If you are moving your business to Guernsey there are many factors to consider including choice of premises, employee licences (linked to the island’s unique residential property market) and the high standards of corporate governance which are integral to Guernsey’s regulatory framework.

There are two sectors of business in Guernsey, regulated and non-regulated. If you are considering moving a regulated business to the island prior to the move you must get consent from the Guernsey Financial Services Commission (GFSC). The GFSC is the body that regulates all financial services operations on the island.

Historically the source of attraction for financial services operations (regulated businesses) has been Guernsey’s common-sense regulation and its promotion of entrepreneurship. However interest in Guernsey as a business jurisdiction also stems from outside of the financial services sector and various organisations have chosen to move here including direct mail entities and online companies in the health, tourism and entertainment sectors.

Provided a business (which is not regulated) can obtain suitable premises from which to operate it will be able to establish itself in Guernsey. Due to the growth of the island’s economy over the last 30 years and, in particular the financial services sector, Guernsey offers an excellent mix and standard of office and warehouse space available for rent or purchase.

In Guernsey the rate of tax is 0% for most companies, provided the income does not include income from:

(a) certain banking business (which is taxed at 10%):

(b) trading activities regulated by the Office of Director General of Utility Regulation (which is taxed at 20%); or

(c) the ownership of land and buildings situate in Guernsey (which is taxed at 20%).

A company is resident in Guernsey for tax purposes if it is incorporated or controlled in Guernsey and is not an “exempt company”. Exempt companies are essentially companies operating as part of a collective investments scheme.

Companies (including those incorporated outside Guernsey) which are beneficially owned, wholly or in part, by individuals resident in Guernsey, are subject to a regime of withholding tax in respect of income distributions attributable to those Guernsey resident individuals.

On 27 October 2009 the States of Deliberation of Guernsey resolved that a planned review of taxation in the Island shall proceed on the presumption of a 10% general rate of corporate tax. Until such time as the review is complete, the existing corporate income tax and tax exempt funds regimes remain in place. No announcements have been made as at October 2010 regarding specific changes to Guernsey’s tax regime, but it is anticipated that any changes to be introduced will not be implemented until during the course of 2012 at the earliest. There may also be a period of transition.

Guernsey’s employment market is competitive and highly skilled. Right-to-work licences are a requirement for all non-locally qualified individuals to live and work in Guernsey. It is usual for these to be linked to the new residents allocated housing market status.

Please note that this briefing is only intended to provide a very general overview of the matters to which it relates. It is not intended as legal advice and should not be relied on as such. Independent financial and legal advice should be taken before progressing with relocation.