An independent Guernsey trust company is a legal entity that acts as a fiduciary, agent, or trustee on behalf of a person or business for a trust. A trust company is typically tasked with the administration, management, and eventual transfer of assets to beneficiaries.
What is an independent Guernsey trust company?
An independent Guernsey trust company is a legally-mandated company that is set up under the Guernsey Trust Law. The new law came into effect on January 1, 2016, to strengthen the regulation of trust companies in the Channel Islands. As a result, these companies must register with Guernsey’s Registrar of Companies and obtain a number from the Registrar of Companies. Advertisement In addition to the regulation of their own employees, independent Guernsey trust companies must also follow the laws of Guernsey as a whole. This includes being subject to Guernsey’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regimes.
The benefits of having a Guernsey trust company
An independent Guernsey trust company is a good choice for many reasons. Some are specific to Guernsey but some are also applicable in the U.S., such as the following: Shorter filing deadlines Fewer reporting requirements No general partnership form The ability to incorporate Guernsey is the world’s leading financial center. Therefore, many international and U.S. businesses choose to incorporate in Guernsey, to benefit from the country’s many advantages and lower taxation. I’ve actually used a Guernsey trust company in the past, and I recommend them wholeheartedly. Unlike many U.S. entities, Guernsey trusts do not have to file Form 1065 (or 1065-A), Form 1065-B, Form 8300, or Form 8300-B.
How to start a Guernsey trust company
While there are several resources available to create and manage a Guernsey trust company, it may seem a daunting task to set up such a business. However, the following tips should help to alleviate some of the potential issues and ensure that you create the Guernsey trust company you want. Create your trust company in the jurisdiction where you and your business are located Set up your trust company in the country that you are operating in. This will allow you to enjoy the benefits of Guernsey’s legal structure and experience of the UK trust company market. Once you have established your trust company in your country of operations, you may want to list your Guernsey trust company on the Guernsey Stock Exchange.
In the next section, we will look at how third-party administrators can help you have the legal services you need to successfully work with trusts, foundations, and companies.