jersey

Company Accounts Filing Requirements in Jersey

Legal requirement to file account

There is no requirement to make accounts publicly available in Jersey. Jersey is an offshore jurisdiction.

Private Company Limited by Shares

Companies are limited by shares. A private company is any company that is not a public company. Shelf companies are not available in Jersey. A company must have a registered office in Jersey. A company wanting to do business as such on the island will need to provide a great deal of information to the authorities in order to obtain the necessary consents and licenses. Authorities actively discourage new business activity in most cases in order to conserve scarce resources.

Exempt Private Company

A private company limited by shares can apply for tax exemption each year and lasts for one year. Exemption is subject to the following: Jersey residents must not have direct interest in the shares of an exempt company, but may own shares in a company which does. The exempt company's beneficial owners must be disclosed to the Financial Services Commission. The company must not have failed to pay income or corporation tax in a previous year. The company must not have been exempt in a previous period separated from the current period by one year or more, unless there has been a substantial change of ownership.

Public Company Limited by Shares

Public company has more than 30 members or declares it is public in its Memorandum of Association. Only a public company may issue a prospectus and offer its shares for subscription to the public.

Branch of Overseas Company

If a foreign company intends to trade within Jersey using its own name or to establish a branch or a permanent place of business on the island, it is subject to the same consents and license requirements that apply to resident companies; and it will be taxed as if it was a resident company. A branch of a foreign company can apply to be an International Business Company.

International Business Companies

The status of International Business Company can be held by an incorporated Jersey company or the branch of a foreign company. An IBC is resident in Jersey for tax purposes but the rates of tax are very low on non-Jersey income. Jersey residents may not hold shares in an IBC.

General Partnerships

There is no legislation in Jersey governing ordinary partnerships. Partnership is between persons (which can include companies) and the liability of each partner is unlimited.

Foreign Partnerships

If the control and management of a partnership is carried on abroad, it is deemed to be resident outside Jersey, even if some of the partners are resident in Jersey. Tax will however be due on business profits earned through activities on the island and can be assessed on the resident partners.

Limited Partnership

Companies may be limited or general partners. Limited partnerships are often used in ownership structures for funds, real estate and leveraged financing packages. To form a limited partnership a declaration must first be lodged with the registrar, giving the names of the general partners, but not of the limited partners. The partnership agreement need not be filed.

Trusts

Local Trusts: The creation of a trust is free from Government duty. Jersey trusts may 'migrate' to other jurisdictions by changing trustees and the applicable law of a trust; likewise, foreign trusts may migrate to Jersey.
Unit Trusts: There are no special provision in Jersey law covering Unit Trusts, which are therefore treated in the same way as ordinary Jersey trusts, and have the same tax regime.