Guernsey is a British Crown Dependency. It is located in the English Channel and its territory includes several large islands, Guernsey, Alderney, Sark and Herm, as well as several smaller islands, Brechow, Lihue and Jethu. The Bailiwick is located 30 miles off the coast of Normandy and has a total area of approximately 30 square miles. Administratively, Guernsey is a separate jurisdiction from the United Kingdom and is self-governed by a legislative assembly, the States of Deliberation. However, the United Kingdom is responsible for defence and international relations. Guernsey boasts a thriving economy, benefiting from a long history of stable politics and a sound legal system. In recent years, construction, manufacturing and agriculture, once the core of Guernsey's economy, have declined to give way to tourism, the public sector and professional and financial services. The latter segment includes banking, fund management and insurance and represents more than 30% of total revenues. The favourable tax regime and practical and efficient regulation have made Guernsey a respected and popular jurisdiction for the formation and administration of companies.
Categories of companies in Guernsey
Company registration in Guernsey is governed by the Companies (Guernsey) Act 2008 and both standard and cell companies can be formed. The regulation is characterized by great flexibility, providing the possibility of converting one type of company into another. In addition, Guernsey covers various classes of companies, including:
Limited Liability Company. This is the most common class of company, as it protects shareholders in the event of insolvency. Shareholders’ liability is limited to the unpaid value of their shares. The limited liability company structure must include at least one director. A business can have one or more shareholders.
Guarantee company. In this type of business structure, there are no shares, and the liability of the members is the specific amount they have pledged as a guarantee in the event of debts. Guarantee companies are suitable for social, political and charitable organizations.
Unlimited liability company. Shareholders have unlimited liability in the event of the company’s insolvency. The liability is valid for active members and for one year after the termination of membership.
Mixed liability company. The structure includes guarantee members and shareholders, with the latter providing unlimited or limited liability. This model is suitable, for example, for hybrid companies that deal with international tax regulations.
Protected Cell Company (PCC). A PCC is an entity that can create cells with separate assets and liabilities. This articulated structure provides protection for both the core and the satellite cells. It is noteworthy that the satellite cells have no legal personality. In the event of the insolvency of one cell, creditors cannot bring claims against the core or the other cells.
Incorporated Cell Company (ICC). An ICC is similar to a PCC, but each cell can have assets and be liable for its unpaid debts, but without involving the healthy cells. All cells share a board and cannot act separately.
Finally, it is worth noting that the legislation does not distinguish between public and private companies.
How to set up a company in Guernsey
Setting up a company in Guernsey is a simple procedure that can be done online through a local corporate service provider (CSP). The application must comply with the regulation and contain the memorandum and articles of association.
The memorandum is the founding document of the company. It states the type of company, all relevant details of each member, any restrictions on the company's objects, the volume of shares or the guaranteed amount in the event of insolvency.
The articles of association cover the internal procedures and management rules. They can be changed by special resolution of the member.
The memorandum and articles of association constitute a contract between the company and the members.
Proof of payment of incorporation costs
Taxation System in Guernsey
Guernsey's tax regime is very favourable, with income tax at 0% for most types of companies.
Banks, insurance companies, trust companies, aircraft registry managers and profits from investment transactions are subject to a rate of 10%.
For income from property located in Guernsey, from the import and supply of gas and oil and income from the cultivation of cannabis, the tax rate is 20%. In 2018, in order to comply with the EU Code of Conduct Group on Business Taxation, Guernsey implemented the law. Since then, local companies have had to demonstrate that they have a significant economic presence in Guernsey. In particular, Guernsey has no inheritance, capital gains, capital transfer or value added taxes. In addition to the favorable tax environment, forming a company in Guernsey offers a number of other valuable advantages, including:
Stable legal and administrative structure;
International recognition;
Presence on the London Stock Exchange and the New York Stock Exchange, among others;
How our experts can help
Let's say you are evaluating the formation or purchase of a company in Guernsey. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in Guernsey:
Request and collect all the data and documents for opening a business in Guernsey;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all the necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in Guernsey.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including state fees
Obtaining an administrative identification number
Company registration with state structures
Writing a company charter
A set of statutory documents of the company in electronic form
Bank contribution for the authorized capital of the company
Obtaining a permit for foreign investments
Opening an account at: ABN Amro (Guernsey), Bank Julius Baer & Co. Ltd, Guernsey Branch
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Assistance with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 1800 Euros (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euros) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is available and eligible for registration.
3. Choose a bank that meets the needs of your company from a list of partner banks of "Smart Startup UK".
4. We send you a proforma invoice for payment, which you can pay to our bank account + the amount for the initial capital of your company.
5. You receive all the necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. Within the specified period (for Guernsey it is 35 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within 30 minutes. We have built an internal ticket system for our clients, through which we process each of your support requests.
All services such as management, accounting, bank account opening request, licensing, tax return filing, tax payment and others are carried out through your account on our platform, this makes it easier to manage your business!
