Our Global Network

Doing business in Jersey

How quickly can I set up a business?

The formation of a Jersey company can be completed within a few days once all relevant information and due diligence documentation on the individuals involved has been collected.

At this point in the formation process, the due diligence requirements of Alex Picot Trust and the Jersey Financial Services Commission (JFSC) must be satisfied.

Fast-track:

The JFSC offers a Fast-track service which provides the choice of a 2-hour, 1 business day or 2 business day service.

N.B. This option is only available when there are no high-risk factors and assumes a standard investment company formation is required.

What is the minimum investment needed?

We suggest a minimum investment of £1 million.

How can I raise finance?

Funds can be raised from the many international banks in Jersey or for larger transactions the International Stock Exchange (TISE) is an option.

What are the legal requirements for setting up my business?

When setting up a business in Jersey the legal form you choose will depend on the commercial needs of the business, the risks that you are willing to take and your own personal situation.

There are three options:

1. Sole Trader
2. Partnership
3. Limited Company

Setting up a Jersey Company

The process of incorporation entails: obtaining a Business License; reserving the company name; preparing the documents for the incorporation; Alex Picot Trust obtaining appropriate information and documentation from the individuals involved; completion of Alex Picot Trust’s due diligence and business acceptance procedures; and submitting them to the Jersey Financial Services Commission.

Alex Picot Trust Company Ltd can assist in the process and would require documentation to support the application. Information required includes:

Rationale. An explanation of the reasons why the company is to be formed in Jersey and the intended use, including all markets and countries in which it will or does operate and the product or services provided. Any trading activity must be fully explained.

Source of wealth / funds: It is a legal requirement that we obtain full details and have documentary evidence, as appropriate, of the origin and source of funds that have or are to be added to the company.

Tax advice: If the principal reason for operating the company is for the legitimate mitigation of tax this must be explained in some detail by the professional advisers to the client in their country of residence.

Nominated person: Companies are required by law to appoint a nominated person. More than one nominated person may be appointed. The nominated person can be:

• a significant person of the entity who is ordinarily resident in Jersey
• a lawyer or accountant who is ordinarily resident in Jersey
• a Jersey registered trust company business providing secretarial or registered office address services
• a Jersey registered funds services business

The Nominated Person will be responsible for updating the information held by the Registry in respect of directors, secretary and members, filing the annual confirmation statement and completing and filing the required forms to notify the Registry of any changes to the Company within the prescribed timescale of 21 days. If the required information is not filed within the 21-day timescale of the change the Company will be liable for penalties as prescribed by law.

What structure should I consider?

When setting up a business in Jersey the legal form you choose will depend on the commercial needs of the business, the risks that you are willing to take and your own personal situation.

A brief overview of the main structures available in Jersey is set out below:

Limited Company:

Provides limited liability and ring-fencing to Jersey operations.

Company trading profits are liable to Jersey Tax at a rate of 0%. There are exceptions which are discussed further below.

The only filing requirements are an annual return and an annual tax return unless the company is a public company (over 30 members or by voluntary election) or regulated by the Jersey Financial Services Commission (JFSC) in which case accounts must be filed.

There are no audit requirements, audits are voluntary unless the company is a public company or the company is regulated by the JFSC.

Jersey companies are used in a variety of corporate structures, some examples of which are: investment holding, purchase of shares in public companies, purchase of property, shipping and yacht owning, holding companies for corporate structures, leasing, contracting, employment and consultancy.

Advantages include:

• 0% Jersey tax on income from outside Jersey
• no tax on dividends and interest from Jersey banks or building societies
• roll-up and compounding of income, tax free
• no capital gains tax in Jersey relating to UK property
• dividends and interest paid without deduction or holding tax
• directors’ fees can be paid gross
• neutral tax vehicle for international investors

Family Investment Company (FIC):

This offers an alternative to the traditional trust structure for any UK domiciled individuals looking to manage their family’s exposure to inheritance tax. This is a limited company that is formed with specific share classes to separate the income and capital value of the company. Different classes of shares can be created; with non-voting shares gifted to children in order to hand wealth down the generations until such time as they are given added responsibility.

What advice can you give me in regards to payroll and taxation requirements?

Jersey is a British Crown Dependency and is not part of the United Kingdom – it is officially part of the British Islands.

Jersey housing regulations:

Ordinarily an individual must live in Jersey continuously for 5 years and gain Entitled for work status before they can start a business.

There is also a requirement to live in Jersey continuously for 10 years and gain Entitled status to access the full property market.

However, non-resident investors can set up a company in Jersey.

Jersey welcomes applications from skilled, economically active High Net Worth Individuals (HNWIs); and high value activity businesses and their principals, who are looking to move offshore.

Employment:

To operate a business that employs staff in Jersey, by law you must have a Business Licence. Once this is approved, ensuring all other registrations and regulatory requirements are in place, you can start to employ staff.

Tax:

Jersey is a low tax jurisdiction with some of the lowest tax rates in Europe.

A standard rate of 0% corporation tax applies in Jersey. A higher rate of 10% is levied on defined regulated business established in Jersey, such as banks and trust companies.

Utility companies and income from Jersey property, whether rental or development is taxed at 20%.

Companies incorporated in Jersey may be considered exclusively tax resident in another jurisdiction where they are centrally managed and controlled outside Jersey. In these cases the company is tax resident in the jurisdiction of control and management provided the rate of corporation tax in that jurisdiction is 20% or higher.

It is worth noting that Jersey legislation raises all tax assessments under the description of ‘income tax’ rather than describing business taxation as corporation tax.

Jersey’s tax legislation means that it is a very attractive place to set up a holding company. As the standard rate of Corporation tax is 0% and there is no withholding tax on dividends paid or received, Jersey is a tax neutral jurisdiction.

As such all dividends received by a Jersey parent company, whether from another Jersey entity or from overseas are taxed at 0%.

Jersey does not levy withholding tax on dividends paid by a company to its shareholders, whether they are based in Jersey or overseas.

Jersey resident shareholders are taxed on any distributions received at a maximum of 20%. Jersey does not have any inheritance tax nor does it have a capital gains tax. Jersey residents can be subject to inheritance tax in other Countries should they have assets there.

Publicly available information:

It is necessary to submit details of the Beneficial Owner and Significant Persons (Secretary and Directors) to the Registrar of Jersey Companies.

Details of the directors of a company will be publicly available on the Companies Registry from August 2021 – including the residential address (it is possible to have correspondence address as an alternative address to the residential address).

Is there anything else that I should know?

• Jersey is strategically positioned between the UK and Europe.
• Jersey is a leading international finance centre.
• It is a hub of digital creativity with a full fibre network to support technology businesses.
• Jersey has a positive, accessible, and welcoming government and regulatory framework.

Our firms in Jersey
How can Kreston grow your business?
Select your business type:

Latest news

Will developing countries block the G7 minimum tax deal?

Below is the International Accounting Bulletin’s (IAB) latest piece discusses the post-pandemic options for developing countries in relation to tax, […]

Hot topic: accounting and auditing for cryptocurrencies

HMRC recently published its long-awaited ‘Cryptoassets manual’ signalling that the wait-and-see era might be over when it comes to accounting […]

audit and assurance

Is the time right for managed shared audit?

Published on the Accountancy Daily As the consultation on the future of audit closes, Peter Manser, head of audit and […]