Welcome to the first issue of HIGHVERN Coffee Break. This monthly series will highlight our expertise and insights in the industry in a quick-read format.
In this first edition, Daniel Jaffe, Group Head of Institutional Services, and Lisa Grant, Corporate Associate Director, delve into a compelling success story for our corporate services.
Q: What challenge was the client facing?
Our client, a Jersey-based company, required a stronger governance structure to effectively meet Jersey’s economic substance regulations. HIGVERN had been providing limited services (Registered Office & Secretary only) to them since 2022. The directors of this company are based in Middle East and would travel to Jersey for meeting(s) due to the company being a Jersey tax company and in scope for economic substance. They sought a solution that would minimise the need for regular travel to Jersey while ensuring key management and administrative activities could be conducted locally to maintain compliance and corporate presence.
Q: How did HIGHVERN address the client’s needs?
HIGHVERN offered a solution centred on corporate administration, economic substance management, and director services. Associate Director, Lisa Grant reviewed the client’s structure, and suggested a “mixed board” model, incorporating two Jersey-based HIGHVERN directors alongside the existing board members. This arrangement allowed core management and control functions to be effectively conducted within Jersey, ensuring compliance with economic substance requirements.
While HIGHVERN does not provide tax advice, we are aware of Controlled Foreign Companies (CFC) rules and the significance of maintaining management and control for the company’s domiciliation and tax residency. To finalise the revised board structure, Jersey lawyers were engaged for a comprehensive review and approval from an Economic Substance perspective.
Q: What services did HIGHVERN provide?
HIGHVERN stepped in to provide:
Corporate administration: Our team handled minute drafting, record-keeping, and day-to-day management of the client’s Jersey entity, ensuring compliance and smooth operations.
Director services: By appointing two Jersey-based HIGHVERN directors to the board, we ensured that meetings were conducted locally, satisfying the requirement for key decision-making to take place in Jersey.
Economic substance solutions: We structured the board and administration in a way that met all economic substance regulations, without disrupting the client’s existing management structure.
Cost efficiency: HIGHVERN’s fees were significantly lower than the current directors’ travel costs and time, providing a more economical solution.
