The world of today is flat, interconnected yet unequal in many ways. It is possible for us today to buy a Korean brand owned by an Indian, manufactured in China, sold in the Americas. Yet, the laws, regulations, taxes, political and socio-cultural environment in this apparently borderless world are distinct within each country.
It then becomes imperative for businesses and the intellectual population to create solutions to protect and grow their business and gain maximum out of their operations.
Understanding of these various dimensions and still providing a solution requires expertise on both sides and that in today’s world is definitely not a commodity.
In an interconnected world, it is important for businesses and individuals to understand the complexities and protect themselves from the diversity that exists across many countries. We understand these complexities and use the availability of existing tools and products as part of the Seychelles portfolio to create effective solutions for our clients. The existing products become tools in constructing simple structures, which provide solutions to complex problems. Some examples include:
As is evident, the above examples cover a wide spectrum of clients including International Businesses, High Net-worth Individuals / Families and Fund Operators.
Some examples / case studies on how we use Seychelles generic products to provide solutions effectively for different kind of situations:
At an age when luxuries become necessities, sticking to a single business may prove to be a bad strategy. At the same time, entering a new business is risky because of varied reasons ranging from lack of experience to different dynamics of the new business. It is not prudent then, to have multiple businesses in multiple countries under the same book. So a very effective solution could be to create separate IBCs for each business, thus separating one from the losses of another and each can have a life of its own. A Seychelles IBC attracts no tax and hence all the savings of each IBC can be ploughed back into the business to grow it further.
It is often seen that HNWIs are looking for a tax effective structure to protect their assets as well as effectively do estate planning for future generation. Their requirement typically is for a flexible structure where one can monitor their investments.
Seychelles as a jurisdiction provides very effective tools which can be used to provide an effective solution in this case. It is possible to form a Seychelles International Trust and transfer all the assets to the trust fund. Under this entity (Seychelles Trust) an IBC (Seychelles Offshore Company) can be created to maintain and commercially handle the transactions on behalf of the Trust.
It is important to note that the profits earned by IBC are fully tax exempt in Seychelles and are accumulated in the trust fund. And by reinvesting the profits that is accrued by the trust fund, the beneficiaries are able to enjoy the profits. Also, since this is an entity and all ownership is transferred to the trust, the individual owner is completely protected from any forced heirship or lawsuits that they may get affected by.
In today’s world investing across borders is prevalent, the complexities of the different tax structures provide a challenge that has to be overcome diligently. For instance, a fund manager, who wants to incorporate a mutual fund to invest in bonds for a few HNWIs and gain through better spreads, a potential solution could be to incorporate a private mutual fund under an IBC which acts as an offshore fund vehicle for the mutual fund. Thus all investors could be structured to become business associates. By incorporating such a structured solution, there would be Zero Tax on the profits accrued allowing all such savings to be reinvested.