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Company formation Seychelles
The Republic of Seychelles is an island nation with over 100 islands. Company formation Seychelles offer many advantages such as tax exemption for income generate outside of Seychelles. Located in the Indian Ocean with about 80,000 inhabitants. The geographical location is unique and not only suitable as a holiday destination but also as an ideal “offshore” location for your business. Since the Seychelles belong to the British Commonwealth, the English Common Law is mostly used.
A company is considered to be tax resident in Seychelles if it is incorporated in Seychelles or has its central management and control in Seychelles or if its voting power is controlled by shareholders who are resident in Seychelles.
Both Seychelles tax resident companies and foreign companies are taxed only on income generated in Seychelles. The Seychelles has a territorial basis of taxation: that is, profits are only taxed if they are derived or deemed to be derived from a source in the Seychelles. There is no capital gains tax; nor are interest, dividends and other payments received from abroad taxed. A withholding tax on individual income from employment was introduced in July 2010. Ongoing government policy is to broaden the application of the income tax to other sources of domestic-sourced income, for example, dividends and interest on savings.
Double taxation treaties: The Seychelles has double taxation treaties with the following countries; Barbados, Botswana, China, Cyprus, Indonesia, Malaysia, Mauritius, Oman, Qatar, South Africa, Thailand, UAE and Vietnam. DTA Agreements have been signed but not ratified with Belgium, Monaco and Zimbabwe.
International Business Company – IBC
Probably the most commonly chosen corporate form is the Internation Business Company – IBC. It is founded by one or more persons, the company headquarters must be in the Seychelles. The standard capital is 100,000 shares at 1 USD per share. There is no restriction on authorized capital.
Dividends from Foreign Investments
Dividend income from foreign investments is taxed at the following rates:
- International Business Companies (IBCs) at 0%
- Special License Companies (CSLs) at 1.5%
- Other companies (business tax) at 25% on first SCR 1,000,000 and 30% on remainder except for some financial institutions, telecom companies, alcohol producers, etc at 33%.
However, a credit for tax suffered abroad can eliminate this corporation tax.
Restrictions in the field of activity of an IBC
Trade within the Seychelles is prohibited.
Property ownership in the Seychelles is not allowed.
Insurance activities, banking, reinsurance, fund or asset management are not permitted.
There must be no possession of registered corporations offices in the Seychelles.
Public promotion / advertising for share purchases is not allowed.
The biggest advantages of Seychelles
- No obligation to book keeping and accounting
- No disclosure of annual reports
- No tax audits
- Stock companies can be acquired
- Minimum capital does not have to be paid
- There is no obligation for shareholders' meetings
- Cheap administration fees
- Tax benefits
- Discretion and protection of assets
- High banking secrecy
The biggest mistakes when starting a business abroad
Many agencies and law firms do not advise comprehensively or wrongly. Learn what to look for.
Gravity of the situation
Often, these law firms think foreign companies are half-silk, tax evasion is favored and mailbox companies are the leaders rather than the exception. This is true, however, only in some start-up agencies that do not have the necessary expertise. Self-proclaimed law firms that do not employ tax accountants or lawyers usually set up companies that are unlikely to operate legally. We set up and look after companies that can withstand tax audits and that are legally operated.
Is physical presence required in the country where you wish to set up your company?
You can set up a company worldwide, as long as the respective country allows you as a foreigner to acquire shares in local companies or to act as a managing director. If this is not the case trustees can be used. For example, Cyprus allows every EU citizen to own and run a business. Nevertheless, trustees can be used for the purpose of identity protection. However, it is important that the management takes place locally, in the country in which the company is to be taxable. In addition, a permanent establishment must be set up. Without these, a major tax offices around the world do not recognize the company and in the worst case would require additional payment of corporate and business taxes plus late payment surcharges. We rent you a real office and set up a permanent establishment that meets all requirements beyond doubt.
Problematic Law firms: Privacy is not regarded.
Some law firms bind customers with toggle contracts and exert pressure when the customer wants to close his company. If you are a client of a law firm that has established a legally flawed company, they can be blackmailed. Because in the case of a fiscal problem, law firms without a license are not bound by a duty of secrecy.
Migrating to a different law firm
We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. The process of changing law firm is made often difficult on purpose. Therefore, we have developed a principle of trust. If you are not satisfied with us and want to change, you can do that at any time. The necessary documents (resignation letter), you receive from us standardized after founding. You are therefore protected against unexpected costs and you are free at any time to visit another law firm. So far we have not lost any customer to another law firm.
Privacy / Firm Location
Your accounting documents are kept safe with us. In addition, all electronic data is stored encrypted and accessible only by us, which are bound to a professional secrecy. All accounting records are also stored locally only. Neither authorities nor hackers are able to access this data.
There are quite a few locations in the world that do not charge taxes on companies or individuals, or only estimate a very low flat rate tax. But this can rarely be used without corresponding change of residence. If you are a resident of any major country, the relevant double taxation agreement is decisive. Providers who promise otherwise lead them to tax evasion, which in the case of discovery usually punishes severely. We advise against setting up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in your origin country can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous private account no longer exists.
We comply with the following code:
- Legally secure foundations
- No unexpected(hidden) costs
- No false promises
- Finding the right solution by focusing on your requirements
With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.
International Free Trade Zone Companies
Since 1994, Seychelles legislation has enabled the establishment of international companies, offshore banks, mutual funds, insurance companies, international foundations or licenses, otherwise called " International Free Trade Zone Companies.
Offshore Seychelles perfect for:
- Holding and managing movable and immovable assets
- Consulting Services
- International stores
- Intellectual Property Management (IPM)
- Securities and foreign exchange transactions
Steuerbelastung im Vergleich
Erfahren Sie anhand dieser Beispielzahlen wie hoch der Unterschied in der Besteuerung einer deutschen GmbH, einer One-Shore-Gesellschaft und einer Offshore Gesellschaft auf den Seychellen ist.
|Deutsche GmbH||One-Shore-Gesellschaft auf den Seychellen||Gesellschaften ohne Gewerbstätigkeit auf den Seychellen|
|Gewinn||80.000 EUR||80.000 EUR||80.000 EUR|
|Körperschaftssteuer||12.660 EUR (15.825% inkl.Solidaritatszuschlag)||12.000 EUR (15%)||entfällt|
|Gewerbesteuer||12.180 EUR (Hebesatz Bundesdurchschnitt 2010 435%)||entfällt||entfällt|
|Gewinn nach Steuern||55.160,- EUR||68.000,- EUR||80.000,- EUR|
|STEUERBELASTUNG||24.840,- EUR||12.000,- EUR||0,- EUR|
Company formation Seychelles - That's how it works
Establishing a company in the Seychelles is easy and the founder must arrive. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank u.U. also a short CV or bank reference.