Jersey - Company Types

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.

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. Private companies make an annual return with a fee of £150 and must have a registered office in Jersey. Accounts need not be audited, but have to be filed with the Jersey revenue authorities.

Jersey Exempt Private Company

A private company limited by shares can apply to the Comptroller of Income Tax to be exempt 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 exempt companies for details of the tax situation of exempt companies; the main advantage is that foreign income is untaxed.

Jersey International Business Companies

Since 1993, the status of International Business Company can be held by a newly incorporated Jersey company. An IBC is resident in Jersey for tax purposes but the rates of tax are very low on non-Jersey income. Jersey residents may not hold shares in an IBC.