Jersey Companies:

Jersey Private Company Limited by Shares:

Companies incorporated in Jersey are governed by the Companies Law 1991 which is based largely on the English 1948 Companies Act. Jersey companies are limited by shares; there are no forms comparable to those of English companies limited by guarantee or unlimited companies. A private company is any company that is not a public company.

Shelf companies are not available in Jersey; however the formation process is quick and inexpensive provided that a new company does not intend to carry on business on Jersey itself. There is an incorporation fee of GBP200 and an annual return fee of GBP150 and must have a registered office in Jersey. Accounts need not be audited, but have to be filed with the Jersey revenue authorities.

A company wanting to do business as such on the island will need to provide a great deal of information to the authorities in order to obtain the necessary consents and licenses; in fact the authorities actively discourage new business activity in most cases in order to conserve scarce resources.

Jersey Exempt Private Company:

A private company limited by shares can apply to the Comptroller of Income Tax to be exempt; the application costs GBP600 and is subject to the following conditions (this is a simplified statement):

Jersey residents must not have any direct interest in the shares of an exempt company, but may own shares in a company which does.

The exempt company's beneficial owners must be disclosed to the Financial Services Commission

The company must not have failed to pay income or corporation tax in a previous year

The company must not have been exempt in a previous period separated from the current period by one year or more, unless there has been a substantial change of ownership

Exempt status is applied for each year and lasts for one year; see Offshore Legal and Tax Regimes for details of the tax situation of exempt companies; the main advantage is that foreign income is untaxed.

Jersey Public Company Limited by Shares:

A public company is one which has more than 30 members or which declares in its Memorandum of Association that it is public. Public companies are required to file audited accounts with the Registrar of Companies. Only a public company may issue a prospectus and offer its shares for subscription to the public. International Business Company.

Version date: 07.05.06