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Accounting Requirements for Companies in Seychelles

Accounting Requirements for Companies in Seychelles

company in Seychelles must keep its own accounting records in matters of transactions, invoices and many others and our accountants in Seychelles can help with all of these.  

Offshore companies in Seychelles are registered anonymously and are not subject to the annual financial report as numerous companies are. Being an offshore jurisdiction, the taxation system is advantageous because there are no taxes on dividends, capital gains, royalties, interests, and rents. 

The list below is a summary of the most important provisions regarding accounting included in the Seychelles International Business Companies Act:

  • – the records: as defined in the Act, the accounting records include the documents that prove the company’s assets and liabilities, the receipts, the sales and purchases records, and others that prove relevant transactions.
  • – annual account filing: the preparation and filing of the annual accounts are not mandatory for companies in Seychelles and neither is the appointment of an auditor. 
  • – the preserved accounts: the company is required however required to keep the records listed above so as to explain the company’s transactions.
  • – the storage of the accounts: the accounting records are to be kept according to the International Business Companies Act, most often at the company’s registered office.

In compliance with the legislation in Seychelles, our specialists in company formation in Seychelles can offer accounting services for your company and can explain the requirements in this matter.

Company accounting and reporting requisites in Seychelles

In order to comply with the OECD’s recommendations, the Seychelles government amended the International Business Companies Law in 2011, when new accounting standards were enforced. These standards provide for:

  • – Seychelles offshore companies to keep accounting records which show the accuracy of their transactions;
  • – the accounting documents must be clear enough for the tax authorities to be able to verify them;
  • – the tax authorities must also be able to determine the financial status of an IBC company based on its financial statements;
  • – the amended law also provides for Seychelles IBC companies to be able to prepare accounts and other financial documents.

We also invite you to watch our video on the accounting requirements for Seychelles companies:

Accounting records in Seychelles

Establishing an IBC (International Business Company) in Seychelles comes with numerous advantages from which we mention the most important ones: complete privacy and tax exemptions. But the transactions made by an IBC in Seychelles must be recorded internally in a proper manner. The good part is that such a company is not obliged to prepare the audited annual records, but please remember that accounting records are necessary and also sufficient in such company. For example, an offshore IBC must keep accounting books in order to register the company’s assets, receipts, invoices, contracts, acquisitions, sales or other financial transactions. Such accounting records are kept in the company’s main office, or in other places if the director of the company considers so. We remind that the accounting records of an offshore in Seychelles is not subject to public disclosure, and furthermore, these documents must be kept for seven years.

Company directors can request that the company provides to them the relevant accounting records for inspection. When a director makes such a request, the company must provide the original or the copies within two weeks from the request. Companies need to comply with the director’s requirement when he requests to see the accounting records. Failure to do so can result in fines and when the company refuses to disclose this information, a formal legal request can be made for a court to compel this disclosure. In practice, however, these cases are rare and would have to be precedent by a dispute or a conflict of interest between the company director and the shareholders/registered agent/other company representatives.

When choosing Seychelles for protecting the assets, we suggest you address to our company incorporation agents in Seychelles for registration matters among many other related services. We also guide through the VAT registration procedure in Seychelles.

Penalties for not keeping the records in Seychelles

Business persons worldwide choose Seychelles for creating offshores and protecting their money and assets. As it is known, there are no taxes levied on registering the company or on profits, which is why Seychelles became a preferred offshore jurisdiction. The main requirement in this matter as stipulated by the law in Seychelles is related to the accounting records which must be prepared and controlled inside the company without having to display it publicly for 7 years.

One should know that if such accounting records are not considered, the owner of the offshore can be penalized for each day of non-compliance in this matter. In most cases, the initial penalty is 100$ and the daily penalty is 25$ for each day during which the contravention continues. Those companies that do not comply with the conditions for keeping and storing the accounting documents are the ones liable for the highest fine, of up to 2,500 $. The value of these fees is informative and for any updates, we recommend that you get in touch with one of our agents who specialize in company registration in Seychelles as well as the accounting requirements. 

Other accounting requirements in Seychelles

Bookkeeping, payroll administration, preparation and maintenance of accounting records, preparation of statutory financial statements and audits, besides full tax compliance services can be solicited for your company in Seychelles. Our advisors can offer such accounting services in conformity with the legislation in the insular state.

Accounting services in Seychelles

In order to meet all the tax requirements applicable to offshore and onshore companies in Seychelles, using the services of local accountants are often employed by local and foreign business owners. Here are the main accounting services one can rely on in Seychelles:

  1. tax and VAT registration upon the creation of the company;
  2. bookkeeping and payroll services are also available for all types of companies;
  3. audit services in accordance with the International Financial Reporting Standards (IFRS);
  4. payroll and HR services for businesses with small or large number of employees;
  5. tax advisory services based on a case-to-case basis are also available;
  6. financial statement preparation and filing services.

You can choose to work with our accountants in Seychelles and request one or more of the services presented above. Our specialists are certified accounts and auditors who can provide assistance in a wide range of financial matters.

Tax and VAT registration support in Seychelles

Even if Seychelles is known as an offshore destination, registering a company here implies the same steps as in other countries, which means that a business must obtain tax identification and VAT numbers in order to enter in the evidence of the Seychelles Revenue Commission.

Our accountants can handle the tax registration procedure, including the one related to obtaining a VAT number for all types of enterprises operating here, including for partnerships and sole traders, for foreign citizens who have decided to relocate to Seychelles and want to develop their activities here.

The process is not lengthy and does not require meeting special requirements, however, using our services can bring the advantage of having a ready-to-run business upon arrival in Seychelles.

We are at your service with a wide range of services, including immigration.

Bookkeeping and payroll assistance in Seychelles

If you decide to move to Seychelles and start a business here, you will most likely want to hire local employees. In this case, the company needs to register as an employer, while each employee must also be registered for social insurance purposes.

Payroll is one of the most complex accounting tasks, which is why if you need assistance, our accountants in Seychelles can provide you with tailored services based on the size of your business.

We can also handle all bookkeeping aspects of your enterprise. Among the services you can rely on our specialists for we mention the following:

  • – recording of all invoices and financial transactions, in accordance with the Seychelles accounting standards;
  • – drafting the financial documents related to a correct and accurate bookkeeping;
  • – drafting and filing VAT returns, so that you can benefit from VAT refunds, if available;
  • – preparing all the notes and other associated papers required in bookkeeping.

Our accountants in Seychelles are at your service, so do not hesitate to get in touch with our specialists.

Tax advisory services in Seychelles

If you are a foreign investor and want to set up a business in Seychelles, the services of a tax advisor can be what you need when drafting a business plan. Our accountants are at your service with advice on market trends and the industry-related specifics, so you know the best way to set up your operation and meet your short, medium, and long-term goals.

Our Seychelles tax advisors are at your disposal and will also explain how taxation works in the insular state, so that you know what to expect when opening various types of enterprises here.

Audit services in Seychelles

Even if according to the law, offshore companies are not required to keep audited accounts, our specialists do not offer statutory audit services only, they are also at your disposal with internal and external audits they can perform in order for you to know the financial soundness of your enterprise.

Our auditors in Seychelles can complete various types of audits that will help you enhance your business’ overall performance.

If you want to open a company in Seychelles, you can rely on our local specialists.

Taxation in Seychelles

The Seychelles taxation system implies the following taxes:

  • –  the income tax which is levied on companies with activities in Seychelles at a rate of 25%;
  • –  the lack of capital gains, dividend, inheritance or property taxes in Seychelles;
  • –  withholding taxes are levied only on non-residents at rates varying between 15% and 33%;
  • –  Seychelles IBC companies are exempt from taxes for a period of 20 years.

Maintaining updated and accurate financial records is in the best interest of the company and its beneficial owners and this is a requirement in many offshore jurisdictions, not only Seychelles. The fact that these centers do not require annual filing like other jurisdictions is enough for investors to already benefit from a more relaxed accounting and reporting regime. The simplicity of the accounting records that need to be prepared makes it very easy for those who open a Seychelles offshore company to prepare and maintain the accounting records themselves. This can be achieved by maintaining a good record of the company’s financial transactions using one of the many available accounting software that is available today.

While maintaining and preparing the accounting records is simple in Seychelles, we do recommend that investors explore the services offered by our team in connection with various accountants and tax experts. This is recommended for offshore companies as oftentimes foreign investors who open these companies are not present at all times in Seychelles and nevertheless the company needs to maintain an updated version of the financial transactions. The registered agent services are also important for this purpose, as they relate to the management of the company and the agent being the link between the Seychelles authorities and the company director. This agent needs to be licensed to provide the services, another manner in which the company owner can make sure that the affairs of the company are kept in order.

Investors who open an IBC offshore company in Seychelles enjoy lighter accounting and reporting requirements particularly because the IBC is designed to engage in business activities that are not conducted in the country. companies may be required to present their financial records to Seychelles authorities not as part of an annual submission but as part of an ongoing investigation and these cases are rare.

Why use the services of our accountants in Seychelles?

Many companies in Seychelles work with external accounting firms as this is one of the fastest ways of setting up the accounting system of their business. Externalizing such services will imply more time for your business and using the expertise and experience of specialists who are well acquainted with the legislation of this country and who can tailor and adapt their services to your company.

 You can request a personalized offer from our accountants in Seychelles, no matter the services you need.

If you want to know more details about the accounting requirements and the taxation of companies in Seychelles, we invite you to get in touch with our team of company incorporation agents in Seychelles.

Regardless of the Seychelles offshore business that you carry in this jurisdiction, you will need certain accounting services. For this. You will need to hire at least 1 accountant, depending on the overall activity of your business. 

You can rely on our team of consultants for professional accounting services and bookkeeping services, which will be designed for the needs of your business. 

Our accountants can offer accounting services for a Seychelles IBC, and they can also assist you in any tax matters. 

As you know, Seychelles provides numerous tax deductions, exemptions and other tax benefits, and our accountants can provide you with more information concerning the ways in which you can obtain any other tax advantages or if you are entitled to any tax minimization benefits.