In Seychelles, companies are mandated to keep accounting records that enable the company’s financial condition to be reasonably determined at any time. However, there is no statutory requirement to file any financial information on public record, nor is there any audit requirement.
Following Seychelles International Business Companies Act, the essential provisions regarding accounting for IBC’s include:
Definition – The Act defines “Accounting records” as documents regarding the company’s assets and liabilities, the company’s receipts and expenditure, and the sales, purchases, and other transactions to which the company is a party.
Accounting Records – Companies are not required to prepare or file annual accounts or to appoint an auditor. However, under section 174(1) of the same law, a company must keep reliable accounting records.
Preservation period – A company shall preserve its accounting records for at least seven years from the date of completion of the transactions or operations to which they each relate.
Location of Records – Storage of accounting records is to be kept most often at the company’s registered office.
Company accounting and reporting requisites
After the enforcement of the new accounting standards, the Seychelles government amended the International Business Companies Law in 2011 in compliance with the OECD’s recommendations. These standards provisions are for:
-Seychelles IBC’s to keep accounting records that show the accuracy of their transactions;
-Accounting documents must be clear for the tax authorities verifications;
– the tax authorities must be able to determine the financial status of an IBC based on its financial statements;
– Seychelles IBC’s to be able to prepare accounts and other financial documents.
Penalties on non-compliance
As mandated in Seychelles International Business Companies Act, companies shall observe compliance with statutory requirements. Accordingly, the authorities will impose penalties for non-compliance and violation of the Act.
Violations for Keeping Accounting Records of the Seychelles IBCs
As per section 174(1) of the Act, Seychelles IBCs that violate the requirements to keep accounting records are liable to a penalty fee of US$25 for each day or part thereof during which the violation continues.
On the other hand, a director who knowingly permits a contravention of the requirements to keep accounting records per section 174(1) of the Act is liable to a penalty fee of US$100 and an additional penalty fee of US$25 for each day or part thereof during which the contravention continues.
Companies that violate section 175 of the Act (location of accounting records requirements) shall be liable on conviction to a fine not exceeding US$2,500.
Other accounting requirements
Bookkeeping, payroll administration, preparation and maintenance of accounting records, preparation of statutory financial statements, besides complete tax compliance services can be solicited for your company in Seychelles. Our professional experts at CRESCO will help you meet your obligations.
Meeting your obligations
Many companies outsource accounting services to prepare financial statements for them. CRESCO Accounting offers professional services depending on the nature and needs of your business – from outsourced accounting and taxation services and compliance.
To know more about CRESCO Accounting services, give us a call or drop us an email.