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.
   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.
5. > It may hold shares, debt obligations or other securities in another Seychelles IBC or in a Seychelles domestic company.
6. > A Seychelles IBC may also own a vessel or and aircraft registered in Seychelles.
7. > Shares in a Seychelles IBC may also be held by a person resident in Seychelles.

The British Virgin Island (“BVI”) is one of the most recognized offshore destinations in the world. Since 1984, the BVI International Business Company (IBC) has incorporated more than 600,000 companies to date and an average of 250-300 new companies registered on a daily basis.

Taxation Aspect

A BVI Business Company is exempt from the BVI income tax, the same exemption applies to all dividends, interest, rents, royalties, compensations and other amounts paid by a company, and all capital gains realised with respect to any shares, debt obligations or other securities of the company.

No estate, inheritance, succession or gift tax is payable with respect to any shares, debt obligations or other securities of a BVI BC.

All transactions and instruments relating to transfers of any type of property of assets, shares, debt obligations or securities to or by a BVI BC are exempt from the stamp duty, with a sole exception for land-ownership transactions in the British Virgin Islands, in which case stamp duty remains payable.

Administration Aspect

A BVI Business Company requires a minimum of only one owner, one shareholder, and one director. All of them can be one and the same person. Apart from the director, the company need not appoint any operating officers. The management structure of the BVI Business Company may be designed in accordance with the widest variety of requirements.

The shareholders, directors and officers of a BVI Business Company may be individuals or corporations and of any nationality. The shareholder’s or director’s meetings need not be held in the British Virgin Islands and there is no requirement for an Annual General Meeting.

Meetings can be held by telephone or other electronic means; alternatively, directors as well as shareholders may vote by proxy.

Where a Business Company has only one member who is an individual and that member is also the sole director, such sole member / director may specifically appoint a reserve director to act in his place in the event of his death

Confidentiality is one of the key features of the BVI Business Company as details of the company beneficial owners, directors and shareholders are NOT part of public record. Register of Members, Register of Directors and all Minutes and Resolutions by the Company are kept only at the offices of the Registered Agent in complete confidentiality. Certainly, though, these files are available for inspection to Company shareholders.

The only documents held on public record are the Memorandum and Articles of Association, but these normally do not contain any indication as to the actual shareholders, directors or the beneficial owners of the company. At the same time, if the owners of the company so wish, the Register of Directors and/or the Register of Members may be filed with the Registrar of Companies.

Such step may be desirable if a complete filing certainly must be achieved and showed publicly as to the actual identities of the Company managers or members – but, again, this is purely optional.

BVI Business Companies does not have an obligation to prepare of file financial accounts. However, records must be kept that are sufficient to show and explain the Company’s transactions; and will, at any time, enable the financial position of the Company to be determined with reasonable accuracy. Such records do not have to be kept in the British Virgin Islands and the location for keeping such records can be freely determined by the owners of the Company, and there is no requirement whatsoever to file or otherwise make public any commercial or financial records of the Company.

We however recommend keeping proper record of account by preparing a yearly management account and getting it approved by the board for good governance and compliance reasons.

A Belize International Business Company (“IBC”) is one of the most popular types of offshore corporation used worldwide for tax planning and asset protection purposes. It is a private company which is designed to engage into any international business activity.

A Belize IBC is formed under the Belize International Business Companies Act. This piece of legislation was initially adopted in 1990 and further extended and amended in 2000. Belize IBC Act is considered internationally as one of the most modern and user-friendly offshore corporation legislations available today.

Essentially, the main requirement is that a Belize IBC must not pursue business within the territory of Belize although it may enter into business with other Belize IBCs.

Taxation and Regulatory Aspect

Profits made by a Belize IBC are tax exempt in Belize.

No withholding taxes. All income generated by a Belize IBC when distributed out as dividends, interest payment, rent, royalties or professional fees payable to a non Belize resident person, do not carry any withholding taxes.

Capital gains realised with respect to any shares, debt obligations or other securities of a company incorporated under the Belize IBC Act by persons who are not persons resident in Belize, are exempt from all provisions of the Belize Income and Business Tax Act.

A Belize International Business Company is also exempt from any stamp duty on its transactions. All instruments relating to transfers of any property to a company incorporated under the Belize IBC Act; all instruments relating to transactions in respect of the shares, debt obligations or other securities of a company incorporated under the Belize IBC Act; and all instruments relating in any way to the assets or activities of a company incorporated under the Belize IBC Act, are exempt from the payment of stamp duty.

Administration Aspect

A Belize International Business Company is for all legal purposes a separate legal person, and possesses the same commercial rights and powers as a natural person.

Fast registration compared to many other IBC Registry in other jurisdictions.

It has extensive features protecting the confidentiality of its owners and is not subject to any onerous reporting requirements.

Confidentiality is one of the key benefits of the Belize International Business Company. At registration, no information whatsoever is filed on public record on the company beneficial owners, directors and shareholders. This information remains only known to the licensed Registered Agent, who is bound by the law to keep it completely confidential. The internal corporate records of the IBC as the Registry of Members, Registry of Directors and the Corporate Minutes and Resolutions, are all kept by the Registered Agent and are also confidential.

The only documents of a Belize IBC held on public record are the Memorandum and the Articles of Association. These documents do not contain any indication as to the actual beneficial owners, directors or controllers of the company

No reporting requirement to the authorities in Belize.

Belize is the only country in Central and South America having English as the official language. It is easily accessible by sea and air, has modern telecommunications.

Possibility of issuing both Registered and Bearer Shares

A Belize IBC may have a minimum of one shareholder, one director, both of whom may be the same person. There is no requirement to have any Belize-resident directors or shareholders. Foreign individuals or corporations may hold shares in a Belize IBC or act as its directors. Corporate directorship (the directors` function in a company executed by another company) is expressly allowed.

Apart from the director, the company is not obliged to appoint any other officers, however it may certainly do so, if needed.

Belize IBC is a completely tax-free offshore company, for as long as it complies with a few easy conditions. These conditions are listed in the Article 5 of the Belize IBC Act, where the requisite characteristics of the Belize IBC are stated. Belize IBC may not

1. > carry on business with persons resident in Belize;
2. > own an interest in real property located in Belize, except for a lease of property for office purposes;
3. > carry on a banking business unless it is specifically licensed to do so;
4. > carry on business as an insurance or a reinsurance company, insurance agent or insurance broker, unless it is specifically licensed to do so;
5. > carry on the business of providing the registered office for other IBC`s;
6. > carry on trust business, unless it is specifically licensed to do so;
7. > carry on collective investment schemes, unless it is specifically licensed to do so;
8. > not hold shares, stock, debt obligations or other securities in a BVI domestic (non-IBC) company;
9. > issue its shares, stock, debt obligations or other securities to any person or company resident in Belize, except where such shares are held by the licensed Registered Agent or its affiliate in a nominee capacity.