Jersey companies are tax free and easy to incorporate and open bank accounts for. Jersey is considered a well regulated offshore jurisdiction. You should have little trouble dealing with counterparties using a Jersey company..
About Jersey
The Channel Islands are a group of islands located off the coast of Normandy, France. They include Jersey, Guernsey, Alderney, Sark, and several smaller islands. The islands are self-governing British Crown dependencies, and are not part of the United Kingdom or the European Union. Jersey is the largest of the Channel Islands and is located about 100 kilometers south of the coast of England. It has a population of about 100,000 people and its own parliament, government, and laws. The island is known for its mild climate, beautiful beaches, and rich history. It has a strong financial sector and is also a popular tourist destination.
The island has a well-developed legal system and a thriving business environment, making it a popular location for the incorporation of companies. Companies in Jersey are regulated by the Jersey Financial Services Commission, which is responsible for ensuring compliance with local laws and regulations.
Types of Jersey Companies Available
It’s possible to incorporate two different types of Jersey companies. There’s the standard private company which is the most common. It can be incorporated with only one director and shareholder. It’s also possible to incorporate a public company in Jersey. Public companies are used to raise money from investors by selling shares to the public. Public companies must have a minimum of two directors and are subject to stricter regulation by the Jersey Financial Services Commission.
Taxation of Jersey Companies
Jersey companies are taxed at zero percent. There are exceptions for finance companies and utility companies. Those can e taxed at a rate of 10%. Jersey companies are mostly used as investment holding companies. They can manage investments free from corporation tax or capital gains tax. They can also act as holding companies for a group of companies. To take advantage of the zero percent tax rate the company should be conducting its business from Jersey.
Privacy and Disclosure for Jersey Companies
On the face of it Jersey companies don’t have much privacy. Details of the company’s registered office, memorandum and articles of association, directors, shareholders and any special resolutons must be disclosed. This information is available publicly from the Jersey companies register. Annual accounts are available for public companies but not for private companies.
Those who want to maintain privacy can use nominee directors and shareholders or have a trust structure in place.
Bearer shares are not permitted with Jersey companies.
Foreign Judgements
Foreign judgements can be registered in Jersey in some cases. A standard monetary judgement can be registered. However the defendant will have 28 days to have it set aside. There are numerous possible defences, including that the foreign court did not have jurisdiction. Foreign judgements for tax debts or fines are not enforceable in Jersey. Neither are judgements for amounts of compensation. So, while registering foreign judgments is possible it’s not straightforward or automatic in Jersey.
Annual Filing for Jersey Companies
Every Jersey company must file an annual return. It will contain details of directors and beneficial owners. There’s no requirement to file annual accounts for private companies. Accounts must be available to the shareholders but there’s no requirement to fie them. Public companies must file annual accounts in Jersey.
Conclusion
Jersey companies are a good choice for those looking for a zero tax jurisdiction that’s well regulated. There’s a good choice of banks and legal professionals to undertake whatever services you need for your company. Enforcement of foreign judgments is not automatic and not available for certain types of debt. This gives Jersey the edge over some other jurisdictions. While Jersey companies don’t have the asset protection features of Nevis or The Cook Islands it will likely be easier to deal with counterparties such as banks and brokers with a Jersey company. Jersey companies are useful as investment companies or holding companies.
