BACKGROUND:
Jersey is the largest of the Channel Islands which are situated off the north-west coast of France in the English Channel. The population of Jersey is approximately 83000. English is used in all aspects of the Island`s 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

It takes about seven working days to incorporate a company in this jurisdiction. Ready-made companies are not available.

Type of Company(s):
A company may be incorporated by any name provided it is not thought to be undesirable by the Registrar. Approval of company names is required  prior to incorporation. A name may be the same as that of a company registered in the United Kingdom, however, written approval from the director of the United Kingdom company is required.

All companies incorporated in Jersey must have their Registered Office situated in the Island.

Every company must have at least one director and a company secretary. Details of directors and the secretary do not have to be disclosed to the public.

A Jersey company must have at least two shareholders. Nominee shareholders or discretionary trustees may be used for the purposes of anonymity.

An Annual General Meeting of the members must be held in Jersey and the first Annual General Meeting must be held within 18 months from the company's date of incorporation. Every company, before the end of February after its year of incorporation, must file an Annual Return. Penalties will be imposed for the late filing of Annual Returns.

All companies must prepare a balance sheet and profit and loss statement on an annual basis. Although there is no legal requirement to appoint an auditor this is usually done to facilitate matters.

Taxation:
 Resident companies are taxed at a rate of 20% on net profits. Tax exempt companies pay an annual fee of £500 which is paid within three months of incorporation, and thereafter, annually before 31st March.

On applying for tax exemption the following conditions must be met:

  1. No resident of Jersey can have a beneficial interest in the shares of the company
  2. The company cannot trade on the island.


Summary Benefits:
  • Well developed economically and politically
  • Excellent International banking system
  • Exempt companies only pay £500 tax per annum
  • Modern Company law
  • No foreign exchange controls