Uses of the Seychelles IBC company in International Business

Why use an IBC?

The Seychelles International Business Company - IBC is the company of most interest, because of its tax advantages, but you have a business plan which does not target the country as a market.

The International Business Company is used for trade outside the Seychelles, and is especially used in structures involving cross border trading, linked with another company which is more tied to the market where the clients are.

The IBC is extremely easy to administrate.

• It is exempt from all Seychelles taxes, including stamp and capital taxes
• You do not need to have annual meetings to keep the company running, or file annual returns for the company
• You do not need to file annual accounts

The Seychelles IBC has become prominent in recent years because of the low cost in keeping the company running.

What international structure do I need?

The structure needs to include:

• A Seychelles company, used for worldwide business, but probably not business in your main market
• An Specialist Agency company, for use in a specialist market, which is probably your main market
• An agency contract, giving the Specialist Agency company, the right to buy products for sale in a particular geographical area.

How are the companies connected?

The worldwide rights to buy and sell goods belong to the Seychelles company. They give a right to buy and sell in a particular region- for example- the European Union- to the Specialist Agency company.

The Specialist Agency company pays the required indirect taxes for trade in the area they cover.

A large percentage of net profits in the Specialist Agency company, is sent back to the Seychelles.

The net profits of the Specialist Agency company are then taxed in the country where this company is incorporated.

What Specialist Agency company should be used with the IBC?

Your company should be in the trading zone which you most use. In addition, it must be registered for the indirect taxes in the region.

If your clients are in the European Union, you need a company:

• To comply with the VAT requirements, which will exist if there is any reasonable volume of trade
• To comply with local VAT requirements- if you have a certain volume of trade in one country, you may need to register there.

The country where you Specialist Agency company should be depends on circumstances, but we often recommend Malta, Cyprus, the Czech Republic or possibly France, because:

• The VAT number usually comes with the registration of your new company
• It is very easy for your clients or suppliers to check your VAT number
• It is preferable to use a country where a bank account can be opened easily

Do the profits in the Specialist Agency company need to be physically transferred to the Seychelles company?

Traditionally, no; but we recommend one bank account for the Agency company, and another account for the Seychelles company.

We can assist with opening your bank account with Barclays in the Seychelles.

Where should we open bank accounts with this structure, which are operative and confidential?

In general, the bank account for the Agency Company should be opened in the country of incorporation but with a bank which gives you all the facilities to carry out international trade.

For confidentiality, we recommend countries where the beneficiaries are not taxpayers.

The Seychelles company may need a bank account for trade outside the zone where the Agency company operates, or may simply want an account to accumulate profits.

This structure is legal, legitimate and sensible

All your trade is with a fully regulated company which complies with all the requirements for VAT and Corporation Tax in the country of incorporation.

In addition, your Seychelles company is fully regulated, and in good standing throughout its existence.

Maintenance costs are relatively modest; we ensure that you are not dealing with countries where tax inspections are likely, and where you need to keep meticulous books and records.