Guernsey Offshore Company Formation

The Channel Islands each have their own unique advantages when it comes to offshore company incorporation. Guernsey is an independent and self-governing country. It has a long-held reputation for political stability and high degree of respectability.  As with Jersey and The Isle of Man, Guernsey is not actually part of the UK. However, by virtue of the Treaty of Accession entered into with the United Kingdom, it is associated with the EU, which makes Guernsey an attractive proposition for those looking to do business in Europe.

Guernsey is renowned worldwide as a safe place to do business. Its independent government work hard to ensure that companies incorporated in Guernsey enjoy favourable treatment.

Benefits of Guernsey company registration

• Tax-Free for foreign nationals– Guernsey offers 0% corporation tax for all companies owned by non-residents, trading outside Guernsey, irrespective of profits. The only exception is for those companies conducting financial services, which are regulated by the Guernsey Federal Services Commission. They would need to pay tax on their nett profits at 10%.
• Further tax benefits – For non-Guernsey residents there is no capital gains, inheritance, capital transfer, VAT or general withholding tax. There is also no stamp duty on the issue, transfer or redemption of shares.
• Low capitalisation – For Guernsey company formations there is no authorised capital or capital maintenance requirements. Companies can be incorporated with an unlimited number of shares at no par value for easy of future transfer.
• No distinction between private and public companies – As there is no recognised difference between private and public companies, meaning any Guernsey company limited by shares may offer their securities to the public.
• Quick company incorporation – A new Guernsey company can be incorporated in around five days of submission.

Requirements to Form a Corporation in Guernsey

• Company structure – Guernsey limited Companies require a minimum of one director and one Shareholder. The residency of the officers and members are subject to business activities.
• Selection of a company name– The proposed name of the Company needs to be approved by the Guernsey Registry before the company incorporation can begin. The name must be not be the same or similar to any other company incorporated in Guernsey. It must also not infer that the company is associated with governmental or illegal activity.
• Assessment by the Guernsey Authorities – following submission of your company application, an assesssment will be undertaken by the Guernsey Authorities to establish whether any compulsory additional local substance requirements will be imposed upon the incorporation and any additional costs associated with it.
• Registered office– The Company’s registered address must be in Guernsey and must not be a PO Box.  All official documentation will be sent to this address.
• Meet the anti-money laundering requirements – In order to meet our client due diligence requirements under EU Anti Money Laundering legislation you will need to provide a certified copy of the passport and current utility bill of each of the directors and shareholders. This is required in all circumstances, even if you choose to use our Nominee Service.
• Documents are issued to you – Once the company has been formed, you will be issued with the certificate of incorporation, memorandum and articles of association, Share certificates and all other company documents as required by law. These documents can then be used to open a bank account for the company and must be maintained to record any changes to the company.
• Public register – There is a public register displaying the full name, address and date of birth of beneficial owners of the company.
• Annual general meeting – AGMs can be indefinitely waived for Guernsey incorporations.
• Annual return – An annual return, known as an annual validation is required for all Guernsey Companies.
• Financial statements – The filing of annual financial statements in Guernsey is required. However companies can vote to waive audit requirements, reducing administration and cost.
• Ready made/shelf companies – Shelf companies are not available in Guernsey as legislation requires that the full details of the company’s beneficial owners are revealed at incorporation.

Please note that information given on this page is subject to change at any time without notice as a consequence of changes made in local legislation.

Also, note that legislative changes in the process of being introduced may, in a small number of cases affect the tax position – please ask for full details.