Jersey Island: Limited Liability Company
Many companies on the island of Jersey do not pay corporate tax, which attracts entrepreneurs from all over the world. Among other advantages of LLC registration in Jersey are convenient location, stable jurisdiction, and flexible business law.
Advantages of registering a LLC in Jersey
- Stability. Jersey is a crown possession of Great Britain but it has its own stable government, and independent legal, administrative and fiscal system. Local politicians do not have radically opposing views, so the new government does not override the laws of the old one, which provides stability.
- Zeitgeist. There is an old, but flexible law on companies that is in action since 1991. The government constantly amends it to help businesses work better. For example, the law now allows businesses to incorporate without registration. Jersey allows you to register a business without a nominal value, and there are no requirements for audit. Also, the company can easily be transferred to another jurisdiction and vice versa.
- Confidentiality. The names of the owners of the company are not in the public domain.
- Corporate tax. It equals 0% with few exceptions. There is also no VAT. Goods and services tax of 5% may be charged, but most international companies are exempt from it.
- Stamp duty. No stamp duty is to be paid on the transfer of shares.
Jersey is located in the English Channel, close to the EU and the UK, which makes it easy to do business in Europe. Also, its time zone is relatively convenient for the U.S., Canada, and Asia-Pacific region.
How to register an LLC in Jersey
An LLC in Jersey is a legal entity whose finances are separate from its owners. In case of bankruptcy and other troubles for the company, the owners only lose the money that was invested in the business. Property, personal savings, and other assets are not at risk.
Step 1: Registering with the JFSC
To start operating in Jersey, the company must be registered with the Jersey Financial Services Commission (JFSC). First of all, you need to choose a name and make sure it is unique. The company name should be included in the application.
Step 2: Obtaining a license
In some cases, the registered business in Jersey is required to obtain a license to conduct business. First and foremost, this applies to businesses that are related to the following spheres:
- accounting services;
- sale of real estate;
- brokerage activities;
- online casino;
Step 3: Contributions to Social Security
As soon as the company is registered and licensed, it will automatically be registered in the social security system and an email notification will be sent. If you don't need a license, you will have to register on your own. In any case, all companies have to pay a fee to the social security system.
Social security fees are only waived if income is less than £19,056. In this case, you can apply for assistance from the state due to low income. There are fee options, and the owner must choose the one that is the most suitable:
- Reduced Rate Contributions (RRC) - the contribution is calculated 2 years in advance, which is determined based on average income.
- Start-up plan - for companies that have just opened, and their income cannot be calculated. In this case, you have to pay a monthly fee of £1019.50. If you earn less, the company will be eligible for a refund.
If the owner doesn't choose any of these fee payment models, he will automatically have to pay the maximum monthly rate of £1,019.50.
Step 4: JOIC registration
The company must register with the Jersey Information Commissioner's Office (JOIC), which is responsible for the transparency of the company. This authority will form a closed register with all information about shareholders and directors.
Step 5: Registration for Goods and Services Tax (GST)
GST is a 5% tax, similar to VAT, which is added to the price of services and goods. Many international companies that operate outside the island of Jersey are exempt from it. Our specialists will study your case in detail and tell you if you are eligible for an exemption.
Step 6: Open a bank account
Once the business is registered, you will need to open a separate business banking account. It can take from 1 to 6 months to do it, depending on the bank and the proper filling of documents.
Once the company is open, the tax office will register it in their database too, and the business owner will receive:
- an identification number;
- a link to the website where the documents need to be filed.
All companies registered in Jersey must file a tax return once a year, even if they do not pay income tax. It can be done quickly by filling out the online form.
How to register a LLC in Jersey
To quickly open a limited liability company in Jersey, contact IT-OFFSHORE experts.