To register a company in Guernsey is a justified and a promising solution. This jurisdiction has flexible political and tax policies, a high level of control, supports favourable conditions for attracting capital, saving assets and other business purposes. Today, more than 60 thousand companies operate on Guernsey. The local government has a pragmatic and a responsive governance regime. These features have made jurisdiction extremely popular for opening companies in Guernsey.
Key features
The establishment of a company in Guernsey is governed by the Companies (Guernsey) Act 2008 as amended. Key features include:
- Very often, a corporate income is not taxed;
- A separate legal personality;
- There is no stamp duty on the issue, transfer or redemption of shares;
- There is a quick registration of business firms in Guernsey (up to 24 hours, or 15 minutes with accelerated);
- One member of the limited liability company may open a business in Guernsey;
- There is a registration of LLC in Guernsey, companies with unlimited liability, mixed liability and limited warranty;
- there are no requirements for the authorized capital (with the exception of mandatory solvency checks);
- Standard constituent documents are available by default;
- There is no obligation to codify the responsibilities of board members;
- A voluntary exclusion of inactive firms from the registry without an official, costly liquidation process.
Advantage of establishing Guernsey firms:
- The financial industry is at a high level of development;
- A professional legal framework;
- A pragmatic management;
- A clear working process;
- The government neutrality in taxes;
- The internationally recognized jurisdiction;
- A geolocation not far from London and Europe;
- It is not part of the EU;
- A London time zone;
- The availability of PCC and ICC.
What does it take to set up a business firm in Guernsey?
Commercial firms are established by a Corporate Services Provider (CSP) with a fiduciary license from the Guernsey Financial Services Commission.
All companies need:
- to register an office in this jurisdiction;
- at least 1 director is required;
- to conclude an agreement with a local agent (a resident);
- to draw up and submit a MOA, in accordance with which one or more founders have the right to register a company in Guernsey;
- to provide a package of constituent documents;
Before registering a Guernsey company, it is possible to reserve a name for three months. The process of setting up an enterprise in Guernsey is a simple electronic procedure, that can be done in 1 day, subject to the preconditions and formalities for combating money laundering.
A capital
No need for the authorized capital. If the company has one class of shares, directors may issue shares or grant rights to subscribe for shares, if there is permission in accordance with the Memorandum or decision of the participants. With a larger number of one class of shares, their issue requires permission by authorization in the Memorandum, company documents, or on the basis of a general decision.
Taxes
Local resident companies pay 0% tax, unless the company is a bank, a fiduciary company, the insurance intermediary/manager, then tax is 10%. Public utilities and the owners of land or buildings must contribute 20% to the treasury.
Guernsey does not have a separate income tax, capital gains, inheritance taxes, capital transfers, value added taxes. There is no stamp duty for the issue, a transfer, a repurchase of shares.
If you need professional advice on tax accounting in Guernsey, contact YB Case specialists.
The audit
Guernsey accounts are not checked annually. Large companies regulated by GFSC are not eligible for this exemption. The exemption is available, if the company decides not to conduct an audit (relate to a specific financial year).
Registering companies in Guernsey
If you decide to register a company in Guernsey, for its successful implementation, it is advisable to enlist a support of experienced experts. YB Case specialists are ready to offer services to advise clients on the subject of this article, as well as professional support in a company registration or professional advice on opening a corporate bank account in Guernsey.
Please, check with our specialists for possible solutions for your business.
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