Seychelles Smart Company – A Paperless Entity 

Thought the transition from paper signature to e-signature was a big move? Let us walk you through what’s it like running a completely paperless entity, something we call the Smart Company (SC). 

In a nutshell, Smart Company is an entity that is fully digital.

From incorporation to shares transfers and board resolutions, you’ll be able to navigate all these steps through just a few clicks on your dashboard. This helps our users save a huge amount of time, costs and a good amount of headache from all that outdated bureaucracy.   

 

Seychelles Smart Companies are International Business Companies with built-in compliance 

Smart Companies in the Republic of Seychelles are legally recognized as International Business Companies (IBC). Governed by the Seychelles IBC Act, hundreds of thousands of IBCs have been incorporated in Seychelles to date, making it one of the most common company types in the country. 

On top of that, Seychelles marks the world’s very first jurisdiction to approve the Smart Company model, and therefore to us at Korporatio, a very special place.

So how does a paperless business work exactly? 

Smart Companies are 100% digital. This means every transaction that happens in your company governance (share transfer, board resolution, treasury management, cap table etc.) happens directly on the digital dashboard. Ultimately, this will change the way our legal, financial, human resources and payment processes can be managed. 

Each Smart Company gets a dedicated digital dashboard. We use technology that automatically generates all the necessary legal documents to make your transactions compliant. We understand Seychelles corporate law and have integrated all legally required elements in our solution, so you don’t have to even think about them. This is what we mean by built-in compliance. 

On the digital dashboard, every single action is done through a click of a button and has the following characteristics: 

• Every action happens in real time. Literally.
• Every action is legally compliant and is governed by the code. 
• Every action is recorded on Smart Company digital dashboard. 
• We are completely paperless. 
• Every action is error and temper-proof, trackable and traceable. 
• Smart Company corporate shares are tokenized i.e. your ownership is automatically converted into digital form. You can utilize this for entirely new business models or just operate like a traditional company and not use them. 
• Significantly lower in costs (compared to traditional way) 
• Significantly lower in time spent (compared to traditional way)

 

How is this different from a traditional Seychelles entity?

Traditional limited companies in general are manual, bureaucratic and full of processes and paperwork. If you’ve ever run a company on your own and had to deal with corporate governance, you already know this. 

Mandatory annual meetings, physical presence required here and there, non-transparent processes and endless amount of paper documentation. Most corporate transactions were simply not designed for the digital age and therefore are often outdated for today’s average user. Seychelles offshore companies, however, are already quite progressive about paperwork – from accepting e-signatures to electronic records. 

We wanted to take this even further.

Instead of scattering all your legal documentation around, keeping a record of individual transactions, shareholders and terms, we wanted to gather all of this together in one place. So you, as a user, can just log in to a private view of your Smart Company, have a quick overview on what’s happening inside your governance structure, make changes with immediate legal effect and watch as documents are being created automatically. No middlemen included if you don’t want to. All this within a few minutes and virtually zero costs. 

Can I get an example? 

Absolutely. Let’s take a look at a real-world scenario for what happens in a Seychelles Smart Company. 

Real-world Scenario: Meet Isabel, the serial entrepreneur

Your name is Isabel. 

The title says it all, you’ve already founded 3 companies and this is your number 4. Your passion is to breath life into startups during their 0-1. 

However, you’ve been in the grind long enough to know things are hardly that simple. And although you love the game, there are a few areas that make you want to stab yourself with a pen. One of them is the manual and offline processes of today’s corporate governance. 

Problem

After an endless amount of time, your company #4 is finally gaining traction and attracting investors onboard. This is great news! But you’re running short on time. 

It’s the busiest season for both your business and private life. Holidays are around the corner and you still need to get all the due diligence, term sheets, agreements and shares transfers done before institutions close their doors – and before your startup runs out of cash. 

Solution

One of your advisors recommends setting up a Seychelles Smart Company. You hear it’s paperless and cost-effective, so you decide to give it a try: 

Here’s what happens: 

• 2 days before holidays start, you incorporate a Seychelles Smart Company. All it took to set it all up was to fill in one digital form. 10 minutes, check.
• You immediately get access to a digital dashboard that gives you a full overview over what’s happening in your company: treasury, shareholders, resolutions, even finances. 
• Information for due diligence is extracted with a few clicks on the dashboard. No paperwork needed. 
• To transfer shares, you do this like sending an email: amount, recipient, confirmation, and done. The dashboard locks your shares in an escrow until the terms from your investor’s side have been fulfilled, and then automatically releases them once the conditions meet.
• This transfer of shares costs you total $0.02 per share and $0.02 for the execution itself. You transfer 100 shares, so you spend a total $2.02 for this entire show. 
• The legal documentation of all these actions are generated, stored and signed by the system itself, with immediate legal effect. All this done by the tech, while you were already in the middle of the festivities celebration. 

Okay this is awesome. How to set up one for myself? 

Super simple. Just follow these 3 steps:
1. Submit your order.
2. Provide company information.
3. Your company is created.

After this, we give you access to the digital dashboard dedicated exclusively to you and your Directors. That’s where your journey begins. And don’t worry – we’ll be here to help and assist you all the way.