Jersey Company Formation

Jersey is a British Crown Dependency, located close to the northwest coast of France. Jersey implemented a new tax reform at the beginning of 2009 with the introduction of the zero/10 regime. Essentially, this stipulates a 0% standard corporate profits tax rate and 10% corporate profits taxation for certain company activities in the financial services sector. The following information will help you determine whether Jersey company formation is the optimum solution for your business:  

If properly structured, Jersey company formation is an ideal way to book international profits with 0% corporation tax. This does not include i) companies in the financial services where a 10% tax rate is applied, ii) local utility companies who pay 20% and iii) rental income profits from property development that will continue to incur 20% a tax rate.

Jersey companies incorporated for overseas corporate groups or private clients will be taxed at 0%. Companies who are part of a group and taxed at 0% have the advantage of being able to pass on losses in order to offset the profits of another company in the group. Although the companies are themselves taxed at a 0% rate, this group relief will also affect the Jersey resident shareholders personal tax assessments on distributions from such a company.

For Jersey company formation, a minimum of one director is required and need not be a resident in Jersey. However, corporate directors are not permitted with Jersey company formation.

There are no minimum capital requirements with Jersey company formation.

It is easy to open global corporate bank accounts to support Jersey company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Investors planning Jersey company formation can benefit from the close proximity to mainland Europe.

1.

Despite its stringent compliance laws, Jersey may be perceived as an offshore tax-haven.

2.

A minimum of two shareholders are required for Jersey company formation. Corporate shareholders are permitted under Jersey company formation law.

3.

Following Jersey company formation, shareholders and directors details are available for public viewing at the official register at the Companies Registration Office.

Following Jersey company formation, annual accounts must be submitted to the government.

A Jersey zero tax rate company cannot invest in the United Kingdom.

6.

To comply with Jersey company formation law, all companies are required to have a Company Secretary, who need not be a resident in Jersey.

Jersey company formation takes up to two weeks because of stringent incorporation procedures.