So you’re thinking about starting up as a Sole Trader in Jersey here we will endeavour to address all of your questions on the practicalities of setting up your Jersey business.
HOW TO SET UP AS A SOLE TRADER OR PARTNERSHIP
What licences do I need to set up as a Sole Trader or Partnership?
If you wish to set up as a Sole Trader (one person) or Partnership (two or more persons), to trade in Jersey, it is a legal requirement to apply for and obtain a New Business Licence which is issued by the Population Office.
How much does it cost?
If you choose to trade under your own name, there is no fee to pay but if you would like to register a name for your business then there is a fee of £50 to pay. Click here to see if your business name is available.
ADDITIONAL LICENCE AND REGISTRATION REQUIREMENTS
What other licences/registrations might I need to have in place?
Depending on the type of business you are setting up, you may need to register and obtain licences from different authorities such as The Environmental Health Department (food and drink), Judicial Greffier(Alcohol licences), Child Care Registration etc. etc. Look on our Industry Pages for info on your specific Sector.
Will I be liable to pay GST?
For more information on your options for registering for GST go to GST guidance for your business
Should I register with the Data Protection Commission?
Yes. You should register with the commission as required by the Data Protection Law and this can be done online. The fee for notifying with the Commissioner is £50 per year.
SOCIAL SECURITY, TAXES AND EMPLOYMENT
How much Social Security will I be liable to pay?
As a self-employed person you may be liable to pay Class 2 contributions at 12.5%. Contact the Social Security Department so that you fully understand what your Social Security contribution payments will be.
How do I pay my Income Tax?
You will need to submit profit or loss trading accounts with your income tax return each year. These accounts must show all your business income and any expenses incurred in earning that income. Further information can be found in the link below:
Can I employ staff?
Yes. A Sole Trader or Partnership can still have employees.
Who should I contact regarding employing staff?
The Jersey Advisory Conciliatory Service (JACS) offers a free advisory service to help business owners comply with the essential requirements of the Employment Law. Contact them for straightforward, practical advice regarding staff contracts, pay slips etc. and help in developing an essential toolkit of employment documents.
Here is a link to our very useful guide – Employing People: The HR Toolkit for Small Businesses which you can download and save for future reference.
How will the Income Tax be assessed for the business?
Detailed information can be found on this link Income Tax for the Self-Employed
Do I need to open a separate bank account for my business?
When operating a business as a Sole Trader or Partnership it is strongly advisable to open a separate business bank account so you can produce trading accounts without mixing them in with your personal funds.
What insurances do I need?
All businesses should have the appropriate insurances in place to ensure the business is protected in the case of a claim, including Employer’s Liability Insurance (a legal requirement) if the business employs staff. We recommend you speak with your insurance company to discuss your specific requirements and what premium you are likely to pay.
PREMISES AND LEASES
If you are thinking of buying or leasing commercial premises to operate your business from, before making any commitments, please take the time to read through our insightful property tool – An Introduction to Jersey Commercial Property for Small Business
PLANNING YOUR BUSINESS
Put your concept on paper
Don’t put off making a start on your business plan, it will be much more helpful than you realise. Failing to plan is planning to fail! Jersey Business Plan Template and Guides
GET ADVICE OR SUPPORT
Whether you’re a new start-up or an established business we’re here to help you steer your business in the right direction.