Gibraltar company formation
Gibraltar is a popular jurisdiction for company formation due to its low taxes and favourable regulatory environment. There are two main types of companies that can be formed in Gibraltar: resident companies and non-resident companies.
Resident companies are subject to corporate tax, but this is offset by the fact that they can claim double taxation relief on foreign income. Non-resident companies, on the other hand, are only subject to tax on income derived from Gibraltar. Capital gains tax is also not levied on profits earned by non-resident companies.
As a result, Gibraltar is an attractive option for businesses looking to minimise their tax liability.
When forming a company in Gibraltar, it is important to work with a reputable formation agent who can help you navigate the process and ensure that all the necessary paperwork is in order.
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Inclusions at Incorporation
The certificate of incorporation issued by the local registrar
The memorandum and articles of association
Register of Directors
Register of members and share ledger
The share certificate(s)
Resolution for the appointment of initial members and managers, and distribution of share participations
Free Services included:
Free consultation with a business development manager
Unlimited live phone and email support
Initial Document preparation within 24 hours
Preliminary Name search
PDF document review before filing
Submission of documents by email
Post Formation Legal and Tax Guide
PDF copy of filed articles of association
PDF copies of all customized paperwork
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Gibraltar Companies Act
Gibraltar Companies Act
The act requires that a company be registered with the Registrar of Companies to operate in Gibraltar. The registration process is simple. A company must provide its name, address, nature of business, and details of its directors and shareholders.
Once registered, a company must comply with the provisions of the act. It sets out the requirements for income tax and company law. It also provides for the registration of companies in Gibraltar. The act was last amended in 2006.
Gibraltar non-resident company key features
To be a non-resident company, a Gibraltar-registered company has to satisfy the following criteria:
- The company must be owned by persons, who are not resident in Gibraltar.
- The company must be controlled (directed) by persons who are not resident in Gibraltar.
- The Gibraltar non-resident company may not trade or carry-on business in Gibraltar with residents of Gibraltar. It may however trade with other exempt or qualifying companies or non-resident persons.
- The company must maintain its Company Register, Registered Office and Resident Secretary in Gibraltar.
- The company must not remit income to Gibraltar.
It may also be practical to open the offshore bank account in a country situated closer to the place of the actual business of the company – or to the actual location of its beneficial owners.
If the above four criteria are satisfied, a Gibraltar company will be considered “non-resident”. As such, it will not fall under the Gibraltar tax system by definition and will not be required to register for Gibraltar taxation purposes.
Gibraltar company formation set up timescale
A Gibraltar company can be incorporated in five days, once all information and proof of identity has been received.
Registration of an offshore company in Gibraltar
To register an offshore company in Gibraltar company, you will need to provide the following information:
To do this, you will need to provide documents such as your incorporation certificate and proof of address. Once your bank account is open, you will need to deposit the minimum share capital of £1,000 (or equivalent). After that, you will be able to start operating your offshore company in Gibraltar.
Taxation of a non-resident company in Gibraltar
Corporate taxation in Gibraltar is based on the principle of value-added tax. This value-added tax is levied on the value of goods and services produced in Gibraltar. The value of goods and services taxable in Gibraltar is generally the same as the value of goods and services taxable in the United Kingdom.
However, some double taxation treaties between Gibraltar and other countries may exempt certain types of income from value-added tax. Double taxation treaties are also used to avoid double taxation of income earned in Gibraltar by non-residents.
In addition to value-added tax, Gibraltar also imposes a wealth tax on individuals and companies. This tax is levied on the value of assets held in Gibraltar. The rate of this tax depends on the type of asset held.
For example, the rate for real estate is 0.5%, while the rate for shares is 1%. The rate for bank deposits is 2%. The rate for life insurance policies is 3%. The rate for other types of assets is 4%. Income taxes are also imposed on individuals and companies in Gibraltar.
The income tax act also provides for several deductions and allowances which can be used to reduce the amount of tax payable. These include deductions for charitable donations, medical expenses, and pension contributions. Allowances are also available for certain types of expenditure, such as research and development expenditure.
Setting up offshore companies in Gibraltar
First, you’ll need to appoint a company secretary. This is an individual who is responsible for maintaining company records and ensuring that the company complies with applicable laws and regulations.
Second, you’ll need to choose the type of company you want to set up. The most common types of offshore companies are private companies limited by shares and existing company. Each has its advantages and disadvantages, so it’s important to choose the right one for your business.
Finally, you’ll need to decide on the business entities you want to include in your company. This includes things like shareholders, directors, and officers. Once you have all this information, you’re ready to start setting up your company in Gibraltar.
Top benefits of incorporating an offshore company in Gibraltar
Top benefits of incorporating an offshore company in Gibraltar
They are exempt from Gibraltar income tax, Gibraltar capital gains tax and Gibraltar inheritance tax.
Additionally, Gibraltar has a territorial taxation system, meaning that only Gibraltar-source income is subject to taxation. This can be a significant advantage for businesses that have operations in multiple jurisdictions.
Finally, Gibraltar enjoys a high level of political and economic stability. This makes it an ideal jurisdiction for businesses that are looking to protect their assets and operations from instability in other parts of the world.
Overall, Gibraltar company formation offers several advantages that make it an attractive option for businesses of all sizes.
Offshore bank account Gibraltar
However, a company is free to open an account where it wishes. Therefore, a company registered in Gibraltar may well have its bank account in Switzerland or at any other jurisdiction as most suitable for its own business projects.
To determine what would be the most appropriate jurisdiction for your account, our business advisors will be happy to assist you.
Non-resident Gibraltar company formation FAQs
What levels of confidentiality can I expect?
Additionally, confidentiality can help to protect your company’s trade secrets and intellectual property. As such, it is important to take steps to ensure that your company’s confidential information is well protected.
One way to do this is to use offshore bank accounts and shell companies. By using these types of entities, you can keep your company’s ownership structure and financial affairs confidential.
Additionally, it is important to have strong confidentiality agreements in place with all employees, partners, and service providers. By taking these precautions, you can help to ensure that your company’s confidential information remains safe and secure.
How does the company legislation work in Gibraltar?
As a result, many companies in the UK have registered in Gibraltar to take advantage of these benefits.
However, the UK government has criticized the government for not doing enough to clamp down on tax avoidance and money laundering. The UK companies registered in Gibraltar are subject to the same taxes as any other company, but the UK government argues that they should be paying more in tax given the low rate of taxation in Gibraltar.
The government has defended its record, arguing that it is compliant with all international laws and regulations. Nevertheless, the issue remains a controversial one, with both sides adamant that their position is justified.
What type of financial statements are required?
In general, you’ll need to provide a balance sheet, income statement, and cash flow statement for the most recent year.
Depending on the nature of your business, you may also be required to submit additional documentation, such as an audit report. But by providing these financial statements, you’ll be well on your way to setting up your company in Gibraltar.