Jersey Background

No tax is payable on income arising outside the island.
No tax is payable on interest arising from.
No income returns are required (other than for Jersey sourced income, excluding bank deposit interest).

Jersey Introduction

Jersey is situated off the northwest coast of France. It is about 160 km south of England and only 20 km from France. It is the largest of the Channel (Normandy) Islands, with a total land area of 117 sq. km. The population of Jersey is approximately 82,000 and effective immigration controls exist to restrict future growth. The constitutional relationship between the Channel Islands and the United Kingdom are unique, differing from colonial and overseas dependencies of the Crown. The Island's Parliament and legislative assemblies have the exclusive right to legislate on domestic affairs (including taxation), although Jersey's foreign affairs are the UK's responsibility.

English is used in all aspects of the financial and commercial activities of the island. However, French remains the official language of the Royal Court of Jersey.

Law and Taxation

Largely based on English Common Law, with many French features.

Exempt companies are exempted from all forms of Jersey taxation. Resident Jersey companies pay income tax at a rate of 20% on world- wide income.

Corporate Requirements

A private company must have at least one director and a public company at least two. Directors' meetings can, but need not, be held in Jersey and the directors themselves can, but need not be, resident in Jersey. Directors may be individuals or, subject to certain restrictions, corporate entities

A company secretary is required who can be a natural person or body corporate. The secretary can be of any nationality and need not be resident in Jersey.

A private company is permitted to have just one shareholder, a public company must have at least two (who may be nominees for a single beneficial owner).

A name cannot be used if that is similar to/or identical to an existing company or registered entity; names of well-known multi-national companies, without prior written consent; names that imply illegal activities; names that imply royal or government patronage, either local or foreign.

The following names or their derivatives are not allow to use without permission: Jersey, bank, building society, savings, loans, insurance, assurance, reinsurance, building society, Chamber of Commerce, council, co-operative, trust, trustees, finance, international or their foreign language equivalent.

The name of a Jersey registered company can be in any language using the Latin alphabet as long as the authorities are advised of the meaning on the name application form. The name application will then be granted, or rejected, under the current guidelines regarding the use of certain words.

Local Infrastructure

The financial services sector provides Jersey's main source of income, and the tourist industry has always been very important to the island's economy. There are various other less significant sources of income, including agriculture and fishing.

Jersey is in a very favourable situation owing to the proximity of the UK and the Continent, and although the legislation on Free Trade adopted by the European Community applies to the island, the politics of taxation planning does not affect Jersey. The currency is the Pound (GBP), which is on a par with the UK Pound, and there is no exchange control.