Seychelles New Accounting records act

Staying Ahead of Change: Seychelles Introduces New Accounting Records Obligations

In a bid to reinforce its financial governance standards and align with international recommendations, the Seychelles Government has ushered in a new era of accounting record obligations. Global Offshore Company (G.O.C) stands at the forefront of providing comprehensive insights into this transformative development, shedding light on how Seychelles entities can navigate the enhanced accounting records requirements and remain compliant.

Navigating the Evolution: Seychelles' Accounting Landscape Transformed

The Seychelles International Business Companies (Amendment) Act 2021, hereafter referred to as the Amendment Act, signifies a monumental shift in the accounting framework. Triggered by the Organisation for Economic Cooperation and Development (OECD)'s Global Forum report, this legislative amendment aims to fortify the transparency and accessibility of accounting records. The ultimate goal is to ensure Seychelles' removal from the list of non-cooperative countries.

The Essence of the Amendment Act:

The core provisions of the Amendment Act mandate all Seychelles entities to:

1. Comprehensive Record Maintenance: Under the purview of the Amendment Act, every Seychelles entity is obligated to maintain exhaustive underlying accounting records. This includes historical records that span back seven years preceding December 31, 2021. In practical terms, it translates to preserving all accounting records from January 1, 2015, onwards.

2. Timely Submission: Adding a layer of urgency, the Amendment Act decrees that these accounting records must be submitted to the Seychelles registered office by no later than February 6, 2022.

A Glimpse into the Future: Accounting Record Reporting Beyond 2021

The Amendment Act's influence extends beyond its immediate enactment. Beginning 2022, Seychelles companies are expected to adhere to a two-fold reporting regime:

1. Bi-Annual Reporting: All Seychelles companies, irrespective of their size, are mandated to engage in bi-annual reporting of their accounting records to their registered office. This will occur in January and July of each year.

2. Additional Reporting for Larger Entities: For large companies with an annual turnover exceeding USD 3.75 million and non-large non-holding entities, an annual financial summary is now obligatory. This summary encapsulates key financial data and insights.

Consequences of Non-Compliance:

The Seychelles Registrar has set the stage for stringent compliance measures. From February 2022 onwards, on-site compliance inspections will be conducted to ensure that robust and reliable accounting records are in place. Non-compliance bears repercussions:

1. Monetary Penalties: Entities found non-compliant are subject to monetary penalties, with a maximum fee not exceeding USD 10,000. 

2. Directorial Accountability: Directors who knowingly permit contraventions can also face penalties up to USD 10,000.

Safeguarding Compliance: G.O.C's Expert Guidance

Seychelles entities are entrusted with a critical task—to uphold the integrity of their accounting records. G.O.C, your reliable partner, urges early action to consolidate records for seamless submission to the registered agent by the designated deadline. As Seychelles propels forward in its pursuit of financial transparency, G.O.C stands ready to assist entities in navigating the intricacies of this new era, ensuring compliance with the evolved accounting records obligations.

Staying Compliant: The Path Forward

In a landscape marked by evolving change, G.O.C remains committed to empowering Seychelles entities. By proactively embracing the enhanced accounting record obligations, businesses can navigate the shifting regulatory tides and reinforce their commitment to transparency and compliance. Don’t hesitate to contact our trained consultants for any questions in regards to your Seychelle entities. Further explore our Seychelles bookkeeping services for an expert guidance on staying compliant while having financial datas ready for business decisions. 

*Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.*