The National Assembly has given its stamp of approval to new laws aimed at revamping the offshore business and launching the second phase of development of the industry.

The Companies (Special Licences) Bill, Limited Partnership Bill, Protected Cell Companies Bill and Interactive Gambling Bill were unanimously approved by the assembly at its sitting on Tuesday July 15.

The bills were presented by Vice-President James Michel after they underwent their second reading.

In effect the new laws are expected to boost the registration of low tax and other international business companies as well as allow the industry to provide a host of other services to increase revenue.

The Companies (Special Licences) Bill, Limited Partnership Bill and Protected Cell Companies Bill will allow the Seychelles International Business Authority (SIBA) to register specified international companies such as holding, protective cell and limited liability partnership companies.

This will be in addition to the registration of low tax international business companies (IBCs) which is expected to bring in R15 million in revenue by 2006. Currently SIBA has registered over 10,000 IBCs.

The new laws will allow the introduction of licenses to regulate registered agents and trustees to ensure that the services offered are of a very high standard and according to regulations.

As for the Interactive Gambling Bill, it proposes the licensing of this activity, allowing it to be conducted as defined by law.

When presenting the bills to the assembly, Vice-President Michel said they would allow Seychelles to attract further benefits from the international business sector.

"Firstly, it will bring more value to the country and will move our international business centre from a zero tax status to a low tax offshore centre based on the Companies Act 1972," VP Michel said.

Secondly, VP Michel said, they would allow for a wider and better utilisation of existing legislation such as mutual funds and insurance.

Thirdly, it will allow the country's offshore industry to better capitalise on the ever increasing double taxation treaties signed with other countries, the Vice-President said.

With regard to the Companies (Special Licenses) Bill, VP Michel said it would ensure that companies registered under it act in a transparent and responsible way like local companies.

The Limited Partnership Bill, VP Michel said, would not only widen the different offshore services being offered from Seychelles but also provide other mechanisms to establish mutual funds whereby they would have to have transparency in their taxation dealings inasmuch as most countries do not tax partnership per se but properties held by the partners themselves.

As for the Protected Cell Companies Bill, the Vice-President said it would diversify the country's offshore industry and create job opportunities for qualified Seychellois.

With regard to the Interactive Gambling Bill, VP Michel noted that licensing fees for such activity are in the region of US$5,000 for sports and between US$75 and US$100,000 for purely interactive gaming. He also pointed out that this type of activity are targetting people not living in Seychelles.

He noted that SIBA has already received six applications for this activity.

LINKS