Guernsey

Guernsey, the second largest of the Channel Islands, is situated in the Bay of St. Malo, just off the coast of Normandy. The island is approximately 61 square kilometres in area, with a population of 60,000. The island is not part of the United Kingdom but is a possession of the British Crown. The local currency is the British pound.

The formation of all companies in Guernsey is dealt with by application to the Royal Court of Guernsey. For tax purposes a distinction is made between resident, exempt and international companies. Exempt companies are the most popular for non-residents, the main features of such companies being as follows:

A minimum of two shareholders.

Shares must be registered, bearer shares are not permitted.

Shares without par value are permitted.

• The minimum number of directors is one.
  
• An annual general meeting must be held each year.
  
• No restriction as to the location of meetings.
  
• An annual return is required, and this, together with several other documents, is filed in the public records.
  
• The company must maintain proper books of account. Where the accounting records are kept outside Guernsey, sufficient records must be kept in Guernsey to ascertain the financial position of the company at a minimum of 6 monthly intervals. There is no requirement to file accounts.
  
• Details of the beneficial owner must be given to the local authorities before a company can be formed. This information is treated in the strictest confidence.
  
• Incorporation takes approximately one week.
  
• No taxation other than an exempt company fee of £600 per annum and annual return fee of £110, payable to the Guernsey authorities.

A registered office is required in Guernsey. There are no exchange controls relevant to an exempt company, however, such companies may not be used to do business with persons resident in Guernsey.

Guernsey has a double tax treaty with the United Kingdom and Jersey, although exempt companies may not take advantage of these treaties.

For more detailed information on this jurisdiction, click on the link below.

Guernsey Jurisdiction Note