The following information explains the requirements for company formation and administration.
For ease of reference, we have set out the formation costs and the minimum annual running costs together with an overview of other key areas.
Requirements for company formation
personal details questionnaire
To cover formation costs and charges for the incorporation of a Jersey Company or formation of a Jersey Trust, you may be asked to transfer some or all of these to our bank account prior to our services being provided. We do not publish details of our bank accounts so they will be provided to you at the appropriate time.
When forming a Jersey company it is necessary to declare the identity of the beneficial owner to the Jersey regulatory authority. This remains confidential and poses no risk of disclosure. The company can be formed and administered with the usual nominee shareholding arrangement. This does not require any further use of the beneficial owner's identity.
We emphasise that we will not become involved in any scheme designed to illegally evade tax. In certain circumstances, arrangements which intend to avoid taxation may preclude our participation as professional persons. If doubt exists, we should prefer to discuss the particular intentions at the earliest opportunity.
It should be noted that we do not give taxation advice in any jurisdiction other than Jersey. However, we are able to obtain such advice speedily from our worldwide association, Kreston. We always advise clients to obtain independent tax and legal advice concerning any scheme and its implications in their own country. To enable us to have a better understanding of the overall reason behind the structure, we would ask for copies.
These questionnaires are designed to provide Alex Picot Trust Company Ltd with the information required to ensure that we know our clients, understand their requirements and receive all the information we need to complete our statutory and professional procedures under the laws of Jersey.
All new clients must complete the personal details questionnaire, and either a trust questionnaire or a company questionnaire. Once we have received and reviewed the completed questionnaires, we will contact you to confirm our understanding, and to ask any further questions.
Personal details questionnaire
Under our professional standards we need to obtain your personal details and adequate references. At least two references may be needed, sent directly to us in their original form. These are held on our own confidential files. We would not normally form a company until satisfactory references are received.
Description of activities
The authorities in Jersey rely upon the local professions to ensure that the Island is only involved in legitimate business. In order to do this properly, we must be kept informed of all major or relevant transactions. This does not affect the confidentiality of the business. A full description of the proposed business activities and adequate identification of the source of funds introduced is essential. Above all we must be certain about the source and integrity of all assets introduced.
Companies and registered trading names
Strict rules apply to the allocation of a company name, and certain words are restricted. Specific rules apply to banking and insurance companies. The name of a company has to be reserved with the Registrar of Companies as a first step to incorporation. The Registrar has complete discretion, whether to allow or refuse registration of a name. Similar controls are exercised over the registration of trading names.
We ask for three names, as the first choice may be refused, and a considerable amount of time is saved when other options are immediately available. If urgent, a name can be cleared in advance, within hours.
Every application to register a new Jersey company must be accompanied by a form completed and signed by the licensed company formation agent submitting the application. It includes the name and address of the ultimate beneficial owner(s) and a statement that the beneficial owners have never been made bankrupt in any part of the world.
This disclosure is made in the strictest confidence, and the Registrar of Companies is obliged to receive this information in the strictest of confidence and not to divulge it to any third party, except in the case of a money laundering, fraud action or an exchange of information request.
When our due-diligence enquiries are satisfactory, we are then able to open and operate bank accounts in Jersey or other parts of the world. In the context of money-laundering controls, we are obliged to make a positive statement to the effect that we Know our Client.
In addition to or in place of the directors, such bank accounts can be operated by our corporate secretary. For security, we operate accounts on a dual signature basis. If we provide directors, we insist on full knowledge of all transactions and the ability to control the company's bank accounts.