Seychelles: Changes to Record Keeping Requirements
The International Business Companies Act 2016, which regulates Seychelles International Business Companies on the requirements of keeping accounting records, has been amended by the International Business Companies (Amendment) Act 2021. The purpose of the International Business Companies Act 2016 is to ensure that documents supporting a transaction are kept and accurately maintained.
The amended Act requires all legal entities to keep its accounting records at its registered office in Seychelles. The records must be sufficient to reflect the legal entity’s transactions, financial position and allow for financial statements to be prepared at any given time. Such records may include bank statements, receipts, invoices, title documents, contracts and agreements or ledgers.
Under the amended Act, the following implementation of accounting records keeping obligations took effect from 6 February 2022:
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Bi-Annual accounting records
Under section 175 (1A) of the Act, a holding company and a non-large company are required to keep on a Bi-Annual Basis, its accounting records at the entity’s registered office in Seychelles.
The accounting records are required to be submitted in Seychelles for the following periods:
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Accounting records relating to transactions or operations in the past 7 years to 31 December 2021 must be kept in Seychelles by 6 February 2022.
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Accounting records relating to transactions or operations in the first half (January to June) of 2022 must be kept in Seychelles by July 2022.
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Accounting records relating to transactions or operations in the second half (July to December) of 2022 must be kept in Seychelles by January 2023.
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An entity that is struck-off or dissolved or deregistered must ensure that any outstanding accounting records are lodged at its registered office in Seychelles by January or July following that date that it is struck-off, dissolved or deregistered.
2. Annual financial summary keeping
Under section 175 (1B) of the Act, an annual financial summary is required for every large entity and non-large holding entity. A large entity or a non-large entity that is not a holding entity, is required to prepare an annual financial summary to be kept at its registered office in Seychelles within 6 months from the end of the entity’s financial year.
Failure to submit accurate accounting records may result in significant penalties (from US$ 2,000.00 up to US$ 10,000.00).