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Guernsey company formation provider

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baltic7

baltic7

🗣️ Active Recruit
Feb 10, 2024
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I am looking for a provider for company formation in Guernsey, I searched the forum for information but found nothing.

Can anyone recommend a good provider? Not a reseller as I need to create substance in Guernsey with a local manager and a full time employee.

I take advantage of the same thread to ask, will it be easy to hire an IT employee in Guernsey? Even if necessary, I could send him there from outside, assuming his accommodation costs + salary. There don't seem to be too many unemployed people in Guernsey, especially in the IT sector, so being able to hire someone from the UK/EU would be interesting.
 
Nearly all the usual suspects are there: Mourant, Dixcart (Alliott), Vistra, Sovereign, Trident, TMF, Carey‌ Olsen, Ogier, Appleby.

No, it will⁢ not be easy (but not impossible). The local talent pool is small and immigration is︀ quite a pain.
 
Thanks for the info. I will check them 🙂

Thanks for the response⁤ @Sols

Any recommendations among those providers that you have personal experience with? I suppose they⁣ are all trustworthy, but specifically is there one better than the other?

Regarding the employee,⁢ I guess the difficult thing is the immigration process from what I understand.

To create︀ substance, could that person work remotely? That is, having an employment contract and being registered︁ as an employee in Guernsey, but working remotely.

I suppose as long as the director︂ is local, there is an office and an employment contract in Guernsey for that IT︃ person, I suppose that will be enough substance. Am i right?
 
Different providers for different use cases. Dixcart, Mourtant, TMF, and Vistra might a good⁠ shortlist for your project here.

The difficulty is also⁣ in that the local talent pool is very small and very limited. With a tiny⁢ job market, those with skills often move to UK or work remotely.

Depends on how hostile the counterparty is. An employee and a nominee director will satisfy︄ some requirements. But if someone is very hostile and trying to enforce draconian tax laws︅ (think Germany, Finland, similar), they can claim the nominee is a sham and that the︆ employee doesn't control the company, so you're not establishing sufficient substance.

You'd satisfy the requirements︇ in Guernsey, though.
 
Thanks for︁ your response @Sols

The company currently operates with 2 IT people and me as director,︂ in Estonia.

As the intellectual property and trademark rights are held by a US LLC,︃ the idea is to make this Guernsey company the permanent establishment. I mean, making US︄ LLC a subsidiary of Guernsey company.

Using the director in Guernsey, who with simple instructions︅ can manage the company in terms of payments to suppliers, salary payments, etc...

Once the︆ entire system and business model is in place, no further decisions need to be made.︇ In fact, any decision he may make in the future with the company can only︈ be seen as "advice" from the shareholder to the director.

If, in the future, I︉ individually make improvements or new implementations in the business that I want to incorporate, they︊ can simply be seen as an in-kind contribution to the company. Just as if as︋ a shareholder you injected personal capital into the business.

In other words, the director would︌ know perfectly well what business management is like when faced with any question.

Regarding IT︍ employees, I currently have 2. The company could also function with only 1. But 2︎ could be hired if they can work remotely from another location.

The customer support service️ is outsourced to another company, because it is done by email and the instructions are‌ very basic.

I understand that even in an aggressive jurisdiction, the system should not be‍ a problem, because it is a fully online subscription-based service.

In any case, the jurisdiction⁠ is not aggressive regarding taxes, since it is Monaco. Which even has a double tax⁤ treaty with Guernsey. From what I understand that since there is a double tax treaty,⁣ dividends are not received from a blacklisted jurisdiction.

In the unlikely event that I receive⁢ a refusal from the Monaco banks to open an account and obtain the letter of︀ recommendation to apply for residency, the alternative would be non-dom in Cyprus. Which also has︁ a double tax treaty with Guernsey. And pay the 2.65% in GESY.

How do you︂ see the configuration? Does it make sense and can it work?
 
In Guernsey, there is a difference between local and non-local companies. If you have⁠ a local director, you have much more options in terms of service providers.

They are a reseller. Not what OP was asking for.

Yes, make︁ sure you either have economic substance or you actively trade with the company. Pure equity︂ holding companies without economic substance are sanctioned.

Please note that the Guernsey resident must not︈ be a recipient of dividends / owner of the company. Otherwise you will be taxed︉ 20% on dividends pay out to him and his share of distributable profit.

Please note︊ that as mentioned above it is difficult to get work permission in Guernsey, in particular︋ for non UK staff.

You may consider using a CSP which offers management of the︌ company.

Yes, this could work. But it is a⁣ mere question on the Monaco / Cyprus side. Please check and read the guidelines in⁢ order to get the tax residence certificate:
https://www.gov.gg/CHttpHandler.ashx?id=150213&p=0

The list of CSP is on the website. I messaged and called︂ all of them recently. The biggest part of them are only doing passive business, i.e.︃ equity holding. Then, there are some, that take on companies that they manage. Then, there︄ are very few which are open to self-managed companies. In order to help here, we︅ need to know
- Do you want to provide your own resident director (in which︆ case you only need a Company Formation Agent, not a CSP)
- If you do︇ not have a local resident director, you will need a CSP, and then, the question︈ is whether you want to manage the company yourself or you want them to do︉ it.
Please comment.

Please also note that the annul accounts need to be prepared signed︊ by a CPA. There is no external audit, but you need a qualified person to︋ sign them. If plan to manage it yourself, who have you planned to use to︌ prepare the books?
 
If you can't find what‍ you are looking for with the internal search function you always use Google like below⁠ and you will find most often a hit for almost anything you are searching for⁤ on OCT.



Code:


Code: 
In google enter below string:

site:offshorecorptalk.com guernsey company formation



And if you⁣ look below this thread you can find SIMILAR THREADS where I right now see 5⁢ hits 😉

It is just a hint for you to get faster information.
 
Thanks for you answer @daniels27

Unfortunately, I have just had several calls throughout the️ morning with Guernsey suppliers and I am not convinced as a jurisdiction.

It can be‌ useful for some situations, but for use as an operating company it is not very‍ functional.

Little choice and flexibility when using local Guernsey directors.

I think I'll go the⁠ Cyprus route, which is easier and 12.5% is always better than 20% in Estonia.

That 7.5% in tax savings is a significant amount. Which makes sense to move.

Thanks for the advice. Yes, I did that search. However,︃ in all threads there is no relevant information.

The most accurate information has been that︄ shown in this thread by the people who participated. 🙂
 
I agree with⁠ Alley, you must have missed something if you didn't found and seen the endless posts⁤ from @Sols who has mentioned AppleByGlobal among lot's others 🙂
 
Well, I really am not able to find those publications. How odd.

Can you provide me with a link to them? 🙂 I appreciate it.
 
Yes, you are⁢ quite limited as only a handful of CSP will take you and they want to︀ have insight to prevent the company from being used in an improper way.

However, it︁ still is an additional 12.5% saving if you can show management on the island. In︂ which case all the registration becomes much easier as you don't need the CSP anymore,︃ btw.
 
Why not just go for a full⁠ offshore jurisdiction, like BVI? Vistra are really good with it, specifically.

You will be in⁤ Monaco, where creating PE won't be taken into consideration much, and you have the capacity⁣ to hire employees; I don't see a reason why you would still go for a⁢ taxed jurisdiction. It seems you don't need the EEA if you were planning on going︀ for Guernsey.

At the scale you discussed in the Monaco thread, you would not have︁ issues getting EU banking (LU, most likely) for such a company, irrespective of the fact︂ it is in an offshore jurisdiction. Or set up an EU payment agent (for example,︃ in Cyprus, as you considered). With properly structured agreements that some lawyers can arrange, the︄ Cyprus company would be a subsidiary, receive the funds and distribute them to the parent︅ company. There is no UBO register there at the moment, either. The Cyprus company could︆ keep below industry standard, like a 1.5% processing fee, and that would be the only︇ tax liable activity. I don't know exactly the employment setups you are looking for, though.︈ Just feel it's a waste to pay 12.5% if you're also putting in the extra︉ amount to live in a jurisdiction with 0% personal income tax.
 
I have read many of your aggressive comments, which consist of hot air and no‍ evidence or follow-up. You always have an answer to the charge, and your opinion is⁠ the only correct one.

Then come up with a suggestion for who it should be⁤ since you know better.

We are not in a guessing competition.
 
I'm not sure Appleby is a reseller in Guernsey. Even if they don't have in-house‌ CSP and work with an external firm for incorporation, they are a well-known, reputable law‍ firm, member of the Guernsey Bar Association (Guernsey Law Firms | Guernsey Bar -⁠ Barreau de Guernsey), and a licensed as a CSP or member of the bar⁤ in many other places.

The main concern with Appleby , in this context and others⁣ like it , is they are phasing out what is left of their SME clientele⁢ to focus on large corporates and UHNWIs.
 
Thanks for help @JohnLocke

I am in contact with 3 companies that @Sols suggested. I⁠ hope they can propose something for my business. 🙂

I said that Cyprus will be the last option, in the case that︁ the structure in Guernsey will be useless. 😉

Hello @ilke I really appreacite your advice.

I mean, that Cyprus will be the last‍ option in the case that Monaco + Offshore Company with US LLC be useless.

Of course, the first option is Monaco. But I really don't want to generate structure in⁠ a country with few DTAs. Guernsey looks great because has DTAs with Monaco, Cyprus and⁤ european jurisdictions where i can go to live for low taxes as residency.

Do u⁣ think that i can use LU banks with a company in BVI? The minimun capital⁢ for open isn't a problem if they ask for something between 100k-1M, but i don't︀ have experience with LU banks. I know that a lot of investment companies there to︁ pay 1%, but i really zero experience in the country with banks.

This is true. If they are︈ reputable company and provide a good service, then not is a problem if they are︉ resellers.

Just personally I try to avoid to use reseller because bad experience in the︊ past, but If they are reputable then isn't a problem. I also can have problems︋ with a local firm if they aren't professionals.
 
Baltic, may i ask you what services you sell and where are locate your customers?‌
 
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