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Creating a Permanent Establishment in Jersey

January 2013 - Finance. Legal Developments by Ogier .

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The current trend 

There is an increasing need for businesses to ensure that they can demonstrate proper substance in the jurisdictions in which they operate.  Many cross border financing, asset holding or investment structures are coming under scrutiny by various tax or regulatory authorities around the world and Jersey is ideally placed to provide proper substance and a permanent establishment in a tax neutral environment.

Over the last decade Jersey has already seen many private equity, mining and other businesses develop their businesses and operations in Jersey.  Many of these initially started life with small sub-let premises or even just desk space with a company administration service provider in Jersey. Some have not needed to grow any further than having desk space and engaging a single part time employee but others have gone on to develop a significant presence with executive directors and a team of administration and industry experienced employees physically based in Jersey and operating from dedicated office premises.

Although not widely publicised, in many cases, senior management of the entity have moved permanently to Jersey and Ogier has a dedicated team to advise them on the best path to follow in order to achieve this.

Ogier has a network of offices around the world, including Ireland, Jersey and Luxembourg, and has assisted clients in many different ways to create a permanent establishment wherever required.