Incorporating your business in another country can have a number of benefits. In the Seychelles, the financial services sector is the pillar of the economy, offering offshore banking services, offshore companies registration, registration of investment funds and insurance companies, and more. Here, we’ve outlined the top eight benefits of opening a business in the Seychelles, along with how to go about incorporating.

1. It’s really easy

The process of opening a business in the Seychelles is one of the easiest in the world. Seychelles International Business Companies (IBCs) are the most common type in the country for non-residents and the process is quite simple.

New IBCs usually only take 24 hours to incorporate. The primary language used for businesses is English, meaning there will be little confusion. There is no up front capital required, and no par stock value is accepted, so there is little financial commitment needed. 

2. Privacy and confidentiality are a priority

The issue of privacy, especially when it comes to personal information, has been an increasingly hot button issue. Luckily, if you open your business in the Seychelles, your privacy is guaranteed by law. Aside from the identity and personal information of the initial company director, the identity of shareholders, other directors, and beneficial owners are not kept on public records.

The Seychelles is also an independent jurisdiction, meaning that it does not report or share information with external countries or organizations. Additionally, the country is not subject to the EU Savings Tax Directive. There is very little political pressure when it comes to the disclosure of information in the Seychelles. 

3. Fair taxation

One of the biggest benefits of incorporating in the Seychelles is the lack of taxation. The country has a Territorial Tax System, which means any income you earn outside the country is not subject to taxation. Zero taxation also applies to capital gains, interest, and stamp duties on business transactions.

In order to comply with this taxation law, it is extremely crucial that your company does not earn any income within the Seychelles. Additionally, your business can’t own property or may need a specific license (usually for companies in the financial sector). It is important to remember that you may be subject to resident taxes in your country of residence depending on regulations there.

4. Flexible entity structure

Designed to accommodate a wide variety of business structures, the Seychelles is very flexible when it comes to structuring your business. For IBCs, there only needs to be one director and one shareholder, and they can be the same person. There is no limitation on nationality and there is no requirement for a local director either.

Furthermore, there is no mandatory tax filing or auditing as long as you keep your accounting records, but it is important to note that this only applies to IBCs who don’t earn any income within the Seychelles. There is no requirement for an annual general meeting to take place in the country; doing so by phone or video is just fine. 

5. Modern banking facilities

The Seychelles offer some of the most modern banking facilities in the world, meaning you’ll have access to premium services when it comes to your business banking and any other financial services. For IBCs, it is legally required to have the main bank account in the Seychelles. There are a wide range of bank accounts available, including multicurrency. Naturally, internet banking is a standard and is known for being highly secure.

The best part is that you can open an account from abroad; no in-person visit to the bank is necessary. Additionally, there are no or very low minimum balance requirements for accounts. Once again, there is no restriction based on nationality aside from international sanctions lists. 

6. Political and economic stability

The future success of your business is directly tied to the economic situation of the country in which you choose to incorporate. Economic growth has been steadily increasing in the Seychelles, and shows no signs of stopping. Additionally, the government has been focusing on debt reduction to ensure further stability.

Political stability is as equally important as economic stability. For example, a study by the London School of Economics has shown that a change from a democratic government to an autocratic one can have a negative impact on businesses in the tourism industry. The Seychelles is a free democracy and is also very stable politically. The likelihood of a political uprising, revolution, or any other activity that would affect how business is conducted in the country is very low, meaning your company and its assets are safe.

7. Excellent support for business owners

Since the Seychelles is such a popular destination when it comes to company incorporation, there is a lot of support available to you. If you don’t want to go through the legal process of incorporation on your own, various companies and law firms offer to do it on your behalf for relatively low fees. 

Additionally, there is a large network of financial, legal, and secretarial experts available for you to use. There is a burgeoning professional network of experienced professionals who can help you with whatever you need. Should your business need technical support, it is readily available too.

8. Low yearly requirements

The yearly requirements for incorporated companies are so minor that they aren’t even close to being a hassle. Once you’ve set up your business, there really isn’t that much to do. For IBCs, there is a yearly license fee of $100 and you will need to maintain a local agent. 

As we mentioned earlier, you don’t even need to file taxes. Additionally, annual meetings don’t need to take place in the Seychelles themselves. Maintaining a business in the Seychelles is almost easier than incorporating in the first place.

How to open a business in the Seychelles

Opening a business in the Seychelles is one of the easiest processes in the entire world. There are a few things you need to do in order to incorporate, but compared to other countries, it’s quite simple.

Before you open your business, you need to come up with a trading name, which can be in any language. That being said, English is the primary language used for trading names in the Seychelles. You will also need to obtain a registered legal address in the Seychelles. This may sound complicated, but all you really need is a virtual office or an equivalent. 

From there you need to choose what type of company you want to open. As we mentioned earlier, IBCs are the most common type for offshore business provided you don’t plan to earn any income within the Seychelles. Note that if your company is involved with gambling activities or banking services, you cannot open an IBC.

You will then need to draw up a business plan if you don’t already have one, mainly to decide on a shareholding structure. After that is completed, you can register your business with the Seychelles International Business Authority (SIBA). 

Depending on what type of business you want to open, you may need to apply for an additional special license from the Seychelles Licensing Authority. You can find a full list of what activities will need a license on their website.

Lastly, you will need to open your business bank account. As we mentioned earlier, it is a legal requirement that IBCs have their main bank account be in the Seychelles. Luckily, opening an account is extremely easy and can be done without an in-person visit to the bank itself.

Conclusion - One of the best options just got better

As you can see, the Seychelles offer a wide number of benefits to anyone looking to incorporate an offshore company. Whether you’re concerned about taxation, privacy, convenience, or stability, the Seychelles has something to offer everyone. Technology is also evolving, meaning that smart companies are starting to become more prevalent in the Seychelles too.

A smart company is a form of organization that has been incorporated onto the blockchain with full legal compliance. Smart companies are legally recognized as IBCs, and the Seychelles are the world’s first jurisdiction to approve the smart company model. 

Smart companies are completely digital, and our friends at Korporatio have managed to make opening a business in the Seychelles easier than ever before. Through a dedicated digital dashboard, everything involving your business takes place securely online and in real time. Additionally, they have built-in compliance, meaning you don’t have to think about any legal requirements. 

We've partnered with Korporatio to offer you smart company incorporation in the Seychelles through the ESelfKey Wallet. Download the ESelfKey Wallet, navigate to the Incorporations Marketplace and click on the Seychelles jurisdiction to get started.

That being said, some countries are particularly hospitable to business owners. This article provides a list of the best countries in which to launch your incorporation. In order to evaluate the suitability of a jurisdiction, we will be paying close attention to each country’s current situation, applicable taxes, important legal requirements, and the incorporation process.

1. Hong Kong - The Winner

Starting off our list we have the flourishing, autonomous territory in Southeastern China: Hong Kong.

Not only is it the gateway to the largest economy in the world, but it also boasts a very stable financial and political situation. In fact, Hong Kong ranks among the top 40 countries in terms of GDP, and is the freest economy in the world according to the Index of Economic Freedom. No wonder then, that Hong Kong is very business-friendly and has a great international reputation.

Taxation is simple, corporation tax is low, at 16.5%, there is no capital gains tax and no customs duties. The personal income tax rate is set at 17% and there is no VAT.

Additionally, the incorporation process is beautifully simple, as it can be done remotely in as little as two days. Hong Kong is also home to some of the strongest banks in the world, and enables entrepreneurs to set up a bank account with ease.

Overall, Hong Kong is a superb jurisdiction to incorporate in, and a deserved first place on our list.

Price of Incorporation: $1,850 (29th of April 2019)
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2. Estonia - Progressive and Welcoming

Next on our list we have the Eastern European country Estonia. Not only does Estonia have perhaps the most technologically advanced governance, but it also boasts some of the most progressive legislation on voting, healthcare, banking and taxation anywhere in the world.

You may have seen Estonia in the news, because they digitized almost every branch of government, and launched wildly popular services like e-residency. As a result, Estonia has become a hub for technology and dozens of startups have thrived there. Blockchain companies have done particularly well, as Estonia has the easiest and most affordable licensing process for crypto exchanges and wallet service providers.

This country has a straightforward and reasonable tax system. There is no taxation on retained profits and 20% taxation on distributed profits. Corporate compliance is made very simple as all mandatory filings can be done electronically.

As for the incorporation process: Estonia leads the world, allowing you to remotely register a company in under an hour.

Finally, Estonia is part of the European Union and gives you access to the shared market comprising 500 million people. The European market is a steady and profitable one, and starting your business in Estonia is a gateway to the European Union.

Price of Incorporation: $2,950 (29th of April 2019)
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3. Switzerland - Established and Trusted

With a long tradition of financial, political, and economic stability, Switzerland is also a great country to start your business in. As Switzerland is small and landlocked, its economic policy is very hospitable towards foreign free trade, with low import duties and just a few import quotas.

As a result, this country is known worldwide as a center for trade and finance, which means you’ll have access to top shelf corporate banking facilities and services.

From a taxation perspective, Switzerland is also very attractive. It has one of the lowest value-added tax rates (8%) and the country offers a number of tax incentives, grants and rebates for companies involved in many different industries. Corporation tax is only 7.8%, which is the same as capital gains tax - both of which are very low compared to other countries.

For this reason, many large international firms and SMEs choose to establish their headquarters here. Incorporation is relatively painless and can take as little as five days. Importantly, you’ll have access to free trade and movement in the EU.

Price of Incorporation: $9,900 (29th of April 2019)
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4. British Virgin Islands (BVI) - Great tax regime

The British Virgin Islands are one of the world’s largest offshore financial centers and one of the best countries in which to incorporate.

Importantly, BVI has a strong offshore regulatory environment, which combines oversight with economic freedom. This approach allows you to do business with ease, while still enjoying reputable banks and a comprehensive compliance framework.

Of course, English speakers are drawn to BVI because English is the primary language used on the islands. Fortunately, you do not need to appoint a local director or local secretary. Instead the application process as well as the control over the legal entity can be done remotely. One thing to keep in mind however, is that all international business companies are required to maintain a Register of Directors.  

The BVI also scores points with very friendly taxation, only levying a stamp duty on the transfer of land. There is no capital gains tax, corporation tax, personal income tax, or offshore tax.

With all this in mind the British Virgin Islands are a fantastic country of incorporation and definitely checking out.

Price of Incorporation: $2,350 (29th of April 2019)
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5. Cyprus - Very hospitable to foreign businesses

Cyprus is number five on our list and an excellent choice for your business. Located in the Mediterranean, the former British Colony is a member of the European Union and boasts annual GDP growth of just under 4%. It has become a gateway to the European market by many non-EU companies.

Besides the strong economy and beautiful location, Cyprus is attractive because of its fair and transparent tax regime. The offshore and corporation tax rates of 12.5% are very fair and there is no capital Gains tax. Dividends earned by companies in Cyprus are exempt from all taxes - with the exception of foreign-source dividends which are still tax deductible for the paying company).

The reason Cyprus is a little lower on our list is that the Incorporation process takes a little longer. You can expect to wait 2 weeks to complete the process, which is significantly longer than most other countries on this list.

Nevertheless, Cyprus is an excellent location to incorporate in, especially if you want access to the European Market, while paying very reasonable taxes.

Price of Incorporation: $3,900 (29th of April 2019)
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6. Panama - Excellent access to the Americas

The Republic of Panama is located in Central America and is home to the renowned Panama Canal. This has allowed the country to become an international trade hub, providing both a stable economy and political situation.

Panama also has great infrastructure, and is one of the largest free trade and international distribution centers in the world.

For new business owners Panama offers a fair and transparent tax regime. Corporations that conduct their business outside of Panama are exempt from all local taxes and there are no foreign exchange controls.

Companies that do business domestically, can expect to pay a 25% corporation tax but no capital gains tax.

If privacy and confidentiality are a concern, you’ll be happy to hear that shareholders and beneficial owners’ details are not publicly disclosed. Confidentiality of business and banking transactions are protected by law.

Overall, this makes Panama a great country of incorporation.

Price of Incorporation: $3,250 (29th of April 2019)
Download the ESelfKey Wallet and head to the Incorporations Marketplace to get started.

7. Malta - Join the European Single Market

Malta, the southern European Island, is another popular choice for international and holding companies. Comprising just 400,000 citizens, Malta is particularly amenable to entrepreneurs from abroad that wish to set up a business there.

With access to the European Single Market, attractive taxation and progressive legislation, Malta is a deserved member of our list. You might be taken aback by the ostensible 35% corporation tax, but rest assured that there is a system of tax credits and refunds which bring the effective tax rate down to 10%.

Malta has also signed a large list of Double Taxation Agreements, and startups in Malta have access to a skilled English-speaking workforce.

The Incorporation process is straightforward, with an expected processing time of 5-10 business days.

Price of Incorporation: $4,300 (29th of April 2019)
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8. Cayman Islands - Taxes of the Caribbean

The Cayman Islands is number eight on our list and represent another excellent country of incorporation.

Located in the Caribbean, the autonomous British Territory has built a stellar reputation in the business world, being the world’s leading offshore financial services hub. In fact, the small country offers a stable economic and political environment in which entrepreneurs can thrive.

One of the key reasons for the success of the Cayman Islands, is the attractive tax regime. Here business owners do not have to pay corporation tax, capital Gains tax, or offshore tax. Additionally, an Exempted company can even apply to be free from any law enacted in the Cayman Islands that levies tax. Not bad.

The reason the Caribbean Island ranks towards the bottom of our list, is because of the relatively large import duty tariffs which range between 22% and 27%. Depending on your industry, this could prove to be a real pain.

Nevertheless the Cayman Islands is one of the best places to start your business.

Price of Incorporation: $3,400 (29th of April 2019)
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9. New Zealand - The World’s Easiest Country to do Business

Last but certainly not least, we the easiest country to do business in the world (according to the World Bank). The government welcomes business and has taken many steps to make immigration easier for investors and business people. Along with a strong economy that shows steady growth and a relatively laissez-faire regulatory environment, it’s no wonder it’s the top of the World Bank’s list.

As far as taxation goes, the current corporation tax rate is 28%, but there is no Capital Gains tax. There are also a number of tax incentives, plus New Zealand has tax treaties with a large number of countries. Incorporation can take just a few hours online. With a modern, prosperous, and developed market economy, New Zealand might be the right place to start your business.

10. Singapore - Get Access the Asian Market

As the trading hub of Southeast Asia, Singapore is home to the busiest port in the world. With one of the fastest growing regional economies, it has major potential for entrepreneurs who are looking to start a business in a hospital environment. Singapore is a country that encourages entrepreneurship, and the government supports a free market.

One of the best parts about starting a business in Singapore is the transparent tax scheme. Although Singapore has a corporation tax of 17%, there is no Capital Gains tax and startups are eligible for several different tax breaks and incentives. The Personal Income tax rate is reasonable at 22% and VAT is only 7%.

Launching an incorporation in Singapore can be done through the ESelfKey Marketplace in less than an hour and you can expect to hear back in 1-3 business days. Singapore’s court system is known for being fast, providing a great bureaucratic environment in which to work.

On the down side, all Singaporean-incorporated companies are required to have at least 1 director who is a citizen or permanent resident. This is the reason Singapore is last on our list, despite offering a great country of incorporation otherwise.

Price of Incorporation: $6,200 (29th of April 2019)
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Country of Incorporation: Our Top 10

I hope this list has been helpful. It represents a fraction of the information available to you in the Incorporations Marketplace. If you’re looking to launch a legal entity or are still researching the benefits of starting a business overseas, the ESelfKey blog has what you need.