The decision to open a SPV company in Jersey can be beneficial for an international organization looking for a solution for securitization, risk management, or performing separate financial transactions from those of the parent company. The Special Purpose Vehicle, the SPV, can be structured as a Jersey company to fulfill these roles, as per a particular business purpose.
Our team specializing in company formation in Jersey can assist you if you are interested in setting up an SPV company in this jurisdiction. Jersey is a preferred location for basing this type of company, and our team has extensive experience in working with international investors.
Alternatively, if you wish to know more about other topics, such as how to set up a Jersey trust company, our team can answer your questions.
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Reasons to open a SPV company in Jersey
Jersey is a preferred location for setting up a special purpose vehicle, given its favorable taxation policies, easy procedure to set up a company in Jersey, as well as a welcoming business environment. Some of the main reasons to use a Jersey special purpose vehicle include the following:
- The tax neutrality of the jurisdiction: most companies are subject to a 0% corporate tax rate; the goods and services tax is relatively low, at 5%, however, many international companies can be exempt from this tax (depending on their activities);
- The choice of legal entity: there are no restrictions on the types of companies that can be incorporated by foreign nationals; when an investor decides to open a SPV company in Jersey, he will most commonly set it up as a company limited by shares;
- The location: the Bailiwick of Jersey is part of the Channel Islands and it is conveniently located between the United Kingdom and Europe;
- The uses: investors who open a company in Jersey for using it as a special purpose vehicle can deem this special purpose to be securitization, certain types of investments, security arrangements restructuring, insurance risk securitisation, and others.
If you would like to find out how you can not only do business in the Bailiwick, but also how to immigrate to Jersey in order to run your company, our team will give you details about the residence permits and your options for remaining here for medium to long-term purposes.
Steps needed for SPV creation in Jersey
Investors who decide to open a SPV company in Jersey should follow these steps:
- Decide on the type of legal entity to use: as previously mentioned, the limited liability company is preferred to structure the special purpose vehicle;
- Decide on the company’s particulars: these are its name and is address (it can be any Jersey address), its shareholder and director (at least one of each), a company secretary and a nominated person;
- Prepare the documents: the Memorandum and the Articles of Association are drawn up to reflect the type, purpose, and particulars of the new business;
- Register: the process to open a SPV company in Jersey is complete when the company is registered with the Jersey Financial Services Commission’s registration portal.
The company’s beneficial owners will need to provide personal identification documents if they have a shareholding of 10% or more in the company. Do you need more information about specific legal issues around the creation of a special purpose vehicle? Our lawyers in Jersey can answer these.
Contact us for assistance if you wish to open a SPV company in Jersey, as well as for any other issues related to company formation in Guernsey or Jersey.