Case Study 4

Incubation: Professional Support Services

Overview

Active Group specialises in providing business to business professional support services where an offshore presence is required, but, where staff are not able to be personally present or relocated to Guernsey. These fully supported companies can be serviced and administered to any degree required from basic level consultancy to full incubation and provision of office space and support staff.

Active is able to provide a registered office, maintain full and proper records of correspondence and file notes showing clearly all enquiries, reports, monitoring and other tasks relating to the administration of the company.

We can provide executive directors with the necessary experience and ability to direct the day to day affairs of a company; we can also complete transactions under authorities given by the full board at their regular quarterly meetings.

Companies such as CITCO Fund Services (Guernsey) Limited, a part of the CITCO Group contracted Active Group to assist with setting up their Guernsey presence and to create a fully serviced administration function from Guernsey. CITCO contract Active to provide Directors and Managers under an administration agreement, whilst the bulk of the valuation and administration process is outsourced out to a CITCO main function office overseas where CITCO’s own staff perform those day to day activities. However, the all important responsibility, and mind and management is placed firmly in Guernsey with the local Directors assuming corporate responsibility, placing the management company firmly offshore.

The Active Solution

In establishing such a set up Active facilitates the following:

Establishing a full administration agreement to cover all the duties necessary to be performed on the Guernsey side, including the provision of directors and managers to create a solid base for mind and management from Guernsey; adapting or creating manuals and documentation for the Guernsey company to meet all regulatory obligations and create a durable ongoing program of compliance supervision;creating local procedures to outsource functions to the overseas offices and conducting the highly important outsource visits to check and assess that the overseas offices can meet the necessary requirements of the Guernsey business;running the GFSC application process and obtaining the relevant licenses required;providing registered offices, company secretarial services, conducting regular board meetings and meeting all local compliance requirements in order that the company is in good order.

The above services show a perfect model of a fully incubated company, licensed by the GFSC and able to administer funds from Guernsey by outsourcing day to day duties to another of its overseas offices, whilst maintaining mind and management in Guernsey. This is a true example of a fully serviced and incubated set up and at any time the client may establish a fuller presence of their own if they wish since all the licenses and entities are already in place – it is simply left to the client to decide to what capacity they wish to exert their physical presence, by way of staff, in Guernsey. Incubation is a highly efficient and attractive way in which to establish a low cost presence by relying on outsourcing.