In order to open a SPV in Seychelles, investors are required to register anIBC company. The Seychelles IBC (International Business Company) is designed for offshore incorporation and it can be used for a variety of investment purposes.
The SPV (Special Purpose Vehicle) refers to a type of company that is registered for a single business purpose, while after its completion the company is usually liquidated or sold.
The SPV is part of a group of businesses and it is registered as a separate company as an investment strategy, which has the purpose of isolating financial risks associated with the SPV investment from other business activities carried out by the same group.
Our consultants in company incorporation in Seychelles can present the advantages of the SPV and can help you during the formalities of incorporating the Seychelles offshore company.
Table of Contents
When is it recommended to open a SPV in Seychelles?
The SPV is a business structure which is highly recommended for incorporation when investors plan to participate in a joint venture, in property investments, structured finance or raising capital for a project.
The advantage of incorporating an SPV entity in Seychelles as opposed to anywhere else is of course that Seychelles has neither a corporate tax nor a withholding dividend tax.
We can also help you establish a company in Dubai, through our local affiliates from BridgeWest Dubai. In Dubai the incorporation process lasts 1-3 weeks compared to 2 weeks in Seychelles.
What are the characteristics of the IBC in Seychelles?
First of all, the Seychelles IBC is the most popular legal entity that is selected by investors who opt for Seychelles offshore incorporation. The structure is so popular because it has very flexible characteristics, one of which being that the company can be part of a multinational group, which is ideal for those who want to open a SPV in Seychelles.
The IBCis a type of private company that gains legal personality through the articles of association and memorandum, its founding documents. It also benefits from many tax exemptions, to which it automatically qualifies given its offshore status. We present below some of the highlights of this company type:
- the IBC is regulated by the International Business Companies Regulations 2020, the International Business Companies Act and other Related Laws (Amendment) Act 2001 and the International Business Companies Act 2024 (according to the Financial Services Authority Seychelles);
- investors must pay a registration fee of $150 upon the incorporation of the business form, a fee that is charged on an annual basis;
- since the creation of this company type, in 1996, there have been more than 200,000 IBCs incorporated in Seychelles;
- the process of company incorporation in Seychelles is one of the fastest in the world, as any legal entity, the IBC included, can be registered in approximately 24 hours.
Tax considerations
Investors who will open a SPV in Seychelles incorporated as an IBC will benefit from the local tax system. It must be noted that the IBC is generally incorporated for the purpose of conducting business at an international level and outside of Seychelles, this being the basic trait of an offshore, but the local law allows IBCs to engage in business activities in Seychelles as well.
This reflects the level of legislative flexibility the country provides, as in most jurisdiction the latter option is not possible. For companies that do not have business activities in Seychelles, the income and the business taxes do not apply, while those that operate on the local market will be liable to these taxes.
Therefore, those who will set up a company in Seychelles should seek financial assistance from our team of specialists, as tax rules can vary based on the principle mentioned above. We also mention that the IBC doesn’t have any minimum share capital requirements.
This business form has many other traits that recommend it for SPV activities. We invite you to contact our consultants for more details on why you should choose Seychelles for SPV and securitization. Provided that you want to relocate here for business purposes, our immigration lawyers in Seychellesremain at your service.