Business Reviews

Set Up a Company in Gibraltar

Set Up a Company in Gibraltar

Why establish a company in Gibraltar? Well, this is a truly remarkable jurisdiction. You can set up a European company here and you will not be liable for any taxes on the condition that you derive 100% of your income abroad. What is more, you can register your company online, so you can save on the cost of travel to the country. Nominee service is officially permitted, so you can use the services of a professional director to have more privacy.

Gibraltar: Overview

Gibraltar, the southernmost part of the Iberian Peninsula, is a tiny British overseas territory with an area of just 6.5 square kilometers. Its economy draws the majority of profits from the sale of tobacco products, ship repair and refueling, finance, online gaming and betting industry, banking, and tourism. After Brexit, a transition period was set for Gibraltar to withdraw from the European Union. However, the country remains a part of the Schengen Area and the European Economic Area with minimum border control. The country is entitled to independently set its own tax rates and elaborate the taxation policy that is in no way connected with the UK legal system.

The corporate tax rate payable by companies is 10%, which is not high at all for a European territory. In addition, VAT in Gibraltar equals zero. 

If the company is not a fiscal resident, no taxes whatsoever are applicable to it.

Non-Resident Companies in Gibraltar

According to Gibraltar laws, a non-resident company is an entity that is not considered taxable by the country’s tax authorities. Here are the conditions it has to comply with:

  • The company’s shareholders and directors are not local residents or are corporate nominees and/or professional licensed corporate directors
  • The company’s beneficial owner is not a resident of Gibraltar
  • The company carries out its business activities outside Gibraltar, has no physical presence in the country, and does not derive any income from its territory.

The company that meets these requirements is not liable for corporate tax. In Gibraltar, you will not have to pay a tax on dividends payable to another Gibraltar company, capital gains tax, inheritance tax, or tax on interest/dividend payment to non-residents.

When you incorporate a non-resident company in Gibraltar, you will have to provide information about the directors and shareholders to the register of companies.

You are free to use the nominee service. However, the registrar has to know who the ultimate beneficial owner is as this is a strict requirement set by the local laws. The person who sets up a company and tries to hide the real owner will not have the right to appoint nominee persons.

A Gibraltar company must:

  • have at least 1 director and 1 shareholder, and they can be individuals or legal entities
  • have a secretary, statutory books, a seal, and a registered office
  • Keep the balance sheets signed by the Director (companies are not required to have these documents audited)

If you are planning to do business online, manage property, or set up a holding company, a non-resident Gibraltar company may be an ideal choice for you.

Bank Accounts for Gibraltar Companies

Any company needs a corporate bank account to run its business operations. As for Gibraltar, it has a good reputation with bankers across the globe, so there will be no problem opening an account for an entity registered in Gibraltar. However, there is one more factor taken into account: the bankers also look at the country where the company’s beneficial owners reside, and this may sometimes result in problems.

If you want to open an account seamlessly, you will either need to meticulously study the bank’s requirements or entrust the matter to a specialist. If you follow the above link, you can talk to an expert, discuss your particular situation, and get professional advice on which jurisdiction and bank to choose. The service is free.

Nominee Service

As we have mentioned, the data related to the company’s directors and shareholders is entered into the register. However, some customers put confidentiality as a top priority, so they choose to use the services of nominee directors and shareholders. It means that you as the owner will not be mentioned in the company’s documents.

However, keep in mind that the nominee service is not a way to conceal your true identity from the regulatory authorities. The registrar and banks will refuse to cooperate with you unless you provide the information about the ultimate beneficial owner.

Documents To Be Submitted

Here is a package of documents you will need to prepare to establish a Gibraltar company:

  • Copies of passports of the company’s key members (beneficial owners, directors, shareholders) certified by a notary
  • A filled-out application for company registration
  • A questionnaire about the origin of funds
  • Proof of residence address for the company’s key members. It can be an original or a certified copy of a driver’s license, ID, credit card statement, bank statement, or utility bill issued no more than 3 months ago
  • Certificate of Incorporation (a certified copy) if there are corporate directors/shareholders
  • Memorandum and Articles of Association (a certified copy) if there are corporate directors/shareholders
  • A letter of recommendation from an accountant or a lawyer for each beneficial owner (which should be no older than 3 months)
  • A Certificate of Incumbency that contains the names and addresses of the company’s shareholders

In addition to the above documents, you will have to submit a description of business activities you are going to engage in using your Gibraltar company, its expected income, and approximate turnover. 

Some additional documents include a copy of the real estate sale contract, a business plan, a resume, proof of the origin of funds, and so on.

A Gibraltar company has to be renewed on an annual basis. The renewal fee amounts to 4,600 euros, and it includes the mandatory annual customer compliance, the mandatory extension of the company secretary for one year, the preparation and submission of a mandatory report (a simplified balance sheet), and the mandatory extension of the company’s legal address for one year.

Interested in Gibraltar company registration? Please click on the above link to discover more information or get in touch with an expert to discuss the details.

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