Jersey
 

  Benefits of Jersey

   Jersey is the largest of the Channel Islands which are situated off the north-west coast of France, near the Cherbourg Peninsular. Jersey is approximately one hundred and sixty kilometres south of England, but only twenty kilometres from France at the closest point. The environment is essentially rural with attractive coastlines offering many facilities to visitors.

   The population of Jersey is approximately 82,000 and effective immigration controls exist to restrict future growth through the Housing Jersey Law of 1949 which controls the sales and leases of land.

   English is used in all aspects of the island’s financial and commercial activities. The Jersey pound is on par with the United Kingdom Sterling and is one of the world’s most established and respected offshore jurisdictions.

   The Island’s law is largely based on English Common Law with many French features. The Principal Corporate Legislation is the Companies Jersey Law, 1991. The type of company for International Trade and Investment is the Exempt Company.

   Jersey further tightened its regulatory environment in June 1998 with the establishment of the Financial Services Commission (FSC). The Commission is responsible for the regulation, supervision, development and promotion of the financial services industry on the island.

  Other Benefits of Jersey

An exempt company is not liable to tax on income arising outside the island.

No requirement to submit any financial accounts.

Full exemption from taxation on any business activity or transactions carried on outside Jersey.

Complete business privacy and confidentiality.

The shareholders, directors and officers may be of any nationality and may be residents of any country.

Air services from Jersey are excellent with services to London being particularly frequent.

Jersey enjoys excellent telecommunications with the rest of the world as it uses part of the United Kingdom’s digital network.

Jersey imposes no exchange controls on Exempt Companies.

Jersey has full taxation treaties with Guernsey and the United Kingdom.

   Questions & Answers regarding Companies in Jersey

   A. The Structure of a Company.

   1. What documents are required to Incorporate a Company?

    Memorandum and Articles of Association must be submitted to the Financial Services Department, together with notification of the Registered Office address, the names, nationalities and addresses of the directors and shareholders, character references relating to the beneficial owner(s) and a brief description about the proposed company’s trading and/or investment activities.

   2. Are there any Capital Requirements?

   The normal authorised share capital is US $16,000 or its foreign currency equivalent, although authorized capital may be nominal e.g. US $3.20.

   Fees paid to authorities to incorporate: Judicial fee £120 plus stamp duty 0.5% of authorised share capital, subject to a minimum of £50 and a maximum of £5,000

   Annual fees paid to authorities £120 annual return filing fee.

   3. Which classes of Shares are permitted?

Registered Shares.
Preference Shares.
Redeemable Shares.
Irredeemable Shares.
Shares with or without voting rights.
Bearer Shares are not permitted.

   B. Provisions in the Act relating to the Management and Administration of the Company.

   1. Directors.

   The minimum number of directors is one under Jersey Law. Directors must be natural persons. If a company has a sole director the sole director cannot be the company secretary. The director can be of any nationality and need not be resident in Jersey. Corporate bodies are not permitted to be directors. Details of the directors do not need to be disclosed to the public.

   2. Company Secretary.

   Company secretary, who can be a natural person or body corporate, is required. The secretary can be of any nationality and need not be resident in Jersey. Details of the secretary do not need to be disclosed to the public.

   3. Shareholders.

    The minimum number of shareholders is normally two. If the company is to be a wholly owned subsidiary, then only one shareholder is required.

   4. Taxation.

    Resident Jersey Companies pay income tax at a rate of 20% on world-wide income. International Business Companies (IBC) may agree an effective rate of Income Tax with the Comptroller of between 0.5%-30%. Exempt Companies are exempted from all forms of Jersey Taxation. As long as the company does not trade in Jersey and pays its annual exempt duty of £650 (payable upon incorporation and every January thereafter) to the government of Jersey, no taxes will be levied on the company’s earnings, however high. If, however, the company is not exempt, annual accounts must be filed and the profit of the company will be taxed at 20%.

    5. Disclosure of information.

   When the company is formed, the beneficial owners must declare their identity and provide two professional references to the Jersey government, although this information is not a public record. In addition, all companies must file an Annual Return and if the company is not exempt, Accounts must also be filed. The statutory books must be kept at the company’s registered office in Jersey.

    After Incorporation C.I.S. Limited can provide a full statutory secretarial service which includes provision of the registered office address in Jersey and two registered shareholders. In appropriate circumstances, and subject to completion of appropriate indemnities and Enquirer, C.I.S. can also provide director services.

 

   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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