Little Background and more about Seychelles Limited Partnerships
Historically Limited Partnerships dates back with the 3rd century BC. It is presumed that in this time in Roman Empire Limited Partnerships where vehicles formed similar to today’s corporations, but with the requirement for one or more partners with unlimited liability. Today Limited Partnership is well defined and by definition is a relationship between one or more general partners and one or more limited partners engaging to conduct a business jointly with a common goal to make a profit.
Under the Limited Partnerships Act, 2003, Limited Partnerships are formed in order to carry out business outside Seychelles. Exception exists only as far as when business must be conducted in Seychelles, necessary for the carrying on of the business of limited partnerships outside the Seychelles.
Some main uses of the Seychelles Limited Partnership are:
• Seychelles Limited Partnership main uses are international tax planning, asset protection, vehicle for private equity and venture structures and vehicle for Mutual Funds worldwide.
• Mostly Seychelles Limited partnership is, in simple words, a vehicle highly suitable for international joint venture activities.
• Seychelles Limited Partnership is suitable for investors that want to participate in partnership with a fixed monetary amount and enjoy fully the benefit of limited liability, in the same time not needing to have a role in management of the partnerships affairs.
Some main tax advantages of the Seychelles Limited Partnership are:
• Exempt from all Seychelles tax
• Exempt from all Seychelles duty on income or profits
• Exempt from stamp duty on property transfers, share transfers and any other business transactions
• Exempt from trades tax that would occur upon furniture and/or equipment imported into Seychelles for office use by the Limited Partnership
• Exempt as an employer to make any payments under the Social Security Act.
• Exempt from tax or duty, in cases if any payments are made by the Limited Partnership to Seychelles non-residents, and further exempt on all capital gains and all its interest if it is held by a non-resident.
• Further, under The Limited Partnerships Act, 2003, all tax exemptions are guaranteed for twenty years and shall continue in force thereafter unless a written law provides otherwise.
Is Seychelles Limited Partnership the right choice for you?
Seychelles Limited Partnership is a vehicle that is very suitable for Mutual Fund or Hedge Fund. Seychelles Limited Partnership allows to sell limited interest shares, hence these are usually sold in funds to investors, this way the investors become limited partners and own % of the fund. Meanwhile International Business Company is just a standard entity that has directors and shareholders. Also Limited Partnerships are suitable for international joint venture activities, usually used for some certain business deal to be closed.
IBC v Limited Partnership
1. Main Limited Partnership features are:
• To have at least one general partner, who would be liable for any debts
• To have at least one general partner, who would be resident, an IBC, domestic company, CSL or Limited Partnership
• Required to have registered office in Seychelles
• All Limited Partnerships statements and registers filled with the Registrar are available for public inspection
2. Main International Business Company features are:
• Requirement to have only one director and shareholder
• Neither director, nor shareholder, nor any other offices need to be residents in the Seychelles and there is no stipulation to their nationality
• No minimum capital requirement and shares can be registered and issued in any currency
• IBC is not required to be audited
• Shareholder, director meeting does not have to be held in Seychelles, can as well be telephone held
• Only Certificate of Incorporation and Memorandum and Articles of Association are available for public inspection, if no other filing is done Click here to read more.
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