Jersey is the largest of the Channel Islands at 5 miles/8 km long by 9 miles/14.5 km wide. It sits in the English Channel, yet is much closer to France than it is to England. Jersey is the biggest island in Channel Islands, situated between UK and France.

Fiscal Advantages

• Jersey is a tax neutral environment
• It does not levy capital transfer tax, capital gains tax, value added tax, withholding tax and wealth tax

Regulatory Advantages

• Jersey possesses a stable regulatory, economic and political infrastructure
• No exchange controls
• Tax transparent structures, ensures no tax leakage for institutional investors
• A comprehensive and wide-reaching TIEA (Tax Information Exchange Agreement) and DTA (Double Taxation Agreement) network
• A comprehensive and robust information technology infrastructure

Limitations

• The UK tax system is gradually becoming incompetent comparatively
• Breaches in the dividend credit system are probable, between the local tax rate and the UK rate
• The Controlled Foreign Company (CFC) rules might apply to tax offshore profits at the UK tax rate, which will undergo low tax liability or no tax altogether
• The 28% corporation tax rate is higher compared to other jurisdictions
• International Business Companies are not allowed to conduct businesses with Jersey residents, with a few limitations
• Exempt Private Companies, are permitted to conduct their activities on the island as long as there is no established place of business
• Authorities usually discourage new business activities to protect limited resources

• Private Company Limited by Shares
• Exempt Private Company
• Public Company Limited by Shares
• Branch of Overseas Company
• International Business Company
• General Partnership
• Foreign Partnership
• Limited Partnership
• Trusts
• Protected Cells Companies
• Jersey Foundation Structures

Any company that isn't Public is a Private company limited by shares. Shares, mostly limited by guarantee or unlimited companies are common Jersey companies. A company must have a registered office in Jersey. Account audits are not required, although they should be filed with the Jersey Revenue Authorities.

Exempt Private Companies have been stopped since the introduction of 0/10 corporate tax, in Jan 2009. Companies formed earlier are treated as resident companies for tax purposes and charged at either 0% or 10% corporate tax.

A company with more than 30 members or a memorandum of association that declares Public is a Public Company. Audit accounts are supposed to be filed with registrar of companies. A public company can issue a prospectus and offer its shares for subscription to the public.

A foreign company that intends to open a branch in Jersey to operate in Jersey, with its own name, will be subject to consents similar to that of a resident company. But it need not file annual returns or corporate details. Such a company can register as an International Business Company.

The Jersey incorporated company or the branch of a foreign company can maintain the position of an International Business Company. An IBC was resident in Jersey mainly for tax purposes. Jersey residents cannot hold shares in an IBC. Beneficial ownership has to be disclosed in private companies, although it isn’t required to be maintained as a public record.

Partnerships are between people or companies, with unlimited liability of each partner. Resident partners are liable for tax on worldwide profits.

In Foreign partnership, residents may or may not be settled in Jersey, but the control and management of a partnership is carried on abroad, it is considered to be outside Jersey. Tax will be due on business profits earned through activities on the island and can be assessed on the resident partners.

Limited Liability Partnerships Regulations 1998 & Limited Liability Partnerships 1997 have resulted in a strong regulatory law for Jersey. Companies can either be Limited or general partners.

Companies incorporated in Jersey are governed by the Companies Law 1991, which is based largely on the English 1948 Companies Act.

• A local registered office is required by Jersey companies for processing
• Can issue registered and bearer shares
• At least two directors should be present in a Jersey company and these directors have to be authentic
• Through the employment of nominee directors/shareholders, public anonymity can be achieved
• A register of members and charges should be maintained at the registered office in Jersey
• The name of company must conclude with either Limited or Public Limited Company
• In case of exempt companies, accounts or annual summaries need not be filed with the Jersey Government
• The beneficial owner of exempt company must be divulged to the Financial Services Commission

• Certificate of incorporation
• Memorandum and Articles of association
• Registered office or agent
• Shareholders or members
• Directors or managers
• Company secretary
• Legal register
• Maintaining books & registers

• Capital gains tax, capital transfer tax, purchase or sales tax or VAT are not levied
• Stamp duties are levied on the transfer of immovable property
• Property taxes are levied by individual communities
• Income tax is levied at 20% plus employee social security contributions are payable
• Parish tax are applicable for property owners & occupants

• Corporate income tax is levied at 20%
• Income tax rate for International Business Companies is 30%
• Resident companies pay full income tax on their worldwide income
• International Business Companies are liable for full income tax on their Jersey income
• Companies that are exempt, will pay tax on their income from the organisation established in Jersey

Jersey boasts a strong legal & political stability, along with reliable banking & financial services. Although the charges are on the higher side, formation of a company in Jersey is a significant opportunity. 

The Companies (Jersey) Law 1991, amended, is centred on English company law, eliminating few laws that investors found limiting. 

Payments to investors are reliant on an establishment's solvency. Fiscal assistance is allowed for companies both public and private and the share buy-back and redemption routine is direct. 

Jersey company law is flexible so that investors can typically replicate investor protection and other market standards through a company's memorandum and articles of association if needed.