The Seychelles Government has recently introduced new legislation intended to enhance existing provisions, as well as introduce significantly increased accounting records keeping requirements for all Seychelles entities.
New accounting records obligations
The enactment of The International Business Companies (Amendment) Act 2021 (the Amendment Act) was prompted by recommendations of the Global Forum report by the Organisation for Economic Cooperation and Development (OECD) in order to facilitate the accessing of records and ensure that Seychelles does not remain on the list of non-cooperative countries. As a result of the Amendment Act, all Seychelles entities are now under an obligation to:
- maintain all underlying accounting records, including historical records going back 7 years prior to 31 December 2021; i.e. all accounting records from 1 January 2015; and
- submit the above accounting records to the Seychelles registered office before 6 February 2022.
Furthermore, commencing 2022, all Seychelles companies will be required to:
- provide bi-annual reporting of its accounting records to its registered office; and
- for large companies (with annual turnover above SCR50m/c.USD3.75m) and non-large non-holding companies – to provide an annual financial summary.
Penalties for non-compliance
From February 2022, the Seychelles Registrar will initiate on-site compliance inspections to ensure that reliable accounting records are being kept by legal entities in Seychelles, and where non-compliance is identified, relevant sanctions will be applied, which include:
- a penalty fee not exceeding USD10,000; and
- where a director knowingly permits a contravention under this section, they shall be liable to a penalty fee not exceeding USD10,000.
It should be noted that even if a Seychelles entity is struck-off, dissolved or deregistered, it is still under an obligation to ensure that any outstanding accounting records are lodged at its registered office in Seychelles by January or July following the date that it is striking-off, its dissolution or deregistration date, in line with the above.
Action required
The new accounting records obligations are not insignificant and thus Marbury recommends early attention to consolidate the records for a timely submission to the registered agent by the 6 February deadline.
For those clients for whom Marbury provides registered office services, we will be sending them an update as to their individual positions for each Seychelles entity and their options as to how to proceed.
Marbury is able to provide bookkeeping and accounting management services. Please contact your usual Marbury advisor if you would like to learn more about our related services.