About Jersey
Jersey is a self-governing dependency of the British Crown, located in the English Channel, close to the northern coast of France. The jurisdiction of Jersey is not part of the United Kingdom but is under its patronage and has its own legal and tax system, making it unique in terms of business environments.
The island is known for its benefits for company registration. Jersey has a high degree of autonomy in its internal affairs, including tax regulation, which allows it to offer unique tax benefits for business. The island is also among the world's leading financial centers and has a solid reputation as a prestigious location for registering holding, alternative, and financial centers.
Advantages of company registration in Jersey:
- Favorable tax regime with no corporate income tax and capital gains for foreign companies
- Stable legal system based on English common law, providing a high level of business protection
- Ease of registration due to a quick and efficient company formation procedure (registration period for a company in Jersey is about 7 days)
- Prestigious financial center with developed infrastructure for international financial operations
- Political and economic stability, providing a reliable jurisdiction with autonomous governance
- Flexibility of corporate governance with a variety of corporate structures and opportunities
- International recognition due to compliance with international standards of regulation and transparency, although Jersey is recognized as an offshore
- Reliability and confidentiality, ensuring asset protection and confidentiality of business information (names of company owners are not publicly available)
Types of companies in Jersey
In Jersey, companies can be registered in accordance with the «Companies Jersey Law, 1991».
Companies in Jersey are intended for both international trade and investment activities, and allow you to take advantage of the island's favorable tax regime, including the absence of corporate income tax, which is ideal for companies operating at a global level.
Jersey company form requirements
Company registration in Jersey:
- Share capital - there is no minimum share capital for a company in Jersey. There is also no obligation to contribute full capital at the time of registration, and it can be contributed in parts.
- Director - the company must appoint at least one director. The director can be either an individual or a legal entity. For the company to be considered a Jersey resident and be able to take advantage of tax benefits, it is necessary for one of the directors to be a Jersey resident.
- Shareholder - can be an individual or a legal entity and can be registered outside the island.
- Secretary - the presence of a corporate secretary is not mandatory, but many companies appoint one to maintain corporate records, ensure compliance with regulatory requirements, and assist in organizing board meetings and shareholder meetings.
- Confidentiality - information about beneficiaries is not public, but it must be kept at the company's registration office.
- Reporting - although there are no strict requirements for auditing and financial reporting for IBCs in Jersey, companies are required to submit annual declarations and reports on income and expenses. The need for an audit depends on the company's activities. It is important to note that tax returns must be filed even if the corporate income tax rate is 0%.
- Office - the company must have a registered office in Jersey to which all official documents and correspondence can be sent.
Taxation
Jersey has special tax regulation conditions that make this jurisdiction attractive for many international companies.
Standard corporate income tax rate - 0%. Jersey has established a zero corporate income tax rate for most companies, which means that companies that do not conduct their activities on the island and do not provide regulated financial or utility services can avoid paying corporate income tax.
For a company to be considered a tax resident of Jersey and be able to take advantage of the zero tax rate, it must be managed and controlled from Jersey. This usually implies having a local director and conducting a substantial part of management activities on the island. If the company is managed outside Jersey, it will be considered a tax resident of the country where the management takes place and will be obliged to pay corporate income tax in that country.
Exceptions to the standard zero rate are companies providing regulated financial services (banks, trust companies) and utility services (electricity supply, telephony). For such companies, the tax rate is 10% or 20% depending on the type of their activity.
Goods and Services Tax (GST) - 5%. This tax applies to most goods and services, which is standard practice for the island.
More
Double Taxation Avoidance Treaties
Jersey has signed double taxation avoidance agreements with a number of countries, including the United Kingdom, France, Germany, the Netherlands, and Canada. However, an agreement with Ukraine is not included in the current list of signed treaties.
More
Features
Jersey is often considered an offshore jurisdiction due to its favorable business conditions, such as low taxes and high confidentiality. However, Jersey also adheres to strict standards for combating money laundering and tax evasion, which makes it more regulated compared to traditional offshores.
But in this vein, it's important to know that Ukraine recognizes Jersey as an offshore jurisdiction, which means that transactions and financial operations involving Jersey may be subject to additional tax and legal scrutiny in Ukraine.
More
If you are interested in setting up a company in Jersey and would like to receive more detailed consultation on this matter, contact the lawyers of Campio Group.
Our experienced specialists can help you develop an optimal strategy and guide you through all stages of setting up a company in Jersey. Contact us to learn more and start your business in Jersey.
Discuss your project
Leave your question and we will call you back
Thank you for feedback.
The manager will contact you shortly.
How useful post?
Click on a star to rate!
Average rating 0/5. Number of ratings: 0
