The Companies (Jersey) Law 1991 (the “Companies Law”) provides a modern and flexible framework for the formation and operation of Jersey companies. The types of companies that can be set up under the Companies law include private limited liability companies (including single member companies), public limited liability companies, companies limited by guarantee, unlimited liability companies, incorporated cell companies and protected cell companies. The Companies Law also allows the migration of companies to and from Jersey, includes provisions for mergers and contains flexible provisions enabling the distribution of income and capital provided the company is solvent.
Key advantages of using Jersey property holding companies
- Separate legal identity and limited liability for shareholders together with a simple process of transfer of ownership.
- Capital can be denominated in any currency and share capital of either par value or no par value shares can be issued in various classes, including redeemable shares.
- Jersey companies can be structured to meet a wide variety of real estate holding purposes.
- UK investors and property managers are familiar with Jersey property holding companies and the Companies Law has similarities with the Companies Act 2006
- Easy to set up (in 24 hours on a fast track basis)
- Subject to a standard zero rate of corporate tax
- There is no capital gains tax in Jersey
- Distributions (including dividends) can be made from company profits or any other reserves of the company
- Easy process of winding up provided the company has no assets and no liabilities