Jersey’s Relationship with India

More than a decade on, our team in India continues to promote Jersey’s expertise in managing international capital, and subsequent new laws have made the jurisdiction even more attractive. To develop closer ties with India, we remain focussed on providing a commercial framework that meets the needs of the region’s investors and their advisers. It’s also vitally important that Jersey keeps its legislation and regulations under review, driving further innovations to support international investment, while at the same time maintaining the robust standards for which our Island is known and respected.

The work of the Jersey Finance team in Mumbai and New Delhi, along with interaction at senior government level and a continuing dialogue between regulators, are all part of the collaborative journey we’re taking towards a better future where everyone prospers. In this brochure we look at what gives Jersey a competitive edge, putting it at the forefront of global banking, wealth management and corporate services. We have also included case studies from Jersey companies such as Appleby, Bedell Cristin, Standard Chartered, Hawksford, JTC and Ocorian to illustrate how Jersey as a jurisdiction is strengthening relations with India.

Jersey has provided financial services to Indian businesses, financial institutions, families and individuals, including non-resident Indians, for many years. Our jurisdiction is an attractive location for the Indian investment community thanks to its robust regulatory and legal systems, its tax-neutral platform, close proximity to the UK and European markets, and a concentration of financial planning and structuring expertise.

A leading international finance centre for more than 60 years, Jersey balances product innovation alongside high standards of regulation, world-class legislation and outstanding support from experienced practitioners.

One of the Island’s key strengths is its enduring political and economic stability. Benefiting from a unique constitutional relationship with the UK, it has developed a distinct identity as a Crown Dependency, with its own government responsible for legislation, economic policy and fiscal matters. It is also involved in a wide range of global initiatives, working alongside influential bodies such as the International Monetary Fund (IMF) and the World Bank, the Commonwealth, and the Organisation for Economic Co-operation and Development (OECD).

Jersey’s close relationship with the City of London makes it the ideal gateway for investment in both London and European markets – a valuable proposition for fast-growing regions like India where financial institutions and other investors are looking to internationalise and secure capital abroad.

Developing trade relationships with high-growth markets outside the European Union has never been more important for Jersey’s continued economic success. In the context of the UK’s departure from the EU, the Government of Jersey is taking every opportunity to broaden and deepen political, commercial and cultural relationships with international partners across Asia, the Middle East, the Americas and sub-Saharan Africa. This requires a whole-of-Island approach, bringing together government, business representatives and public bodies to deliver a cohesive global markets strategy.

With an experienced workforce of bankers, investment managers and private wealth professionals, our jurisdiction has become a specialist wealth management centre that attracts deposits and investments from around the world. It’s home to many of the world’s largest banks, along with major professional services firms, including at least five first-tier legal practices, and a vast range of independent trust companies and wealth managers.

Jersey is also a leading jurisdiction for funds, able to operate compliantly within the European Union while offering a more streamlined alternative to the heavy burden of EU regulation. Jersey-based specialists also advise the corporate market on the Island’s range of investment vehicles that are designed to support inward investment projects in India and other major global economies, helping businesses expand internationally and access capital on foreign exchanges.

More than three quarters of the wealth for which Jersey is a custodian comes from non-UK domiciled beneficial owners.

What’s more, 54 Jersey companies are listed on exchanges worldwide, with a combined market capitalisation of almost £84 billion. There is a growing need for ethical, transparent and accountable finance in India – areas in which Jersey can help by working within a range of finance disciplines, sensitive to local dynamics, economies and cultures. As a forward thinking IFC, Jersey is confident in its a ability to work with the Indian investment community to provide a gateway to Western markets.

The Indian diaspora community in Jersey compromises of more than 400 nationals, creating our own modest ‘living
bridge’ with India. The community contributes actively to Island life and its members are employed across a number of sectors,
with some working for the two large Indian-owned enterprises in Jersey – Airtel-Vodafone, which is part of the Bharti group,
and Infrasoft Tech whose headquarters are in Mumbai.

During the Indian High Commissioner’s visit to Jersey in 2018, he attended a local cricket match, a sport in which many of the Indian diaspora keenly participate. Joined by dozens of Indian families, His Excellency watched International Royals, a local team whose players included many Indian nationals.

Jersey is able to negotiate its own Double Tax Agreements (DTA), Bilateral Investment Treaties (BIT), Asset Recovery Agreements and Memorandums of Understanding (MoU) under a process with the UK called ‘Entrustment’. A Tax Information Exchange Agreement (TIEA) with India was signed in 2012, and the Island continues to negotiate a range of agreements with international partners to increase cooperation, provide investor certainty and boost investment. Expanding Jersey’s network of international agreements is a priority as they strengthen ties between partner jurisdictions, encourage greater business flow and promote the Island’s reputation as a trusted and responsible member of the global
finance community.

The Jersey model DTA is based on the OECD Model Convention and has been updated in line with the Base Erosion and Profit Shifting (BEPS) project. A model BIT has been developed with the benefit of expert legal advice, tailored specifically to reflect the nature of Jersey’s sophisticated, service-driven economy. Jersey’s first BIT was signed in 2021 and recently passed through Jersey’s parliament.

Samaj (Jersey) Limited supports the Indian diaspora living and working on Jersey, with community development spanning culture, religion, education and welfare.