In compliance with the global approaches on the transparency and exchange of information by international organizations namely OECD, Seychelles has implemented a range of updated amendments to its existing statutes. The latest update was seen in its release of the International Business Companies (Amendment) Act, 2021, which came into force on 6 August 2021.
The update covers two keynotes regarding the new requirement, and timeframe of keeping accounting records for applicable entities.
1. New requirement on place of keeping accounting records
In accordance with the Amendment 2021, all Seychelles IBCs and registered entities under the Seychelles IBCs Act are obliged to retain their accounting records at their registered office in the jurisdiction.
The requirement of accounting records maintenance at the Seychelles’ registered office is also applicable to business entities regulated under Foundations Act, Limited partnerships Act and Trusts Act. Note that such records need to be maintained for no less than 7 years from the transaction completion date.
The accounting records can be in displayed in many forms:
- Bank statements
- Title documents
- Contracts and agreements
- Any other documentation underpinning a transaction
Either the original form or electronic form of accounting records are accepted.
2. Timeframes for new accounting records maintenance
Accounting records between 1st Jan 2015 to 31st Dec 2021
All Seychelles IBCs’ historical accounting records dating back to 7 years prior to 31st Dec 2021 must be delivered to the entities’s Seychelles registered office before 6th Feb 2022.
Accounting records from 1st Jan 2022 onwards
Effective from 2022, keeping accounting records requirement is applied at an interval of 2 times every year for all Seychelles IBCs as prescribed in section 175 under the Amendment Act, 2021.
Deadlines for records that should be preserved at the registered office in Seychelles on a bi-annual basis are as the followings:
- Records in the first half of the year (January to June) must be kept by July of that year.
- Records in the second half of the year (July to December) must be kept by January of the next year.
Annual financial summary submission
Large companies which are companies with turnover more than US$ 3,750,000 (SR 50,000,000), or non-holding companies with revenue less than US$ 3,750,000 (SR 50,000,000) are subject to the obligation of keeping a Financial Summary along with the accounting records in Seychelles within six months from the financial year end. If the financial year is not selected by the entities themselves, it will by default be the calendar year.
The provision which allowed accounting records of entities to be kept anywhere, even outside the Seychelles has been removed under the new amendment. Should the historical accounting records in question be maintained in any locations outside Seychelles, the entities are of the duty to notify its physical address to the Registered Agent.
Seychelles IBCs are also advised to keep their accounting records at all times in the jurisdiction as the government may request its submission at any time of the year.
Any failures to comply with the accounting record keeping requirements in Seychelles can lead to a financial penalty of US$ 2,000 to US$ 10,000.
Should you have any further questions regarding the Seychelles accounting records keeping obligations, please drop us an email to firstname.lastname@example.org for more information.