Investors who open a company in Jersey enjoy not only a straightforward incorporation process but also notable tax advantages, making the jurisdiction suitable for basing all types of businesses, as well as for wealth management purposes.
Jersey is a British Crown Dependency, meaning that the English company law is prevalent, and the same underlying principles apply in the Jersey Companies Law. This can be an advantage for certain international investors who have opened or done business with English companies or with companies based in other British Overseas Territories.
Our team provides complete information about how to set up a company in Jersey, the main requirements for investors, as well as details about taxation and other matters. We are a dedicated team of company formation experts who assist local and foreign investors throughout the Jersey offshore company formation process, and beyond this point, as needed with various company management matters. If you wish to know more, please reach out to our team of company formation experts and lawyers.
Types of companies in Jersey
An offshore company in Jersey will commonly be used for holding purposes, however, it can also serve as a vehicle for investing in property. One of the most important decisions when locating the company in this jurisdiction will be choosing the most suitable form of company.
Our team specializing in company formation in Jersey is able to assist you so that you can make an informed decision, and structure your business according to your business needs.
| Quick Facts | |
|---|---|
| Types of companies available for company formation in Jersey |
Local |
|
Minimum share capital for LTD Company (if applicable) and Paid-In Requirement (YES/NO) |
No |
|
Minimum number of shareholders for Limited Company |
1 |
| Corporate tax rate in Jersey | 0% in general Exceptions apply in case of financial service companies, utility companies and large corporate retailers |
| Dividend tax rate | 0% |
| VAT Rate in Jersey |
5% standard rate |
| Number of Double Taxation Treaties (approx. ) |
27 |
| Do you supply a Registered Address? (YES/NO) | Yes |
| Local Director Required (Yes/no) | No Can be subject to exceptions in case of certain regulated activities |
| Annual Meeting Required in Jersey | Only for relevant private companies and in the case of public companies |
| Redomiciliation Permitted | Yes |
| Electronic Signature | Yes |
| Is Accounting/Annual Return Required? | Yes |
| Foreign-Ownership Allowed for company formation in Jersey | Yes |
| Any Tax Exemptions Available? (Offshore Income, Dividend Income etc.) | Not applicable, given the general 0% corporate tax rate |
| Any Tax incentives (if applicable) for company formation in Jersey | Not applicable, given the general 0% corporate tax rate |
The available business structures have different characteristics and some of the most common business forms are briefly listed below by our agents specializing in Jersey offshore company formation:
- Limited liability company: this is a business form that is seen as a combination between a company and a partnership, and the law was amended to allow for their creation, given the popularity of the LLC in other offshore jurisdictions;
- Company limited by shares: this is the business form commonly used, and it can be a public or a private one;
- Guarantee company: unlike in the company limited by shares, the liability of a member is established based on the offered guarantee;
- Cell company: this can be a protected cell company or an incorporated cell company; cell companies can be public or private, limited or unlimited, and issue par value shares; the cell company can issue par value shares for one cell only.
Investors also have the option to set up a company in Jersey that will have a limited duration or life. One of our agents can give you more information about these business forms, should you wish to know more about how you can set up a legal entity with a limited period of existence in this jurisdiction.
Our team also assists entrepreneurs and companies interested in trust creation in Jersey. This vehicle can be used for multiple purposes, such as real estate, collective investments, pension schemes or employee benefit trust. Other uses for those who set up a trust in Jersey include the ones relating to tax planning and asset protection, but also estate planning and succession. Our team can give you complete details about the formation and the regulatory regime.
Jersey offshore company formation requirements
Investors who are interested in company formation in Jersey need to follow a number of rules for incorporation, as well as the ongoing compliance rules. We list some of the most important issues below:
- Members: the public company required two members and the private one only one member;
- Registered office: the offshore company in Jersey will have a locally registered office that will be its permanent establishment;
- Secretary: the Jersey company needs to have a secretary; a nominated person is also needed in case of financial companies and residency requirements apply in this case;
- Accounting: keeping the company’s financial records is mandatory; annual corporate tax returns are filed by the end of the year following the year of assessment, together with the financial statements for the said year in case of tax resident companies.
The Jersey Financial Services Commission is in charge of regulating the financial services industry and, therefore, all companies that provide these types of services in Jersey, Channel Islands. Our team can give you more details on the available regulations for businesses in this industry and can also help you obtain the needed permits and licenses.
One of the most important advantages when opening a company in Jersey is the fact that most companies can be exempt from corporate income tax. The rate is as follows:
- 0%: in case of resident companies or non-Jersey resident companies with a permanent establishment, engaged in certain business activities;
- 10%: for companies that offer financial services; our team can give you more details on the scope of taxation in this case;
- 20%: to companies that are defined as utility companies, as well as larger corporate retailers.
Our team can also assist with company formation in Guernsey. The Bailiwick of Guernsey is one of the two, along with the Bailiwick of Jersey, that make up the Channel Islands. While they are both British Crown Dependencies, they are not part of the UK. Proper corporate registration is required in Guernsey and this can only be accomplished with the assistance of an accredited local specialist.
Jersey company formation steps presented by our team
Our team assists local and foreign investors throughout all the company formation stages.
These start with choosing the business structure and preparing for registration and also include preparing the business for compliance with the Employment Law.
The key steps are briefly listed below:
- Choose the business structure: most companies are incorporated as limited liability companies, but investors can also set up a partnership or sole trader;
- prepare the company documents these are the articles of association and the memorandum they can have a standard form, but we advise clients to request the help of our team of experts to draw up documents that are tailored to their needs;
- prepare other documents these include certified copies of the company founders ID as well as other documents that may be requested;
- register the business the company is registered with the jersey financial services Commission the JFSC also registers all business names;
- Obtain the business license: almost all companies will need to apply for a business license, however, some forms of activities do not need this; sole traders can be exempted from it in some cases;
- Register as an employer: most businesses are registered as employers automatically when they submit the documentation for registration (if they state that they will hire employees); you will need to register to pay Social Security and tax for your employees and you will be required to submit manpower returns;
- Obtain special licenses: these are required in certain industries, for example in agriculture, construction, cosmetic services, the finance industry, food and drink, gambling, healthcare, accommodation, retail, and others.
Our team of company formation experts also assists entrepreneurs who need to open a bank account for their newly formed company (which is a mandatory step), as well as with answering other questions, such as those related to business insurance, health and safety liability for employers, and others.
Assistance for company changes in Jersey
We do not only assist investors who wish to open new companies. We also provide services for already incorporated businesses.
Our team provides solutions for foreign companies that wish to expand to Jersey through the formation of a branch, and we also assist corporations interested in franchising, mergers or acquisitions.
Changing the business ownership is not a complicated process, however, the Jersey Financial Services Commission does need to be notified of these changes and proper documentation is submitted as required.
When the company will have less than 60% of the new shareholders who have residential status or employment status, who are entitled to work or licensed, the new owners will need to await the approval of the authorities before they are able to continue with the new ownership. Having this status does not translate into a mandatory condition and a limitation on foreign ownership, however, it does mean that a comprehensive examination of the change of ownership is performed by the authorities.
We can give you complete details on gaining entitled status (by living in Jersey for a continuous period of 10 years), as well as retaining this status.
However, a distinction should be made between a foreign company and a local company. The foreign company can be managed and controlled in Jersey and have its directors and board meetings here and it will be treated as a tax resident.
Due to Jersey’s favourable taxation policies, foreign companies can prefer to be treated as tax residents in Jersey and they can receive, upon request, a tax residency certificate from Revenue Jersey.
Any change in your business circumstances can be helped by our team who, upon an initial discussion, will be able to prepare the documentation needed for the business transfer and the subsequent changes.
Businesses that wish to stop trading in Jersey can also rely on our assistance for the purpose of finalising the payments to their creditors and making the needed notifications to the authorities concerning the cessation of trading.
Services offered by our agents and lawyers in Jersey
Our team assists local and foreign clients who wish to open an offshore company in Jersey. Given the fact that company formation can be both fast and accessible, Jersey can be a suitable location to base an international business or structure a legal entity for offshore purposes. That said, all companies will need to observe the general incorporation regulations, fees, and relevant laws for preventing money laundering, as well as the ongoing annual and accounting requirements.
Our team is not only helpful when setting up a business in Jersey, but also in providing services for those who have perhaps already incorporated their business and are in need of ongoing assistance. We also assist those who wish to apply for company permits and licenses, and who are interested in company mergers or company re-domiciliation in Jersey.
The largest of the Channel Islands, Jersey is a self-governing dependency where the British and French cultures mix.
Non-residents enjoy a whole range of advantages when deciding to open a company in Jersey. As summarized by our team, one of the most notable is the zero-rate income tax, the fact that there is no tax for Jersey companies. Many foreign investors also choose to set up a company here due to the privacy laws, and the overall company law. If you need assistance during set up, do not hesitate to contact us.
If you plan to relocate your business altogether, we can also help you with information about how to immigrate to Jersey.
Contact us for more information about Jersey offshore company formation and other related matters.