Setting up a Company in Guernsey
Guernsey boasts a thriving entrepreneurial community, with many small to medium size businesses setting up here with great success. Whether you are starting a new business or moving your existing business to Guernsey, there are many resources on the island to help you. With a small community, you often skip waiting lines & bureaucracy, giving you time to focus on your business. I’d be happy to guide you in the right direction and answer any questions you may have.
Please note that is a legal requirement for new businesses to inform the Income Tax Office. They will need to be told the nature of the new business, the date of commencement and, if possible, an estimate of profits for the first year of trading.
Companies which are deemed to be Guernsey Resident companies are those which are incorporated in or controlled from Guernsey.
How does Company Tax apply in Guernsey?
Guernsey reviewed its company tax system in 2008 in order to comply with the OECD’s request for the abolition of certain tax practices, and a regime known as “Zero-10” came into existence. The vast majority of Guernsey companies do not pay ANY Income Tax and there is no separate Corporation Tax.
Company tax rates are as follows:
0% – the rate applicable to most companies
10% – the rate applicable to certain banking, insurance and fiduciary operations
20% – the rate applicable to utilities and profits arising from Guernsey property rental & development activities
Guernsey levies no capital gains, inheritance, capital transfer, value added or general withholding taxes.
If you are considering setting up a company in Guernsey, do not hesitate to contact me for introductions to specialist members of our Tax Advisory Panel, who are available to advise on all tax matters, as well as other business-related organisations who will be able to help.
