Business Opportunities in Seychelles
Besides being a tourist destination, Seychelles is also a suitable business destination. If you’re a foreign investor looking for a country with a good business environment, you should consider Seychelles. Below, we’ll look into everything you should know about Seychelles business.
There are numerous business opportunities in Seychelles, considering the nation has market access to SADC and COMESA nations. In 2018, the GDP stood at approximately $16,000, and the growth rate was about 3 percent. Seychelles is one of the top African countries regarding the measure of GNI. The economy is growing steadily. As a result, foreign investors flock here to invest in different sectors, such as financial services, tourism, and agriculture.
Some of the key industries that pose lucrative business opportunities include:
- Financial services
- Information communication technology (ICT)
- Food business
How to start a Business in Seychelles?
As a foreign investor, one of the considerations you’re supposed to make includes looking for a strategic place to establish an offshore company. You may ask yourself why you should consider Seychelles and not any other financial hub. I will tell you how to start a Business in Seychelles,
Why start a business in Seychelles?
1. Tax Haven
The government is focusing on strengthening the local economy. As a result, they have implemented tax advantages that favor entrepreneurs who establish a company in Seychelles. International businesses will have no tax liabilities in Seychelles.
Also, there are no stamp duties and no interest or capital gains tax. However, since Seychelles follows a territorial tax system, all these exemptions apply to incomes earned outside the country.
2. Sound Infrastructure
Most foreign investors’ primary concern is accessibility to the ports and cities surrounding their business. Fortunately, Seychelles has an international airport serving numerous passengers annually. The telecommunication services in Seychelles are also reliable, which means your offshore firm can stay connected to the rest of the world.
3. It is easy to register a business
Most investors will go for an International Business Company (IBC) since it’s the most common and easiest to form. You only need a reliable agency and relevant documents, and within 24 hours, they will incorporate your business.
If privacy and confidentiality are your main goals in forming an international business, then Seychelles is the place to choose. The law in the country guarantees it, and the public will not have access to your business information.
5. Economic and political stability
Bad politics and an unstable economy hinder a business from growing. In Seychelles, you won’t have to worry about these two aspects. The economy has been growing steadily, and the government is committed to creating a friendly business environment for local and foreign investors. The possibility of experiencing political upheavals is quite low.
6. Other benefits include
- Availability of modern banking services
- Variety of entity structures to choose from
- Availability of reliable consultancy and management firms for guidance in operations
- Low annual fees after business setup
Seychelles International Business Company – How to
One of the adaptable offshore corporations in Seychelles is the International Business Company (IBC). A Seychelles IBC is like any other offshore corporation in the world. The steps you should follow when establishing an international business corporation in Seychelles include the following:
1. Choose a Business Activity
First, you need to look into the business activities that are permitted. After that, you can work on the next step.
2. Choose a Strategic Location
A strategic location matters depending on your business activities.
3. Hire a Certified Business Consultant
A business consultant can help with the incorporation process. If you choose the right professional, the whole process will be hassle-free.
4. Choose a Trading Name
As you choose a trading name, ensure it doesn’t contain offensive terms or hurt any religious beliefs.
5. Apply for a Business Setup
You need to complete an application form. Also, submit different supporting documents such as proof of identity, the director’s and the shareholders’ address, passport copies, a well-composed business strategy, and the CVs of the shareholders.
6. Submission of Documents
After you’ve gathered all the documents, you should submit them to the authorities, who will analyze them before issuing the required licenses.
7. Open a Bank Account
The last step entails allowing business owners to handle transactions efficiently by opening an offshore bank account.
Offshore Companies in Seychelles and tax regime
A Seychelles offshore company operates from the country but was incorporated in a different country. The intention is to evade strict legal, financial, and tax-related regulations in the home country. Opening an offshore company in Seychelles has numerous benefits, including tax favorable tax incentives.
The main Seychelles taxation rule is that income earned from a source of income outside the country is not taxable. Also, dividends, capital gains, interests, or other income earned from another nation aren’t taxable.
Currently, the government is working on policies that will help broaden the income tax applications on other forms of income in the nation, including dividends and interests from savings.
Offshore firms get tax exemptions depending on the place of control and source of income. They operate under the IBC (International Business) Act, which dictates the fees to pay, registration of documents, and rules of formation.
While offshore companies are exempt from taxation, they’re supposed to pay for the non-monetary benefits provided to the employees. The employees working for the offshore firms are also not exempted from taxes, whether non-resident or resident.
Offshore jurisdictions provide favorable tax rates in a bid to attract foreign investors. Luckily, it is working for Seychelles, which explains why the economy is stable and gradually thriving.
Offshore Banking Seychelles
Banks in Seychelles provide various offshore banking solutions to open their financial relationships and expand internationally. It makes business operations for foreign investors even more seamless. Account holders can access their banks from anywhere in the world through mobile and internet banking services.
List of offshore banks to consider:
- Seychelles Commercial Bank
- Al Salam Bank Seychelles Limited
- MCB Seychelles Limited
- Bank of Baroda
- Absa Bank Seychelles
- Bank of Ceylon
- More on Banks in Seychelles
How to Get Seychelles Citizenship?
Before thinking of applying for citizenship, determine whether you are qualified or not. Some of the general conditions to fulfill include the following:
- Ensure you are not an illegal immigrant
- Ensure that your period of absence from the country is not more than 12 months
- Ensure you have not been in prison for more than 12 months
- Ensure that you pass the citizenship examination with 80 percent or more
Upon fulfilling the general condition, you can also apply for citizenship if:
- If you have been married to a citizen of Seychelles for ten years or more
- If you have been residing in Seychelles legally for five years or more
Apart from naturalization, you can also get Seychelles citizenship by:
- Birth: Any child born in Seychelles automatically becomes a citizen regardless of where the parents come from
- Decent: Any child born the outside the country, whereby one or both parents have Seychelles citizenship, automatically becomes a citizen.
Seychelles is a beauty to visit, a fun destination, and one of the best financial hubs for offshore business activities. With attractive tax incentives and stable government favorable business laws, investors cannot go wrong here. All they need is to rely on business agencies and consultants to assist in formation and other operations formalities. And you may be interested in Investment in Seychelles.