Some people believe that tax evasion is the underlying reason for setting up
a Personal Service Company (PSC). However, this vehicle, when structured
properly with legitimate intent, can not only reduce the overall cost of
administration and management of a company, but also provide a tax structure
which will minimise the taxpayer’s bill.
Many individuals engaged in the provision of professional services in the
construction, engineering, aviation, finance, computer, film and entertainment
industries can achieve considerable tax saving benefits through the
establishment of a PSC. The PSC can contract to supply the services of the
individual outside the country in which he is normally resident and the fees
earned can accumulate offshore, free from taxation in the offshore centre.
The PSC would be used mainly by expatriates, persons providing international
services and consultancy, and professionals looking for asset protection against
The ideal vehicle for such a structure would be a company which is exempt
from taxation and which has minimal reporting requirements. OCRA would propose a
Seychelles International Business Company for this purpose.
The Seychelles IBC is not taxed and monies (profits) can be repatriated by
way of dividends back to the beneficial owner’s (or owners’) country of
residence. The net effect is that there is taxation in only one state that is
the domicile of residence of the beneficial owners/shareholders. Some countries
may exempt the income after being non-resident for a number of years.
To proceed with the set up of such a structure, the principals would need to
undergo an initial due diligence check, which involves an identification
document, a proof of residential address, a reference from their personal banker
and a curriculum vitae, indicating their work experience and areas of expertise.
Along with these documents, a small business plan will also be needed to
support the business case of the company. It is recommended that principals have
an agreement with the proposed company, to act on its behalf, as a consultant or
manager, and thereafter providing services to the company’s clients.
All transactions would need to be supported by the necessary documentation to
explain exactly what the transactions consist of. Such documents would include
contracts with clients, invoices and purchase orders. It is important to note
that directors need to maintain enough accounting information to validate the
financial status of the company.
Once the above documentation is provided, OCRA can help set up such a company
within a few working days. The cost, depending on the services required,
typically starts from £865 with annual maintenance fees from £740 for a
OCRA advises that you seek professional (legal) advice prior to using our
While all of our consultants in our offices provide a Free Initial
Consultation, the office listed below has particular expertise in this area
and will gladly assist with advice on how to approach your unique challenge.
Alternatively, to select one of our multilingual offices, click here for a list of our office contact details.
Languages spoken in this office: English, French and Creole
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