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JERSEY company for trading goods

memento mori

New member
Good afternoon,

It is always good reading you all and lots of knowledge around.



I´m thinking of opening a company for trading of goods, it would basically buy items in north Africa / Asia to later sell them to European companies.
I live in a country where I´m barely taxed on income, but from it is not really credible operating. I have been thinking of opening the company in JERSEY as I already have a friend in there which can open it for me and get me the bank account in there with a good reputation bank.



All the business would be 100% legit and I don’t really need to hide to conduct it, but if the taxman of countries such as Spain and Portugal don’t know about it better. (Because I already have some properties there and may get the passport and live there in a near future)



So just wondering what your thoughts for a JERSEY company in this case.
Would it be good for trading goods to European companies?

I´m open to all information related to this and any kind of advice.
Thanks in advance.
 
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Sols

Entrepreneur
Jersey, Guernsey, and Isle of Man are more commonly used for holding assets or other non-commercial activities. Especially since EU reformed its VAT regulations.

For selling into Europe, make sure you research VAT even if all you do is B2B.

Under one of the many possible information sharing mechanisms, the country where you live (and, sometimes, the country of your citizenship) will find out about your Jersey company through its bank sharing information and your name being all over it. If you have no ties to Spain and Portugal, there would normally not be any automatic information sharing to either.

Jersey tends to be expensive. If you're thinking along the lines of that jurisdiction, Isle of Man tends to offer a better value. But both suffer from being well-known, UK-controlled tax havens and with Brexit, the friendliness and leniency shown by EU might not continue to last.
 

memento mori

New member
Jersey, Guernsey, and Isle of Man are more commonly used for holding assets or other non-commercial activities. Especially since EU reformed its VAT regulations.

For selling into Europe, make sure you research VAT even if all you do is B2B.

Under one of the many possible information sharing mechanisms, the country where you live (and, sometimes, the country of your citizenship) will find out about your Jersey company through its bank sharing information and your name being all over it. If you have no ties to Spain and Portugal, there would normally not be any automatic information sharing to either.

Jersey tends to be expensive. If you're thinking along the lines of that jurisdiction, Isle of Man tends to offer a better value. But both suffer from being well-known, UK-controlled tax havens and with Brexit, the friendliness and leniency shown by EU might not continue to last.
Thanks for your point of view. I will continue investigating.
 

anotherone

Mentor Group Gold
Jersey, Guernsey, they ask you for more KYC/AML details than anywhere else. They don't want you to trade. They are looking for intellectual property, patents, that kind of stuff.
 

xzars

Entrepreneur
Once out of the EEA, compliance-wise, Jersey won't be any smoother for selling to the EEA than it is to sell to the EEA directly from Vietnam or from wherever your supply chain starts.

And Jersey is not that interested in non-resident traders as the gentlemen before me said.

With those two things considered, I see no point in Jersey apart from using it as the ultimate holding jurisdiction (parent company), if you're considering some layering for asset protection. But that can be done at a later time. For now, pick one of the EEA jurisdictions. Cyprus and Ireland are the most popular for the purpose.

! Big names in the EU commission and parliament have already said that there won't be a gateway (middleman) trading relationship UK-to-EEA like the well know Singapore-to-APAC or HK-to-China. They are paying close attention to ensure that the UK (or it's commonwealth islands) won't leech their share of EEA trade with some tax games. Ultimately, some lobbying and candy boxes may change all that, but don't count on it yet.
 
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