Question Offshore Legal Protection Question (UK - Seychelles)

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kingbob777

New member
I am a UK citizen thinking about setting up a new crypto company in seychelles. I am aware I would have to pay UK corporation tax because It would be classed as UK central management. But here is my question If my company is considered UK central management for tax purposes will the seychelles company still have the legal asset protections?

The FCA are too chaotic and I don't like their process at all. You could pay the fee and they still shut you down for no reason and not refund you. I know the seychelles have no regulations on crypto companies yet, so I am asking on here if anyone else from the UK has a seychelles IBC and if the seychelles law protections still apply even if UK centrally managed?

If anyone is worried about answering on here I understand. I am also trying to find solicitors who deal with seychelles and UK businesses.

Thanks guys!
 

Sols

Staff member
Mentor Group Gold
I am a UK citizen thinking about setting up a new crypto company in seychelles. I am aware I would have to pay UK corporation tax because It would be classed as UK central management. But here is my question If my company is considered UK central management for tax purposes will the seychelles company still have the legal asset protections?
Asset protection in what sense? What assets? From what threat?

I know the seychelles have no regulations on crypto companies yet, so I am asking on here if anyone else from the UK has a seychelles IBC and if the seychelles law protections still apply even if UK centrally managed?
Now it sounds like you're talking about whether you can run a Seychelles crypto company (exchange?) offering a type of service which FCA would require you to have a license/registration for without breaking UK law. In that case, the answer is no with some caveats.

If UK doesn't like what you do (i.e. it violates UK law) and finds you, you might find yourself subject to UK prosecution. Depends on what your company does exactly, where operations take place, how the services are provided, and a range of other details like that.

For example, you can (probably, check with a lawyer) live in UK and just be a passive shareholder of a Seychelles based crypto exchange. But if you are running a Seychelles crypto exchange and become the target of an investigation due to the company doing something criminal, it's a different story.
 

kingbob777

New member
Thanks for your response.

Yes it would be a crypto exchange and no not for anything illegal. I have no intentions to scam people at all, I despise such people. It would be a legitimate company and I would just charge a fee per transaction on the DEX. I was even considering creating ICO's for some projects I wish to start up. Funds would go through a seychelles company that I would be director.

So the questions I was asking was if the FCA would try and challenge me being a UK citizen but with a Seychelles company I am director of. If I would be treated like an offshore company for legal reasons or if they would try and say it is a full UK company with UK laws.

I know there are a lot of scammers in the crypto world and was why I was so reluctant to ask the questions. But I appreciate what other people say on here as they may have experienced it with a crypto company.
 
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Sols

Staff member
Mentor Group Gold
Yes it would be a crypto exchange and no not for anything illegal. I have no intentions to scam people at all, I despise such people. It would be a legitimate company and I would just charge a fee per transaction on the DEX. I was even considering creating ICO's for some projects I wish to start up. Funds would go through a seychelles company that I would be director.
Not only scams are illegal, though. Offering a regulated financial service without a license is also illegal.

So the questions I was asking was if the FCA would try and challenge me being a UK citizen but with a Seychelles company I am director of. If I would be treated like an offshore company for legal reasons or if they would try and say it is a full UK company with UK laws.
You would be subject to UK laws since you operate a financial service from UK. If what you want to offer is something which the FCA ordinarily requires a license for, you would be violating UK law.

Having a Seychelles company between you and the unlicensed business does not offer much of a shield, if the FCA or prosecutor are sufficiently motivated. They'd just take your company to court in UK and as a director, you'd be held liable as well.

You could reduce the risk of being caught by not taking UK customers, not being a director, and otherwise distance yourself from the company. Do things to make you less of a target. But that wouldn't necessarily make you immune against prosecution.
 
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