Spotlight On...
Company Formations SPOTLIGHT ON...
Channel Islands Alison Johnson, Apex
“The island is a hub for major international transactions as well as for the smaller more personal structures as all levels of requirements can be met and appropriate advice obtained.”
A Q
lison Johnson is one of five owner directors of Apex Trust
Company
Limited (“Apex”), one of the few remaining independently owned trust company businesses in Jersey. Alison is
a chartered certified accountant with 30 years experience in the offshore finance industry, where she has latterly concentrated on compliance matters, and currently holds the position of managing director.
What is the process of company formation in the Channel Islands?
In Jersey the actual application and formation process is fairly simple, requiring the approval of the chosen name by the Companies Registry at the Jersey Financial Services Commission (the “JFSC”) (to ensure it is not misleading or being used by another corporate entity undertaking the same business) followed by the submission to the JFSC of details of the ultimate beneficial owner(s) and the purpose for which the company is being established. Generally this can be accomplished within 72 hours.
In cases of urgency and where all relevant information is received by Apex we are able to have the company formed within 24 hours on payment to the JFSC of a fast formation fee of £200 on top of the usual costs.
However, delays can occur prior to the formation as service providers such as Apex are obliged to undertake due diligence on the ultimate owners of a Jersey company for which they either provide just registered office facilities or full services (directors, secretary, administration and accounting etc) which entails collating proof of identity, residential address and source of funds and wealth.
Q
What are the advantages of setting up a business in your jurisdiction?
Whilst able to form companies for Jersey based businesses, Apex typically assists non-Jersey residents with their companies, and the advantages are numerous.
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In these times the stability of the Jersey Government and the high level of regulation ( as confirmed by the OECD and FATF) of the finance industry give clients peace of mind, and the ease of travel to and from the island means that face to face meetings can easily be arranged.
Q Q
What tax implications could a new company face?
Jersey companies are not subject to any direct form of taxation. It is only the Jersey resident shareholders (if any) who are taxed on profits (when extracted) at 20%. This means that companies can be administered in the island for non-Jersey residents and distributions made with no tax deductions. Advice has to be taken by each client on the impact on personal taxation in the country of residence/domicile and for this purpose Apex has names of tax professionals in various jurisdictions.
What would you say is the biggest challenge facing companies that are starting up businesses here?
Jersey is an island measuring nine miles by five miles with a population of approximately 100,000, so opportunities may be limited for any on-island new business, but using a Jersey company as part of an international structure can provide planning opportunities.
The challenge for companies that are Jersey managed but carry out their business elsewhere is to source reliable professionals to advise on the tax and other
Jersey is English speaking and a common law jurisdiction, with Sterling as its currency, which has attracted high quality lawyers, accountants and other professionals into the finance industry. Service providers within the island typically either have strong links to professional firms in other jurisdictions, or in some cases have branch offices. The island is therefore a hub for major international transactions as well as for the smaller more personal structures as all levels of requirements can be met and appropriate advice obtained.
consequences to them of establishing a corporate entity offshore. Other than that there are no barriers per se.
Q
Have there been any key developments recently surrounding company formation?
Jersey is of course involved in constantly evolving legislation relating to the prevention of money laundering and the countering of terrorism, which has lead to increased amounts of personal information having to be provided to the JFSC on application for formation of a company, and to the service provider of the registered office address.
Currently the EU has been calling for registers of company owners to be publically available. In Jersey there has been the requirement for disclosure of these details to the JFSC on formation, but this information is not made available other than under legal or regulatory direction.
Q
Is there anything else you would like to add?
Amendment 11 to the Companies (Jersey) Law 1991 should come into force in September 2014, and introduces changes to the rules governing shareholder resolutions, reductions of
capital and statutory mergers whilst
introducing a new demerger regime, amongst other timely updates to the legislation.
Contact Web:
www.apextrustco.com Email:
alison.johnson@
apextrustco.com
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