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Company Formation in Channel Islands

Company Formation in Channel Islands

Investors who are interested in company formation in Channel Islands find that the archipelago located in the English Channel offers notable tax advantages, and a location that favours both British (now non-EU) and other European investors.

The Channel Islands include two crown dependencies: the Bailiwick of Jersey, and the Bailiwick of Guernsey. Our team specialises in Guernsey incorporations, as well as company formation in Jersey, and the setup of trusts and trust companies in both locations.

Working with a local team of experts, such as our own, is recommended and, in some instances, even required. We advise foreign investors to seek our assistance as soon as they decide to open a company in the Channel Islands.

Company incorporation in the Channel Islands

Some advantages for investors who choose to open a company in the Channel Islands include the following:

easy incorporation; our team assists investors who wish to set up a company in Jersey, as well as those who prefer to incorporate in Guernsey;

  • a low corporate income tax or an exemption from this tax (please see below for more details);
  • an overall stable jurisdiction, particularly in Jersey, as it is the largest of the Islands;
  • a transparent companies law with favourable provisions in terms of privacy and the incorporation of companies;
  • several types of companies are available for incorporation and there are no restrictions on the investor’s nationality;
  • good location that allows for connectivity to financial centres both in the UK and Europe (out of which the closest EU country is France).

The Islands are an established business centre and investors have access to fiduciary services, as well as accountants in Guernsey and in Jersey, and legal services.

For investors interested in setting up a company here, our team offers not only incorporation solutions in Jersey and Guernsey, but also accounting solutions, and legal assistance.

The Channel Islands profile for doing business

The Channel Islands impose low taxes on corporate income, therefore being considered a suitable location for company formation. The following taxes are relevant for those interested in doing business here:

  • a 10% corporate income tax rate is in place in the case of Jersey financial services companies;
  • a 20% corporate income tax rate applies to utility companies based in Jersey;
  • a 0% rate applies to all companies that are not exempt, not financial services companies, not large corporate retailers, not cannabis businesses or utility companies;
  • there are no local government taxes on income;
  • the personal income tax rate is 20% of net income, after allowances;
  • real property income derived from Jersey is taxed at 20%, irrespective of the classification of the real property.

Investors also enjoy a fast process for company formation in Channel Islands, should they choose the fastest option for company registration:

  • A 2-hour company incorporation is possible for the fee of £670;
  • The 1-day incorporation costs £425;
  • The 2-day incorporation has a fee of £305.

In addition to the corporate income tax (which only applies to certain types of companies, as described), businesses also observe the provisions of the Jersey Financial Services Commission.

Company formation in Channel Islands is advantageous, particularly due to the tax exemption that applies to most businesses. Other notable advantages include the streamlined incorporation process with which our team can assist investors throughout all the needed phases.

Facts about the Islands:

  • the archipelago has a total of 7 islands and several uninhabited islets;
  • Jersey is the largest permanently inhabited island, with an area of 118 km2;
  • Guernsey is the second-largest island, with an area of 65 km2.

Investors interested in knowing more about company formation in Channel Islands can reach out to our team of experts.

We also provide assistance to those interested in setting up a Jersey trust company.