Seychelles companies (IBC) are required to keep proper accounting records

As of 27th of December 2011 all Seychelles companies are required to keep proper accounting records:

  • that are sufficient to show and correctly explain the IBC’s transactions;
  • to enable the financial position of the International Business Company to be determined with reasonable accuracy at any time; and
  • to enable the accounts of the IBC to be prepared.

The accounting records are not deemed to be kept with respect to a company if they do not give a true and fair view of the IBC’s affairs and explain its transactions.  IBCs are not required to either prepare or file annual audited accounts.
Accounting records”, in relation to an IBC, means accounting books that are related to documents or evidencing the company’s assets and liabilities, invoices, receipts, expenditure, sales, purchases, contracts and other transactions to which the company is related.
The accounting records shall be kept at the registered office of the IBC or such other places as the directors wishes. If the company decides to keep them at a place other than the registered office, it must inform the registered agent in writing of the physical address of that place. Same requirement applies where this address is changed, a new place’s address must be notified to the registered agent within 14 days. The IBC must retain all accounting records for seven (7) years from the date of the transaction.
The new regulations provide for a penalty of US$ 25 to be paid by a Seychelles registered company for each day of non-compliance with this section of the law and a penalty of US$ 25 for each day of non-compliance to be paid by a director who knowingly fails to comply with this section.
The requirement to keep accounting records does not affect exemption from taxes and financial reporting per se.
The relevant legislation section that refers to the keeping of accounting records, is the International Business Companies (Amendment) Act, of 2011 (Act 20 of 2011), section 65.

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