SIBA sponsors conference

Posted in Offshore Banking, Offshore Services, Seychelles CSL, Seychelles IBC, Seychelles offshore jurisdiction, SIBA at 11:52 am by Robert Klien

It has already been discussed that the Seychelles International Business Authority (SIBA) sponsors many important events.  Today, on September 25, 2008, SIBA sponsors another important event – Seychelles Road Show Event. It is a half-day conference held in Shanghai, People’s Republic of China.

It should be noted that distinguished panel of speakers are presenting numerous topics at this conference. The issues under discussion are aimed to further strengthen the existing ties between the Seychelles and China. This event is a unique forum that explore the products of the Seychelles financial services industry. The issues to be adressed are the International Business Companies (IBCs), Mutual and Hedge Funds, the benefits of the Seychelles CSL used in conjunction with the Seychelles/China Double Taxation Agreement, and tax-efficient structures. Also, the speakers will discuss the uses of Seychelles as the jurisdiction for offshore banking purposes.


Amendments in Seychelles offshore legislation published by SIBA

Posted in Seychelles CSL, Seychelles IBC, Seychelles legislation, Seychelles offshore jurisdiction at 1:27 pm by Robert Klien

Recently the Seychelles International Business Authority (SIBA) has informed about proposed amendments in Seychelles offshore legislation. It is expected that Seychelles IBC Act and CSL Act will be amended, but Seychelles Mutual Fund Act 1997 will be replaced by new Mutual Fund Act.

The SIBA has stated that Seychelles is experiencing a surge in its international business level, and, according to it, in 2006 Seychelles recorded another important increase in its International Business Companies (IBCs) registration. The jurisdiction registered a record number of new companies being formed in 2006 – 8237 companies. This number represents a 16% increase  over the year 2005. The total amount of companies on SIBA register as at December 2006 was 33161 companies. The SIBA noted that the above-mentioned results make Seychelles, perhaps one of the most favoured offshore jurisdictions in the world.

In order to maintain the continuous growth and to adopt the country in the competitive environment, Seychelles has proposed amendments to the existing legislation. According to the SIBA, the amendments will align the jurisdiction with such well-regulated jurisdictions as the BVI, the Cayman Islands and Jersey.

The proposed amendments published by the Seychelles International Business Authority are proposed amendments to the IBC Act, proposed amendments to the Seychelles Special Licences Companies Act, and proposed new Mutual Fund Act.

The proposed amendments rare expected to improve the existing legislation as to allow Seychelles to remain at the forefront of the developing offshore industry. And, as far as Seychelles’ offshore industry growth is going on, we should expect to hear a lot more about Seychelles as an offshore centre in the near future.


Seychelles International Business Authority

Posted in Seychelles banking, Seychelles CSL, Seychelles IBC, Seychelles offshore jurisdiction at 5:51 pm by Robert Klien

When it comes to Seychelles offshore services, the organization number 1 in Seychelles is undoubtedly the Seychelles International Business Authority (SIBA) established in February 1995.

SIBA is an organization corporate with board members who are prominent participants of both government and the private sector.

The Seychelles International Business Authority is a body that both licenses and regulates primary offshore activities. This body represents the Registrar for International Business Companies (IBCs) and trusts and a regulator of International Trade Zone activities. With its dedicated professionals and carefully worked-out systems, the Authority can provide swift name approvals, incorporation and licensing, while spending minimal periods of time on bureaucracy. As a result, certificates of incorporation, for example, may be issued within just one hour. So, SIBA is one of the fastest Registrars all over the world.


Looking for Online Search of Seychelles Companies?

Posted in Seychelles CSL, Seychelles IBC, Seychelles offshore jurisdiction at 1:41 pm by Robert Klien

This service can be obtained for free at the official website of the Republic of Seychelles. Unfortunately, the architecture of the web page does not provide a direct link to fully functional web page. Nevertheless, link can be quite easily found through the menu: go to http://www.virtualseychelles.sc/pages/vs_ie.htm, choose “business” in the upper menu and then use left menu “Company search”.

If this does not work, the following link can be used: http://www.virtualseychelles.sc/busi/busi_c_list.asp, however, it will not contain a menu, but just a Seychelles company search itself.

There you can either make search or try to find the company alphabetically. Through this company search you can get company director, address, mail, fax and phone number as well as its field and a short description of company’s business activities.

For instance, let us click “K”, then choose “KPMG Pool & Patel” and find the information on this audit firm. Or let us click “F”, choose “Fidelity Corporate Services (Seychelles) Ltd” and find the information on this SIBA licensed offshore service provider.

So, this is a very useful source, the only drawback is that the information does not provide the web sites of these companies. However, this problem is easily solved. For example, Fidelity’s e-mail indicated in company search is fidelity@seychellesoffshore … , so let us substitute the left part before “@” by “www.” , and what we get is the precise web address of this offshore company formation services provider (www.seychellesoffshore.com).


Double taxation benefits of Seychelles CSL companies

Posted in Double Taxation Agreements, Seychelles CSL, Seychelles offshore jurisdiction at 7:50 am by Robert Klien

Creating a CSL in the Seychelles gives the possibility to benefit of low taxation and to profit Special Licence CSL of no double taxation treaties.

The Seychelles has several double taxation treaties signed with:

  • South Africa;
  • Malaisia;
  • Thailand;
  • China;
  • Mauritius;
  • Oman;
  • Botswana;
  • Zimbabwe;
  • Indonesia;
  • Belgium;
  • Namibia

As a result of some negotiations, Russia, United Arab Emirates, Egypt and Vietnam are waiting to sign treaties as well.


Seychelles IBC and CLS taxation comparison

Posted in Seychelles CSL, Seychelles IBC at 7:16 am by Robert Klien

The CSL is resident in the Seychelles for tax purposes. The IBC is a non-resident for tax purposes.

Seychelles IBC is prohibited to carry on business in the Seychelles. As to the CSL, it may carry on legal business both inside and outside the Seychelles. It may have an office in the Seychelles to direct its operations from and to manage and control company. In such a case, it receives duty exemption on the furniture and office equipment imported for the office and gets social security concessions for its employees.


Government Fees payable by Seychelles CSL Company

Posted in Seychelles CSL at 2:45 am by Robert Klien

Schedule 3 of the Act provides fees payable by Seychelles CSL Company.

  • application for incorporation: US$ 200.00
  • annual license fee: US$ 1000.00
  • annual return filing fee: US$ 200.00

It is notable that annual license fee for CSL company is considerably higher than for IBC with Authorised Capital up to US$ 100,000, however it is the same as for IBC with Authorised Capital over US$100,000.

The fees paid to Corporate Service Providers for incorporation services, assistance with the Special License application processing and management services for offshore company in the Seychelles should be added there. These fees varies from Corporate Service Provider to Corporate Service Provider and should be discussed prior creating the company.


Taxation of Seychelles CSL company

Posted in Seychelles CSL at 3:45 pm by Robert Klien

Schedule 2 of the Act provides tax rates for Seychelles CSL Company.

The rate of the tax payable by a company in respect of its taxable income is 1.5%.

The rates of withholding tax are the following:

  • dividend paid to a resident – nil;
  • dividend paid to a non-resident – nil;
  • interest paid to a resident – nil;
  • interest paid to a non-resident – nil;
  • royalty paid to a non-resident for the right to use a copyright, patent, trademark, design, model, plan – nil;
  • royalty paid to a non-resident for supply of scientific, technical, industrial or commercial knowledge, services, information – nil;
  • royalty paid to a non-resident for the right to use a secret formula, process ot know-how whether technical, managerial or otherwise, other intellectual property or right – nil;
  • royalty paid to a non-resident for the right to use an industrial, commercial or scientific equipment – nil.

So, under the Business Tax Act, the CSL is liable to Seychelles corporation tax at the rate of 1.5% on its income. No withholding tax must be paid on dividends, interest or royalties. This is different from the common approach of taxing only Seychelles-sourced income.


CSL company registration

Posted in Seychelles CSL at 9:05 am by Robert Klien

Seychelles CSL is registered in the Registrar of Companies that issues the certificate. Seychelles International Business Authority (SIBA) issues the special licence upon having the confirmation of registration.

At least two individuals (to be directors), and a resident secretary (to accept service on behalf of the company) are needed for a CSL. There are no provisions for corporate directors. Meetings by shareholders and directors may be held by phone or any electronic means if they hear and recognise each other. All resolutions may happen in writing, cable, telex or e-mail. Annual returns have to be submitted to the Authority.

CSL creation is not a formal process. A detailed Application for the SIBA – and the substantial amount of information from the client and/or beneficial owner of the company – are needed for it.

A Seychelles incorporated International Business Company (IBC) or a company incorporated outside the Seychelles may become a CSL. For this, it has to submit to the Authority articles of continuation (in English or French), and certified by the Secretary which must contain the name of the company and the name which is to be used, the jurisdiction of incorporation, the date of incorporation, the amendments to memorandum and articles, or their equivalent, that are to be effective upon the registration of the articles of continuation.

Also, continuation outside the Seychelles is allowed, subject to any limitations in the memorandum and articles of association.


Seychelles CSL purposes

Posted in Seychelles CSL at 4:32 pm by Robert Klien

The below-mentioned list from Schedule 1 of the Act is a list of purposes for which a licence may be issued, although the other purposes also can be considered. However, the company’s business activities are to be specific and limited to the approved purposes. These could be:

1) Investment management and advice
2) Offshore banking
3) Offshore insurance
4) Reinsurance
5) Business of:

  • an investment company
  • a holding company
  • a marketing company
  • a company holding intellectual property
  • a headquarters company
  • a human resources company
  • a franchise company

6) Business under a ITZ licence
7) Any other business approved by the authority

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