A tax haven is a place where certain taxes are levied at a low rate or not at all e.g. Seychelles tax for an offshore company is zero. This encourages wealthy individuals and/or firms to establish themselves in areas that would otherwise be overlooked. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.
A Seychelles offshore company formation is allowed when the company incorporated does not conduct substantial business in Seychelles. This type of International Business Company [I.B.C] is known as a Non- Resident company.
A Seychelles offshore company formation may bring a number of benefits to individuals or companies incorporated under the Seychelles offshore laws.
* Taxation: Business may be structured so that profits are realized in ways that minimize their overall tax liability.
* Simplicity: Except for regulated businesses, such as banks or other financial institutions, a Seychelles offshore company formation is relatively simple to set up and maintain.
* Reporting: The level of information required by the registrar of companies varies from jurisdiction to jurisdiction.
* Asset protection: It is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.
* Anonymity: By carrying out transactions in the 買現成公司 name of a private company, the name of the underlying principal may be kept out of documentation. Having said that, current anti money laundering regulations often require banks and other professionals to look through company structures. Documentation for Seychelles offshore company formation is relatively uncomplicated.
* Thin capitalization: Seychelles offshore company formation allows “thin capitalization” rules for its I.B.C companies (except for regulated entities such as banks and insurance companies) so that they can be incorporated with nominal equity.
* Financial assistance: Seychelles offshore company formations are usually not prohibited from providing “financial assistance” for the acquisition of their own shares, which avoids the needs for “whitewash” procedure in certain financial transactions.
* Seychelles offshore company formation is usually prohibited from conducting business in their jurisdiction of incorporation. They are no allowed to invest in property Seychelles either.
* For regulatory reasons, there are certain restrictions on the type of business which a Seychelles offshore company formation can engage in. For example, it is quite common for there to be general prohibitions against offshore companies engaging in banking business, insurance business or operating as a trust company.
* Because of the limited amount of publicly available information in connection with offshore companies, there is usually a high level of hidden costs at the administrative level.
For example, to open a bank account in the name of an offshore company, to comply with relevant anti money laundering regulations, the bank will normally require large quantities of corporate documentation to be notarized in the jurisdiction of incorporation, and may require opinions from local lawyers in that jurisdiction as to the capacity and power of the company to open and operate a bank