The economy of Gibraltar showed rapid growth in the 10s of the 21st century. Many economists attribute this to attracting a significant number of foreign investors choosing to set up a company in Gibraltar due to high-class banking services and loyal tax laws. Also, changes in legislation, which in 2011 introduced the taxation of ten percent for foreign companies making profits in Gibraltar played their role.
Gibraltar can rightly be considered one of the most attractive European financial destinations. Receiving strong support from the state business is blooming. If until 2011, a small territory of Gibraltar was perceived as a Great Britain offshore appendage because of their similar legislation, now Gibraltar has amended its Companies Act, while ceasing to be an offshore territory and offering much more benefits for foreign businessmen coming there for company formation in Gibraltar than in the metropolis.
Gibraltar offers a variety of unique options for those wanting to form an offshore corporation. Gibraltar also offers several benefits such as tax breaks and a strong economy which foreigners like.Atrium Business Solutions
Why set up offshore company in Gibraltar
Gibraltar is not included in the famous blacklist of countries compiled by the anti-money laundering organizations (FATF). Gibraltar has not entered into a double tax treaty with any of the countries. All these aspects add benefits to make a decision to register an offshore company in Gibraltar.
The other advantages the owners of non-resident Gibraltar companies can expect:
- With an offshore status non-resident company in Gibraltar has a European image.
- No need to pay income tax, gift tax, dividends or capital gains.
- Nominee service is possible;
- With no specific bookkeeping requirements, simplified accounting can be used.
- Currency control is absent.
- There is no control of the registry of beneficiaries by the registrar.
Having a company tax number will facilitate the opening of a corporate bank account worldwide. It is worth remembering that even when using nominee directors and shareholders, the name of the actual owner will still have to be presented to the registrar. If not, the Gibraltar company registration will be denied. But this information cannot be disclosed to third parties, only by court order.
Ways to register company in Gibraltar
A Gibraltar non-resident company is not taxed on profits earned outside the small territory of that country. In order to obtain such a status, this company must not only belong to non-residents but also be controlled by directors who reside and hold board meetings outside of Gibraltar.
A non-resident company is another offshore form of business that avoids taxation of foreign income. The Gibraltar Government Decree “On Taxation and Company Concessions” (as amended) introduced the territorial taxation principle. This means that companies registered in Gibraltar will not be taxed by Gibraltar, including income tax and property tax, if owned and controlled by non-residents of Gibraltar, will not trade in Gibraltar, and will not transfer income to Gibraltar.
Company types you can register
It’s possible to register company in Gibraltar when it comes to closed joint-stock companies. The shares of such structures must clearly state that their owner is not a resident of Gibraltar. The following types of companies are available for opening in this country:
- Limited partnerships.
- Joint-stock companies with limited liability.
- Joint-stock companies with unlimited liability.
Potential investors can choose these types of shares:
- with limited voting rights;
- having a nominal value;
- preferential or redeemable.
If a business is not carrying on within the country, then non-residents are not required to pay taxes. Otherwise, the income tax is only 10%. A 5% tax break is possible for IT technology or industry startups.
Requirements for companies
A non-resident company in Gibraltar may not engage in insurance, banking, or financial affairs. It is profitable to open a company Gibraltar for betting business. There is a list of services that can be provided only after obtaining a special license from the Financial Services Commission in Gibraltar. Obtaining such a permit for a Gibraltar non-resident company will be extremely difficult, it can be said that it is almost impossible.
The list of services that can not be provided without a license:
- Legal services to a company or individuals.
- Registration of companies, service management.
- Tax planning services for a private or legal entity.
- Financial services (opening a bank account, payment transactions).
- Accounting and financial management services.
Therefore, when planning to set up company in Gibraltar, it is worth considering that not all types of activities are suitable for such a decision.
The list of documents for registering a company in Gibraltar:
- A completed application for opening a company, as well as a completed questionnaire, which indicates the origin of the funds.
- Documentary evidence of the address of the beneficiaries, directors, and shareholders of the company, as well as certified copies of their passports.
- Copy of the contract of sale of real estate.
- Proof of origin of funds.
- Bank statements, copies of driver’s licenses, credit card statements.
It’s also necessary to provide a comprehensive business plan for offshore company formation detailing the direction of the business that the company will conduct. It should indicate the estimated turnover and income.
Benefits to open company in Gibraltar
Gibraltar is a European business center, where tens of thousands of companies working in the gaming, real estate, physical trade, developing software, applications, providing consulting services, etc are concentrated. If holding company in Gibraltar you do not run a business in the jurisdiction, but engage, for example, in the sale of physical goods outside the country, then you will not have to pay income taxes and others. Gambling companies are often registered here, as the local gambling license is well accepted all over the world. Twenty world-famous gaming companies are registered in Gibraltar today.
Gibraltar’s thriving economy is dominated by financial services, shipping, traditional tourism, and the Internet industry in recent years. Gibraltar’s economy also proved robust during the Euro crisis, indicating slow but steady growth of the gross domestic product.
Quick and easy offshore company formation in Gibraltar
Set up company in Gibraltar is very easy, as the country’s authorities have simplified the process of registering a company over the past few years in order to attract more foreign investors. This is done quickly and remotely, i.e. the owner does not need to visit this country. However, there are several requirements for the experience of business owners. They may need proof that this is not their first business providing the site of existing, former or planned business, LinkedIn profile, CV, other confirmations of experience (who is the client and how to earn).
The new company law does not establish a minimum share capital for starting a company in Gibraltar, but foreign investors must take into account the costs of starting a business, which includes notary and registration fees, as well as potential business licensing fees, where necessary.