BACKGROUND:
Guernsey is approximately 24 square miles in size, it is situated on the north-west coast of France in English Channel.  The population of Guernsey is approximately 60000. English is used in all aspects  of the Islands financial and commercial activities. The constitutional relationship between the Channel Islands and the United Kingdom is unique; the respective legislative assemblies have the exclusive right to legislate and govern on domestic affairs, including revenue and taxation matters, whilst the United Kingdom Home Office is responsible for the Islands External Affairs

A Guernsey Company can be incorporated within 2 weeks. Off-the shelf companies are not available.

Company Name:
As long as the name is available and does not coincide with any existing name, any name is acceptable. However, care must be taken in using names which include allusions to the Crown.

Secretarial Administration:
In January of each year an Annual Return must be filed at the Companies Registry for which a filing fee of £100 has to be paid. If this requirement is not complied with there is a scale of fines. Default in payment can result in the striking-off of the company.
It is not a requirement to hold the Annual General Meeting of the company in Guernsey.

Registered Office:
Within one month of incorporation the company must lodge a notice of Registered Office. The Registered Office must be maintained in Guernsey.

Directors:
Once the directors have accepted their office, a return with details of their names and addresses has to be lodged at the Companies Registry within three months from the date of acceptance.

Auditors:
It is not necessary to appoint residents as auditors. If the company has no intention of trading there is a procedure available to avoid the appointment of auditors.

Accounts:
There is no need to file accounts

Anonymity:
Nominee shareholders are permitted, the advantage being that the beneficial owner does not have to be disclosed. Guernsey law requires a minimum of two shareholders. The names of the  directors will appear on each Annual Return filed at the Companies Registry.

Taxation:
An income tax rate of 20% is chargeable on profits of a company having a place of business or any activity in Guernsey according to Guernsey tax legislation.
A non-resident company is available when obtaining tax exempt status. The amount of £500 per annum is payable in advance every January.