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BACKGROUND
Geographical Location
Jersey is the largest of the Channel Islands which are situated off the north-west coast of France, near to
the Cherbourg Peninsular. Jersey is approximately one hundred and sixty kilometres south of England, but only 20
kilometres from France at the closest point. The island measures 16 kilometres by 10 and has a total land area
of 116 square kilometres. The environment is essentially rural with attractive coastlines offering many facilities
to visitors.
Population
The population of Jersey is approximately 89,721 (July 1999 est.) and effective immigration controls exist
to restrict future growth through the Housing Jersey Law of 1949 which controls the sales and leases of land.
Climate: temperate; mild winters and cool summers.
Political Structure
The island of Jersey, together with the other Channel Islands, originally formed part of the Duchy of Normandy
and their present Constitution dates back to 1066 when William, Duke of Normandy became King of England.
The Channel Islands have, since that time, remained possessions of the English Crown, as distinct from colonial
and overseas dependencies of the United Kingdom. Accordingly, the constitutional relationship between the Channel
Islands and the United Kingdom is unique, whereby the respective legislative assemblies have the exclusive right
to legislate on matters of domestic concern to the Islands (including taxation), whilst the United Kingdom Home
Office is responsible for the Island's external affairs. This relationship has arisen over a period of time through
custom and not through specific constitutional charter; in recent years, however, it has been subject to considerable
scrutiny as a result of which it now appears to be more firmly established than before.
The charters granted by successive Sovereigns, together with the gradual growth of the right to self-government,
have resulted in the prerogative of the Island's Parliament, the States of Jersey, to promulgate laws and regulations
to govern the Island's internal affairs, including revenue and taxation matters.
Infrastructure and Economy
Whilst the financial services sector provides Jersey's main source of income, the tourist industry continues
to represent 40% of the island's GDP. There are various other less significant sources of income, including the
fishing industry. Agriculture remains important but has declined substantially as a source of income.
Air services from Jersey are excellent with services to London being particularly frequent. There are also flights
to many European centres, including Paris and Amsterdam.
Jersey relies upon sea transportation for the importation of the majority of the goods and materials needed
for the economy. There are services to the United Kingdom with roll-on, roll-off vessels making daily trips to
various ports on the south coast. There is also a roll-on, roll-off ferry and fast hydrofoils sailing to St. Malo
on the north coast of Brittany. The recent construction of a new roll-on, roll-off facility has enabled much larger
vessels to be introduced into service. The sea journey to England takes approximately nine hours.
Jersey enjoys excellent telecommunications with the rest of the world as it uses part of the United Kingdom's
STD network. Courier services operate into and out of Jersey, with deliveries and collections generally taking
place once a day and being routed via London.
Language
English is used in all aspects of the island's financial and commercial activities. However, French remains
the official language of the Royal Court of Jersey but is used only on ceremonial occasions and in connection with
transactions involving Jersey real property. The text of certain laws is also French but should not inconvenience
any English-speaking person doing business in Jersey.
Currency
The Jersey Pound is on par with the U.K. Sterling. The island issues its own notes and coinage which are freely
interchangeable with the U.K. Pound Sterling.
Exchange Control
None.
Type of Law
Largely based on English Common Law, with many French features.
Principal Corporate Legislation
Companies Jersey Law, 1991, as amended.
KEY FEATURES TABLE
| General |
|
| Political Stability |
Good |
| 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 |
No |
| Secretary Required |
Yes |
| Standard Authorised Share Capital |
£10,000 ($16,000) |
| Local Requirements |
|
| Registered Office/Agent |
Yes |
| Company Secretary |
No |
| Local Directors |
No |
| Local Meetings |
No |
| Government Register of Directors |
No |
| 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 |
£120 ($192) |
COMPANY FORMATION
Type of Company for International Trade and Investment
Exempt company.
Procedure to Incorporate
By submission of Memorandum and Articles of Association to the Financial Services Department, together with
supporting documentation details and Registered Office address. After incorporation, company has to select corporate
identity i.e. income tax status, exempt status or International Business Company status.
Restrictions on Trading
Cannot, without regulatory approval, undertake, inter alia, commercial banking, trust, insurance, financial
or investment business.
Powers of Company
A Jersey 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 department.
Shelf Companies Available
No, due to disclosure requirement of beneficial ownership and trading activities.
Time Scale to Incorporate
Usually, 3 working days after submission of application to incorporate a company. can also be incorporated
in two hours as long as the applicant meets certain criteria, the name is approved and an additional payment of
£40 pounds sterling is paid to the Financial Services Department.
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
"Jersey", "Bank", "Insurance", "Assurance", "Re-Insurance",
"Building Society", "Chamber of Commerce", "Council", "Co-operative", "Trust",
"Trustees", "Finance", "International", etc.
Language of Name
The name of a Jersey 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 or Ltd or with the French equivalent "Avec
Responsabilitie", "Limitee" or "A.R.L.".
Disclosure of Beneficial Ownership to Authorities
Yes, prior to incorporation. If beneficial ownership changes Financial Services Commission has to be informed.
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
The normal Authorised Share Capital is £10,000 ($16,000) 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, normally 1 share of £1 paid or its foreign
currency equivalent. All issued shares must be paid in full in cash.
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 ($800.00).
Resident Jersey companies pay income tax at a rate of 20 percent on world-wide income.
International Business Companies (IBC) may agree an effective rate of Income Tax with the Comptroller of between
0.5%-30%.
Double Taxation Agreements
Yes, with United Kingdom and Guernsey, but only applies to resident individuals and companies.
Licence Fees
Exempt companies pay an Tax exemption fee of £500 ($800.00).
IBC minimum tax is £1,200 ($1,920) per annum.
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 Department 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.
HAREHOLDERS
Minimum number of Shareholders
Normally two.
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