Links with India

Why Jersey is at the Jersey structures for The appeal of Jersey for Using Jersey companies forefront of banking, safeguarding real succession planning, to secure listings on wealth management estate investment in wealth preservation stock exchanges around and corporate services the UK and beyond and philanthropy the world 02 Jersey’s attraction Welcome to Links with India

Jersey has been a leading international finance centre for more than 50 years. Links away from 04 the world of finance At the forefront of global banking, wealth management and corporate services, it has developed Gateway to London an offering that balances product innovation alongside high standards of regulation, world class 06 and beyond legislation and in depth expertise from a range of experienced practitioners.

The following articles explore the ingredients that have given Jersey this competitive edge and examine the benefits to intermediaries and their clients of working in partnership with practitioners in Jersey. IPOs for 14 Indian companies Geoff Cook Chief Executive, Jersey Finance Contents

Private wealth 08 and succession planning

A view of Jersey Philanthropy and 16 from India philanthropic structures Links with India is published by Jersey Finance. 10

The publication highlights how businesses in Jersey and India can work together in support of the strategic objectives of clients both in, and with links to, the region. It complements Jersey for other publications in our ‘Links with’ series on China, the GCC and Russia. Indian family offices on P 12 Jersey soil cessi lanni If you are interested in contributing to our ‘Links with’ series, please contact: Suc ng 18 Indian roots Lucy Braithwaite T: +44 (0)1534 836009 P e ro About E: [email protected] ic p v er d ty A Jersey Finance t M 20 n a e n a tm g s e e m v e n I n www.linkedin.com/company/jersey-finance @jerseyfinance www.youtube.com/jerseyfinance t s e c i F v i r n

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S With an experienced workforce of bankers, investment managers and private wealth professionals, Jersey has become a specialist wealth management centre that attracts Jersey’s deposits and investments from around the world

Attraction NEW DELHI

Jersey has provided financial services to Indian businesses, financial institutions, families and high net worth individuals, including non resident Indians, for many years. The jurisdiction is an attractive

location to the Indian investment MUMBAI community thanks to the maturity and robustness of its 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.

Political and economic stability Jersey has also positioned itself as a leading European Tax Information Exchange Agreements (TIEAs). Jersey has combined market capitalisation of more than US$339 jurisdiction for funds with the ability to operate compliantly to date completed over 40 tax agreements with countries billion.2 Jersey has a unique constitutional relationship with the UK. within the EU and to offer an alternative route for those worldwide, including one with India in 2011 and it has It is independent with its own government responsible for not wanting to contend with the heavy burden of EU aligned with other major jurisdictions in committing to The strength of its relationship with the City of London legislation, economic policy and fiscal matters. One of the regulation. Meanwhile, another group of practitioners serve the new OECD model for automatic information exchange. was highlighted in 2013 when an independent study fundamental strengths of Jersey as an International Finance the needs of the corporate market and advise on Jersey’s Jersey was also one of the first jurisdictions to regulate its undertaken on behalf of Jersey Finance by research firm Centre is its enduring political and economic stability. It range of investment vehicles that are designed to support trust industry, a move which has provided investors with Capital Economics showed that Jersey was a conduit for was awarded an AA+ credit rating from Standard & Poors inward investment projects in India and other major reassurance that structures are being administered by over US$753 billion of foreign investment into the UK, 5% and its financial stability was further recognised by the global economies and assist businesses looking to expand highly competent service providers. of the total stock of foreign owned assets in the country.3 investment markets in 2014 when a Jersey Government internationally and access capital on foreign exchanges. The relationship continues to prove valuable to financial debt bond issue was successfully launched in London and Nearly 25% of the workforce in Jersey is employed in the Jersey has a constantly evolving legislative platform institutions and other investors in India and other fast was more than two-and-a-half times oversubscribed. Its financial services sector1 and it is the largest number of designed to meet the needs of corporate and institutional growing regions of the world looking to internationalise pricing represented one of the lowest new issue spreads any offshore centre. Jersey has the largest branch of the investors and private clients. The world’s leading and seek capital abroad. ever achieved for a long dated, non-UK guaranteed sterling Society of Trust & Estate Practitioners (STEP) in the world jurisdiction for trusts, Jersey added foundations to the transaction and it was testament to the underlying strength and an extensive intermediary network virtually unrivalled statute five years ago to widen the range of options of public finances and the strong fiscal and net asset amongst competitor jurisdictions. for investors considering investment strategies and to A growing presence in India position of Jersey as a jurisdiction. appeal especially to those in common law jurisdictions who are unfamiliar with the trust concept. The trust law, Regular visits to India by representatives from Jersey’s Regulation and legislation meanwhile, introduced 30 years ago and still the blueprint Government, the financial regulator and the finance Wide ranging expertise for laws in many other jurisdictions, continues to evolve, industry have been made in recent times to improve ties, Jersey’s world class reputation for the quality of its whilst innovations to the company law are currently being showcase Jersey’s services and to highlight the quality of its Equipped with an experienced workforce of bankers, regulation and the endorsements it has received from key implemented to further expand Jersey’s appeal to those regulatory regime. Jersey has increased its representation investment managers and private wealth professionals, independent bodies such as the IMF, OECD and World Bank, who structure investments. in the country and dedicated staff have been based in Jersey has become a specialist wealth management centre make its offering even more compelling to international both Mumbai and New Delhi for some time. It is Jersey’s that attracts deposits and investments from around the investors. intention to continue to develop closer ties and, in this world. With a banking sector comprising major global way, enhance its commercial relationship with Indian Gateway to western markets ■ organisations, the infrastructure is bolstered further by Jersey’s authorities have vigorously fought tax evasion for intermediaries, advisers and private clients. access to all of the major professional services firms, many years and introduced legislation in the late 1990s Jersey’s relationship with the City of London has been including at least five first tier legal practices, and a making it a criminal offence. It has consistently followed a powerful feature of its offering and helps to position 2 ‘Jersey Holding Companies as Listing Vehicles - Factsheet’ from Jersey vast range of independent trust companies and wealth international best practice with enhanced regulations Jersey as the gateway for investment in both London and Finance (June 2014) converted from GBP to USD in September 2014 managers. designed to fight financial crime, whilst regulations are in European markets. For example, more than 106 Jersey 3 ‘Jersey’s Value to Britain’ Report from Capital Economics (2013) converted place so that entities are fully accessible under the terms of companies are listed on exchanges worldwide, with a from GBP to USD in September 2014

1 States of Jersey Labour Market Report June 2013 2 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 3 Jersey and LINKS The relationship between Jersey AWAY and India is long established, thanks from the to excellent political, commercial and WORLD community links of Jersey cows are a common sight in India FINANCE The famous ‘Jersey Cow’ Jersey cattle can be seen across India and are an integral part of the dairy industry, as they are in many other countries. Renowned for the quality of the rich, creamy milk they produce, Jersey cows are relatively small, easy to manage and can withstand hot climates. India has the largest population of dairy cattle in the world and is the world’s largest milk producer. Pure breed Jersey cows have been imported, but most dairy cattle are cross breeds. Indian businesses Wildlife conservation in Jersey

Conservationist and author, the late Gerald Durrell, Jersey is an internationally recognised, highly reputable who founded the Durrell Wildlife Conservation Trust jurisdiction and a well-respected business centre. It in Jersey, was born in Jamshedpur, India in 1925. has a long standing reputation for attracting successful His popular books include ‘My Family and Other companies and individuals to its shores. A number of Animals’ and ‘Birds, Beasts and Relatives’. Durrell’s Indian individuals and organisations have established India’s Acting High Commissioner Mr Rajesh Prasad and Jersey’s Senator Philip Ozouf sign a Tax Information Exchange Agreement Conservation Academy has trained many of India’s operations here including the Bharti Enterprise Group, between India and Jersey in 2011 Zoo Directors, forestry officials and veterinarians in Infrasoft Technologies and Minerva. They are profiled on ■ conservation techniques, whilst current conservation page 20. International relations efforts by Durrell in India centre around the critically endangered pygmy hog in Assam. Chris George Photography Jersey’s officials have made regular formal visits to India in recent years and are proud to have strong relationships with their counterparts there. Trips Sand sculpture at the Palladium shopping mall in Mumbai have featured meetings with politicians, senior officials and business leaders, as well as visits Sand sculpture to Indian companies with operations in Jersey. Individuals and groups from Jersey are also making Jersey sand sculptor Simon Smith, World Masters People’s regular trips to India for business and pleasure. So Champion, has worked all over the world and regularly whilst established links are being strengthened, new travels to India. Most recently he created a sand sculpture ones are developing all the time. at the Palladium Shopping Mall in Mumbai to raise funds for the Cancer Patients Aid Association. He also created a sculpture on Calangute beach in Goa, which involved 75 tonnes of sand and was 20 feet tall. It remained in place for 6 months. Gerald Durrell and friends St. Helier, Jersey

4 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 5 Strong partnership with the UK Conduit

Jersey Finance recently commissioned an independent and Jersey is a key conduit for international wealth and its banking detailed study to analyse Jersey’s relationship with the UK.1 The contribution is particularly impressive, perhaps unsurprising project was undertaken by Capital Economics, a leading macro- given the long term nature of Jersey’s relationship with the City economic research firm. The findings demonstrated the truly of London. The relationship between banks in London and their international nature of Jersey’s finance industry, with global long established operations in Jersey ensures that billions are JERSEY: capital flowing to the UK from some of the largest and fastest ‘upstreamed’ into London and the capital markets. growing markets in the world: Jersey’s banking model is a diversified one. It does not rely on wholesale funding and is inherently stable, attracting capital from around the world. Its security and strength is GATEWAY complemented further by subscribing to the Basel standards and it holds an average core capital ratio across the TO LONDON £118 banking sector of 14.8%, some 50% higher than the required BILLION & BEYOND international standard. Jersey and India have shared business connections for many decades. In the mid-1970s, the Bank of India established a presence in St Helier and, in more recent times, there has been Jersey channels £118 billion an increasing use of Jersey investment vehicles to conduit into the UK every year international capital into India for infrastructure projects and to enable Indian businesses to expand internationally.

A substantial body of India focused private fund and corporate 75% of the wealth attracted to structures are administered in Jersey, with Jersey investment Jersey originates from ultimate structures used to support fund launches, listings and other 75% beneficial owners who are not transactions. Indian investors have also purchased property domiciled in the UK in the UK using Jersey holding company structures, whilst in India itself, a range of offshore funds have also been launched, backed by Jersey’s legal and administration services, to invest in infrastructure schemes including ports, airports and £1 IN £1 In every £20 invested by commercial property projects. Frequently these initiatives EVERY foreign individuals and involve a close working relationship between practitioners in companies in assets located in the City of London and Jersey. £20 Britain reaches the UK via Jersey UK and Indian trade THE TO VALUE OF JERSEY THE UK The UK is already the third biggest investor in India, investing Jersey based banks’ contribution $3.2 billion during 2013-2014, and it has continued to to parent operations in the UK announce major investment projects with India in recent times. 1.5% represents 1.5% of the funding Following the Indian elections, the UK Government, represented of the whole UK banking system by its Chancellor and Foreign Secretary, visited Prime Minister Modi and his government to further strengthen Britain’s relationship. Previously, the UK Prime Minister has said that he wants Britain to become India’s partner of choice. Indeed in 2013, UK goods exports to India increased by 13%.2

As the UK and India explore the potential for greater co- operation, Jersey is well positioned to provide the structuring JERSEY services required for both inward investment and expansion abroad. It is evident that despite the challenging times faced by all major financial centres, the partnership between the City 180,000 £9 of London and Jersey continues to flourish. Jersey is frequently Jersey is ideally positioned as a gateway to investment into In total, Jersey supports an estimated BILLION JOBS part of the same transaction chain, client relationship and London and wider European markets. Its long standing 180,000 British jobs and adds £9 billion conduit process as the City itself. It is an important cog in the to the United Kingdom economy. commercial relationship with the City of London continues to be wheel that frees up mobile international capital for investment valuable to financial institutions and investors in India and other Jersey supports an estimated 180,000 purposes, so vital to the operation of free markets and to the fast growing regions of the world. ■ British jobs and adds £9 billion global financial system. When the Late Lord Mayor of London, Roger Gifford, made to the UK economy a formal visit to Jersey during his term in office in 2013, he described Jersey’s financial services industry as ‘a fantastic 1 ‘Jersey’s Value to Britain’ Report is online at www.jerseyfinance.je/valuetobritain adjunct’ to the UK economy. Later quoted in the London Financial £118 2 www.gov.uk Times, he explained: ‘They gather funds in a tax efficient way BILLION and send them onto London. That’s a great advantage to the UK.’

6 JERSEY FINANCE: LINKS WITH INDIA £118 billion is channelled from Jersey JERSEY FINANCE: LINKS WITH INDIA 7 to the UK, representing 1.5% of the funding of the whole UK banking system.

Jersey is a conduit for almost £1⁄2 trillion of foreign investment into the UK, which is 5% of the total stock of foreign owned assets in the country and could be supporting over 100,000 British jobs.

5% £0.5 FOREIGN TRILLION INVESTMENT

84% of the islandʼs financial services business would be at risk of leaving the sterling zone if Jersey did not exist. This business, and the consequent investment, would likely migrate to other offshore centres and not to London.

ELSEWHERE

The States of Jersey has a unique and valued relationship with the UK, underpinned by our shared culture, values and history. Like the UK, we are a mature democracy with well-developed legal and professional systems. Our shared agenda with the UK includes zero tolerance of tax evasion and a commitment to transparency. Jersey is a time tested centre for succession Private Wealth planning and wealth management for both resident and non-resident Indians & Succession Planning

Gavin Wilkins, Director, Minerva

Indian ultra high net worth families are globalising rapidly. Families are truly international, as are their assets and business interests. On the one hand, these attributes increase the need for effective succession planning and, on the other, create opportunities to centralise and structure wealth Wealth Management in order to meet ever more complex and sophisticated needs. Jersey is a time tested centre for succession planning and wealth management for both resident and non-resident Indians.

Indian families are also increasingly aware of the differences between various International Finance Centres (IFCs) and their relative strengths. They are recognising Jersey as a particularly strong trust Jersey Private Trust Companies Jersey structures for asset jurisdiction where their wealth can be held and managed. They are also increasingly mindful of the protection security and financial stability of IFCs and are comforted by the strength of Jersey’s balance sheet In certain circumstances it may be desirable for a family member or advisor to have a greater input in the direction and its AA+ rating from Standard and Poor’s. As an AA+ rated, politically stable jurisdiction, Jersey is of the trust structure in future years. Jersey’s flexible an ideal centre for holding structures for asset protection trust regime can accommodate this through the creation purposes. Indian families have often used Jersey structures of a Private Trust Company (PTC) to act as trustee to the for this and to provide an element of security against the trust and this is a mechanism that has, where appropriate, volatility of the Indian rupee. Internationally recognised been employed by Indian families. In these scenarios, the and endorsed, Jersey is the highest ranked offshore PTC usually takes the form of a Jersey Limited Liability international finance centre in the Global Financial Meeting requirements Company and often family members or trusted advisors are Centres Index and is the only offshore jurisdiction listed appointed to the board. It follows then that Jersey structures are increasingly that it can hold a very wide range of assets, including in the world’s top ten jurisdictions for private wealth required to accommodate Indian families, which are the shares of a family business. Since Indian family management. spread across the globe. This means that the Jersey assets very often include significant privately held UK real estate structure needs to satisfy the requirements of both the businesses, typically built up over several generations, Jersey’s commitment to Indian non-resident Indian (NRI) family members and resident then it is unsurprising that Jersey discretionary trusts Jersey has immense strength and an extensive track record families Indian family members. are an ideal solution. where the underlying assets are located in the UK, in particular real estate. Jersey is committed to India. Jersey Finance has a This differentiation gives rise to considerations such The international and progressive nature of modern permanent presence in both Mumbai and Delhi and its as the applicability of exchange controls and the local Indian families can, in some cases, cause some degree Bricks and mortar have always been a popular investment members regularly visit India. It has, for some time, requirements and tax rules, which apply to specific of ‘generational dislocation’ between those who have for Indian families. London continues to attract significant operated with the guidance of an India focused advisory family members. Jersey’s tax neutrality, combined built the family business and their internationally active foreign investment in real estate. Jersey has unparalleled board and coordinated India focused industry working with its comprehensive suite of trusts and structuring offspring, who may be more remote from the business expertise in structuring investments into UK real estate and groups to ensure that Jersey service providers are kept up options, mean that it is ideally suited. or less interested in playing an active role in its future. many of these investments are undertaken through Jersey to date with important and emerging issues which affect Considerations of this nature are not uncommon in ■ trust structures. Indian families. the deliberations of an Indian family in selecting the Jersey Discretionary Trusts optimum structure for their succession planning needs. Discretionary trusts have for some time proved popular Practically, the provisions of a Jersey discretionary trust Jersey’s tax neutrality, combined with its in succession planning for Indian families holding typically afford considerable flexibility in terms of the overseas assets. It is normal for a discretionary trust to trustee’s powers in relation to beneficiaries and are comprehensive suite of trusts and structuring include extensive investment powers and this means often sufficient to manage these concerns. options, mean that it is ideally suited

8 JERSEY FINANCE: 8LINKS JERSEY WITH FINANCE: INDIA LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 9 Indian

Jersey foundations are increasingly Philanthropy used by philanthropists as an alternative to trusts PHILANTHROPY Interest in philanthropy in India is growing thanks to economic growth, wealth creation and recent and Philanthropic Structures Why Jersey? large gifts by wealthy individuals. Jersey is a preeminent jurisdiction in the use of trusts and also offers The Hurun India Philanthropy List 2013 is a Julian Hayden, Director, Hawksford foundations - two key structures used for philanthropy. Both can ranking of 31 Indians who donated more than Rs. be highly flexible and tailor-made to meet the needs of the client 10 crore, or around $1.6 million, in cash or cash Jersey is an ideal jurisdiction for the formation and administration of concerned. These skills and services are now reinforced by the recent equivalent, between April 2012 and March 2013. philanthropic structures. It has the technical means and experience passing of a Charities Law as part of a coherent programme for for excellence in this area and special opportunities enhanced by developing Jersey as a philanthropic centre of excellence. Trusts and IT tycoon Azim Hashim Premji, the chairman of foundations will have an option to register as charities but they will Wipro Ltd, emerged as the most generous Indian, recent statutory developments. not be obliged to do so, the choice depending on the specifics of the with a donation of Rs. 8,000 crore during that individual case. Exemption from Jersey Income Tax will be available period. HCL chairman Shiv Nadar was the second and, irrespective of registration or not, there will be no Jersey Income highest contributor in the list, with a donation of Tax for structures having no beneficiaries in Jersey and with no income Rs. 3,000 crore. from land or buildings in the Island.

Jersey has breadth and depth of expertise in the provision of fiduciary

Wealth Management services. It is also economically and politically stable, has a first class judicial system and a highly regarded regulatory regime, so that funds can be invested and managed safely, under expert governance.

As well as its professional infrastructure and skills, Jersey has an immediate opportunity to assist in philanthropy and to develop as a leading jurisdiction, through the wealth already held and administered here. Vehicles can be structured for these purposes more flexibly than is usually possible elsewhere. Further, these structures can often be managed in parallel with those for personal or commercial purposes so, for many people with existing links to Jersey, convenience and accessibility are additional attractions.

Suitable structures

Jersey’s trust legislation allows for both charitable and non-charitable purpose trusts and for trusts that can be set up for purposes that are partly personal and partly philanthropic. Non-charitable purpose trusts are often used for good causes. The flexibility of trusts allows for a range of structures that can be adapted to suit specific philanthropic objectives such that a charitable trust is an attractive option, but it is not the only solution. Philanthropy by Sector Jersey foundations are increasingly used by philanthropists as an The climate for philanthropy alternative to trusts. Again they can be charitable or non-charitable Environmental causes or they can be primarily philanthropic but also capable of providing Agriculture Rural development Though philanthropic donation is not confined to the rich, it is becoming an increasingly important personal benefits. About one third of the foundations set up in Jersey Healthcare issue for wealthy individuals and families. Many see the creation and maintenance of philanthropic since their launch in 2009 are used for philanthropic purposes. Their structures as part of a wider process of engaging the next generation in the responsibilities of wealth attractions include the clarity of registration whilst they offer a choice Social development management. Often they want structures that will endure for the future and possibly are self-financing. between confidentiality and publicity. They are capable of infinite Good governance and management is required for these mechanisms within which funds can be built duration. Further, through the system of having a council of members up for good causes and from which well-organised distribution channels can be provided. and a guardian to ensure the council pursues the foundation’s We are seeing growing interest in social entrepreneurship and in venture philanthropy including by objectives, both flexibility and safeguards are provided, along with the younger individuals who wish to apply their business skills and the fruits of their success to helping ability for the economic founder to have a continuing role. Education others. Young entrepreneurs often want to make a social impact and this is clearly a growth area. Philanthropic activity is increasing within the funds sector in which sustainable investments seem to be Jersey has several key strategic advantages as a jurisdiction and it developing as an asset class. Philanthropists are looking to the financial services sector in Jersey for has the means and purpose to become recognised as a leading global ■ greater engagement in the provision of relevant services. centre for philanthropic wealth planning.

10 JERSEY FINANCE:10 LINKS JERSEY WITH FINANCE: INDIA LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 11 cession Plann Suc ing

JERSEY Pr ce op vi er d ty A t M n a e n a tm g s e e m s v e Jersey e n n I c t i F v i r n

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According to research from the Boston Consultancy Group, India was home to 284 t e

ultra-high net worth households with US$100m or more in 2013, and to 175,000 r

o millionaire households. As it is projected to become the seventh wealthiest nation s r

by 2018, demand for family offices is set to rise and Jersey is the ideal location. P

Wealth Management r

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Role of the family office  Experienced professionals  Legal and political system  Regulation and legal structures

Every family office is different and bespoke to the needs Recruiting and retaining the best professionals is a Jersey has its own democratically elected government and Jersey is a well regulated jurisdiction and is rated as one of the family it is serving. Some are focussed exclusively primary issue for family offices and the nature of the decides on its own tax laws - this independence from the of the best international financial centres globally by on managing the family’s investments or its concierge family office may impact on the types of professionals UK and political stability has been preserved via charter the International Monetary Fund (IMF). The regulation of and travel needs. Others, including Bedell Family Office, required. Professionally trained staff working in the and convention since 1204. Furthermore, Jersey operates investment and fund business, and trust and company provide professional support to the family, such as finance industry make up nearly 25% of the working its own well respected judicial system based on common administration business, is well established and assisting with governance, financial reporting, project population in Jersey1. Included in this are a large number law principles, so it will be familiar to Indian families. understood, and provides a best practice framework which management and trustee and corporate services, and of family office professionals and trust professionals, will no doubt give Indian families greater comfort with become the family’s trusted advisors over time. who have vast experience in setting up and running Jersey’s stability will be particularly relevant if ownership regards to the protection of their assets. complex structures and in helping wealthy families structures are going to be based in the family office manage their assets and lifestyle. jurisdiction. In certain cases this may drive the family office In addition, Jersey has a wide range of legal structures Why choose Jersey? location to being outside India or wherever the wealth has available to choose from for the family office: asset owning been earned, to provide better privacy within the family’s and charitable structures (including trusts); foundations; A number of factors are important to Indian families  Practical matters home jurisdiction. limited liability companies (including the protected cell when deciding where to locate their family offices: companies); and limited partnerships. A reputable family office needs to be based in a Obviously tax laws and regulations continue to evolve, but  Tax jurisdiction with secure communication links and great Jersey is in a good position to preserve this stable political, With over 50 years of private wealth management infrastructure, including banking facilities and specialist legal and tax position, having demonstrated its ability to experience, Jersey is often used by wealthy Indian families If the family office will be managing asset holding professionals in accounting, tax, legal and other areas. adapt to tax transparency and regulatory best practice in for asset protection, estate planning, family governance structures, it is important to find a location that is Jersey has an exceptional financial infrastructure for the past. This transparency is now a fact of life and may and by UK resident non-domiciled Indian families to tax efficient. Jersey benefits from tax neutrality, with its size, with all major accountancy firms represented. lead to less well regulated jurisdictions ceasing to exist as manage their tax affairs in the UK. Jersey offers tax 0% income tax on foreign owned companies (with There are 5 first tier legal practices and 34 international financial centres in the future. Jersey has, however, always neutrality, political and legal stability and an array of exceptions for regulated and infrastructure businesses) banks (all listed within the top global 500), with over insisted there is a level playing field to ensure that its ownership structures. This is combined with excellent 2 and no capital gains taxes, wealth taxes or US$224 billion in banking deposits . competitiveness is not affected. infrastructure (English language, UK time zone and ease inheritance/death taxes. of access to London) and a well trained workforce who are Jersey is in the same time zone as the UK so it is 5½ highly experienced in wealth management. It is therefore hours behind India Standard Time, meaning that there is Jersey is often used by wealthy Indian not surprising that there are a growing number of Indian a substantial part of the working day that crosses over. families for asset protection, estate families setting up family offices in Jersey. This has been 1 States of Jersey Labour Market Report June 2013 English is the main language in Jersey, with sterling as planning, family governance and by UK helped by an increasing number of Indian families moving 2 Financial Services Industry - Quarterly Report (June 2014) its currency. to London and using Jersey as a convenient jurisdiction for ■ resident non-domiciled Indian families their asset ownership structures. to manage their tax affairs

12 JERSEY FINANCE:12 LINKS JERSEY WITH FINANCE: INDIA LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 13 Jersey capital markets in numbers No.1 $339 No.1 IN NON-UK BILLION OFFSHORE 95 for Indian COMPANIES VALUE OF JURISDICTION COMPANIES IN THE JERSEY-BASED FOR AIM TRADING ON LSE companies FTSE 100 LISTED COMPANIES LISTINGS MARKETS IPOs ‘Jersey Holding Companies as Listing Vehicles’ Report from Jersey Finance (June 2014) converted from GBP to USD in September 2014 Guy Coltman, Partner, Carey Olsen Jersey is a leading financial centre which has much to offer India in the context of Initial Public Offerings (IPOs). On the white list company’s solvency. Financial assistance is permitted for Jersey’s key strengths in the IPO market are the legal and financial services it can offer to companies and the both public and private companies and the share buy-back ready acceptance of Jersey securities by investors. Investors, particularly in Europe but increasingly further Capital Markets Jersey is a leading financial services provider with a and redemption regime is straightforward. afield, are comfortable and familiar with Jersey-incorporated companies. In particular, Jersey offers a number of reputation as one of the best jurisdictions of its type. advantages over some competitor jurisdictions. This gives investors the comfort of an appropriate level of Jersey company law is, however, flexible so that investors regulation, reliability and stability, and makes investment can typically replicate, if needed, investor protection and Jersey’s long-standing, symbiotic relationship with the City of London has been well publicised and it is structures set up through Jersey more attractive than other market standards through a company’s memorandum well regarded as a jurisdiction for listing on the London Stock Exchange. Indeed, Jersey is the number one structures residing in some less well established offshore and articles of association. Jersey law has also been jurisdiction for non-UK companies in the FTSE 100, the leading offshore jurisdiction for listing on its AIM jurisdictions. amended to permit the merger of a Jersey company with an market and has 95 companies trading on the LSE markets in total. Advisory links between the City of London Indian company, therefore reducing transaction times and and Jersey are strong, as evidenced by the many active nominated advisers in London who regularly select Jersey was one of the first jurisdictions to be placed on the costs. This provides Indian businesses with the opportunity Jersey for transactions and the international law firms, accountancy practices and financial institutions which Organization for Economic Development’s ‘white list’ as to invest worldwide whilst ensuring that profits are refer work into the jurisdiction on a daily basis. Jersey’s combination of reputation, skills and execution, and having implemented internationally agreed tax standards. recovered and repatriated back to India. convenience from London, mean that this trend is likely to continue. The International Monetary Fund, in its latest review, put Jersey in the leading rank of international finance centres. Jersey has recently made amendments to its companies law In March 2014, the Global Financial Centres Index rated which will reflect, among other things, certain innovations Jersey as the top offshore jurisdiction for the tenth time in brought in by legislation in the UK, which make it even more a row. Jersey’s position in global markets is supported by attractive as a jurisdiction in which to incorporate a holding a network of experienced legal, accountancy, banking and company for the purposes of seeking a listing. other financial professionals, who are familiar to advisers in other financial centres. This enhances Jersey as a choice The amendments include specific provisions dealing with for transactions and makes the administration of Jersey the redemption and buy-back of depositary receipts, structures easier and more cost effective. Finally, should any removal of the prohibition on the issue of shares at a dispute arise, Jersey’s court system is well developed and discount and restrictions on commissions, as well as other has proved itself capable of handling the most complex and developments that may assist publicly traded companies. difficult cases. An example of this is the provision of a capital reduction mechanism for Jersey companies to be effected by way of Tax neutrality shareholder special resolution and a directors’ solvency statement, rather than mandatorily requiring court approval (although that route remains available when the legislation Jersey provides a stable, tax-neutral environment in which is adopted). to establish and maintain corporate structures. Jersey companies (apart from locally regulated financial services companies and utilities) are typically zero rated for income Indian businesses using Jersey tax and are not subject to capital gains tax within the jurisdiction. Jersey has no capital transfer or similar taxes A number of Indian businesses have already used Jersey as and does not levy any withholding tax on dividends. There a way of expanding their activities and raising capital. These is no stamp duty on Jersey share transfers and Jersey is include Yatra Capital Limited, an Indian property fund based outside of the UK Value Added Tax network. in Jersey which listed on Euronext Amsterdam (that raised €100m at its launch in 2006), and Essar Energy, an Indian Company law energy business, that recently used a Jersey company to issue US$550m bonds convertible into ordinary shares in its UK parent company. The Companies (Jersey) Law 1991 is a modern statute that is based on English company law but avoids many aspects of English law that some investors find restrictive. The future In particular, Jersey company law allows for payment of dividends irrespective of a company’s retained profits. It is expected that the trend of using Jersey companies to Instead, payments to shareholders are dependent on a secure listings on stock exchanges around the world will ■ continue.

14 JERSEY FINANCE:14 LINKS JERSEY WITH FINANCE: INDIA LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 15 A view of Jersey from India As part of their investment Bijal Ajinkya, Partner, Khaitan & Co, India strategy, Indian property developers are increasingly Khaitan & Co is one of India’s oldest and looking for opportunities most reputed full services law firms. overseas, and the UK, especially My experience of Jersey in the areas of private client work, tax and investment London, has proven to be their funds has been exceptionally good. Our preferred location clients have used Jersey for a number of purposes and we have been very impressed with the jurisdiction’s legal framework and the levels of service we Chris George have received. Photography

Khaitan & Co The benefits of using Jersey About Bijal Practices International Tax

Khaitan & Co was founded in 1911 by the Late Debi Prasad Clients have used Jersey for real estate holding and financing Bijal joined Khaitan & Co in 2013 as a Partner to expand and Tax Litigation Khaitan, a member of the Constituent Assembly that framed vehicles for investments into the UK, for listing purposes, as build the Tax, Private Client and Investment Funds practice. Asset Protection the Constitution of India in 1950. It attracted many stalwarts feeder vehicles for funds, for IP holding and most often for and Private Client from the field of law who laid the foundations of integrity, asset protection and succession structures. Jersey’s main Bijal is highly regarded for her dedication, in-depth dedication and professionalism. areas of appeal are its robust framework (both legal and understanding and knowledge of taxation, estate planning Fund Formation through service providers) and its reputation. and structuring of funds and for her solution oriented Deeply rooted in this tradition, Khaitan & Co continued to approach. She features on the Citiwealth Leaders List 2012 grow and prosper, expanding from its first office in Kolkata As a partner in the firm’s Tax and Fund Formation practice, and 2013 in relation to private client matters. Legal 500, (Calcutta) to New Delhi and to Bangalore, under the able my experience of Jersey has been varied and exceptionally 2010/2011/2012/2013 (Asia Pacific) has mentioned her as Education stewardship of the Late Bhagawati Prasad Khaitan. On its good, with service providers being proactive, prompt, and being a leader in the field of taxation in India. Bijal has also LL.M., (International Law), 90th foundation day (November 11, 2001), Khaitan & Co knowledgeable, the legal framework being well established been recognised as being a leading tax lawyer in India by University of Mumbai (2002) opened its Mumbai (Bombay) office for the convenience of its and tested and, above all, the clients being content as a whole. Chambers & Partners (Asia – Pacific) 2010, 2011 and 2012 rapidly growing clientele. Today, Khaitan & Co has more than Client Guides. LL.B., Government Law College, 400 fee earners, including 70 partners, in its four offices. In The private client and investment funds areas in particular University of Mumbai (2000) addition to fee-earners, there are approximately 215 non legal have robust legal structures available and Jersey has a great Indian Lawyer 250 Law Business Research recognises Bijal associates. reputation in this space, providing considerable comfort to as a highly regarded name. She has also been featured in clients. Since its legal system is well-oiled and has sustained Who’s Who Legal ‘Corporate Tax Guide 2013’ as a leading Professional Affiliations Khaitan & Co’s wide ranging clientele include business and for a number of years, clients are particularly reassured practitioner in the field of corporate tax in India. financial enterprises, large Indian business houses and establishing their businesses and affairs in Jersey. The high Bar Council of Maharashtra and Goa families, MNCs, banks, financial institutions, onshore and quality of administrators, who are the first points of contact Bijal serves as an officer-elect on the Individual Tax & Private Membership Officer – Private Client, IBA offshore fund houses, educational and charitable trusts, for professionals operating outside the jurisdiction, make Client Committee of the International Bar Association. She is a cultural institutions, high net worth individuals, estates and operating and creating structures in Jersey efficient and an member of the Steering Committee of the International Wealth trusts. The firm is a full service law firm, having practices excellent experience. Advisors Forum, which is a global think-tank for the exchange across the areas of corporate law, banking, tax, intellectual of emerging trends in estate and succession planning. property, litigation and dispute resolution, real estate, Overall my view of Jersey is extremely positive and I rate Jersey infrastructure, capital markets and funds. as an offshore jurisdiction with great potential.

16 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 17 Bharti Enterprise Group: Infrasoft Technologies Minerva

Airtel-Vodafone Founded in 1995, InfrasoftTech is a specialist software Minerva, an independent provider of corporate, private solutions provider headquartered in Mumbai, with client and fund administration services, was established in Jersey Airtel Limited is part of the Bharti Enterprise Group, operations spread across North America, UK, Africa, Middle Jersey in 1979. which includes the flagship telecoms brand Bharti Airtel. East and South East Asia. Bharti Airtel ranks amongst the top four mobile service The firm’s principal shareholders were born in, or providers globally in terms of subscribers. At the time of incorporating Infrasoft Technologies Jersey originate from, India and Minerva has been active in Limited in 2007, the organisation was keen to bring to assisting families of Indian origin all over the world. India’s When Bharti Enterprises decided to enter the European Jersey their expertise in the financial services domain. Jersey remarkable growth story continues to generate work for market, they began small but with big aspirations. is a location perfectly matched to InfrasoftTech’s ethos Minerva. Partnering with another global telecommunications giant, and business focus to be niche and to concentrate on the Vodafone, for reasons of brand and roaming tie ups, finance industry. Minerva was founded by Vipin Shah and Umesh Sahai who, the Airtel-Vodafone brand was created. The intention along with their wider families, remain actively involved in was to use the Channel Islands as a test bed to learn the The organisation’s core software services and solutions the continued growth and success of the business. differences between markets in Asia and Africa and those offerings include: in Europe, with the aim of eventually moving into the Vipin was born in Kenya following his father’s emigration mainland European market when the right opportunity • Application development, modernisation and maintenance from Gujarat in the early 1900’s. He was educated in arises. • Data migration and integration Nairobi, Mumbai and London, where he was called to the • Data warehousing and business intelligence English Bar. Umesh was born in New Delhi and educated at Jersey Airtel Limited was granted a licence to operate 2G • End-to-end and automated testing the Doon School and St Stephen’s College, Delhi University and 3G services in the Channel Islands in April 2006. They • Mobility before coming to England in 1964 to pursue a career in launched their network in June 2007, offering islanders accountancy. He qualified as a Chartered Accountant mobile telephone products and services, with the aim of InfrasoftTech is committed to developing and delivering in 1969. Minerva remains family owned as the next bringing innovation and competition to the marketplace. best practices through modern methodologies and senior generation of the Shah and Sahai families are actively Today they have more than 40,000 retail and corporate management commitment. It is constantly evolving its involved in the business. customers, and 50+ staff who provide technical, sales, products and services to bring to the Jersey business customer services and marketing support across the community new-generation solutions in the space of social The organisation has a headcount of around 180 globally, Channel Islands. media, mobility, payments, analytics and cloud integration, with a presence in most of the major well-regulated thereby building a competitive edge for all parties. financial centres in the world, some of which, such as Jersey was chosen because the Channel Islands have an Singapore and Mauritius, are key channels of investment excellent infrastructure, are well regulated, and are on InfrasoftTech’s growth strategy is based on a socially flows into and out of India. They are therefore well the doorstep to mainland Europe. The knowledge of the responsible and economically sustainable business model equipped to cater to the needs of the modern Indian European market that the organisation has gained from and the conviction that encouraging and supporting corporate or family with cross-border interests. the Channel Islands has been significant as the Indian local talent is paramount to the future success of Jersey market is predominantly pay-as-you-go, whereas the businesses. In recognition of its need to add value to society The business remains committed to serve people of Indian European market favours the contract route. and its keenness to engage and give back to the community, origin and Minerva’s India Team maintains a regular

InfrasoftTech’s ‘Jersey Talent Acquistion Program’ is in its visiting programme to see clients and professional firms in Airtel-Vodafone is expecting to deliver 4G soon, when the seventh year of running. their home environment. technology and experience that Airtel and Vodafone have Jersey Soil developed in other markets will come to the fore in Jersey. Indian Roots Jersey is an internationally WHY recognised, highly reputable jurisdiction and a well-respected business centre. It has a long JERSEY? STRONG, PRO-BUSINESS WELL POSITIONED LOW TAXATION EXCELLENT, MODERN STABLE ECONOMY Jersey is a well regulated Less than 14 miles from Jersey’s direct tax SERVICES standing reputation for attracting and independent France and under an hour rates are among the successful companies and Jersey’s high growth Jersey is equipped with an JERSEY IS economy provides a first-class jurisdiction with an from London, Jersey has lowest in Europe, for impressive health service, individuals to its shores including accessible, pro-business frequent flights to all major both individuals and GROWING AND commercial environment and outstanding schools and excellent those of Indian origin. supports continuous investment government European business centres companies sports and leisure facilities DIVERSIFYING

18 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 19 About Jersey Finance ATIO ERN NA This publication is brought to you by Jersey Finance, a body established in 2001 to promote and lead the T L development of Jersey as an International Finance Centre (IFC). ER IMF R IN OP TI ATIN A T G C The organisation’s primary objective is to communicate the many factors that make Jersey a leading IFC, including

G C the experience and expertise of its practitioners; its political, economic and fiscal stability; and its high level IN ER G of regulation and security. It also actively represents the finance industry’s needs and concerns with regard to S D O N legislation, regulation and other key areas of innovation that can enhance Jersey’s product offering. D U W L A H R L IT A Jersey Finance has representative offices in Mumbai, New Delhi, Abu Dhabi and Hong Kong. They deliver a Y E E L D promotional programme of networking events, host business and government delegations from Jersey, organise A N I S Community of Interest groups for in-country practitioners who do business with Jersey and offer introductory O T M E - services for Jersey businesses new to the regions. I W T S

A A Our representatives in India

A D Kapil Dua and Pankaj Jain, our Business Development Managers in India, are responsible for raising Jersey’s profile A E

in India and for providing technical support to promote bilateral trade, cross border mergers, investment and N

C G financing opportunities between India and Jersey. I

Y Jersey D

I Kapil Dua

R Kapil Dua, based in New Delhi, is a qualified Chartered Accountant with over nine years’

A R

T experience in strategy and market entry execution. Kapil spent five years as a corporate

The International I

O advisor and research analyst for foreign investors entering the Indian real estate,

C G

S healthcare and hotel industry markets.

O Finance Centre I

Kapil has experience in establishing businesses in Hong Kong, Singapore, Germany

and the UK and much of his attention has been focused on markets where there is

a flourishing opportunity between these territories and India. As Head of Business

Services for the UK India Business Council, Kapil advised UK organisations regarding

compliance with Indian financial and legal regulatory frameworks.

Pankaj Jain

D Based in Mumbai, Pankaj Jain holds an MBA degree and a specialised Certificate A

in International Business and has more than eight years of industry experience in

international trade and business incubation services. He is well connected within the

INTERNATIONAL IFC OF THE YEAR

Indian business community and has a good knowledge of the Indian system. FINANCE CENTRE Wealth Briefing Awards 1 OF THE YEAR Pankaj’s career includes significant international experience in promoting bilateral STEP Awards 1 HIGHLY COMMENDED IFC trade between India and countries including Germany, Canada, Australia, China, International Fund & Product Awards 1 Myanmar, the UK and USA. As Deputy Director and Head of International Division for Confederation of Indian Industry (CII-WR), Pankaj has facilitated strategic ties-ups OUTSTANDING and collaborations in India for many foreign companies. He also has a considerable INTERNATIONAL WEALTH BEST IN CLASS FOR FUND amount of experience in advancing the interests of the Indian business community FINANCIAL CENTRE SERVICES internationally. Private Banker International Awards 1 Fund Services Awards 1 and 14 Head Office Delhi Office Mumbai Office BEST OFFSHORE CENTRE IFC OF THE YEAR Global InvestorISF Awards 1 Citywealth International Financial Centre Awards 1 and 14 4th Floor, Sir Walter Raleigh House, Jersey Finance Limited, (Sannam S4) Jersey Finance Limited, (Sannam S4) 48-50 Esplanade, Jersey JE2 3QB 3rd Floor, Devika Tower 6, 9se, 9th floor, Ruby Tower, Channel Islands Nehru Place, 29 Senapati Bapat Marg, BEST INTERNATIONAL New Delhi - 110019 (Tulsi Pipe Road), Dadar (W) FINANCE CENTRE BEST INTERNATIONAL T: +44 (0)1534 836000 Mumbai, India - 400028 International Fund and Product Awards E: [email protected] T: +91 (0) 11 4212 4100 FINANCE CENTRE E: [email protected] T: +91 (0) 22 6742 3211 1 Wealthbriefing - European Awards 14 E: [email protected]

BEST OFFSHORE CENTRE BEST INTERNATIONAL www.jerseyfinance.je www.linkedin.com/company/jersey-finance @jerseyfinance www.youtube.com/jerseyfinance Global InvestorISF Awards 1 FINANCE CENTRE Professional Adviser - International Fund Jersey Finance 2014 & Product Awards 14 20 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 21 Jersey Finance Members The States of Jersey Website: www.jerseyfinance.je/member-directory (Jersey’s Government)

Website: www.gov.je

Jersey Financial Services Commission

Website: www.jerseyfsc.org Jersey Association of Trust Companies

Website: www.jatco.org Law Society of Jersey

Website: www.jerseylawsociety.je

Jersey Bankers’ Association

Website: www.jerseybankersassociation.com

Jersey Funds Association Useful Network Website: www.jerseyfunds.org of Contacts

Jersey Chamber of Commerce

Website: www.jerseychamber.com Jersey Society of Chartered and Certified Accountants

Website: www.jscca.org

Locate Jersey

Website: www.locatejersey.com

Jersey International Insurance Association

Website: www.jerseyiia.org

www.jerseyfinance.je

22 JERSEY FINANCE: LINKS WITH INDIA www.jerseyfinance.jewww.jerseyfinance.je