Location:
Jersey, situated about 100 miles south of England and 14 miles northwest
of France, is the largest of the Channel Islands. The island's main source
of income is its financial services sector.
Population:
The population is approximately 83,000, but restrictive immigration rules prevent
future growth.
Language: In
the commercial and financial areas, English is widely used. Certain laws are written in French, and French is also used in transactions concerning
Jersey properties.
Political System:
Jersey and the other Channel Islands are possessions of the English Crown,
and the constitutional relationship with the United Kingdom is unique.
The legislative assemblies have the exclusive right to legislate on matters
of domestic concern to the islands including taxation, but the United Kingdom
Home Office is responsible for the external affairs of the islands.
The United Kingdom
has negotiated special arrangements with the E.E.C. for Jersey, which has
retained its constitutional rights and has preserved its fiscal autonomy.
Jersey is only affected by the customs union aspects of the Treaty of Rome
regarding the Community's protective wall against imports: the Agricultural
Levy System and the Common Tariff.
Legal System:
Jersey has an independent law system different from the English and the
other Channel Islands. The judiciary consists of the Privy Council, the
Court of Appeal, the Royal Court of Jersey and the Petty Debts Court.
Taxation: Jersey
resident individuals and corporations are taxed at a rate of 20% on income.
There are no gifts, inheritance, wealth or capitals gains taxes.
Incorporation: For
tax purposes, a distinction is made between companies with income tax status
and companies with exempt status. No distinction is made between private
and public companies; only one type of company is available. A company
can be incorporated in seven days.
Exempt Status Companies:
This type of company is exempt from Jersey income tax, except from an annual
exempt licence fee of 500 pounds.
Requirements for incorporating
a Jersey company are:
The company must have a registered
office address in Jersey, which has to be notified to the Financial Services
Department.
The minimum number of directors,
who must be individuals and of any nationality, is two.
A company secretary, who may
be an individual or a corporation, has to be appointed.
There has to be at least three
shareholders, who may be individuals or corporations of any nationality.
However, the company is automatically struck off and dissolved if the number
of shareholders is reduced to less than three for a period of more than
six months.
The annual general meeting must
be held in Jersey, but directors meetings can take place anywhere in the
world. Proxies are allowed.
Name applications have to be
submitted to the Jersey Financial Service Department for approval, with
an explanation of the name selection. An exempt company can choose any
name, unless it is misleading, indicates an international organization
or is considered unsuitable.
For incorporation, an application
has to be submitted together with the Memorandum & Articles of Association,
which must include:
The company name, including
the word Limited or Limitee.
The objects of the company.
The share capital, the number
and value of the shares.
Payment conditions and penalties
for unpaid shares.
The duration of the company.
The names and addresses of any
beneficial owners.
If the beneficial owner has
ever been bankrupt or involved in an insolvent company anywhere in the
world.
If the beneficial owner has
more than a 25% interest in any other Jersey company.
The information is stored at
the Financial Services Department, and it is not available to any other
Jersey department or outside government.
Summary: Following
are some of the advantages of selecting Jersey as an offshore center:
Excellent communications and
international banking system
No foreign exchange controls
Exempt companies are exempt
from domestic taxation
Political, social and economic
stability
Benefits from some of the E.E.C.
rules that provides for free trade and fiscal autonomy
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