Seychelles is known for its beaches, but also as a place to register an international business company (IBC).
Seychelles company registration is quick and fully remote, yet an IBC is not for everyone, least of all for owners who live in the UK.
Who a Seychelles IBC suits
– Founders outside the UK who trade with clients in several countries
– Online businesses and consultancies with customers worldwide
– Freelancers who invoice clients abroad and want one company for all of them
– Holding companies for assets outside the Seychelles
The Seychelles taxes on a territorial basis, so foreign income is generally not taxed there. Passive foreign income, such as dividends, is exempt only if economic substance conditions are met
Who should think twice
If you live in the UK and run the company from here, HMRC is likely to treat it as UK tax resident, because a company is resident where it is managed and controlled. UK anti-avoidance rules can also tax residents on income held in an offshore company, and UK clients often expect a UK supplier. For UK founders another jurisdiction often fits better: WeForm compares costs for the UK, Hong Kong, Dubai and other options
How to register a company in Seychelles
1. Choose a name and a licensed registered agent, who also provides the registered office
2. Provide a passport and proof of address for each director, shareholder and beneficial owner
3. Appoint at least one director and one shareholder. One person can be both
4. The agent files with the Financial Services Authority. It usually takes a few working days
You can set up a Seychelles company remotely. Plan the bank account at the same time: banks are cautious with offshore companies, so a payment institution is often the realistic route. Have a short description of the business, expected turnover and main clients ready, as both the agent and the payment provider will ask for it
Keeping it in good standing
– Pay the annual government fee and agent renewal on time
– Lodge accounting records in the Seychelles every six months
– Prepare an annual financial summary within six months of the year end
– Keep beneficial ownership details up to date after any change
Late payment brings penalties, and a company left unpaid for too long can be struck off the register. Restoring it costs more than staying compliant and is not automatic.
Used for the right business and kept compliant, a Seychelles IBC is a legitimate, low-cost structure.
Images courtesy of unsplash.com and pexels.com. Some images supplied
