Seychelles Companies Act Amendment 2011 (Accounting Records)

Seychelles offshore companies are now required to keep full accounting records and supporting documents sufficient to reflect the real business situation of the company.

The Seychelles company act has been recently amended (in the part of Section 65) by virtue of the Act No 20 of 2011 (International Business Companies (Amendment) Act, 2011 [52.75KB]). As of today, all Seychelles companies are required to keep proper accounting records:

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

The accounting records shall be kept at the registered office of the International Business Company or such other places as the directors think fit. 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.

An 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.

All existing companies are required to be fully compliant with the above requirements of the law by 31st of March 2012 (the deadline might be extended to the end of the year 2012).

The requirement to keep accounting records does not affect exemption from taxes and financial reporting per se.

All clients with Seychelles IBCs are recommended to contact their registered agent for clarification and compliance purposes at earliest.