STARTING A BUSINESS IN SEYCHELLES

INTRODUCTION

The Republic of Seychelles is an archipelago situated in the Indian Ocean that situates not only pristine tourist attractions of Oceania but also serves as a strategic business position on the cusp of Asia and Africa. The strategic positioning of the islands, which has had an independent government established since 1976, has actively garnered a business-friendly climate, offered streamlined registration procedures, and determined fiscal incentives. To add, the Seychelles’ tax system is advantageous for various businesses, particularly those exploring offshore opportunities. Entrepreneurs involved in international trade, finance, or services stand to attain from the fiscal benefits of the government.

TYPES OF BUSINESSES IN SEYCHELLES

• INTERNATIONAL BUSINESS COMPANY (“IBC”)- An IBC in the Seychelles is commonly used for international operations on corporate structures where a wide array of business functions can happen while working on a simplified reporting system and asset protection mechanisms. They are aptly suited for businesses that do not require an in-person presence within the country and are suited for consultancy, e-commerce, and investment firms.
• SEYCHELLES SPECIAL LICENSE COMPANY (“SCL”)- A CSL or Seychelles License company is suited to conduct both offshore and onshore business activities. This type of structure benefits businesses intending to set up more operations in accounting, both local and international trade like banking, insurance, and shipping.
• LIMITED PARTNERSHIP (“LP”)- A limited partnership in Seychelles consists of one or more general partners who manage the business and one or more partners who invest capital lest engage in management. LPs are apt for investment projects, real estate development, and business operations where management is different from investment.
• PUBLIC COMPANY- A public company of the Seychelles is a large-scale enterprise that intends on public listing on a stock exchange. These companies are often utilized for large commercial undertakings in energy production and large-scale retail.

TAX SYSTEM IN SEYCHELLES

Seychelles offers an attractive tax system to foreign investments, with personal income tax withstanding around 15%. The government offers various tax incentives to the businesses on foreign driven income, making the Seychelles a preferred destination for offshore operations.

STEPS

To register a company in Seychelles for a foreign entrepreneur, required assistance from a resident licensed incorporation agent is necessary. This resident agent helps the newly established company with establishing an address (that shall be the point for interaction with government bodies) and the place for accounts and book-keeping.

Here are the following steps in order:

• Submit a project memorandum- Initially, a requirement of approval from the Government of Seychelles is necessary by submitting a business plan/project memorandum of your business to the Seychelles Investigation Bureau (“SIB”). After ensuring that the project is in line with the SIB regulations, the bureau processes the project proposal and communicates via a formal letter within 30 days from the date of receipt of the proposal.
• Apply for gainful operation permit- The application for Gainful Operation permit is necessary from the department of Immigration Division, Department of Internal Affairs.
• Register your business- Depending on the types of companies above mentioned; the registrar will register your company.
• Government sanction for the lease, rental or purchase of the government premise or land- The Ministry of National Development sanctions for the infrastructural needs of your company.
• Apply for a permit or license- The Seychelles Licensing Authority (SLA) is needed to gain a license or permit to function your company.
• Register with social security fund- Within 7 days of commencement of business, it is required that the company is registered under the Social Security Fund, Ministry of Finance.

CONCLUSION

With the reducing tax expenses and significant simplification of structuring a company, the land of the Seychelles becomes the optimum chamber of business opportunities. With four types of companies that can be established and functioned, the regime of various businesses can flourish here. The international leeway and market benefits make the Republic of Seychelles the perfect sphere to expand your businesses.