What are Accounting Records?
“Accounting records”, means documents relating to assets and liabilities of the company, including receipts and expenditure, sales and purchases and other transactions.
What Account Records law requires for IBCs to keep?
1. that are sufficient to show and correctly explain the International Business Company`s transactions;
2. to enable the financial position of the International Business Company to be determined with reasonable accuracy at any time; and
3. to enable for accounts of the International Business Company to be prepared.
So, what is this NEW requirement?
The same Amendments that requires Seychelles IBCs to abolish bearer shares (link to my previous blog), also requires all Seychelles IBCs to file annual return with its Registered Agent.
In reality it is not that complicated and after all and there is no requirement for any financial data to be filed, the return is filed in a form of a declaration, and has to confirm the below two points:
- The company keeps accounting records and the accounting records can be made available through its registered agent;
- Register of shareholders (register of members) of the Company is up-to-date and copy of same is kept at the registered office.
What happens if one does not comply with these new requirements?
Company that does not comply and does not prepare the required declaration will not be renewed and will lose its Good Standing, as renewal of company is not possible without the declaration. Further such company will be subject to a US $100 plus US $25 per-day penalty. Eventually the company will be struck-off the Register.
Thank you for reading my post! And you are welcome to leave comments, feedback, suggestions for other posts or contact me for more information.
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