The Republic of the Seychelles is located on the Indian Ocean, east of Africa. Offshore companies registered in the Seychelles are quite popular in international financial circles as the flexible company laws and the simple tax system can facilitate the operation of businesses to a considerable extent.
Advantages of company formation in the Seychelles
The Seychelles introduced a territorial tax system in 2019. The companies are required to pay corporate tax only after their local sourced income, i.e. their foreign sourced income is fully exempt from corporate tax. If the companies have just foreign sourced income they do not need to pay taxes on their profit, they do not need to submit a tax return to the local authorities. Offshore companies are required to keep records of business events but the records need not be stored in Seychelles.
Requirements of company formation in the Seychelles
The equity must be at least USD 1 at the time of registration, which must be paid up by the shareholders. The company is only required to have one manager and one shareholder, who can also be foreign persons. There are no restriction_s on whether they should be legal entities or natural persons. The company must have a local address, which qualifies as its official seat. The company is entitled to transfer its official address to another country at any time.