Setting Up A Company In Jersey As A Non-resident

  • Post category:New Jersey

By setting up a company in Jersey as a non-resident, businesses in a variety of sectors, from advanced manufacturing to life sciences, can take advantage of the special potential that New Jersey offers. Both domestic and foreign businesses may grow swiftly and prosper for years due to its prime East Coast location, highly educated workforce, and strong infrastructure.

setting up a company in jersey as a non resident
LOCAL BUSINESS ENTITIES AVAILABLE IN JERSEY

JERSEY OFFSHORE COMPANY (PRIVATE LIMITED COMPANY)

  • A Jersey offshore company is a popular choice for international businesses seeking a tax-efficient structure.
  • It is incorporated under the Companies (Jersey) Law 1991 and typically used for international trading, investment holding, and asset protection purposes.
  • The company benefits from Jersey’s reputation as a well-regulated jurisdiction with political and economic stability.
  • A Jersey offshore company can have limited liability, separate legal status, and its own directors and shareholders.
  • It can hold assets, engage in business activities, and conduct transactions globally while enjoying certain tax advantages and privacy protections.

JERSEY PUBLIC LIMITED COMPANY (LIMITED COMPANY)

    • A Jersey public limited company (PLC) is incorporated under the Companies (Jersey) Law 1991 and is suitable for businesses seeking to raise capital from the public.
    • It can offer shares to the public and be listed on recognized stock exchanges.
    • A PLC in Jersey must comply with stricter regulatory requirements, including issuing prospectuses, conducting annual general meetings, and adhering to corporate governance standards.
    • The amount invested by shareholders in the company determines their maximum liability.

JERSEY LIMITED LIABILITY PARTNERSHIP (LLP)

    • A Jersey LLP is a flexible and popular entity for professional service providers, such as law firms, accounting firms, and consultancy businesses.
    • It combines the benefits of limited liability for partners with the flexibility of a partnership structure.
    • Partners in an LLP have limited personal liability, and the entity itself has its own legal personality.
    • An LLP is governed by the Limited Liability Partnerships (Jersey) Law 1997 and must file annual financial statements and comply with reporting requirements.

JERSEY FINANCIAL COMPANIES

    • Jersey is well-known as an international finance center and offers various financial services entities, including banks, trust companies, investment funds, and insurance companies.
    • Financial companies in Jersey are regulated by the Jersey Financial Services Commission (JFSC) and must comply with applicable laws and regulations.
    • The specific requirements and regulations depend on the type of financial activity, such as banking, fund management, or insurance.
    • Jersey’s financial sector is known for its expertise, stability, and adherence to international regulatory standards.

FOREIGN BUSINESS ENTITIES AVAILABLE IN JERSEY

JERSEY BRANCH OFFICE

  • A Jersey Branch Office is an extension of a foreign company registered outside of Jersey.
  • It allows the foreign company to carry out business activities in Jersey under the same legal entity.
  • The branch office must be registered with the Jersey Financial Services Commission (JFSC) or another relevant regulatory authority, depending on the nature of the business.
  • The foreign company remains liable for the activities and obligations of the branch office.
  • The branch office must comply with local regulations, file annual financial statements, and meet other reporting requirements.
  • It may be required to appoint a resident representative or a resident director, depending on the type of business.

JERSEY REPRESENTATIVE OFFICE

  • A Jersey Representative Office is a non-trading entity established by a foreign company to conduct limited activities in Jersey.
  • It serves as a liaison office to promote the interests of the foreign company, gather market intelligence, or facilitate communication with local stakeholders.
  • A representative office is generally not permitted to engage in commercial activities, enter into contracts, or generate revenue in Jersey.
  • It is not a separate legal entity and does not have its own legal status.
  • Representative offices are subject to registration with the JFSC or relevant authorities, and they must comply with reporting requirements.
  • A representative office may be required to appoint a resident representative or a local agent.

HOLDING GLOBAL ASSETS WITH JERSEY ENTITIES

JERSEY OFFSHORE TRUST

  • A Jersey Offshore Trust is a legal arrangement where a person or entity (the settlor) transfers assets to a trustee for the benefit of beneficiaries.
  • The trustee holds and manages the assets according to the terms of the trust deed.
  • Jersey is well-regarded for its robust trust legislation and the expertise of its trust professionals.
  • The assets held within a Jersey Offshore Trust can include various types, such as cash, investments, real estate, and other valuable assets.
  • Offshore trusts in Jersey offer benefits such as asset protection, wealth preservation, tax planning, and confidentiality.
  • Jersey trusts are governed by the Trusts (Jersey) Law 1984, which provides a flexible framework for creating and managing trusts.

JERSEY FOUNDATION

  • The Jersey Foundation is a legal entity with a separate legal personality and is often used for holding and administering assets.
  • It combines the features of a trust and a company, providing a hybrid structure.
  • A foundation is established by a founder, who transfers assets to the foundation for the benefit of beneficiaries or a specified purpose.
  • The foundation is managed by a council or foundation council, which administers and controls the foundation’s assets and operations.
  • Jersey foundations offer advantages such as asset protection, succession planning, and flexibility in managing wealth and charitable purposes.
  • The legal framework for Jersey foundations is governed by the Foundations (Jersey) Law 2009, providing clear rules and regulations for their establishment and administration.

REQUIREMENTS FOR SETTING UP A COMPANY IN JERSEY

Share capital 

A Jersey Private Limited Company is not required to have any minimum capital. There is no legal requirement that capital be paid in full or in part at incorporation. Shares may be distributed either at par value or at a premium, but not both. Shares come in a variety of varieties, including registered shares, common shares, preferred shares, redeemable shares, non-redeemable shares, and voting shares. Bearer shares are not accepted.

Shareholders and directors

Private limited businesses can be established by one or more shareholders, with a maximum of 30, who can be residents or non-residents, legal or natural people. The identities of shareholders are made public. Shareholder nominees are accepted.

Directors can be either natural people or legal entities as long as they are registered under the Financial Services (Jersey) Law of 1998 and do not have corporate directors of their own. Information on the directors is open to the public.

Secretary 

A secretary must be appointed. This individual may be a natural or legal person.

Registered Address 

Private businesses must maintain a registered office in Jersey.

General Meeting

Annual general meetings must be held but can be conducted anywhere. The first annual general meeting must be convened within 18 months of the Jersey Limited company’s establishment. Annual general meetings should thereafter be convened every 22 months at the most. The firm may, however, skip the need for annual meetings if all shareholders agree to do so in writing.

Re-domiciliation 

Re-domiciling is possible for both international and Jersey LTD entities.

Compliance 

Private limited corporations are required to preserve six years’ worth of accounting records, which may be kept within or outside of Jersey. Each year, an annual return that includes information about its share capital must be turned in before the end of February. After the tax year ends, the tax return must be submitted within 7 months.


WHO MUST APPLY FOR A NON-RESIDENT BUSINESS LICENSE?

A non-resident business license is required for organizations from outside of Jersey that are hired on a contract basis to work on the Island. This can be a partnership, a sole proprietorship, or a non-resident firm.

Before beginning work in Jersey, the applicant must have a license, and they must bring it when they visit the Island.

Every contract the applicant has requires a different license. They just need one license if they work at multiple locations while under the same contract.

A license may be used for up to a year. They can request a license extension if the job takes longer than expected.

The price of the license varies according to how many days the applicant works in Jersey.

WHO DOES NOT HAVE TO APPLY FOR A NONRESIDENT BUSINESS LICENSE?

No license is required if the business –

  • Offers building or construction services, and the applicant has worked in Jersey for no more than 5 days in a calendar year. This five-day limit applies to any contracts they possess over the same 12-month period as a whole.
  • Not related to building and construction and they have worked in Jersey for no more than 30 days in a 12-month period. 
  • The applicant might be eligible for the 60-day exception if they’re offering medical services.
  • A business that offers medical services, and the applicant has worked in Jersey for no more than 60 days in a 12-month period. The agreement must be either:

An entity funded by the government and authorized to operate under the Nursing and Residential Homes (Jersey) Law of 1994 or a business authorized by the Nursing Agencies (Jersey) Law of 1978

One of the following medical services must be provided

  • Preventive health care
  • Management of health care services for medical diagnosis, research, care, or treatment
  • Installation and upkeep of critical systems related to the healthcare industry, medical equipment, or facilities 

WHO NEEDS IMMIGRATION PERMISSIONS?

To visit or work in Jersey, anyone who is not British or Irish must first obtain immigration authorization. Permits for immigration may include:

  • EU citizens who have pre- or established status
  • UK  ancestry visa
  • Indefinite permission to stay
  • Dependant visa on a work permit
  • Partner or spouse visa

Before submitting the application for a license, the applicant must ensure that all employees traveling to Jersey comply with the immigration laws. To find out if the people require a work permit or visa, get in touch with the immigration office. Call +44 (0) 1534 448000 or send an email to immigration@gov.je.

REQUIREMENTS FOR THE APPLICATION

The applicant must make sure to have the following before submitting the application:

  • The contract’s specifics, including the start and end dates, the number of days of work, and the Jersey address where the work will be performed
  • Information on the non-resident firm, such as the accommodations for the employees and the number of days they worked in Jersey over the previous year
  • Information about the Jersey company or person with whom the applicant has a debit- or credit card agreement to pay for the license and the necessary immigration permits for them and their team.

Applying for a new license

  • If the applicant is traveling to Jersey to work on a new contract but their previous time there was more than a year ago, they need to renew a license for an existing contract.
  • Before submitting an application for a license, they must have a contract in place.

Applying for a license extension

If the applicant came to Jersey less than a year ago to work on this contract, they may submit an application to renew the license. They must apply for a new license if they haven’t worked on this contract in Jersey in the last 12 months.

A license extension has the same price as a new license. The approval of the application may take up to ten working days.


TAXATION OF COMPANIES IN JERSEY

Tax residency

A business is considered to be tax resident in Jersey if it was incorporated there or has its headquarters there. If a Jersey-incorporated company is managed and controlled elsewhere, it may, under certain circumstances, be regarded as a non-resident.

Companies that are residents are subject to worldwide taxation, whilst non-resident corporations are only taxed on their income that comes from Jersey.

Tax rate

The usual corporate tax rate is 0%.

The tax rate for businesses providing financial services is 10%. Securitization and collective investment funds both have the option to elect tax exemption for revenue that is not sourced from real estate.

Utility firms that provide services like telephone, gas, and electricity pay income tax at a 20% rate. 

A 20% tax is applied to all real estate-related income, including rental revenue, profits from property development, and income from using land for development. Oil-related businesses are subject to a 20% tax as well.

Capital gains 

Capital gains are not subject to taxation.

Dividends 

In general, dividends received from domestic entities must be taxed at the appropriate rates. Typically, dividends obtained from foreign corporations are tax-free.

Income from foreign sources

Foreign-source income is often subject to taxation at the current rates. Tax credits for foreign taxes paid are typically offered up to the amount of tax due in Jersey.

Withholding taxes 

Jersey does not impose withholding taxes.

Losses 

Taxable income-related losses may be carried forward indefinitely. Losses may be carried back in certain situations.

Labor taxes 

Employers are required to pay Social Security contributions at a rate of 6.5% on employees’ income up to GBP 4,150 per month; after this amount, a 2% rate applies on monthly salaries up to GBP 13,828.

Employees are expected to contribute 6% of their monthly earnings, up to a maximum of GBP 4,150, to the Social Security fund.

Personal income tax 

A person is considered to be a tax resident in Jersey if they spend at least six months there each year, keep their primary residence there, or travel there often each year.

Individuals who are generally residents must pay taxes on their worldwide income, whereas people who are not ordinarily residents must pay taxes on their income that originates in Jersey and their income that is remitted from abroad to Jersey.

Except for interests, dividends, and earnings from Jersey firms and bank interests, non-residents must pay taxes on their income earned in Jersey.

20% of net income or progressive rates up to 26% of income are taxed, whichever is lower. Gains in capital are not taxed.

Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for further assistance.

FAQs

Can I set up a company in Jersey as a non-resident?

Yes, non-residents can establish and own companies in Jersey. The jurisdiction encourages foreign investment and offers several business-friendly features.

What are the minimum requirements to set up a company in Jersey?

The minimum requirements typically include at least one director and one shareholder. The director can be of any nationality, and corporate directors are allowed. A local Jersey resident must act as the registered office agent.

Do I need a physical office in Jersey?

Yes, you are required to have a registered office address in Jersey. This address will serve as the official contact address for your company.

Are directors or shareholders subject to any residency requirements?

There are no specific residency requirements for directors or shareholders in Jersey. They can be non-residents and reside anywhere in the world.

How long does it take to open a business in Jersey?

The time required to set up a company in Jersey can vary depending on various factors, such as the complexity of the company structure and the completion of required documentation. Typically, it can take a few weeks to a couple of months to complete the process.

Can I open a bank account in Jersey for my company?

Yes, you can open a bank account in Jersey for your company. However, banks may have their own requirements and due diligence procedures that need to be fulfilled.