Guernsey Company Formation / Registration / Incorporation

GENERAL INFORMATION:

Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.

The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet possessions. The Bailiwick of Guernsey also administers some aspects of two nearby crown dependencies (Alderney and Sark), and the island of Brecqhou.

Although its defence is the responsibility of the United Kingdom, the Bailiwick of Guernsey is not part of the UK; and while it participates in the Common Travel Area, it is not part of the European Union.

The Bailiwick of Guernsey is included (along with the Bailiwick of Jersey) in the grouping known as the Channel Islands.

Unlike many countries, Guernsey has not delegated money creation to the central bank and has instead issued interest-free money from 1822 to 1836, stimulating the growth of economy after Napoleon’s wars without creating public debt and without increasing taxes. Also gold and silver coin remained money in Guernsey in the period 1822 to 1836 – and indeed long after.

Financial services, such as banking, fund management, and insurance, account for about 32% of total income. Tourism, manufacturing, and horticulture, mainly tomatoes and cut flowers, especially freesias, have been declining. Light tax and death duties make Guernsey a popular offshore finance centre for private equity funds. However, while Guernsey is not a member of the European Union, the EU is forcing Guernsey to comply more and more with its rules. As with other offshore centres, Guernsey is also coming under pressure from bigger nations to change its way of doing business. Guernsey is changing the way its tax system works in order to remain OECD ( and EU ) compliant. From 1 January 2008 it has operated a Zero-Ten corporate tax system where most companies pay 0% corporate tax and a limited number of banking activities are taxed at 10%. As a result it is confronting what it terms a financial “black hole” of forty-five million pounds or more according to some estimates which it aims to fill through economic growth and indirect taxation.