I blogged recently about the record keeping requirements of a company under the new Seychelles IBC legislation, the International Business Companies Act, 2016 (the “Act”).
That blog included details about the holding of accounting records under the Act. This blog sets out the requirements in more detail. While there is still no requirement to file accounts in the jurisdiction, there have been some minor refinements to an IBC’s obligations.
“Accounting records” are defined in the Act as documents in respect of the company’s assets and liabilities; the receipts and expenditure of the company; and the sales, purchases and other transactions to which the company is a party.
A company must keep reliable accounting records that are sufficient to show and explain the company’s transactions; enable the financial position of the company to be determined with reasonable accuracy at any time; and allow for accounts of the company to be prepared. They must also give a true and fair view of the company’s financial position and explain its transactions.
For a breach of these provisions there is a penalty for the company of US$100 and an additional daily penalty of US$25. There is also a penalty for a director who knowingly permits a contravention of the same amount and the same daily penalty. We expect the Registry to impose these penalties strictly.
The accounting records must be kept at the registered office or such other place at the directors think fit. Where the accounting records are kept somewhere other than the registered office, the registered agent must be informed of that other place. Where the location is changed, the registered agent must be notified within 14 days. They must be kept for 7 years from the date of completion of the transactions or operations to which they relate. Where there is a breach of these provisions, an offence is committed and the company is liable upon conviction to a fine not exceeding US$2,500.
Any director may at any reasonable time inspect the accounting records or require the company to provide originals or copies to him within 14 days. A company that does not comply with such a request commits an offence and is liable on conviction to a fine of up to US$2,500. Where the company does not release the records an application can be made to the Court to compel disclosure.
In the event that an IBC prepares annual financial statements, it may, but is not required to file them with the Registrar.
Meeting your obligations
Many companies are using qualified accountants to prepare financial statements for them. Through Jordans Accounting Services we can provide such a service. If you need any assistance, please contact Nicola Morgan-Schulz.
Jordans Accounting Services also provides an extensive range of accounting and tax compliance services in both the UK and offshore jurisdictions.