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Jersey Company Formation

Jersey Company Formation

Jersey, one of the Channel Islands owned by the British Crown but not part of it, has become a financial center with an optimal tax burden. Jersey Company Formation is a goal for many investors seeking to operate in a jurisdiction with a high reputation, stable economy, and favorable conditions. Fast Offshore Licenses provides legal assistance with any type of company formation.

Jersey is not a part of the UK and EU, it has a certain autonomy – its parliament, legislation, and tax service, but fulfills the decisions made by the English Parliament.

Company Formation in Jersey benefits many entrepreneurs because of the tax-neutral system. A registered business in this jurisdiction receives many preferences: reduction of the tax burden, the opportunity to develop trade relations with Europe, legalization of business in an economic zone with a reliable reputation, and the possibility of IPO. Also, the island’s government has already signed 15 double taxation treaties.

When incorporating a company it is important to comply with the legal rules laid down in Companies (Jersey) Law 1991. Most often IBC (International Business Company) type companies are registered on the island. Some of the main areas are trade, investment financial services, and IT services. The main requirements of their activities include compliance with AML/KYC procedures, financial reporting, and keeping documentation in the local office, it is prohibited to do business with residents, for some types of business is a prerequisite for obtaining a license.

Advantages of Company Registration in Jersey

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.

Requirements for opening a formation in Jersey

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.

Process for Opening a Company in Jersey

The process of setting up a company takes up to two weeks. There are certain steps to follow to run an international business:

Select a name for the company

When choosing a name it is worth considering the peculiarities of the jurisdiction to ban certain words (Bank, Trust, Royal), and specify Ltd at the end when registering this type of company. A unique name is reserved for 6 months online at Easy Company Registry (ECR). A fee as per the scale is also paid.

All documents for registration

The mandatory documents include:

Articles of Association, Memorandum of Association, Memorandum of Association.
Identification details of directors, shareholders, and secretary, their place of residence (required to comply with AML/KYC rules).
Order based on which the director performs his/her functions.
The order hiring the secretary.
Details of the shareholders and the amount of capital contributed
Registered address on the island

Application to the JFSC

Based on the Financial Services Commission (Jersey) Law 1998, the Jersey Financial Services Commission (JFSC) registers companies and also tracks payments, and manages the financial market. The company registration fee is listed on the website and depends on the time of registration.

License

To legalize certain activities like banking, insurance services, and investment services, the Jersey Financial Services Commission (JFSC) must issue a permit/license.

JOIC Registration

The Jersey Information Commissioner’s Office (JOIC) handles the registers of directors/managers and shareholders. Each company also submits data to this office.

Registering for GST

GST-5% is charged on the sale of goods and services, but it is only payable if the income was earned within the island.

Corporate Account

Doing business requires opening a corporate bank account. You can choose from more than 30 functioning banks, including giants such as HSBC, UBC, and Deutsche Bank.

In addition, companies file annual updates on their activities and changes of beneficiary with the Jersey Financial Services Commission (JFSC).

Types of companies in Jersey

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.

Jersey Companies Legislation

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.

Taxation in Jersey

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.

FAQ about a Company formation in the Jersey

How to register a company in Jersey

The company registration process is quick and easy through the Regulator’s website, but only if full details of the manager, shareholders, and contact details are submitted.

How much does it cost to set up a Jersey company?

Also, the Regulator on its website, under Fees, has listed all the state fees that depend on the processing time.

How long does it take to incorporate a Jersey company?

The process of gathering documents, submitting an application, and having the Regulator review the company information can take up to two weeks.

Can a non-resident set up a company in Jersey?

Yes, there are no residency restrictions in this jurisdiction. A non-resident can own and operate a company.