Jersey: Getting To Know The Locals - An Overview Of Legal And Regulatory Factors For Businesses In Jersey

Last Updated: 10 February 2016
Article by Colin Dow

Most Popular Article in Jersey, February 2016

Over the last 12 months, we have advised a number of clients on sales and acquisitions of Jersey businesses and we have recently seen a number of high profile moves by hedge funds and other businesses to our Jersey shores. Working with these clients has highlighted a number of important issues to be considered on sales and acquisitions and for new businesses coming to the Island.

Jersey offers a wide range of corporate vehicles for businesses to consider, including companies, foundations and limited partnerships. The particular corporate vehicle chosen will very much depend on the client's objectives, business needs, the size and nature of the business, structuring requirements and tax and regulatory issues. To achieve the right structuire it is vital to ensure that a close relationship exists with the client and their advisers.


For a new business, particular regulatory consents are required to incorporate or register a new corporate vehicle. For example, consents under the Control of Borrowing (Jersey) Order 1958 will be required to incorporate companies or to register limited partnerships. Consents are issued by the Jersey Financial Services Commission (JFSC) who will require details of the ultimate beneficial owners of the entity together with the proposed business activities. The JFSC operates a Sound Business Practice Policy and as part of this certain activities classified as "sensitive" may be subject to particular scrutiny by the JFSC before consent is issued. The Housing and Work regulations (described in more detail below) will also be an important factor to consider before undertaking any business in Jersey.

Depending on the nature of the business, other licences and consents may also need to be obtained before business can commence in Jersey. For example, banking licences may be needed under the Banking Business (Jersey) Law 1991, licences may be required under the Financial Services (Jersey) Law 1998 to carry on investment business or to provide fiduciary services, and consents may be required under the Insurance Business (Jersey) Law 1996 or the Collective Investment Funds (Jersey) Law 1988.

It is also important to consider if consent may be needed from the Channel Islands Competition and Regulatory Authorities (CICRA). Anti-competitive behaviour, including anti-competitive agreements between businesses and the abuse of a dominant position in a market is prohibited in the Channel Islands and the consent of CICRA may be required in respect of a particular transaction. This is particularly relevant where a local business intends to merge with another, however, there are many different types of transactions that should be notified to CICRA for approval, both in terms of size and sector type and, if approval is needed, there are various timing considerations to take account of.


Jersey applies a standard zero rate of corporate tax. A higher rate of 10% is levied on regulated business established in Jersey, such as banks and trust companies. Utility companies and rental income and property development companies are taxed at 20%. Non-financial services companies are zero-rated. There are certain "look through" provisions applicable to locally owned businesses so that local beneficial owners pay tax on their business income at the standard personal tax rate of 20%.

However, Jersey companies may be considered exclusively tax resident in another jurisdiction where they are centrally managed and controlled outside Jersey, are tax resident in the jurisdiction of control and management and where the rate of corporation tax in that jurisdiction is 20% or higher.

A Goods and Services Tax (GST), currently 5%, is payable on the domestic consumption of imported and locally-produced goods or services unless those goods or services are categorised by law as "exempt" or "zero-rated". Certain entities qualify as "International Services Entities", allowing them to avoid registering for GST, charging GST on their supplies, and, in most cases, paying GST on supplies made to them. Finally, there is no capital gains tax in Jersey.


Under the Control of Housing and Work (Jersey) Law 2012 (the CHW Law) anyone establishing a new undertaking in Jersey must obtain a licence, subject to a number of limited exceptions. Licences under the CHW Law are administered by the Population Office, which will consider the demands on the resources of Jersey and the protection of its integrity and reputation.

Licences issued under the CHW Law contain the undertaking's quotas for employees, which may be Licenced (essentially employed) and Registered (less than five years' continuous residence in Jersey). There are no quotas for Entitled (Jersey-born with ten years' aggregate residence or ten years' continuous residence) or Entitled for Work Only (five years' continuous residence) persons.

Work permits are not required in Jersey for employees from the UK or other EU/EEA countries. Permits will, however, be required for employees from further afield under the Immigration (Work Permits) (Jersey) Rules 1995 and there are normally certain restrictions apply on duration and renewal.

Jersey's employment law includes provisions for unfair dismissal and redundancy rights. An employer must provide an employee with a statement of his/her rights including, for example, level and frequency of pay and holiday entitlement and any changes must be notified to the employee. There are also provisions covering minimum periods of notice for termination of employment, permitted deductions from salary, calculation of continuous employment on transfer of undertakings and social security.


There are statutory controls governing the ownership and use of accommodation by non-local residents. There is some unrestricted accommodation but it is limited in supply. Broadly speaking, it will only be possible for someone who has not lived in Jersey for at least ten years to occupy restricted accommodation if that person has the benefit of a Licensed post for the purposes of the CHW Law. If a new or existing business needs to acquire accommodation in Jersey, specific legal advice should be obtained on any lease or purchase of premises.


Data protection is governed by the Data Protection (Jersey) Law 2005 which has placed Jersey's law on a similar footing to that of the UK and the rest of Europe. This law requires, in effect, every data controller processing or controlling an individual's personal information to register on the Data Protection Register. Anyone processing personal information must comply with eight enforceable principles of good information handling practice, for example, as to fair and lawful processing. Employees and other individuals have certain rights including rights of access to their personal data and the transfer of this data to countries outside the EEA is restricted unless the receiving country has adequate data protection for the individual.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.