Jersey Company Formation

• Stable conditions for business activities. It has its long-standing parliament, FATF norms are implemented, as well as norms of the Hague Convention of 1961.
• Tax incentives. Many international companies seek to incorporate a Jersey company because of: a lack of exchange controls, income tax, inheritance tax, and low annual fees. In addition, there is no compulsory initial capital.
• International connections. The authorities have signed customs treaties with the EU, which facilitates international trade. Proximity and long-standing relationship with the UK gives easy access to this market as well.
• Minimum regulatory requirements. Directors’ meetings can be held outside the jurisdiction, auditing is only required for public companies, and business re-domiciliation is allowed.

• Local office. To comply with FATF rules, the authorities have made it mandatory to have a local office.
• Issuance of shares. The issuance of shares (voting and non-voting, registered) and securities is permitted, but bearer shares are prohibited.
• Initial capital. The legislation does not set the amount, but most often contributes a minimum of GBP 10000.
• Company structure. Basic conditions include one manager (for public companies – two) and one shareholder (for public companies – two), no residency requirements; the secretary cannot be a director; data is recorded in the state register and updated every year.
• License. Licensed activities include banking, insurance services, and investment funds.
• Full name of the company. It is forbidden to use words related to the royal family (Royal), to specify (Bank, Finance, Assurance, Trust) without having a license. For an international company, the name must be Ltd/ S.A.R.L. Jersey company registration fees include in addition the fee for reserving the name itself.

The jurisdiction offers a fairly wide range of company types.

Each business, taking into account the requirements for the structure and features of the activity, can create:

• Limited Liability Company (LLC) for small and medium-sized businesses. The owners of the company do not have to be Jersey residents. When establishing this type of entity, an operating agreement is signed, and it must specify the share of each participant. The company keeps all information, including that of the ultimate owner, at its office.
• Jersey company. This is a private limited company or limited liability partnership, registered under Companies Jersey Law (1991).
• Trusts – very popular as the law is investor-friendly and requires an annual report from the local trustee.
• Foundations – there can be one founder, authorized fund – GBP1.
• Filial offices, representative offices. Representative offices/branches of large companies already operate here among them: HSBC, BNP Paribas S.A, JPMorgan Chase Bank N.A, WPP plc.

Company registration and compliance is based on Companies (Jersey) Law 1991, which has been amended many times to better regulate the process.

Registration of Business Names (Jersey) Law 1956, as amended in 1998, outlines for companies the possibilities and prohibitions of choosing a business name.

Financial Services Commission (Jersey) Law 1998 (the Commission Law), was enacted to control the financial market by the Jersey Financial Services Commission (JFSC).

Separate legislation governing each type of company:

• Limited Liability Companies (Jersey) Law 2018.
• Limited Partnerships (Jersey) Law 1994.
• Foundations (Jersey) Law 2009.

This territory attracts investors with rates such as:

• Corporate tax – 0%, but for financial companies – 10%, for realtors and those involved in mining, utilities, banks, trusts, investment funds – 20%.
• No tax on capital gains, dividends, inheritance.
• GST-5%, but only if the income is earned on the island.