- Guernsey, a self-governing British Crown dependent, is one of the Channel Islands in the English Channel close to the French coast. It is renowned for the scenery of its coastal cliffs and beach resorts like Cobo Bay. History and military museums are presently housed in Castle Cornet, a harbor fortress from the 13th century near St. Peter Port.
- In terms of forming an offshore company, the Channel Islands each provide tangible advantages. The island nation of Guernsey is sovereign and independent. It is known for having a lengthy history of political stability and high levels of respectability. Guernsey is not truly a part of the UK, like Jersey and The Isle of Man. Nonetheless, Guernsey is connected to the EU thanks to the Treaty of Accession signed with the United Kingdom, making it a desirable option for anyone seeking to conduct business in Europe.
- A secure location for conducting business, Guernsey is well known globally. Guernsey’s autonomous government works hard to ensure that companies that are incorporated there are treated favorably. In this article, Tetra Consultants has provided a complete guide to Guernsey company incorporation for a foreigner so that you may better understand this business phenomenon and make a more informed decision about whether you should proceed with Guernsey company registration.
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- Guernsey has a 0% corporation tax rate for all companies owned by non-residents that trade outside of Guernsey, irrespective of profits. The lone restriction is for companies that provide financial services and are governed by the Guernsey Federal Services Commission. Such companies would have to pay a 10% tax on their net profits.
- There are no capital gains, inheritance, capital transfer, VAT, or general withholding tax for non-Guernsey residents. In addition, there is no stamp duty on the issuance, transfer, or redemption of shares.
- There are no authorized capital or capital maintenance requirements for Guernsey company formations. Companies can be formed with an infinite number of shares with no par value for future transferability.
- As there is no recognized distinction between privately held and public companies, meaning any Guernsey company limited by shares may offer its securities to the public.
- A new Guernsey company can be registered within 2 weeks of submission.
A step-by-step guide to Guernsey Company Incorporation
There are several things to consider when setting up a company in Guernsey, such as choosing the correct name for your company, designating owners, shareholders, and directors, and deciding on a corporate structure. Learn more about these steps by reading below.
Step 1: Choosing a suitable corporate structure
- Your choice of structure will have an impact on registration requirements, insurance, and tax implication of your entity. Companies with limited liability and foreign branches are examples of these structures. Accordingly, The tax and regulatory treatment to be given to the company in a foreign nation is crucial when determining the specific type of vehicle to adopt. Hence, it is essential to get proper legal and tax assistance in all pertinent jurisdictions to identify the corporate vehicle type that is most appropriate for your situation. Tetra Consultants’ team of business setup experts is proficient with the company setup in Guernsey to give you accurate advice on the type of entity structure to be adopted.
Types of company structure available in Guernsey: The Companies (Guernsey) Law, 2008 governs the registration of companies in Guernsey, and both standard and cell companies may be incorporated. The rule is quite flexible, giving companies the option to change their business type. Guernsey also has a wide range of company types, such as:
- Limited Liability Company
- Unlimited Liability Company
- Mixed Liability Company (Hybrid Company)
- Protected Cell Company (PCC)
- Incorporated Cell Company (ICC)
- Company Limited by Guarantee
Step 2: Reservation of company name
- It might be challenging to choose a name since it must be original and appealing. There are several tools available to assist you with naming your entity. Tetra Consultants recommends having two alternate names wherein our team will assist with the preliminary check for the availability of names. Once confirmed, our team will register the name available with the respective Guernsey authority.
Step 3: Preparation of corporate documents
- Once the reservation of the company name is obtained, you can subsequently begin with the preparation of important documents required to register your Guernsey entity. The required documents consist of a memorandum and articles of association of the company. Our legal team will provide the draft of such documents for review and comments. Once the documents are approved, we will proceed to submit the same to the Guernsey Registry through the official website Greg.
Step 4: Corporate bank account opening
- Admittedly corporate bank account opening is not an easy task. But, our specialized compliance team will ensure swift account opening for your company.
Step 5: Staying compliant
- Once the Guernsey company is duly registered with the authorities, it is important that you adhere to the post-registration compliance like registration of your entity to obtain a Social Security number with the State of Guernsey.
- Engage Tetra Consultants as we guide you on how to register a company in Guernsey through a smooth and hassle-free process. The team provides a comprehensive service package that includes planning and strategizing with our clients to select a suitable business entity, completing the registration and documentation processes, obtaining required licenses, opening a corporate bank account, and ensuring compliance with government regulations.
- Contact us to find out more about company registration in Guernsey and our dedicated and experienced team will revert within the next 24 hours.