An amendment to Jersey's Companies Law came into force on 23 February 2011, which will simplify the process for mergers between Jersey companies and foreign companies. Previously, foreign companies could only merge with Jersey companies if they were brought into Jersey by means of a redomiciliation or “continuance” first.
The amendment, which was lodged by the The Economic Development Department and approved by Jersey's States Assembly earlier this month, will boost international corporate restructuring business, particularly where capital gains or corporate tax savings can be achieved.
Economic Development Minister, Alan Maclean, said: “In an increasingly globalized world, more and more business is conducted across national borders and there has been a growing demand for Jersey companies to be able to merge directly with a wider range of bodies. These regulations will strengthen the competitiveness of the Jersey company and will help to maintain Jersey’s position as one of the most progressive jurisdictions in the world."
Now there are no restrictions on overseas companies merging with Jersey companies, provided that the merger has the consent of the Jersey Financial Services Commission and this is expected to prove highly attractive to international clients wanting to invest in Western markets, or have their companies listed on major stock exchanges.
Clive Barton, Senior Partner of the Moore Stephens Jersey and the Offshore Group, said: "This amendment further enhances Jersey's attractiveness as a place to establish and operate offshore company holding structures. The ability to merge a Jersey company directly with a foreign company demonstrates the flexibility and modern stature of the Jersey Companies Law.