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Benefits
of Guernsey
The Island of Guernsey has the character
of a small English town, but with beaches, cliff paths and
countryside close at hand. With a healthy economy, based on
financial services, tourism and horticulture, a low tax regime
and a relaxed lifestyle, Guernsey attracts many people to work
or simply retire there. The island of Guernsey is situated one
hundred and sixty kilometres to the south of England and thirty
two kilometres west of France. The population does not exceed
58,000 people.
The Constitution of the island is an
independent one, and it is self-governing with a democratically
elected government. They enjoy an advanced legal system with a
mix of English and French law. Their political stability is very
good. The spoken language, as well as the law language, is
English.
The Guernsey economy is dominated by the
financial services sector but with a strong tourist and
horticultural industry. The currency used is the English
Sterling and there is no Exchange Control. There are no value
added taxes (VAT) in Guernsey. It currently has double taxation
agreements with Jersey and the United Kingdom.
Questions
& Answers
regarding Companies
in Guernsey
A. The
Structure of a Company.
1. What Documents are required to Incorporate a
Company?
Guernsey companies can be incorporated
within five working days. “Off-the-shelf” companies are not
available. Any name is acceptable, provided that it does not
include references or allusions to the Crown. However, care must
be taken to ensure that the proposed name does not conflict with
an existing company name.
B.
Provisions in the Act relating to the Management and
Administration of the Company.
1 . Directors.
At least two directors are required. A
list of persons who have consented to be directors must be
lodged. Also, details of directors will appear in the Annual
Return lodged in January of each year.
2 Shareholders.
Guernsey law requires two shareholders,
each of whom must hold one share. Shareholders may be nominees,
to preserve the anonymity of beneficial owners.
3. Registered Office.
The company must lodge, within one month
of incorporation, a notice of registered office. The registered
office must be in Guernsey.
4. Meetings.
The company must hold an Annual General
Meeting. The meeting does not have to be held in Guernsey.
Normally auditors (who do not need to be resident in Guernsey)
should be appointed. If the Company does not trade, there is a
procedure available for avoiding the appointment of auditors.
5. Filing Requirements.
Accounts do not have to be filed.
6. Taxation.
No liability to income tax arises on a
company granted exempt status for a particular year from the
Guernsey tax authorities, provided that the only income derived
by the company from Guernsey sources is interest on bank
deposits. Otherwise, income is taxable at a rate of 20%.
Notes
(1) For a copy of a full set of documents
to be made apostille in the jurisdiction will cost a minimum US
$
We are not responsible for any forthcoming
changes concerning the rules and regulations of the
jurisdiction.
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