Setting Up a Company and a Corporation in the Seychelles: Cost Considerations and Requirements

Introduction to the Seychelles

The Seychelles, an idyllic archipelago off the east coast of Africa, is known for its stunning beaches, lush greenery, and rich biodiversity. The islands offer a unique and attractive environment for businesses, particularly due to favorable tax incentives and a business-friendly legal system. If you're considering setting up a company or a corporation in the Seychelles, this guide will help you navigate the process and understand the associated costs.

Why Consider the Seychelles?

Financial Benefits

No corporate tax on profits No capital gains tax No withholding tax on dividends, interest, or royalties No personal tax on capital gains or dividends Special economic zones with more tax benefits

Legal Framework

Common law system Transparent and efficient regulatory environment Alignment with international business practices

Cost Considerations for Setting Up a Company

Initial Setup Costs

Setting up a company in the Seychelles involves several initial costs, including:

Registration: $100 to $200 for standard companies Legal Services: $1,000 to $5,000 for professional assistance Accounting and Bookkeeping: $500 to $2,000 annually Office Space: $500 to $2,000 per month, depending on location and size

Government Fees and Registrations

Additional government fees and registrations include:

Certificate of Attorney: $250 to $500 Capital Levy Levy (if applicable): Approximately $1,000 to $4,000 Annual Registration Fee: $200 to $400

Setting Up a Corporation in the Seychelles

Advantages of a Corporation

A corporation in the Seychelles offers several advantages:

Full Liability Protection: Shareholders are not personally liable for the corporation's debts or actions. Perpetual Existence: The corporation continues indefinitely. Recognition by International Registries: Easy to list on international stock exchanges.

Costs Involved in Setting Up a Corporation

The cost of setting up a corporation in the Seychelles is generally higher than that of a limited liability company due to added requirements:

Registration: $200 to $500 Legal Services: $2,000 to $10,000 Customs and Registration Fees: $1,000 to $4,000 Board of Directors Meeting: $500 to $2,000

Steps to Establish a Company or Corporation in the Seychelles

1. Choose the Type of Entity

Limited Liability Company (LLC) Proprietary Company Public Limited Company (PLC) Closed Company (CC)

2. Register with the Corporate Affairs Commission (CAC)

The CAC handles the registration process and ensures compliance with Seychelles business laws. This step involves:

Filing the incorporation documents Providing company details including name, purpose, and share structure Applying for a company seal

3. Obtain Necessary Licenses and Permits

Depending on the nature of your business, you may need specific licenses and permits:

Trading License Tax Registration Environmental Clearances (if necessary)

Conclusion

Setting up a company or a corporation in the Seychelles involves a combination of initial setup costs, government fees, and ongoing compliance requirements. While the process may be relatively straightforward, it is essential to engage professional services to ensure compliance with all local regulations and to help navigate the complexities involved.

Frequently Asked Questions (FAQs)

Q: Do I need legal assistance to set up a company in the Seychelles?

A: Yes, it is highly recommended to engage the services of a legal expert to ensure all legal requirements are met and to provide guidance throughout the process.

Q: Are there any hidden costs involved in setting up a business in the Seychelles?

A: While the initial costs are fairly transparent, there may be additional expenses related to ongoing compliance, such as annual registrations and audits.

Q: Can I start a business in the Seychelles without having a physical office?

A: Yes, many businesses operate from virtual offices or remote workspaces. However, you must still fulfill legal requirements for a business address, which can be accomplished through reputable virtual office providers.