| Where is Alderney? | | | | off-shore insurers subject to the 0% rate.The |
| Alderney is the third largest of the Channel Islands | | | | statuses of exempt company and international |
| and is one of the few unspoiled, peaceful, natural | | | | company will be abolished with effect from 1 |
| and totally relaxing British Isles. | | | | January 2008, after which all companies will be |
| It is situated near mainland France (by 8 miles), | | | | subject to the 0% or 10% rate as |
| Guernsey (by 23 miles), Jersey (by 30 miles) and | | | | appropriate.Other taxation and revenue raising |
| the Isle of Wight (by 60 miles). Yet, it has | | | | measures will be considered in consultation with |
| managed to avoid mainstream tourism, making it | | | | local industry to ensure the impact is structurally |
| easier for you to relax and take in a great | | | | 'complementary' to the reduction in the rate of |
| example of British scenic beauty. From An oasis | | | | corporate taxation. Resident individuals will continue |
| with an ancient and varied history, to an | | | | to pay tax at 20% on assessable income, |
| abundance of flora and fauna, to beautiful beaches | | | | including the proportion of the profits of a |
| and an enviable lifestyle with that unique, | | | | company in which they have a beneficial |
| contagious phenomenon known as 'the Alderney | | | | interest.The current recommendation is that the |
| Feeling', Alderney has it all! | | | | new corporate tax structure be implemented |
| Public or Private | | | | from 2008. However, the exact timing and details |
| Alderney Airport is not one of the busiest; as it is | | | | will be dependent on competitive pressures and |
| 'Light Aviation Friendly' and is therefore, ready to | | | | international standards. For example, international |
| welcome you seven days a week. The airport | | | | competition may lead to an earlier implementation |
| does it best to ensure that your visit is free of | | | | date. |
| the delays and frustrations experienced at busier | | | | Companies which are exempt from paying income |
| airports and thus give you more time to explore | | | | tax need to meet these requirements: the |
| the many delights of the island. Beaches and | | | | beneficial ownership of the company is in the |
| restaurants are abound, many within walking | | | | hands of non-residents (except in certain |
| distance. | | | | circumstances, e.g. where an interest is held by an |
| For pilots of private jets, would near to bear in | | | | Alderney resident who is not solely or principally |
| mind the following points: Alderney Airport is | | | | resident in Alderney or where a resident holds an |
| situated within and governed by, the regulations | | | | interest in a nominee or trustee capacity). |
| applicable to the Channel Islands CTR (Class [A] | | | | Beneficial ownership details have been disclosed to |
| airspace) and Alderney CTR (Class [D] airspace). | | | | the local Financial Services Commission. The |
| Secondly, pilots who are unable to comply with full | | | | existence of any Alderney source income (other |
| IFR requirements may, subject to weather | | | | than relevant bank deposits) is notified to the |
| minimum and air traffic restrictions, be cleared for | | | | Administrator of Income Tax. An exempt |
| flight within the Zone on a Special VFR clearance. | | | | company is able to hold board meetings in |
| Details of SVFR restrictions will be found in the | | | | Alderney, e.g. to conclude contracts, without |
| UK AIP Aerodrome (AD Volume 1), or Pooley's | | | | those meetings constituting the carrying on of a |
| Flight Guide. | | | | business provided that the only other activities |
| Finally, prior permission for SVFR Zone entry | | | | conducted in the island are of an administrative or |
| clearance should be obtained by telephone from | | | | clerical nature. |
| Jersey ATC. (Tel: +44 (0)1534 492243) | | | | For international companies, An Alderney |
| Pilots may be interested in the Alderney Fly-In, | | | | incorporated company which is owned by a |
| which takes place in June. This event attracts up | | | | non-resident may be used for the conduct of |
| to 150 private aircraft and several hundred | | | | international trading activities which generate |
| enthusiastic aviators to the island every year. | | | | income derived exclusively from non- residents of |
| Another exciting aviation event to watch is the | | | | Alderney. Such a company may qualify for |
| 'Island Air Races',, held annually during September. | | | | International Company Status. In order to qualify |
| The races are run jointly by the Alderney Flying | | | | as an International Company, no resident of |
| Club and the Royal Aero Club, with the results | | | | Alderney may have any beneficial interest in the |
| counting towards the British Air Racing | | | | company (unless that resident is an Alderney |
| Championships. | | | | company which itself is wholly-owned by |
| For more information about the Alderney Flying | | | | non-residents) and beneficial ownership details |
| Club, visit: and to travel by yacht, please visit: for | | | | have to be disclosed to Guernsey's Financial |
| navigation details. | | | | Services Commission. An International Company is |
| Hotels, Pubs and Restaurants | | | | resident in Alderney for all the purposes of the |
| The following cosy, privately-owned hotels are | | | | Income Tax Law but it will pay tax at a rate |
| recommended: Belle Vue Hotels, The Victoria, The | | | | above zero but not more than 30%. The rate of |
| Georgian House, Braye Beach Hotel (formerly was | | | | tax is determined on a case by case basis and |
| Sea View) and the newly-reopened, Hotel Chez | | | | once set is fixed for a maximum term of five |
| André. | | | | years, after which time it may be renewed. An |
| All establishments have private bathrooms or | | | | International Company that does not have its |
| en-suite facilities, terrestrial TV, central heating | | | | status renewed will subsequently be liable to tax |
| and tea/coffee making facilities. Full details are | | | | at the standard rate of 20%. Banks and certain |
| published in the latest Alderney Brochure and on | | | | insurers are not eligible to apply for International |
| the respective Internet link pages. | | | | Company Status.Companies which are under the |
| Rates quoted are per person per night, including | | | | Income Tax Law and have at any time been |
| breakfast and should be considered as guidelines | | | | regarded as either resident or tax exempt in |
| only and vary according to type of room and | | | | Alderney cannot apply for International Company |
| season (Low Season: November-March; | | | | Status. |
| Mid-Season: April, May & October; High | | | | For more information on this, please visit: |
| Season: June to September). | | | | Corporate Services (Alderney) Ltd. |
| With regards to where to eat out, apart from the | | | | This was formed in 1987 to take over the |
| restaurants based in the aforementioned hotels, | | | | offshore management business in Alderney. Since |
| the following places are recommended: Bumps | | | | then, it has been able to create a small, but |
| Eating House; The First and Last Restaurant; | | | | stable, finance industry in the island, particularly |
| Gannets (terrace-based); Mai Thai Restaurant; | | | | with the help of the 1994 Companies (Alderney) |
| Mañana; The Moorings; Nellie Grays Indian | | | | Law. The company has two principals: Jon |
| Restaurant; The Old Barn; Braye Chippy and New | | | | Kay-Mouat: Barrister at Law Grays Inn, |
| China Garden. | | | | Diplomé of the University of Caen, |
| Experience Island Life in Alderney | | | | Advocate of the Guernsey Bar and Notary Public. |
| Alderney is some 3.1/2 miles (5 km) long and 1.1 | | | | Mr Kay-Mouat was also awarded the OBE in 1994. |
| 2 miles (3 km) at its widest point, with a | | | | Mrs. Fay Webster is the second principal, who has |
| population of 2,400. The capital, the small town of | | | | acquired 10 years experience in company |
| St Anne, is the shopping centre catering for most | | | | management with this Company. |
| modern-day needs. | | | | Corporate Services (Alderney) Limited provides |
| Amongst its many qualities Alderney is a relaxed, | | | | services to around 350 company clients. One of |
| safe and friendly island with a great deal to offer, | | | | its main services is to provide expert |
| including a quiet, stable way of life amidst beautiful | | | | interpretation of the 1994 Law, ensuring a |
| surroundings and enjoying a generally warmer | | | | company is formed to your exact requirements. |
| climate than the U.K! | | | | If speed is important, formalities can be |
| Alderney is twinned with the Normandy village of | | | | completed within two days! The principals provide |
| Beaumont-Hague which is just across the Channel. | | | | a personal service and guarantee it to be efficient |
| Leisure interests are well catered for, with over | | | | and friendly. |
| forty clubs and societies and there is always | | | | E-Commerce in Alderney |
| something going on. Alderney also has a | | | | The Channel Islands are renowned for the stability |
| professionally maintained 9-hole golf course and | | | | of government and for the highest standards of |
| some of the finest sea-fishing in the Channel | | | | regulation, accompanied by a sound judicial |
| Islands. Sailing, surf-boarding, tennis and squash are | | | | system.Alderney boasts a healthy, well-balanced |
| all popular activities pursued here. | | | | economy generated by its rapidly growing |
| Banking in Alderney | | | | e-commerce and offshore finance industry and its |
| There are three major banks represented in the | | | | traditional tourism and fishing industries. Moreover, |
| island: sub branches of Lloyds TSB Bank, HSBC | | | | the island's government has acted where others |
| and the National Westminster Offshore Ltd. All the | | | | have prevaricated to make the process of |
| banks provide a full banking service. All bank | | | | establishing an e-commerce presence as easy as |
| interest is paid gross and interest paid to | | | | possible. A number of companies in the finance |
| non-residents is not subject to local tax. | | | | sector have established successful back office |
| Setting up your own business in Alderney | | | | operations on the island. In parallel, Alderney is |
| Alderney has been a financial centre since the | | | | rapidly heading for pole position as a leading |
| 1950s and through the 1994 Company (Alderney) | | | | internet gaming and gambling jurisdiction.The latest |
| Law Act, which came into force since mid-1995, | | | | state-of-the art computer and communications |
| setting up businesses have been better facilitated. | | | | technology, a well-structured "user-friendly" |
| This is because the law has the following features: | | | | company law and a good selection of residential |
| A minimum membership of one person, | | | | and commercial properties with few restrictions |
| incorporation by registration; provision for the | | | | on ownership, are available as a part of the |
| application of standard form articles if required; | | | | infrastructure you wish to have. Cable & |
| distinction between public and private companies; | | | | Wireless Guernsey whose approach to e-business |
| abolition of the ultra vires rule; provision for | | | | makes possible mission-critical communications |
| companies limited by guarantee; provision for | | | | over a business quality IP infrastructure. Resilience, |
| companies with a share capital and limited by | | | | reliability and security are key aspects of the |
| guarantee ("Hybrid" companies). Furthermore, | | | | service and are deployed over a high-bandwidth |
| there is provision for the adoption of | | | | network for voice, data and IP traffic. |
| pre-incorporation contracts; provision for share | | | | In terms of human resources, Alderney has a |
| capital in any currency; issue of fractional shares | | | | competent computer literate workforce offering |
| and shares of no par value; provision for | | | | part-time, full-time, tele-working and contract |
| redeemable shares; provision for purchase of own | | | | staff, thus providing businesses with the required |
| shares; simplified accounting records for private | | | | level of flexibility. Those not wishing to engage |
| companies without the need to appoint an auditor; | | | | staff can call on expertise as required from the |
| private companies may have a minimum of one | | | | island's experienced computer and technology |
| director and a secretary;reduction of share capital | | | | firms. Alderney has no shortage of specialist legal, |
| subject to Court approval; general meetings may | | | | banking and accountancy experts on hand. |
| be held anywhere and private companies may | | | | To facilitate establishing a global e-commerce, |
| dispense with AGMs; provision for resolutions of | | | | e-gaming or e-betting presence, the States of |
| members and directors in writing and modern | | | | Alderney has passed legislation to further the |
| provisions for amalgamations, arrangements, | | | | development of e-commerce on the island and to |
| investigations and winding up. | | | | support the electronic transactions of business in |
| Regarding confidentiality of companies, Alderney | | | | a straightforward, non-bureaucratic way. The |
| companies are under the general supervision of | | | | Government of Alderney actively embraces the |
| the Bailiwick of Guernsey Financial Services | | | | development of online gaming and betting |
| Commission as well as the Alderney Registrar of | | | | operations. Shortly after introducing its own |
| Companies. The Commission receives details of | | | | legislation to allow electronic betting on the island, |
| the beneficial owners; this information is held in | | | | it appointed the Alderney Gambling Control |
| confidence and is not a matter of public record. | | | | Commission. Founded in May 2000, the |
| In terms of taxes, the provisions of Guernsey's | | | | commission i. an independent and non-politicial body |
| Income Tax Law apply equally to Alderney by | | | | whose members are nationally recognised experts |
| virtue of the Alderney (Application of Legislation) | | | | in gambling regulation and licensing. It has already |
| Law 1948. A new strategy for corporate taxes is | | | | established itself at the forefront of regulation of |
| in the pipeline too. The provisions of this include: | | | | Internet gambling worldwide. The States of |
| The general rate of income tax paid by | | | | Alderney remains committed to working closely |
| companies will be reduced to 0 % from 2008. | | | | with the Alderney Gambling Control Commission |
| The profits of certain companies licensed by the | | | | and all existing and potential licensees, to protect |
| Guernsey Financial Services Commission, e.g. | | | | and safeguard the best infrastructure, within a |
| banks, fiduciaries, insurance and fund managers) | | | | well-regulated environment. |
| will be taxed at 10%, but with domestic and | | | | |