financial statements, annual reports, tax returns for Seychelles IBC

Kris · Apr 1, 2020

I was asked by my bank from EU to deliver financial statements, annual reports, tax returns for my Seychelles IBC.
Do you have any ideas what say to the bank or what to do so they not close my account?

Gediminas · Apr 1, 2020

While Seychelles law does not require you to keep financial statements, I would advise doing accounting at some level, as financial institutions have to understand your financial situation. Financial statements is a universal tool for that and compliance officers expect you to have it.

Depends on what volume of transactions your bank statement has, I might be able to help you there.

Send me an email, if you wish.

Sols · Apr 1, 2020

I don't know why the myth that Seychelles IBCs don't need to keep accounting records persists. Seems like something service providers should be more aware of. The law is really clear. However, enforcement is very lax - if happening at all.

(1) A company shall keep reliable accounting records that –
(a) are sufficient to show and explain the company’s transactions;
(b) enable the financial position of the company to be determined with reasonable accuracy at any time; and
(c) allow for accounts of the company to be prepared.
(2) For the purposes of subsection (1), accounting records shall be deemed not to be kept if they do not give a true and fair view of the company’s financial position and explain its transactions.
(3) A company that contravenes subsection (1) shall be liable to a penalty fee of US$100 and an additional penalty fee of US$25 for each day or part thereof during which the contravention continues.
(4) A director who knowingly permits a contravention under subsection (1) shall be liable to a penalty fee of US$100 and an additional penalty fee of US$25 for each day or part thereof during which the contravention continues.

But there are as of yet no filing requirements, so your bank can't expect you to provide that.

If you are worried about your situation, hire an accountant to do the books for you and consider hiring an auditor to get it audited.