Open a Holding Company in Jersey

Investors who choose to open a holding company in Jersey enjoy a favorable business climate and straightforward incorporation procedures. Our company formation experts in Jersey offer counsel and assistance during the incorporation of a holding company.

What are the steps to open a company in Jersey?

Starting a new business in Jersey is a relatively simple process that can be easily handled with the help of our local team of experts.

Working with our experts if you want to set up a holding company in Jersey is advisable especially if you cannot be present during the entire incorporation phase.

Below, we list the most important steps:

choose a business form: for a holding company, the most suitable business form is the Limited Company; it has one shareholder and one director (who can also be a shareholder);
prepare the documents: these include the Memorandum of Association and the Articles of Association;
register the business: a limited company is registered with the Jersey Financial Services Commission as a first step for its creation;
apply for a business license: once the first registration is complete, the company can apply for a business license; this is usually done with assistance from our team.

Investors who open a holding company in Jersey will also need to choose a name for the company and an address. The address can be any Jersey address.

The company will need a business license if it will trade in Jersey.

Given the nature of its activities, a holding company in Jersey will not need to apply for additional licenses, such as those issued by the Environmental Health Agency.

What are the documents needed for opening a holding company in Jersey?

In a standard incorporation, the list of documents will include:

the Memorandum and Articles of Association;
identification documents for the beneficial owners, controllers and directors;
proof of residential address for the relevant individuals;
information about the shareholders, directors and company secretary;
details of the registered office in Jersey;
information about the proposed business activity and share capital.

The Jersey Financial Services Commission may request additional information depending on the ownership structure or the proposed activities of the company. Don’t worry, our specialist can review the documents and assist you with the incorporation procedure.

What are the advantages of opening a holding company in Jersey?

Investors interested in setting up a holding company in Jersey have the following advantages:

tax neutrality: most Jersey companies pay 0% corporate income tax (15% for in-scope multinational groups from 2025) and no currency control applies;
no restrictions on ownership: foreign nationals are permitted to have full foreign ownership and there are no nationality restrictions;
easy management: the founders do need to follow a set of annual management requirements, however, this can be easily handled, especially with the help provided by a local team, such as our own;
company migration: investors can relocate their company to Jersey, should they consider this to be optimum for their business interests.

A holding company incorporated as a Jersey company will provide investors with the advantages listed above.

Does a holding company in Jersey need a bank account?

No. This type of company does not generally need to open a bank account as a condition for incorporation.

In practice, however, most holding companies will need an account to manage their financial activity. It can be used to receive dividends or other income from subsidiaries, pay company expenses and keep corporate funds separate from those of the shareholders.

Our specialists can assist with the opening of a bank account for your company after setting up the holding company in Jersey.

When does a Jersey company not qualify as a holding company?

A holding company is not deemed to performed holding company business in a given financial period if the following apply:

it only holds assets that do not include shares or other equitable interests in other legal entities (for example, it only holds assets such as real estate);
its primary function is not to hold shares or other equitable interests in other companies;
it does not hold shares or other equitable interests in a company that is its subsidiary;
it does not earn gross income from engaging in a holding company business;
it is not a tax resident company.

For holding companies that do earn gross income from their activities in Jersey, this means that although they will not engage in commercial transactions as other companies, they will have a physical presence in Jersey, as well as employ qualified personnel.

What substance requirements must a holding company in Jersey meet?

If the holding derives income from holding activities in Jersey in a given financial period, it will need to meet substance requirements; a pure equity holding company only has to meet a reduced test (Companies Law filings plus adequate people and premises), while other holding businesses must:

be managed from Jersey;
have an adequate number of employees who are physically present in Jersey;
have adequate expenditure in Jersey;
have physical assets in Jersey.

It should be noted that the number of employees and the conditions for expenditure and assets held in Jersey are proportional to the level of activity the holding company in Jersey has in this jurisdiction.

In addition to these, the substance requirements also ask that regular Board meetings take place in Jersey, and, while there is no need for all of the meetings to be held here, it is expected that this will take place accordingly, in order for the company to continue to remain compliant.

What are the naming requirements for a holding company in Jersey?

As part of company formation, the new Jersey holding company will need to have an original name that does not infringe the name of a company already registered here.

The main rules for company names in Jersey are the following:

the name should be suggestive of only one specific activity (the company’s primary activity);
it should not imply any connection with another institution or a governing body;
it should not refer to a corporate form other than that of the company;
not duplicate or be too similar to other existing names;
not be potentially offensive (inappropriate use of religious terms, suggestive or swear words);
it should not use specific words or names; for example, a holding company should not use words such as “bank” due to the fact that it is clearly not licensed for this purpose.

The Jersey Financial Services Commission accepts or rejects a name proposal based on the conditions above, as well as other considerations, as the case may be.

Who can open a holding company in Jersey?

One or more individuals or corporate entities can open a holding company in Jersey. Foreign ownership is possible, so the shareholder does not need to be a Jersey resident.

A private Jersey company can have a single shareholder, which makes this structure suitable both for individual investors and for companies looking for hold shares in subsidiaries or other businesses. The shareholder can also be another legal entity.

What are the annual requirements for a holding company in Jersey?

Even if your company does not carry out active trading activities, you still must complete several ongoing compliance formalities each year. You have to:

submit an annual confirmation statement to the Jersey Financial Services Commission;
confirm that the details of the company remain accurate (registered office, secretary, members etc.);
prepare the annual financial accounts in accordance with the applicable company rules;
fill in an annual corporate tax return with Revenue Jersey;
continue to meet the economic substance requirements.

Our team of specialist can help with the annual filing and ongoing compliance requirements of a Jersey holding company.

Contact us if you consider to open a holding company in Jersey!