Seychelles Offshore Benefits

Seychelles comprises a group of 115 of the most scenic islands in the world located approximately 1000 miles east of Africa between 4 and 7 degrees south of the equator. Seychelles is not in the cyclone belt giving it an advantage over other jurisdictions such as Mauritius and all of the Caribbean jurisdictions.

Seychelles is a 100% self-governed democratic republic, gaining its independence in 1976 from the United Kingdom. Seychelles remains an independent member of the UK Commonwealth, but is under no authority of the British Crown. Likewise, Seychelles is under no jurisdiction of the European Union. Seychelles is a full member of the United Nations.

Other popular offshore jurisdictions such as British Virgin Islands, Cayman Islands, Anguilla, and the Channel Isles are beginning to see the troubles associated with their lack of true independence and association with the EU by proxy of the UK.  These and others have succumbed to pressure from the EU, UK and USA in recent years. Some have adopted undesirable measures; signed information exchange agreements, mutual legal assistance treaties; and tax information exchange agreements which are largely one-sided agreements in favor of the larger countries. In fact many of these island jurisdictions such as Caymans and BVI contain clauses at the end of their respective constitutions which essentially give the British Crown, through its proxy Governor, the right to enact laws and regulations without any vote at all.

Seychelles offers one of the most attractive total packages in the offshore world with its available non-resident tax free and tax resident low tax structures; growing network of tax treaties used for investment into other countries; low government fees; and international trade zone all created and supported by one of the best legal and regulatory regimes in the offshore world.          

Legal and Regulatory Features:

• Common Law/Civil Law hybrid legal system
• Low government licensing fees ($100 for IBC/$1000 for CSL)
• Tax free Seychelles International Business Company (IBC)
• 1.5% low tax resident Special License Companies (CSL)
• Modern legislation allowing for and regulating offshore companies, offshore banking, offshore insurance (including captive insurance), mutual funds, hedge funds, protected cell companies, and limited partnerships
• Growing network of Double Taxation Avoidance treaties: Those ratified and in force include China, Cyprus, Malaysia, Indonesia, South Africa, Mauritius, Vietnam, Thailand, Botswana, UAE, Oman and Zimbabwe.  Qatar and Belgium are signed waiting only to be ratified.  Negotiations concluded with Russia, Egypt, Kuwait, Czech Republic, Tunisia, Namibia, and Bahrain.  Negotiations in progress include Philippines, Malta, Burundi, Ivory Coast, Lesotho, Morocco and Uganda.  Agreements to negotiate with Israel, Portugal, Turkey, Tanzania, Kenya, Zambia, India, and Sweden
• No mutual legal assistance treaties (although the DTA’s contain language recommended by the OECD)
• Not a member of the EU or under obligations of measures such as the EU Savings Directive 2005
• 24 hour or less incorporating time (IBC)
• Government commitment to establishing Seychelles as a major international offshore financial center

Current Events

Seychelles recently passed three new very important pieces of legislation: the Mutual Fund Act 2008, Securities Act 2007 and Insurance Act 2008. All build upon excellent existing products and reflect "best practices" born from the benefit of insight into other similar products in competing jurisdictions and leading international experts who assisted in crafting the legislation.