Use of Seychelles offshore companies
Offshore companies are flexible entities that can be readily integrated into a wide range of business deals. The use of an offshore company can reduce tax and increase secrecy provided the owner uses it wisely. In contrast to the common belief that an offshore company formed in a non-tax jurisdiction avoids all the complicated tax regulations may not all be 100% true. It does not excuse the owner from tax liabilities imposed by regulations in his own country. A wise use of an offshore entity, however, can reduce, suspend or even eliminate completely some tax that his business is otherwise liable to pay. Especially for those starting commercial ventures, being able to save income in an environment that is tax-free and hassle-free in an offshore jurisdiction will assist them to a speedy growth and become more competitive.

What should one bear in mind when starting an offshore company?
There is no avoiding however for the need of an offshore company to objectively confront various anti-avoidance laws that are enforced in the country where the beneficial owner operates his venture or where he resides. This is quite a complicated situation that necessitates professional advice prior to starting an offshore company. One can start by taking some guidance from tax adviser or an accountant who are from both the country of domicile as well as the country where the planned venture is to take place. It is also critical to consider the laws regarding offshore companies in the offshore jurisdiction in conjunction with the regulations and laws of other countries particularly where the offshore company will conduct its operations, undertake its contracts and purchase its assets.

What are some of the specific uses of offshore companies in Seychelles?

Trading Company
This type of offshore company can act as a trading intermediary such as a distributor, importer/exporter, sales or Procurement Company. It performs its operation by buying directly from the manufacturer and arranging for the goods to be received directly by the end-customer from the production place. This can particularly be done where goods come from another country but sold in Seychelles, yet the owner of the company is located in a third country. Thus, a domestic producer of goods in Seychelles can make use of an offshore sales company to distribute their produce overseas; equally, a domestic importer in Seychelles can make use of an offshore procurement company to source good abroad. This way, the trading profits are accumulated in a tax-free offshore jurisdiction that enables quicker increase in profit to be used for development and re-investment.

Professional Service Company
Undertaking professional consultancy or free-lance international contracting in Seychelles can reduce the burden of taxes through incorporation as an offshore company. This professional service company would then enter into professional services arrangements with all interested clients. While the salaries received are charged a fixed level of tax, the primary owner of the offshore company is enabled to accumulate parts of the income from the fees in the name of his IBC, in an environment of no-hassle and no-tax. In this type of offshore company, a liability arising from carrying out a contract falls upon the company and not the person.

Investment Company
Funds from private individuals can be pooled and accumulated using an offshore investment company. It can then be deposited or invested worldwide and the profits amass in a tax-free jurisdiction. The additional gains can then be included in the capital fund and re-invested or distributed.

Royalty/ Copyright/Patent Holding Company
This type of offshore company can access the right to use a copyright, trademark, patent or knowledge by original holders with authority to sub-license and eventually exploit intellectual property in numerous countries. This can also be applicable by offshore companies using internet base to hold domain names while operating websites in a tax-free jurisdiction.

Shipping Company
This offshore shipping company can be beneficial in eliminating direct or indirect taxes on services related to shipping. These offshore companies operate by chartering or even own the ship, yacht or aircraft in an offshore jurisdiction that can turn out to be charged cheaper tax through an efficient method of ownership.

Holding and Property Owning Companies
This type of offshore company can help avoid withholding tax to properties by holding shares of subsidiaries located in countries imposing high taxes. These include owning holiday villas and re-sales of properties can be easily undertaken not necessarily having to pay higher legal fees, duties and transfer taxes. It can also efficiently avoid double-tax treaties that can allow repatriation of offshore profits. With the proper use of offshore holding companies, overseas profits can readily return to the owner for enjoyment with the least possible or no tax liability in his home country.