In an effort of continuous improvement and compliance with the international regulatory standards, the National Assembly in Seychelles has enacted on the 6th of August 2021, the International Business Companies (Amendment) Act, 2021 (the “Amended Act”) by introducing some new amendments aiming to improve the existing provisions of the International Business Companies Act and enhance the supervisory role over the businesses registered in the jurisdiction of Seychelles.
The Amended Act requires the following:
- Every International Business Company (“IBC”) to maintain their accounting records (either in original form or electronically) at their registered office in Seychelles and each IBC is obliged to provide its accounting records to the registered agent on a bi-annual basis as of 1st January 2022.
- The Amended Act also requires IBCs to provide accounting records relating to transactions or operations in the past 7 (seven) years to 31st December 2021 until the 6th of February 2022.
- IBCs that have been redomiciled to Seychelles are required to provide their accounting records as from the moment they have officially redomiciled to Seychelles.
- Dormant/none trading IBCs that do not conduct business activities and do not have bank accounts can provide declarations of their dormant status.
- Small holding companies with an annual turnover less than USD$3,800,000 do not need to prepare annual financial summary. All other companies must prepare annual financial summary as well and this takes effect in 2021.
What accounting records mean?
Accounting records are documents relevant to an IBC’s assets and liabilities, receipts and expenditures, sales, purchases and other transactions to which an IBC is a party to. Therefore, accounting records, can take on many forms and include: bank statements, receipts, invoices, vouchers, title deeds, contracts and agreements, ledgers and any other documentation underpinning a transaction.
Struck off/Dissolved/Not in good standing IBCs
As already mentioned, the amended Act requires that all IBCs either struck off, not in good standing or dissolved to ensure that their accounting records are available at their registered office in Seychelles for the last 7 (seven) years from the date of completion of the transaction/operations to which they relate.
What BYBLOSERVE recommends to you
We strongly recommend our Clients to take immediate actions and start collecting the required accounting records in order to comply with the above described provisions of the Amended Act, as of 1st January 2015 and onwards. Non- compliance with the requirements of the Amended Act will result to a penalty fee not exceeding US$10,000, per breach.
How BYBLOSERVE can assist you
BYBLOSERVE through their associates (group of accountants and auditors) can assist you in preparing the requested accounting records. A fee quote can be provided upon request.