5 Reason Why BVI Offshore Formations are Popular

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Offshore Formations
Offshore Formations

Unlike what is true in other tax havens, the Seychelles company set up process isn’t time consuming and can be done within a couple of days. Before an organisation does this or asks for help from a Formation Agent, here’s what to consider:

BVI Offshore

No need to audit

There is no requirement for an IBC (International Business Company) to be audited. The time and expense required to audit a company, which would otherwise accrue if it was formed in a non-tax haven country, isn’t necessary. As an auditor doesn’t have to be hired at all, the money which is saved can be spent elsewhere.

Find a Registered Agent

The address that an IBC will have is the same as a Registered Agent’s. An organisation should research a Registered Agent’s track record so that one is picked which has helped many other companies before. As correspondence from the Seychelles government is sent to a Registered Agent, it is important that they are trustworthy.

Corporate accounts aren’t submitted  

The accounts which are maintained by a company don’t have to be submitted to the Seychelles government. Although they can be maintained so that an organisation is aware of profit margins, there is no need to submit them or hire an accountant. In fact, employees that are already on a company’s payroll can be responsible for updating corporate accounts.

Pay a Renewal Fee

After an IBC has been incorporated, an annual Renewal Fee has to be paid to the Seychelles government. A flat figure of $100 is all that is expected of an offshore company no matter how high its Share Capital is. Even when a considerable number of shares are issued by an offshore company to several shareholders or hardly any, the cost of a Renewal Fee doesn’t change. When more shares are issued in one year than another, the same figure has to be paid so that an organisation can continue to have an offshore presence in the Seychelles and benefit from zero taxation.

Set up a bank account

The money that is in the bank account which is owned by an IBC is what will be subject to zero taxation. Before the incorporation process begins, a bank account has to be set up. By doing so, there will be no delays and an IBC can soon exist.

Raise the relevant Share Capital

In all, $100,000 is the minimum Share Capital for an IBC in the Seychelles which has to be raised beforehand. At least $1 is assigned to shareholders before an offshore company is incorporated. If not, an application can be rejected altogether.

Any currency can be transferred

There are no rules regarding the currencies which can be transferred in and out of a corporate bank account. After the Seychelles company set up process has finished, any currency can be deposited in it. As a result, Euros, Sterling and US Dollars can be put in and taken out of the bank account which is owned by an IBC.

The following article was written by http://seychelles.offshoreformations247.com. To get more information about setting up an offshore company formation in the Seychelles, speak to one of their agents today.