Of late we have been receiving a heightened level of inquiry from prospective clients asking where one can set up or domicile an Offshore Company without having to meet onerous Account keeping requirements.
The starting point here is to note that it’s the law, in almost every Offshore Company jurisdiction, that you are required to keep financial records from which a set of Accounts (“Books of Account”) could be compiled. The reality of course is that, in most jurisdictions, this requirement is not policed. That said (and coming from a background of having owned multiple enterprises over the course of the past 30 years) it is of course wise to keep Books of Account so that you can monitor the financial health of your business!
Unfortunately, over the course of the past 12 months more and more Offshore Company jurisdictions have begun succumbing to outside pressures – forcing their Companies to file accounts (and or to prepare financial summaries) and or to store at least soft copies of the Company’s Financial records/Accounts Offshore.
That said there are 2 jurisdictions still that, as at the time of writing (ie 29.1.24), have extremely limited Account keeping requirements.
Those jurisdictions are:
- 1. Nevis: – For detailed information click on these Links:
https://offshoreincorporate.com/nevis-llcs-your-questions-answered/
https://offshoreincorporate.com/st-kitts-and-nevis-offshore-companies/ AND
- 2. Samoa – For detailed information click on this Link: https://offshoreincorporate.com/samoa-international-business-companies/
Samoa Companies Accounting Records Requirements
Every company incorporated in Samoa is required to keep and maintain accounting records:
(a) to disclose the current financial position of the Company;
(b) to enable the directors to check that any accounts prepared by the Company comply with the laws of Samoa;
(c) to allow for the preparation of financial statements;
(d) to detail the following;
(i) all sums of money received and expended and the matters in respect of
which the receipt and expenditure takes place;
(ii) all sales and purchase and other transactions; and
(iii) the Company’s assets and liabilities, or other arrangements; and
(e) for a period of at least 7 years from the completing of the transactions or
operations to which they relate.
Additionally, the Company must inform its Samoan Registered Agent in writing of the location where the accounting records are to be kept.
Should there be any changes to the location, the Company must inform the RA in writing of the physical address of the new location of the records within 14 days of the change of the location.
Accounting records may required by the Samoa Financial Services Authority and upon request they must be made available to comply.
Nevis Companies Account Keeping Requirements
Accounting requirements in Nevis are thankfully not as onerous as elsewhere.
Every Nevis entity is required to maintain sufficient and accurate records from which accounts might be prepared should the Directors or Shareholders choose to do so. In other words, there is no absolute requirement to do so.
Unlike places such as BVI, there is no requirement to file any accounting information with the Registered agent, and there is no public filing of accounts, schedules of assets/liabilities etc.
That being said, each Nevis entity is required to file an annual Tax Return in St. Kitts & Nevis. Where the management of the entity is conducted outside of St. Kitts & Nevis, the required return is informational only, and need not include any financial or transactional information.
A sample of the current return can be viewed here: https://offshoreincorporate.sharepoint.com/:b:/s/OffshoreCompaniesInternational/EY9qhVbBnDxPqIoqK7hclxgBGxN7pKymMzwgImGS_utnCg?e=PQhIqK
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
