In the past year several Chinese enterprises have established holding companies in the Island with a view to listing on AIM, the Alternative Investment Market of the London Stock Exchange.
Hiren Patel, a lawyer at Crills Advocates, expects business of this kind to increase, once legal changes go through in relation to Wholly Owned Foreign Enterprises.
Mr Patel said that incorporation in tax-neutral Jersey carried a number of advantages: ‘From the perspective of a non-UK investor, Jersey is a desirable alternative for inward investment into the UK, Europe and beyond.
Its convenient location, political and economic stability, together with its low-tax status, makes it an attractive prospect for foreign investors, particularly those who wish to remain outside of the UK tax regime and the European Union.
‘Jersey-incorporated AIM-listed companies normally obtain “”exempt”” status under the Income Tax Jersey Law, whereby they are treated as non-resident for the purposes of Jersey tax laws and exempt from Jersey income tax on profits arising outside the Island.
Savings on UK VAT and stamp duty provide further enhancement.
