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Open a Subsidiary in Jersey

Open a Subsidiary in Jersey

Foreign companies interested in the option to open a subsidiary in Jersey will be essentially incorporating a legal entity in the largest of the Channel Islands, in which they will be effectively holding the controlling interest.

Company formation in Jersey is a straightforward process and, oftentimes, the subsidiary is preferred to the branch, given the fact that the parent foreign company retains a certain level of limited liability concerning its Jersey subsidiary.

The characteristics of the subsidiary in Jersey

Investors who open a subsidiary in Jersey will be incorporating a limited company. The parent company abroad will act as its primary shareholder, essentially having a controlling interest. In those situations in which the foreign company owns 100% of its subsidiary, the latter is a wholly owned subsidiary.

Our team briefly outlines the main traits of the subsidiary below:

  • it is a limited liability company incorporated per the company formation laws in Jersey;
  • it follows the laws applicable in Jersey;
  • it is more than 50% owned by a parent company;
  • it is a separate legal entity from the foreign company owning shares in it; this is an important difference from the branch in Jersey.

Once the process to open a subsidiary in Jersey is complete, the new legal entity will be following the Jersey rules for corporate management, as well as tax and filing, and the submission of the annual financial statements.

If you are interested in incorporation in the Channel Islands in the second largest island, we also assist clients with company formation in Guernsey.

Steps for subsidiary creation in Jersey

The decision to open a subsidiary in Jersey is an important one for a foreign company looking to take advantage of the tax benefits in the area and have a permanent establishment closely located to the UK and other European countries.

A subsidiary is incorporated by following the general rules for setting up a business in Jersey. Our team lists the main steps below:

  1. Choose the name and address: the new company will need to have an available name, one that does not infringe existing ones and that does not contain prohibited words; it will also require a Jersey-registered address;
  2. Prepare the documents: these are the Memorandum and the Articles of Association for the new company;
  3. Decide the shareholding structure: the company will need to have at least one shareholder and one director, as well as a company secretary;
  4. Register: once the company’s particulars and documents are in order, the founders apply for its registration with the Jersey Financial Services Commission.

Our team of company formation experts is able to assist investors who wish to open a subsidiary in Jersey through all of these steps, as well as with any post-registration requirements. We remind investors that one of the most important advantages to subsidiary creation in this location is the low taxation regime:

  • companies in Jersey are usually subject to a 0% corporate income tax;
  • a 10% income tax applies to companies that fall under the scope of taxation for financial services companies;
  • a 20% corporate tax rate applies to utility companies, companies in the cannabis industry, or large corporate retailers (to which certain conditions for taxation apply).

In addition to our services focused on subsidiary creation, we also assist those who wish to set up a trust in Jersey.

Additionally, you can also reach out to us if you are interested in the process to set up a company in Guernsey, and not in Jersey. The two islands have different sizes, however, the advantage for company formation remains the same for both of these locations.

Contact us if you want to know more about how to open a subsidiary in Jersey, or need assistance with other company formation matters in Jersey or Guernsey.

You can also reach out to our lawyers in Jersey if you are interested in private client services, such as those related to how to immigrate to Jersey.