Establishing a company in Guernsey
Guernsey is a small Channel Island in the English Channel, close to the Normandy coast of France. The authority of its legislative body encompasses responsibility for the nearby islands of Alderney and Sark and several additional small islets. The UK holds jurisdiction over all security matters and foreign affairs, but beyond that the island functions independently and its citizens have special UK passports stamped with the name of Guernsey. The island is not part of the EU. Official languages are English and French. The name originates from the Old Norse languages, combined with French dialects that signify “the corner island”.
As part of the Channel Islands, Guernsey lies close to Jersey and has a similar governmental and jurisdictional structure. Both are popular choices for international companies as they offer comfortable terms and a very inviting tax environment. Establishing a company there provides good business access to the UK, Europe and actually the globe. The majority of the population is British and there are also some of French origin. The capital is St. Peter Port, the general population is 65,000 and the total area is 78 km2.
- During World War II the island of Guernsey, along with all the British Channel Islands, fell to the conquest of the Nazis. The majority of children were evacuated ahead of time to England and some were never returned to their families. The island was significantly fortified with defenses far beyond the norm for its strategic importance, and these defenses can still be seen today.
- The island of Guernsey has a variety of cows named after it, much like its neighbor Jersey. These milking cows inhabit the island in quantities and are prevalent in many dairies throughout the continent. The milk is famous for its rich and delicious taste, far more fatty than normal and yellowish in color.
- The famous and esteemed French author Victor Hugo wrote several of his most seminal works (including “Les Misérables”) while in exile on Guernsey. His home in the capital serves as a museum today.
The local currency used is the British pound (GBP), although the island also has its own local coins and bills. GDP is 2.1 billion USD and per capita income is 41,000 USD. Its major revenue source is its financial sector, primarily international banking, insurance, investment funds and the administration of company registration. The financial sector brings in almost 40% of island revenue, although other active sectors include tourism and some manufacture and agriculture (tomatoes and flowers). The island has no external debts and its budget is balanced. Its infrastructure, roads, sea ports and airports are fully owned and operated by the island government. One restriction imposed on non-residents and foreign citizens is that they may not purchase or rent island lands beyond a small number of holdings.
Companies considering registering in Guernsey pay 0% corporate tax rate (excluding certain taxable activities).
General
Type of company |
LLC |
Relevant Companies Law |
The Companies (Guernsey) law, 2008 |
Offices |
Law requires companies to provide a local office address |
Language of original incorporation documents |
English |
Finance and Taxation
Currency |
GBP |
Corporate tax rate |
0% |
Standard share capital |
10,000 GBP |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Not required |
Obligation to appoint local secretary |
Irrelevant |
Type of entity that may function as company secretary |
Irrelevant |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual and/or company |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
Not required |
Minimum number of shareholders |
2 |
Type of entity that may register as shareholder |
Individual and/or company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding office holders accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Not required |
Obligation to prepare financial reports |
Not required |
Obligation to submit financial reports |
Not required |
Accept
