Guernsey Offshore Company: A Business Friendly Option

Guernsey, also known as the Bailiwick of Guernsey, is one of the Channel Islands located in the western side of the Normandy Peninsula. Forming a Guernsey company there for international business will be an excellent choice taking into the consideration its geographical location, unique political standing and business friendly environment.

The geographical location of Guernsey- among one of the wealthiest areas of the world, its excellent infrastructure and communication facilities and state-of-the-art air services are some of the features which make it one of the hottest destinations for the global business community. In addition, it is politically unique. Though it is a British Crown Dependency, it is not a part of the UK and has liberty to enact local laws including those governing finances.

The laws in Guernsey are mostly based on English Common Law; however, some of the features of the French constitution are also included.

Most of the residents of Guernsey are bi-lingual - they speak English and French. It has its own currency known as Guernsey Pound which is valued equal to the UK Pound. There is no exchange control in Guernsey.

Private and limited companies are administered in accordance with the Companies Law enacted in 1994-96 and as amended thereafter.

The offshore companies incorporated for international business or investments are known as an Exempt Company. For formation of a company, an Article of Association and Company's Memorandum is required to be submitted to the Financial Services Commission.

These documents are also required to be accompanied by notification for the address of the Registered Office, the names and nationalities/addresses of the shareholders and the directors. In addition, character references in respect of beneficial owners and descriptive information on the investment/trading activities of the would be company are also required to be submitted.

A company registered in Guernsey, generally known as an Exempt Company, is not permitted to carry out business deals in Guernsey. It also can not involve itself in banking, insurance, assurance, deposit taking, fund management, reinsurance, asset management etc. Other activities related to these fields are also not to be carried out by the company. The Financial Service Commission provides full information on such sensitive activities.

An Exempt Company in Guernsey enjoys powers similar to that of a natural individual. For legislation or corporate documentation, English is the authorized language. As the companies are required to disclose details of beneficial owners and business activities, there is no provision for Shelf Companies.

For formation of an Exempt Company in Guernsey it usually takes about ten working days from the date of submission of necessary documents. Though a company can opt for a name in any language, there are certain words which need specific approval for their use in the name of the company.

Overall, forming a Guernsey company is a good option in view of its business friendly conditions which govern its incorporation.