Jersey is an island crown possession of Great Britain with its law, currency, and economy. These territories are also not included in the European Union. Nevertheless, registering a company in Jersey is the goal of many entrepreneurs from all over the world. The reason for this is the tax neutrality of the jurisdiction. As an offshore island, the island of Jersey is considered one of the best places to optimize the tax burden. The Tax Information Exchange Agreement (TIEA) and the Double Taxation Avoidance Treaty (DTA) are in place. Therefore, entrepreneurs who intend to incorporate a company in St Helier or any other Jersey city can reduce the tax burden on their business without negative legal consequences.
Advantages of registering a company in Jersey
- the stable political situation and lack of preconditions for its change;
- the possibility of registering companies without paying authorized capital;
- low tax rates;
- possibility of company redomiciliation;
- developed infrastructure and availability of a qualified workforce.
Jersey is an offshore jurisdiction that attracts investors by its proximity to the major financial centers of Great Britain and Europe.
Main forms of legal presence and doing business
- limited liability company;
- individual entrepreneur;
- branch of a foreign company;
- trust;
- foundation;
- limited partnership (separate and registered);
- limited partnership; limited liability partnership;
- limited partnership;
- private (closed) company (par value, no par value, limited guarantee, limited-term, hybrid)
- cellular company (protected or consolidated).
LLC is the most popular form of starting a business among foreigners.
Registration procedure
To register a business in Jersey, you need the following:
- First, choose an original name that reflects the company's legal form.
- Next, reserve the name in Easy Company Registry (ECR) online - the reserve is valid for up to 6 months.
- Obtain a CP number to be included in the articles of incorporation.
- Register with the Jersey Financial Services Commission (JFSC).
- Obtain a business license.
- Register with the Jersey Information Commissioner's Office (JOIC).
- Open a bank account.
In addition, a foreign investor can buy a company in Jersey or relocate an existing business registered in a jurisdiction that allows it.
Jersey legislation and regulatory environment
Bailiwick Jersey depends on the British Crown, not part of the United Kingdom. Thus, the island enjoys high autonomy and has its own fiscal and judicial systems.
Business is governed by the Companies Act of 1991, which is periodically amended to reflect the changing business environment. Therefore, consider economic presence laws if you plan to open a firm in Jersey to reduce your tax burden.
The island has rules of law that protect private information and intellectual property, contributing to the safe conduct of business activities.
Jersey tax system
- Tax on global corporate income - 0%. Exceptions are income from real estate on the island, large corporate retailers, and mining companies, for which the 20% rate applies. A Jersey financial services firm will be subject to a 10% tax;
- 0% capital gains tax;
- PIT - 20%;
- VAT - 5%.
Opening a business in Jersey: how Aotopay lawyers can assist
The abundance of legal forms in Jersey requires an in-depth knowledge of local law. Aotopay lawyers provide their clients with detailed advice and assistance in assembling documents needed to open a company in Jersey. In addition, to support you at the initial stage of starting a business, we provide accounting services and can perform annual maintenance of your company.