Of the many Island states providing the services of offshore financial centres, why choose Seychelles as your centre? The answer is simply why not? The main island of Mahe is situated some five degrees south of the equator and approximately 1,800km from the east coast of Africa. The spoken and written languages are English, French and Creole (a French based patois).
The Island's legal infrastructure is based on the English and French jurisprudence and due to its very recent entry into the world of offshore financial centres, the various legislations dealing with the latter are modern and simple.
Legal Infrastructure
International Business Companies Act
Under the International Business Companies Act 1994, an international business company (IBC) may have as its sole object that of engaging in any trade, business or activity that is not prohibited under any law for the time being in force in Seychelles except that "it shall not carry on any banking, insurance, reinsurance or trust business".
An IBC may not trade in Seychelles.
Salient Features
Minimun Number of Shareholders: 1
Minimum Number of Directors: 1
Minimum Share Capital: US$1
Bearer Shares: Yes
Filing of Accounts: Not necessary
Taxation: None
Resident Agent in Seychelles: Compulsory
Directors/Shareholders: Not necessarily residents
Meetings in Seychelles: Not compulsory
International Trust Act 1994
An international trust may be created either by oral declaration, in writing or by will or codicil.
Salient Features
- The settlor may not at any time during the duration of the trust be a resident of Seychelles.
- At least one trustee must at all times be resident in Seychelles.
- Unless the trust deed contains an express power to do so it shall be irrevocable by the settlor.
- The trust may not be invalidated by any foreign rule of "forced heirship".
- The settlor may choose under which law the trust shall operate.
- The settlor or trustees can be named as beneficiaries under the trust.
- Disclosure of any information or document relating to the trust is strictly prohibited by law except under an injunction of the Seychelles Supreme Court on application made by the Seychelles Attorney General and then only for the purpose of an enquiry or trial into or relating to the trafficking of narcotics, dangerous drugs, arms trafficking or money laundering.
- An international trust is not subject to any income taxes, stamp duty or capital gains taxes in Seychelles.
International Trade Zone Act 1995
This Act provides for business licencing geared towards the export market be they in the manufacturing, assembling, redistribution or service industries. Licences are renewable on a yearly basis.
An application for a licence under the Act must be submitted to the Seychelles International Business Authority.
Salient Features
A business licenced to operate in an international trade zone is exempt from:
- Business Tax Act.
- Trade tax (customs duty) on capital equipment to be used in the business in the international trade zone area.
- Social Security Act (employer's contribution).
- Payment of gainfull occupation permits in respect of non-Seychellois employees.