Seychelles International Business Company (“IBC”)

A Seychelles International Business Company (“IBC”) is regulated by the Seychelles International Business Companies Act 1994. Seychelles IBC is an international business company and one of the most popular and versatile type of offshore corporation available to global clients. Similar to other classic offshore companies, Seychelles IBC is designed to engage in international business.

Since the introduction of the Seychelles International Business Companies Act in 1994, over 100,000 Seychelles IBC`s have been registered, with more than 600 new offshore companies being registered every month.

Being an IBC, it is subject to minimum red-tape. While being obliged to keep internal records and registries in good order, a Seychelles IBC does not have to submit any financial reports to public file. There is also no mandatory audit requirement however it is recommended to maintain proper record of accounts.

Following is a synopsis of the most important advantages and features of the Seychelles International Business Company.

Taxation Aspect

A Seychelles IBC, by the definition of the law, is not subject to any tax or duty on income or profits. A shareholder of a Seychelles IBC is also not subject to any tax on his income derived from the IBC. These provisions are enshrined into Article 109.(1) of the Seychelles IBC Act, stated as follows:

109.(1) A company incorporated under this Act or a shareholder thereof shall not be subject to any tax or duty on income or profits accruing to or deriving from such company or in connection with any transaction to which that company or shareholder, as the case may be, is a party.

In a similar fashion, a Seychelles IBC is also exempt from any stamp duties on all transactions relating to its business, in particular on any transfers of property to or by the company, and on any transactions in respect of the shares, debt obligations or other securities of the IBC.

Essentially, a Seychelles IBC is a completely tax-free offshore corporation, insofar as it complies with a few simple rules of operation. The main requirement is that a Seychelles IBC should not pursue business within the territory of the Seychelles (except, of course, it may enter into business with any other Seychelles IBC`s). The law provides that all exemptions for a Seychelles IBC shall remain in force for a period of twenty years from the date of incorporation of the IBC.

In order to qualify as an IBC, a Seychelles company must satisfy the following criteria:

  1. It may not carry on business in Seychelles.
  2. It may not own real estate in Seychelles.
  3. It may not do banking, insurance and registered agent business without special license.
Administration Aspect

However, a Seychelles IBC may still engage into any of the following:

  1. It may maintain Seychelles-based bank accounts and deposits.
  2. It may maintain books and records within Seychelles.
  3. A Seychelles IBC may maintain professional relationship in Seychelles with attorneys, accountants, trust and management companies, investment advisers or other similar persons.
  4. It may hold meetings of its directors in Seychelles.
  5. It may lease a property in Seychelles to use as office from which to communicate with members and where books and records can be kept.
  6. It may hold shares, debt obligations or other securities in another Seychelles IBC or in a Seychelles domestic company.
  7. A Seychelles IBC may also own a vessel or and aircraft registered in Seychelles.
  8. Shares in a Seychelles IBC may also be held by a person resident in Seychelles.