|
BACKGROUND
Geographical Location
Guernsey is the second largest of the Channel Islands, and together with Alderney and Sark forms the Bailiwick
of Guernsey. The Bailiwick occupies a total land area of 194 sq. km.
Population
The population is approximately 65,500.
Political Structure
The Bailiwick of Guernsey forms part of the British Isles, but is not part of the United Kingdom. H.M. Queen
Elizabeth II is the Chief of State, and is represented by a Lt. Governor. There are no political parties in Guernsey
and the 60 seats in the Assembly of States are all held by independents. 33 of the 60 seats are elected by universal
suffrage. Alderney and Sark also have their own local assemblies, with Alderney also having its own Companies Registry.
Infrastructure and Economy
Guernsey previously relied on Horticulture (primarily tomatoes) and Tourism as the basis of its economy. In
recent years, Horticulture has been in decline, and Guernsey's financial centre has become increasingly important.
Most of the major international banks have either a branch or subsidiary in Guernsey. The Island is also home to
branches or subsidiaries of many major international insurance companies.
Language
English
Currency
Guernsey Pound which are at par with Sterling. Guernsey produces its own notes and coins, but U.K. Pound sterling
also circulates freely on the Islands.
Exchange Control
None
Type of Law
Common Law
KEY FEATURES TABLE
| General |
| Political Stability |
Good |
| British Based Legal System |
Yes |
| Type of Company |
Exempt |
| Disclosure of Beneficial Owner |
Yes |
| Migration of Domicile Permitted |
No |
| Tax on Offshore Profits |
Nil |
| Non-English Language Names Allowed |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
Two |
| Minimum Number of Directors |
One |
| Bearer Shares Allowed |
No |
| Corporate Directors Permitted |
Yes |
| Secretary Required |
Yes |
| Standard Authorised Share Capital |
£5,000 ($8,000) |
| Local Requirements |
| Registered Office/Agent |
Yes |
| Company Secretary |
No |
| Local Directors |
No |
| Local Meetings |
No |
| Government Register of Directors |
Yes |
| Government Register of Shareholders |
Yes |
| Annual Requirements |
| Annual Return |
Yes |
| Audited Accounts |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
£500 ($800) |
| Annual Return Filing Fee |
£100 ($160) |
COMPANY FORMATION
Type of Company for International Trade and Investment
Exempt Company
Procedure to Incorporate
Consent to incorporate a Guernsey company must be sought from The Financial Services Commission, application
is then made to a Judge in Chambers for consent to register. Memorandum and Articles of Association, statement
of location of Registered Office and details of the first directors are then lodged with the Registry.
Restrictions on Trading
Cannot, without regulatory approval, undertake, inter alia, commercial banking, trust, insurance, financial
or investment business.
Powers of Company
A Guernsey Company has all the powers of a natural person.
Language of Legislation and Corporate Documents
English.
Registered Office required
Yes. In the jurisdiction.
Registered Agent required
No requirement.
Name approval required
Yes, by formal request to the financial services Commission.
Shelf Companies Available
No, due to disclosure requirement of beneficial ownership and trading activities.
Time Scale to Incorporate
One Week.
Name Restrictions
A name that is similar to or identical to an existing company or registered entity. Names of well known multi-national
companies, without prior written consent. Names that have implied illegal activities. Names that imply Royal or
Government patronage, either local or foreign.
Names Requiring Consent or a Licence
"Bank", "Insurance", "Assurance", "Re-Insurance"
Language of Name
The name of a Guernsey registered Company can be in any language as long as the authorities are advised of
the meaning on the name application form. The name application will then be granted, or otherwise, under the current
guidelines regarding the use of certain words, etc.
Suffixes to Denote Limited Liability
A company with limited liability must end its name with Limited, no abbreviations are permitted.
Disclosure of Beneficial
Ownership to Authorities Yes, prior to incorporation. If beneficial ownership changes Financial Services Commission
has to be informed and consent sought.
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
The normal Authorised Share Capital is £5,000 ($8,000) or its foreign currency equivalent, although authorised
capital may be nominal e.g. £2 ($3.20).
Minimum Issued Capital
Equal to the value of the shares issued to the subscribers.
Classes of Shares Permitted
- Registered Shares
- Preference Shares
- Redeemable Shares
- Non-redeemable Shares
- Shares with or without voting rights
Bearer Shares Permitted
No.
Taxation
Exempt companies pay an annual licence fee of £500 ($800). Resident Guernsey companies pay income tax
at a rate of 20 percent on world-wide income.
Double Taxation Agreements
Yes, with United Kingdom and Jersey, but only applies to resident individuals and companies.
Licence Fees
Exempt companies pay an Tax exemption fee of £500 ($800).
Annual Return filing Requirement
Yes. Has to be filed by end of February in each year.
Penalties
No statutory penalties for late filing of Tax exemption, but late filing of such fee may result in loss of
Exempt status. Statutory penalties apply for late filing of Annual Return.
Financial Statement requirements
Required for Resident Companies, not for Exempt, although Financial Services Commission reserves the right
to call for accounts at any time.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
One, who must be a natural person. If a company has a sole Director, the sole Director cannot be the Company
Secretary.
COMPANY SECRETARY
Company Secretary Required
Yes. Can be a natural person or body corporate.
SHAREHOLDERS
Minimum number of Shareholders
Normally two.
|
