The Seychelles: A Good Idea For Offshore Banking And Company Formation?

By Author: Richard
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Although the offshore banking world tends to focus on locations closer to the United States - the Cayman Islands, Panama or Bermuda, for example - there are offshore jurisdictions worldwide that, in this technological age, may actually be a smarter investment option for your offshore-based company.

The Seychelles is an archipelago in the Indian Ocean, northeast of Madagascar and comprised of 41 granite and 75 coral islands. England and France have long been interested in the Seychelles, with England finally winning out in 1814. From then until 1976, they were under English rule as a Commonwealth until they gained their independence, when socialism had taken over the country's administration. The Seychelles remained socialist until 1993, when a new constitution was ratified and free elections were held.

The Seychelles recognizes the importance of foreign investment, and as such has implemented several types of incentives for foreigners who wish to invest there. These include non-detrimental taxes; import duty exemption; asset depreciation; and attractive tax credits.

The Seychelles International Business ...
... Company (IBC) is the most popular among Seychelles companies offshore. No minimum amount of paid-up capital is needed. No audit is required. Company officers or board members do not have to be of a particular nationality. The Seychelles does not have to be the location for annual meetings; in fact, they can be held by conference call from and to anywhere in the world. No more than one director and one shareholder need to be named on the Articles of Association.

No Seychelles residents can be involved in Seychelles corporation transactions. A Seychelles IBC may not own property in the Seychelles, whether undeveloped land or with pre-existing structures. Bank and insurance licenses are mandatory for those performing this kind of service.

Other types of Seychelles companies, which each have their own rules and stipulations, include the protected cell company, which must categories each asset as cellular or non-cellular; limited partnership, which must have at least one partner liable for debts and cannot conduct business in the Seychelles; and a special license company, which requires a Seychelles-based company secretary.

The Seychelles International Business Authority (SIBA) oversees the area concerning Seychelles trusts. There are a few stipulations and rules regarding trusts here, which are as follows.

Once the trust is activated, the settlor may not live in the offshore Seychelles for the rest of the time the trust is active; since the duration is 100 years, it would be safe to say that the settlor may never live in Seychelles. However, at least one trustee must be a resident of the Seychelles. One trustee can be an International Business Company owned by the settlor, which means that the settlor can also be a trustee.

The basic components of forming a Seychelles corporation are as follows:

1. Articles of Association or Incorporation, Seychelles
2. Parties involved (Board of Directors, President, Vice President, Secretary, Treasurer, and upper management positions)
3. Authorized Capital, Subscribed Capital; no Paid Capital needed

A Seychelles offshore IBC is extremely flexible and can accommodate practically any current financial circumstance or future financial goal.

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