General Knowledge About Offshore Companies

Are offshore companies required to keep financial records and books?

If Your government would not require to keep and file all those numerous financial reports and forms, what kind of financial recording would You do at Your own will? The difference would be quite substantial, right? Many offshore jurisdictions do not require any financial records to be officially filed. Quite simply, offshore companies are free to keep their books as they wish. However, since recently, some of the more advanced offshore financial centres have gradually realized that a mandatory requirement to maintain some formal financial records in an offshore company would actually be in the best interests of the beneficial owners of the companies, as this would provide the company owners with extra peace of mind. This aspect becomes specifically important when an offshore corporation is owned by several individuals, thus requiring a more elaborate system of management and controls.

In Seychelles, companies are required to maintain, internally, such accounting records that enable the financial position of the company to be reasonably determined at any time. However, there is no requirement to file any financial information on public record, nor is there any audit requirement - as long as the particular company does not obtain any assessable income in Seychelles (i.e. keeps its business activities outside of the country). Apart from that, the company may be asked, by Seychelles Revenue Commission or Financial Intelligence Authority to furnish its records - but this can happen only in strictly limited circumstances, as part of an ongoing investigation in Seychelles.