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JNA - Formation of Companies in Guernsey
WHY USE GUERNSEY?
Guernsey is a leading international financial centre with a good reputation and excellent standards. The Island is also one of the leading jurisdictions providing international insurance services and is developing a base from which internationally mobile individuals can be organised. Factors contributing to and enhancing the status of this jurisdiction include:
- A general rate of tax payable by Guernsey companies of zero.
- Guernsey does not levy Value Added Tax (VAT) on transactions.
- There are no wealth taxes, no inheritance taxes and no capital gains taxes.
- A cap of £200,000 for Guernsey resident individual tax payers with combined foreign and Guernsey source income totalling more than £1,000,000.
- The Companies (Guernsey) Law 2008 and the Trusts (Guernsey) Law 2007 reflect Guernsey's commitment to providing a modern statutory basis and increased flexibility for companies and individuals using the jurisdiction of Guernsey. The laws also reflect the importance placed on corporate governance.
- Legislative and fiscal independence mean that the island responds quickly to the needs of business. In addition, the continuity achieved through the democratically elected parliament, without political parties, helps deliver political and economic stability.
- A unique relationship with the European Union (EU) provides a number of the advantages of being in the EU without all of the implications of operating as a full EU member state.
- A wide range of internationally respected business sectors: banking, fund investment and management, insurance and fiduciary. To meet the needs of these professional sectors, a highly skilled workforce has developed in Guernsey.
- Guernsey continues to update its intellectual property laws and legislation is modern and flexible. The Island has its own Intellectual Property Registry and is fully TRIPS* compliant.
*TRIPS: Trade Related Aspects of Intellectual Property Rights
FORMATION OF COMPANIES IN GUERNSEY
General information is detailed below outlining the formation and regulation of companies in Guernsey, as embodied in The Companies (Guernsey ) Law 2008.
1. Incorporation
Incorporation can normally be effected within twenty four hours.
2. Minimum Capitalisation
There are no minimum or maximum capital requirements. Bearer shares are not permitted.
3. Directors/Company Secretary
The minimum number of directors is one. There are no residency requirements for either directors or secretaries.
4. Registered Office/Registered Agent
The registered office must be in Guernsey. A registered agent needs to be appointed and must be licensed by the Guernsey Financial Services Commission.
5. Annual General Meeting
6. Annual Validation
Each Guernsey company must complete an Annual Validation disclosing information as at 31st December of each year. The Annual Validation must be delivered to the Registry by 31st January of the following year.
7. Audit
8. Accounts
There is no requirement to file accounts. However, proper books of account must be maintained and sufficient records must be kept in Guernsey to ascertain the position of the company at no greater than six-monthly intervals.
9. Taxation
- Banking activities, which are taxed at 10%
- Rental income from Guernsey properties, which is taxed at 20%
- Profits of Guernsey resident regulated utility companies, which are taxed at 20%
SUMMARY OF FEES SCHEDULE – GUERNSEY COMPANIES
| SET UP COSTS | GB £ |
| • Initial set up and compliance costs on incorporation
• Registered Office/Agent Fee (billable pro-rata)*
• Government Registration Fee
|
900.00
1,000.00 100.00
|
TOTAL
|
2,000.00 |
| OTHER SET UP COSTS | GB £ |
• Apostilization of documents (where necessary ) from
|
50.00
|
In addition, a consultancy fee will be charged. This will be based on time-occupied and will be dependent on the number of required meetings and the complexity of the corporate structure.
| ANNUAL COSTS | GB £ |
• Annual Validation Filing Fee
• Registered Office/Agent Fee*
|
250.00
1,000.00
|
TOTAL
|
1,250.00
|
* The £1,000 fee applies where Dixcart only provides a registered office service. Where Dixcart provides other services this fee is reduced to £500 per annum.
| ADDITIONAL COSTS | GB £ |
| Provision of directors (includes 3 directors plus a company secretary) |
|
|
Administration (provision of banking arrangements, dealing with administrative |
See # |
# The anticipated additional administration costs assume that Dixcart provides full management of the company, including the provision of directors. It is assumed that the company maintains a bank account. These services are charged on a time-occupied basis and will be dependent on the level and complexity of the arrangements.