Overview of Opening a Bank Account in Jersey
Jersey is a well-known International Finance Centre and has numerous well-known high street banks. There are variousbanks on the island, including the top UK banks.
The ring-fencing legislation needsUK banks for separating their retail banking activity from their other business to protect the day-to-day banking services of the customers from unrelated risks anywhere else in the banking group. Ring-fencing was one of several essential reforms brought in by the UK government for strengthening the financial system post the financial crisis in 2007.
This can impact the entrepreneur if he has an account in the UK, as the Jersey branch of that bank might not to be able to access information about the entrepreneur's UK accounts. He may find it easier to open a Jersey bank account instead.
Opening an account locally makes managing financial affairs easier. Jersey-based bank accounts can only be set up on the island. To open a bank account, the entrepreneur needs to provide personal information and documents as part of the banks due diligence process.
Advantages of Opening a Bank Account in Jersey
The various advantages of opening a bank account in Jersey are discussed below -
Speciality in Dealing with Foreign Clients
The Banks of Jersey offers various services to non-residents and international clients, unlike the banks of other countries due to the Banks of Jersey having a better understanding of the requirements of international clients who are actively involved in cross-border transactions, including services such as offshore mortgages, multi-currency banking, investment platforms and solutions to name a few.
This destination is considered to be a tax haven due to low tax on capital gains tax or withholding tax, so Jersey can prove to be tax efficient place for the ones who are structured accordingly. In fact, opening a bank account in Jersey is often considered the first step towards becoming tax efficient for foreign companies.
Skilled Banking Professionals
The account holder of a Jersey Bank can expect a highly qualified relationship manager and customer support. In fact, this place has an abnormally high ratio of skilled financial professionals along with having the world’s largest branch of Society and Trust and Estate (STEP), which helps in providing easy access to specialized services and expertise
Deposit Insurance Scheme
Jersey created a deposit guarantee scheme in the year 2009 that guarantee up to 50,000 euros /per person in the event of any bank failure. Although such bank failure hasn't happened in Jersey since 1970, the presence of deposit insurance is an essential physiological safety net for small depositors.
Access to SEPA Transfers
SEPA is an acronym for The Single Euro Payments Area, which is a payment-integration initiative of the European Union to simplify bank transfers denominated in euros. The banks of Jersey provide access to SEPA Transactions, which can be beneficial for the entrepreneurs transacting through the same as it ensures quick and affordable transfers, especially at the time dealing with high-value transactions or making an investment in the SEPA countries.
Documents Required for Opening a Bank Account in Jersey
The following documents shall be required for opening a bank account in Jersey
- Identity proof (passport or driving licence)
- Company Incorporation details such as the incorporation certificate, MOA / AOA of the company
- Address Proof of Jersey (in the absence of the same , a letter from your employer or tax office)
- Tax assessments
- Social Security number / National Insurance
Procedure for Opening a Bank Account in Jersey
Choosing a bank
The existence of various banks in Jersey makes it important for the entrepreneur to conduct thorough research to find the right one for his business. Some banks specialise in certain types of clients or offer particular services. It may be useful to contact several banks to compare services and costs.
Arranging the Necessary Documents
The documents required to open a bank account in Jersey may depend on the banks. However, the entrepreneur must arrange the basic documents discussed above.
Filing out an Application to open an Account
The entrepreneur must fill out the application in the prescribed manner, ensuring to provide all the required information and carefully checking the terms and conditions.
Depositing the Funds
The banks in Jersey often require a minimum management deposit for opening a bank account for foreign companies. The amount of this deposit shall vary between banks and the risk of the business activity. The entrepreneur must ensure to check the deposit requirements with the chosen bank before depositing funds.
Sending the Required Documents
In order to open a bank account in Jersey, the entrepreneur must provide documents such as the COI, AOA, personal identification documents, bank references, a business plan and an organisational chart of the structure down to the final beneficial owners. Document requirements may differ from bank to bank, so the entrepreneur must have the knowledge of the requisite documents.
Awaiting Approval from the Bank
Post the submission of all the required documents and deposit the necessary funds. The entrepreneur must wait for the approval of the bank in respect of opening the account. The waiting time may vary depending on the bank, but it may take several days or even weeks. The bank can even ask questions about the company’s activity, the names of the customers, the names of your suppliers, the number of incoming and outgoing transactions, as well as the source of funds.
Accessing thebank account
After obtaining the approval for opening a bank account in Jersey, the entrepreneur will be able to access his account online, via a mobile application or in person at the bank, along with being able to make transactions and view his balances and transaction history, followed by performing other routine banking operations.