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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. 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 £250,000 for Guernsey resident individual tax payers on the tax payable on their worldwide income.
• 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. These include: company management, trust administration, insurance (Protected Cell Companies) and fund management. To meet the needs of these professional sectors, a highly skilled workforce has developed in Guernsey.
• Changes to the law during 2006 further enhanced Guernsey's position as an international base for Intellectual Property (IP). Legislation is modern and innovative and the Island has its own IP 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, 1994, as amended.
1. Incorporation
Incorporation can normally be effected within one week.
2. Minimum Capitalisation
There are no minimum or maximum capital requirements. Bearer shares and shares without par value are not permitted.
3. Directors/Company Secretary
The minimum number of directors required is one. However, a sole director cannot also act as secretary. There are no residency requirements for either directors or secretaries.
4. Registered Office
The registered office must be in Guernsey.
5. Annual Return
Every Guernsey company must hold an Annual General Meeting each calendar year and file an Annual Return. There is, however, no restriction on the location of meetings.
6. 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 more than six-monthly intervals.
7. Taxation
The general rate of corporation tax is zero. The only exceptions are:
- 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 £ |
| • Formation Fee
• Registered Office/Agent Fee (billable pro-rata)*
• Government Registration Fee and Disbursements (Lawyers and States) |
600.00
1,000.00 600.00 |
|
TOTAL |
2,200.00 |
| 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 Return and Filing Fee
• Registered Office/Agent Fee* |
260.00
1,000.00 |
|
TOTAL |
1,260.00 |
* 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 OPTIONAL COSTS# |
GB £ |
| Provision of directors (total amount includes 3 directors plus a company secretary) |
|
| Time (provision of banking arrangements, correspondence address and preparation of annual accounts) |
See # |
# The anticipated additional optional 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.