A Seychelles international business company (IBC) is one of the simplest offshore structures to set up. Seychelles company formation is fully remote and usually takes a few working days. For founders in the US and Canada, though, the real question is not how to form one, but what still applies at home once it exists.

What a Seychelles IBC is good for

Trading with clients in several countries through one company

Online businesses, consultancies and agencies with customers worldwide

Holding assets or shares outside North America

Founders who have moved abroad and no longer live in the US or Canada

The Seychelles taxes on a territorial basis, so foreign income is generally not taxed there. Passive foreign income, such as dividends, is exempt only if economic substance conditions are met. Since February 2026 the Seychelles is off both EU tax lists.

What still applies in the US

A foreign company does not change how the US taxes its own citizens and residents.

Many US owners must file Form 5471 every year. The penalty for a missing form starts at $10,000.

If you own more than half of the company or can sign on its accounts, and those accounts hold more than $10,000 in total at any point, an FBAR is due, and often Form 8938 too.

If US persons control the company, much of its income can be taxed in the US each year under the controlled foreign corporation rules, whether or not it is paid out.

If you run the business from the US for US clients, the company itself can owe US tax on that income.

What still applies in Canada

A company managed and controlled from Canada is usually treated as resident in Canada.

Passive income of a controlled foreign affiliate is taxed in Canada as it is earned (FAPI).

Form T1134 reports foreign affiliates, and T1135 applies when foreign property costs over CAD 100,000.

How Seychelles company incorporation works

Choose a name and a licensed registered agent, who also provides the registered office

Provide a passport and proof of address for each director, shareholder and beneficial owner

Appoint at least one director and one shareholder; one person can hold both roles

The agent files with the Financial Services Authority

A provider of Seychelles company formation for non-residents can handle all four steps online. Plan banking at the same time: payment institutions are often more realistic than traditional banks.

Keeping it compliant

Pay the annual government fee and agent renewal on time

Lodge accounting records in the Seychelles every six months

Prepare an annual financial summary within six months of the year end

File your home-country forms every year, even in years with no profit

If the Seychelles does not fit, the Marshall Islands is another fully remote option, and WeForm forms companies in both. Speak to a tax adviser in your country before you form either.