there. Yes, Seychelles offers attractive offshore opportunities but it follows the FATF Recommendations nevertheless. Seychelles is not on the list of high-risk jurisdictions compiled by this organization.
The country charges the income tax on a progressive scale and those making less than 8,556 Seychelles rupees (SCR) are exempted from the tax. In addition, many non-monetary benefits that employers provide to their employees are also exempted from taxes.
As far as corporate taxes are concerned, they are as follows in Seychelles:
- Annual income of less than 1 million SCR is taxed at 15% (the rate used to be 25% before 2022);
- Annual income that exceeds 1 million SCR is taxed at 25% (the rate used to be 30%);
- Licensed types of business activities (insurance, brokerage, banking, etc.) are taxed at 33% if the company’s income exceeds 1 million SCR per year;
- Offshore companies engaged in corporate and medical services as well as companies engaged in fishery and agriculture are totally tax-exempt in Seychelles (under certain conditions).
While local companies have to pay taxes in Seychelles, offshore business can be 100% tax-exempt in the country. This is why many entrepreneurs from other countries choose Seychelles for registering international business companies there.
What type of offshore company can a foreigner open in Seychelles?
Depending on your business objectives and your business area, you can register a taxable local company in Seychelles or an offshore company. Since offshore companies don’t have to pay any taxes in Seychelles, most foreigners register offshore companies there. Zero taxation is the most compelling reason for establishing a company in Seychelles.
Types of offshore companies that can be registered in Seychelles:
- An International Business Company (BC) is not taxed on its global income. The liability of the company shareholders is limited by their contributions to the charter capital. Any type of business activities are allowed with the exception of the licensed ones. If a non-resident of Seychelles is registering an IBC in the country, he or she can do it only via a local agent. The minimum number of company directors is one natural/ legal person. The main advantages of registering an offshore company in Seychelles include the following ones: no requirements to the charter capital, no currency control, and nominee services are allowed.
- A Limited Partnership or a Limited Liability Partnership in Seychelles is a less popular form of company ownership. One of the partners has to be a resident of Seychelles and he/ she has unlimited liability. At the same time, a company can play the role of the General Partner.
- A trust is the most efficient instrument of concealing the identity of the owner of the assets as well as protecting the assets from expropriation even on a court decision. Registering an offshore trust in Seychelles is fast and inexpensive but the assets in trust have to be kept outside Seychelles. Only a non-resident of the country can register this sort of trust in Seychelles.
Seychelles is a friendly country that welcomes foreigners wherever they come from. If you are interested in registering a company in Seychelles or in another offshore jurisdiction, please do not hesitate to contact us. We know all the ins and outs of the offshore industry!
