Company Law · Guernsey
Company Formation in Guernsey: Setting Up Inside the Bailiwick’s Own System
Guernsey is a Crown Dependency, not part of the United Kingdom, and it has its own legislature, its own courts and its own body of law. Tell us what you are setting up and we will match you with a Guernsey Advocate who handles company formation work.
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Why company formation in Guernsey is a Bailiwick question, not a UK one
Guernsey is not part of the United Kingdom. It is a Crown Dependency with its own legislature, its own courts and its own body of law, and a business established here sits inside that separate legal framework rather than the English one. That difference shapes every step of company formation in Guernsey, from the drafting of constitutional documents to the way a future dispute will be argued before the Royal Court. The Bailiwick’s mixed legal inheritance — Norman customary law layered with English statute and case law that is persuasive but not binding — rewards advice from someone who works in it daily. We match you with a Guernsey Advocate who handles company formation work, quickly and at no cost to you.
Guernsey in practice
How company formation in Guernsey works inside the Bailiwick’s own legal system
Company formation in Guernsey happens inside a legal system that is separate from that of England, served by a fused profession of Advocates and decided in courts applying Guernsey law and Guernsey procedure. The practical points below come from official Guernsey sources and show what a founder or an incoming business actually deals with.
A Bailiwick, not a county: three jurisdictions and one legislature
Guernsey is a Crown Dependency and forms part of the Bailiwick of Guernsey, which also comprises Alderney and Sark. The States of Deliberation legislates for the Bailiwick, and that legislation applies across Guernsey, Alderney and Sark, while Alderney and Sark keep their own first-instance courts. Advocates of the Royal Court are admitted to practise the laws of all three.
A mixed legal system: Norman custom under English statute
A company’s contracts, articles and internal arrangements will be read under Guernsey law, whose private law core is the Norman customary law of the Duchy of Normandy, with English common law and English-style statute grafted on for well over a century. Guernsey legislation is drafted in English, but English case law is persuasive rather than binding.
Advocates: one fused profession, admitted by the Royal Court
Advocacy in Guernsey is fused: an Advocate advises, drafts and appears, performing the roles that solicitors and barristers split between them in England. Admission is by the Royal Court sitting as the Full Court, and every Advocate is a member of the Guernsey Bar under the 2007 Law. Non-Advocates may practise only while employed or supervised by a firm of Advocates.
Prescription, not limitation: the clock that extinguishes rights
Guernsey has no direct equivalent of the English law of limitation. It applies prescription, which extinguishes the right of action rather than merely barring the remedy, and it is a matter of substantive law rather than procedure. Contractual and tort claims generally carry six years, personal injury and breach of trust claims three, the latter running from knowledge of the breach.
Costs, fees and what a Guernsey case really costs
Advocates bill hourly; the recoverable rates are fixed by the Costs and Fees Rules at GBP 351 per hour for Advocates and GBP 235.17 for associates from 1 January 2026. Costs follow the event, and a successful party typically recovers around 60% to 70% of actual spend. The Guernsey Bar Rules prohibit contingency and success fee arrangements. Legal aid is not available to companies.
Where company and commercial disputes are heard
The Royal Court’s Ordinary Court exercises the general civil jurisdiction, covering commercial, trust, company, insolvency, property and public law, sitting with a judge and, where facts are in issue, at least two Jurats. The Magistrate’s Court hears contract and tort claims up to GBP 10,000. Appeals go to the Guernsey Court of Appeal, and finally to the Judicial Committee of the Privy Council.
Key time limit — Commercial & Corporate Law
Contractual claims (breach of contract) — 6 years from the accrual of the cause of action, i.e. the date of the breach. Prescription extinguishes the right of action, so the period is substantive law rather than mere procedure.
The country data on this page is drawn from official Guernsey sources — the Royal Court of Guernsey, the Guernsey Bar and States of Guernsey publications — together with published practitioner guidance, as current at 2026.
- Advocates of the Royal Court — Royal Court of Guernsey
- The Guernsey Bar
- The legal and court system in Guernsey — Appleby
- Court fees, legal costs and legal aid — Royal Court of Guernsey
- Prescription explained — Collas Crill
- Defamation and reputation management, Guernsey — Chambers Practice Guides
- Prescription and limitation: when should you bring a claim? — Ferbrache & Farrell
- How Guernsey’s prescription rules differ from English limitation — Bedell Cristin
- Claims against estates in Guernsey — Bedell Cristin
- Employment requirements — Employment and Equal Opportunities Service
- Matrimonial Causes — Royal Court of Guernsey
- Evictions — Royal Court of Guernsey
- Rent control guidance — States of Guernsey
- Appeals to the Court of Appeal — Royal Court of Guernsey
Common traps
What founders get wrong about Guernsey
Three assumptions that regularly catch out businesses arriving from England or from outside the Bailiwick.
The UK assumption
Founders often assume that setting up in Guernsey is like setting up in England. Guernsey is a Crown Dependency with its own legislature and its own body of law, so English assumptions about documents, remedies and procedure can misfire.
Precedents that do not bind
Guernsey legislation is drafted in English and looks familiar, yet English case law is only persuasive there. Wording copied from an English precedent may be construed differently, and the English law of limitation has no direct Guernsey equivalent.
Who may advise and appear
Only Advocates of the Royal Court have full rights of audience, and advocacy in Guernsey is a fused profession. Non-Advocates may work on a Guernsey matter only while employed or supervised by a firm of Advocates, and must state where they are qualified.
How we help
Matching built around the Bailiwick
A short description of your project is enough for us to identify the right firm.
Matched with a Guernsey Advocate
Tell us what you are setting up and we identify an Advocate of the Royal Court whose practice covers company formation, corporate structuring and the Bailiwick’s commercial courts. You deal directly with the firm; we take no fee from you.
One profession, one point of contact
Because advocacy in Guernsey is fused, the Advocate who advises you can also appear for you before the Royal Court. That removes the handover between adviser and court advocate that founders arriving from England are used to.
Costs you can see before you commit
Recoverable rates are fixed by Guernsey’s Costs and Fees Rules, and Advocates bill hourly. You can ask your Advocate for a costs estimate and for a view of what would be recoverable if a dispute later follows the event.
The whole Bailiwick, not only Saint Peter Port
Advocates of the Royal Court are admitted to practise the laws of Guernsey, Alderney and Sark, so one instruction can cover the commercial centres of Saint Peter Port and Saint Sampson as well as the islands’ separate first-instance courts.
Also relevant
Businesses comparing Guernsey with its neighbours
Founders weighing up the Bailiwick usually look at these jurisdictions at the same time.
Questions
Company formation in Guernsey: common questions
Is company formation in Guernsey handled under English law?
No. Guernsey is a Crown Dependency and not part of the United Kingdom. It has its own legislature, its own courts and its own body of law, whose private law core is Norman customary law with English common law and English-style statute grafted on. English case law is persuasive in Guernsey, but it does not bind the Bailiwick’s courts.
Who can advise and appear for a Guernsey company in court?
An Advocate of the Royal Court. Advocacy in Guernsey is a fused profession, so the same Advocate advises, drafts and appears. Non-Advocates may work on a Guernsey matter only while employed or supervised by a firm of Advocates, and they must not hold themselves out as Advocates or omit the jurisdiction in which they are qualified.
What is prescription in Guernsey, and why does it matter to a company?
Guernsey does not apply the English law of limitation. It applies prescription, which extinguishes the right of action rather than merely barring the remedy, and it is substantive law rather than procedure. Contractual and tort claims generally carry six years from accrual, while personal injury and breach of trust claims carry three years.
How much does a Guernsey Advocate cost, and what can be recovered?
Advocates bill hourly, and the recoverable rates fixed by Guernsey’s Costs and Fees Rules are GBP 351 per hour for Advocates and GBP 235.17 for associates from 1 January 2026. Costs follow the event, and a successful party typically recovers around 60% to 70% of actual spend. Contingency and success fee arrangements are prohibited.
Where are company and commercial disputes heard in Guernsey?
The Ordinary Court of the Royal Court exercises the general civil jurisdiction, covering commercial, trust, company, insolvency, property and public law. The Magistrate’s Court deals with contract and tort claims up to GBP 10,000. Civil appeals go to the Guernsey Court of Appeal, and the final appellate tribunal is the Judicial Committee of the Privy Council.
Does Guernsey law also apply in Alderney and Sark?
The States of Deliberation legislates for the Bailiwick, and that legislation applies across Guernsey, Alderney and Sark. Alderney and Sark nonetheless keep their own first-instance courts — the Court of Alderney and the Court of the Seneschal — each applying the law of its own jurisdiction. Advocates of the Royal Court may practise throughout the Bailiwick.
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