ALMOST 2,000 companies were registered in Guernsey last year, taking the total on the island’s books to 17,566. And early signs this year suggest the exceptional growth will continue.
HM Greffier Ken Tough said the average annual figure was 1,400, so 2006 had been very much a bumper year.
‘The only previous year when we have dealt with anything like this number was back in 1988, when just under 1,900 companies were added to the register.’
In January last year, 220 new companies were incorporated – the highest ever in a single month.
Carey Olsen cited numerous reasons.
The law firm provided more than two-thirds of the related legal services for last year’s new registrations.
Partner Andrew Boyce said the rise could be partly attributed to the promotion of ‘Guernsey plc’ undertaken by the financial industry and GuernseyFinance over recent years.
But it was also down to the flexibility and robustness of the island’s regulation and infrastructure.
‘There are now far more options for domiciling companies with new jurisdictions entering the marketplace on a regular basis. This is a position that Guernsey – with its high regulatory standards – is very well set to fill.’
New business has come from three primary sectors.
The funds industry has been a major contributor, with the number being established in Guernsey showing continued growth.
This is expected to continue in 2007 with a number of reforms to regulation being rolled out throughout the year.
Advocate Boyce said the marketing activity of the island’s fund sector had played a significant role in attracting new business.
Secondly, Guernsey special-purpose vehicles continue to be used by investors to hold assets for tax efficiency reasons.
An increase in trust structures has been the third main contributor through the use of beneficiary vehicles in the form of Guernsey companies.
He was very pleased with the role the firm had continued to play in the overall growth trend.
‘With a 39% market share and having dealt with 66% more Guernsey company incorporations than our nearest competitor last year, we are clearly delighted at being the leading legal adviser in the field.’
He said the company had enjoyed this position for at least eight years. ‘Carey Olsen established over 52% of all Guernsey funds set up last year and this in particular is a factor in our increasing incorporations market share and a continued growth area both for us as a firm and for Guernsey in general.’
* The Greffe’s company registry team is now tasked with processing the annual returns that must be submitted by all companies.
Article posted on 26th March, 2007 - 12.00am
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