Company structure in Jersey
Legal basis - Mixed (customary, French civil and common)
Legal framework - Companies Act (Jersey), 1991
Company form - Private company limited by shares (LTD)
Responsibility - The liability of shareholders is limited to the amount of shares they hold.
Economic substance –
Jersey Companies carrying out relevant activities must meet the substance requirements. Relevant activities are:
- Fund management
- Financing and leasing
- Headquarters (provision of senior management or provision of management advice)
- Shipping company
- Distribution and Service Center - purchase products (for resale) or provide services to non-resident affiliates
- Intellectual property company
- Pure equity holdings
To meet the substance requirements, the companies concerned will have to be controlled and managed from Jersey, carry out their main income-generating activities in Jersey, pass the suitability test: an adequate level of qualified employees, a level of adequate expenses and adequate physical presence (eg offices) depending on the activity concerned.
For high-risk IP firms, as in other jurisdictions, more comprehensive requirements will need to be met.
Companies subject to economic substance requirements will have to provide an annual report to the competent authorities to assess whether they have satisfied the applicable requirements.
Share capital - There is no minimum capital requirement for a Jersey limited liability company. There is no statutory requirement for the capital to be fully or partially paid upon incorporation. Shares can be issued at face value or at a premium but cannot be issued in both types of shares. The shares can be registered shares, ordinary shares, preferred shares, redeemable shares, non-redeemable shares and shares with or without voting rights. Bearer shares are not permitted.
Shareholders - Limited liability companies can be formed by one or more shareholders, up to 30, who can be natural or legal persons, residents or non-residents. Shareholder details are made public. Nominee shareholders are authorized.
Administrators - At least one administrator is required, which can be a natural person or a legal person, as long as the legal person is registered under the Financial Services Act 1998 (Jersey) and does not have itself- even corporate directors. The contact details of the directors are accessible to the public.
Secretary - The appointment of a secretary is required, who can be a legal or natural person.
Registered address - Private companies must have a registered office in Jersey.
General assembly - Annual general meetings are compulsory but can be held anywhere. The first annual general meeting must be held no later than 18 months after the incorporation of Jersey Limited. Thereafter, annual general meetings should be held at intervals not exceeding 22 months. However, if all shareholders so declare in a written document, the company can waive the obligation to hold an annual meeting.
Electronic signature - authorized.
Re-domiciliation - A foreign entity can be re-domiciled as a Jersey LTD, and vice versa.
Conformity - Limited liability companies must keep accounting records for 6 years, which can be kept in Jersey or outside. An annual report must be submitted before the end of February of each year and must provide details of its share capital. The income tax return must be filed within 7 months of the end of the tax year.
Key figures of companies in Jersey
|Official name||Channel Islands - Jersey and Guernsey|
|Proper noun||Bailiwick of Jersey (fr) - Bailiwick of Jersey (en); Bailiwick of Guernsey (fr) - Bailiwick of Guernsey (en)|
|Subcontinent||Europe (outside the European Union)|
|Population||167,563 inhabitants (2018)|
|Population growth||0.86 % / year|
|Density||863.73 inhabitants / km²|
|GDP||9.310 billion $USD (2017)|
|GDP / capita||56,084 $USD (2017)|
|GDP growth||1.05 % / year (2017)|
|Life expectancy||82.60 years (2017)|
|Birth-rate||‰ 9.11 (2017)|
|Fertility rate||1.48 children / woman (2017)|
|Mortality rate||7.67 ‰ (2017)|
|Child mortality rate||3.04 ‰ (2016)|
|Literacy rate||100,00 % (2018)|
|Official languages||English French|
|Change||Pound sterling (£ GBP); Jersey pound (£ JEP); Guernsey Pound (£ GGP)|
|HDI||0,985 / 1 (2008)|
|Nature of State||Bailiwick of Jersey and Guernsey, dependency of the British Crown|
|Head of state||Queen Elizabeth II (Duke of Normandy)|
|National Holiday||May 9 (liberation from German occupation)|
|Nice||Jersiaise, Jersiais, Guernesiaise, Guernesiais|
|Tourists||617,400 people (2017)|
The Channel Islands are a collection of islands located in the English Channel to the west of the Cotentin peninsula, France. They are made up of two main islands, Jersey and Guernsey.
They depend directly on the British Crown, but are however not part of the United Kingdom: they are under the sovereignty of the Duke of Normandy, title held by the English monarchy since the conquest of England by William the Conqueror after the battle of 'Hastings in 1066. Their great autonomy guaranteed by this statute means that, unlike the United Kingdom, the Channel Islands are not part of the European Union, but are associated with it.
The Channel Islands are made up of two bailiwicks: Jersey and Guernsey. That of Guernsey includes in particular other inhabited dependencies, the islands of Alderney and Sark. They are autonomous and each have their own parliament, just like each bailiwick.
This territory is considered a tax haven. Many banks are based there, originating from several countries, making the financial sector one of the pillars of the economy along with tourism.
Corporate Taxation in Jersey
Corporate tax rate (IS)
|Global CIT rate (%)||0, some financial services companies paying 10, and utility companies and large retail companies paying 20.
Corporate tax (IS) due dates
|CIT return deadline||6 p.m. on December 31 following the assessment year.|
|CIT final payment due date||September 30 for large shippers and November 30 for all other businesses (within one year of the assessment year).|
|Estimated due dates for CIT payments||The first installment is due by March 31 for large shippers and May 31 for all other businesses (within one year of the tax year).|
Personal income tax rate (PPI)
|Global PIT rate (%)||20|
Personal income tax (PIT) due dates
|PIT return due date||Paper filing: May 31
Electronic filing: July 31
|PIT final payment due date||November 30|
|Estimated PIT Payment Due Dates||May 31st|
Value added tax (VAT) rate
|Standard VAT rate (%)||Goods and Services Tax (GST): 5|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||N / A|
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||N / A|
|Tax rate for individual capital gains (%)||N / A|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||There is no inheritance tax. However, the probate stamp duty is charged on the movable property of a deceased person at 0.75% (capped at GBP 100,000).|
|Gift tax rate (%)||NP|