With a bewildering number of offshore jurisdictions out there, how do you find one that can suit a broad range of investment objectives?
What sets the Seychelles apart from the others?
A remote group of Paradise Islands somewhere in the Indian Ocean, at first glance the Seychelles don't appear to break any tax haven stereotypes. Yet with the global economic climate changing, and tax and privacy issues with it, that tax haven stereotype is itself in motion.
The Seychelles is one of the increasingly small number of tax havens that are truly independent, and which do not suffer from association with high-tax governments. The Seychelles used to be an English colony before gaining Independence in 1976. Other former colonies which are still part governed by the UK such as The Channel or Cayman Islands are beginning to feel the negative impacts of this union, especially now that tax laws created by the EU (such as the Savings Tax Directive) prevent them from offering the same tax breaks and privacy for which they have become famous.
Despite its obvious advantages, the Seychelles has still managed to keep its fees among the lowest and service levels up to a gold standard. It offers, in the navigator's opinion, the most attractive total package in the world.
It's practical:
One of the most practical aspects of incorporation in the Seychelles is that everything can be managed entirely in English. Why is this important? It means you know exactly what is going on in any document that has your name on it. Panama is one of the top rated jurisdictions for investor privacy but when it comes down to registering that company you are putting yourself in the hands of someone who actually knows Spanish.
It's cheap:
The retail price for a Seychelles IBC is around $1500. This low base fee makes Seychelles companies the cheapest available bar Belize. Compare this to this Panama at around $2000 and the British Virgin Islands between $1400-1800.
Another important point to mention is the maintenance fee. This is set by the Seychelles Business Authority at a low rate for life. The Seychelles also does not tax authorized share capital, unlike Panama.
It's efficient:
The Seychelles is not one of the oldest tax havens. It has built its reputation on both its price and efficiency. Companies can be incorporated within 24 hours. This in itself does not make it unique (Belize and BVI can claim the same), but the Seychelles offers this service along with independence and an untarnished reputation. The only other jurisdiction which claims to be as independent as the Seychelles, Panama, incorporates in 3-4 days.
How is the Seychelles perceived internationally?
Previous clients have not run into any problems getting accounts opened with Seychelles companies, and have seen no difference in treatment compared to other Jurisdictions. In fact, as a place not thought of as an 'abusive' tax haven it is possibly more trusted than others.
Bank accounts have been opened with major international banks such as Barclays or Credit Suisse without problems. Having said that, the ability to open an account will not depend 100% on the jurisdiction of your company. Banks will be more interested in the parties involved, what you plan to do with the account, and of course how much money they are going to make out of it!
Seychelles and the US...
Although the Seychelles Business Authority seems determined to promote itself as an Offshore Financial Centre it is not targeted unlike other countries as a 'tax haven'. The Seychelles has no Tax Information Exchange agreements with the US or EU or any OECD countries and, and there are none intended. This means that the US cannot legally ask for information concerning tax related crimes. Since other high-tax countries also can't get this information there is no risk of your details being shared among them.
Compare this to the Cayman Islands or other British dependencies, where information obtained by the UK government could then be shared with the US or EU.
Security and the geo-political future of the Seychelles
What? It's in Africa?!?
Yes that's right, almost. The Seychelles are a group of islands approximately 1000 miles East of Africa. They share in some African regional promotional groups, but are equally counted as part of the Middle East or Asia depending on who you are talking to.
But is it safe?
You may have heard stories in the news recently about Somali Pirates holding ships to ransom. While the Seychelles is relatively close to Somalia (we're still talking 1000 miles here), it would take a foolhardy pirate to venture so far in a speedboat. Occasionally yachts leaving the Seychelles and going up around the horn and into the Gulf of Aden have had trouble from pirates, but the Islands themselves are protected by many miles of open sea which no pirate dares cross.
Although if you look on a world map the Seychelles appear frighteningly close to dangerous territory, its stable democracy has allowed the country to develop isolated from the anarchy of the region. The Seychelles has a low crime rate, far lower than the US. The state department advises not swimming on isolated beaches 'especially after dark...due to strong currents' rather than fear of crime. The country is to all extents and purposes safe, especially for tourists. And the government wants to keep it that way.
So if you feel like starting up your own Seychelles company, why not combine it with a holiday? just don't go yachting without an experienced hand on board :)
More information on how to set up a Seychelles Offshore company
