International Business Companies (IBCs) is the most prevalent and flexible offshore formation type in Seychelles, which designed for engage in international trading and investment activities. There IBCs are exempt from taxation on business activities or transactions outside of the Seychelles.

The principal corporate legislation governing international business companies in Seychelles is the International Business Companies Act, which are based on English common law. In this article we will find the grounds of what makes Seychelles IBCs the most commonly chosen.

1.       General Information of Seychelles

(1)     Location

Seychelles, officially known as the Republic of Seychelles, is an archipelagic island country in the Indian Ocean. Its estimated population of 98,462, is the smallest population of any sovereign African country. The rupee is the currency of the Seychelles, the international currency code is SCR. By population, Seychelles is the smallest country to have an independent monetary policy.

(2)      Policies

Seychelles is a member of the United Nations, the African Union, the Southern African Development Community, and the Commonwealth of Nations, but its government is independent and democratic with a stable society, giving an investment-friendly environment for offshore investor.

(3)      Financial

Seychelles boasts the highest nominal per capita GDP of any African nation. It has the second-highest Human Development Index of any African country after Mauritius. It is one of African countries classified as a high-income economy by the World Bank.

 
(4)      Infrastructure

Seychelles has the finest international airport in the Indian Ocean region, and its national and international telecommunications carriers are well established. An increasing number of international companies have established branches in Seychelles, with local management companies and accounting and legal firms to provide support.

2.       Features and Advantages of Seychelles International Business Company

(1)      Tax Exemption

According to the Business Tax (Amendment) Act, 2018, which came into force on 1st January 2019, the territorial tax system in Seychelles has allowed its IBCs which do not derive assessable income in the country to be exempted from any tax or duty on income or profits.

Moreover, Seychelles IBCs are exempted from stamp duty on the formation of company, transfers of properties, or transactions in respect of shares, debt obligations, or other securities of a company unless these transactions relate directly or indirectly to real estate situated in Seychelles.

(2)      Legal personality

A Seychelles International Business Company has an independent legal personality and possesses the same powers as a natural person.

(3)      Company Names

The Registrar may refuse the registration of any particular name if, in the opinion of the authorities, such name is indecent, offensive, otherwise objectionable or misleading.

The name shall end with a word or abbreviation denoting a corporate body or limited liability. Company names must include one of the flowing name-endings - "Limited", "Corporation” or “Incorporated”, or the abbreviation "Ltd", "Corp", "Inc".

(4)      Member and Director

Seychelles IBC requires a minimum of only one member, and one director, both of whom may be the same person. The member and directors of a Seychelles IBCs may be individuals or corporations and of any nationality.

(5)      Disclosure of information

The Act required IBCs to file their Registers of Directors with the authorities. However, this information is not visible to general public and not subject to unauthorized access.  This information is only known to the licensed Registered Agent of the company, the Registers are kept on registered office and remains strictly confidential.

(6)      Company Secretary

There is not mandatory for the Seychelles IBC to appoint a company secretary of the company. However, the IBC may consider appointing a Company Secretary to ensure that the Seychelles IBC is complied with Seychelles Law.

(7)      Share Capital

A Seychelles IBC is not required to have any minimum paid-up capital in order to start its business operations. The amount of the authorized capital can be freely determined at incorporation by the owners of the IBC and there are no mandatory timeframes as to when such capital must be paid up by the shareholders.

(8)      Annual General Meeting

There is no requirement for a regular Annual General Meeting. The meetings of the board of directors are able to hold outside Seychelles, and by telephone or other electronic means.

(9)      Annual Return

The all Seychelles IBC are required pay the annual license fee to the Seychelles registered agent, on or before one month of the annual anniversary date of its incorporation, continuation or conversion under the renewal due date for annual renewal.

Seychelles IBC required to filed a declaration, and that to be confirm the company keeps accounting records and the accounting records can be made available through its registered agent; and the register of members of the Company is up-to-date and copy of same is kept at the registered office.