16 August 2010
The Minister for Economic Development has issued a consultation on the level of annual company fees in Jersey.
One of the key questions in the consultation is a proposed increase in the annual company fee from £150 to £250. It also asks whether company annual fees are set at an appropriate level that allows companies to contribute a reasonable amount for the benefits of incorporation without discouraging business.
There are approximately 33,400 companies registered at the Jersey Registry of Companies. Companies are used globally as the vehicle of choice by many businesses, both small and large, and there can be significant advantages in operating business through a company.
Companies incorporated in Jersey pay £150 per year on filing their annual returns (the annual company fee). This sum is made up of 2 elements:
- a fee to cover the Jersey Financial Services Commission’s administrative costs (currently £35)
- an additional amount used to finance general government expenditure (currently £115)
Some companies which qualify as International Service Entities (ISEs) also pay a further £100 to satisfy their obligations under the GST regime, so for many companies the total annual statutory cost of incorporating in Jersey is currently £250.
An independent comparison of company fees showed that Jersey’s fees are lower than its key competitors, namely Guernsey and the Isle of Man.
Senator Alan Maclean said “There seems to be some scope to increase Jersey company fees without significant damage to our internationally competitive position.
“But if we increase our fees without considering the position in Guernsey and the Isle of Man, we risk losing business. The 3 jurisdictions are closely linked in the minds of many investors, who compare costs directly when deciding where to locate business. The cost of doing business locally is also important so we want to hear from all sectors.”
Have your say
Respondents are invited to give their views on
- the advantages and / or disadvantages of keeping a flat system of Jersey company fees
- increasing Jersey’s company annual return fees to a flat rate of £250 (excluding the ISE fee)
- the likely effect of any increase on Jersey’s internationally competitive position
The consultation closes on Friday 24 September 2010.