Perhaps you are wandering about what an offshore company is! This type of company does not do business in the country it was incorporated, and is known as a non-resident company. Offshore corporations have two main requirements: they should be incorporated under the company’s regulations within the relevant jurisdiction in which it is established, and there should be no business done within the jurisdiction where it has been registered. Seychelles among the most popular offshore jurisdictions in the world, as it is very easy and cheap to register an offshore company there. The main advantages of Seychelles offshore companies are maximum privacy and tax minimizations.
The International Business Companies Act of 1994 is the legislation that covers the formation of this versatile and widely sought after type of company. Through an offshore company, legitimate international business activities including trade, commerce and investment are conducted. For a Seychelles offshore company to be formed, a business owner will need to name at least one person or entity as a shareholder and one as a director. Directors can consist of either a corporate entity or just a single individual. Details concerning shareholders and directors do not appear on any publicly available files, however a record of both shareholders and directors will need to be kept and an address where the registrars can be contacted also has to be on file with the Seychelles Registrar. The identity of the register of directors and shareholders can only be accessed by authorized members of the company making a Seychelles offshore company a supremely confidential type of company.
Restrictions on the activities of an offshore company established in Seychelles are very simple and easy to understand. The company cannot conduct any business in the jurisdiction in which it has been formed, and it cannot have been formed in order to solely purchase real estate or land in the Seychelles area. This offshore company cannot be used for banking, insurance or other registered agency businesses within the jurisdiction of Seychelles. The incorporation of an offshore company can typically be finalized within two days, though some conditions can enable the incorporation documents to be processed the same day they are received. After the initial set up costs ongoing annual licensing costs are very low: usually one hundred US dollars is required for companies with capital up to one thousand dollars and for companies with capital over one hundred thousand dollars, only one thousand dollars is required.
Seychelles is not signed up with the European Union Savings Tax Directive, and as an added bonus, they have no other notable taxation relationships with other outside nations. Moreover, as if things could not be any more in the favor of offshore companies, they are not subject to any tax or duty on income or profits and are exempt from duties on the transfer of property as well. This makes the island one of the ideal locations for those seeking a jurisdiction from which they can operate their offshore company tax efficiently.