Gibraltar may be easily considered as one of the most favourable offshore European jurisdictions. Even if it has strict compliance requirements, this may even add value for the jurisdiction and open new business opportunities for businessmen worldwide. This brief overview of this jurisdiction will assist you make a final choice while considering Gibraltar as a destination for investing your funds.
Major Forms of Business Presence in Gibraltar
If you want to establish your business presence in Gibraltar, you may do this in one of the next forms:
- Limited Liability Company – this entity is one of the easiest and most convenient to form. The founders (shareholders) bear the liability for all company’s undertaking solely within their contributions or the determined guarantee. There are no formal requirements concerning the amount of statutory capital. This type of a vehicle may be either (i) private where certain restrictions to the transfer of shares are applied or (ii) public where shares can be transferred to the public subject to certain conditions; the minimal statutory capital for the public company constitutes GBP 20,500.
- Unlimited Company – the founders of the entity bear unlimited liability for all existing undertakings.
- Protected Cell Company – an entity designated specifically to secure assets.
- General Partnership – a vehicle is formed by partners who are entirely responsible for entire undertakings.
- Limited Partnership – a business formation may be created and operated by (i) at least one general partner who is entirely responsible for all undertakings and manages the overall joint commercial activity and (ii) limited partners who contribute to this arrangement only and are financially responsible for its undertakings exclusively within the limits of the amounts invested.
- Limited Liability Partnership – is a vehicle similar to the preceding (it also has one general partner) with the core difference related to the liability of partners – they bear zero responsibility for actions and omissions of each other in the course of running joint commercial activity.
- Branch – this option of business presence is suitable for testing commercial opportunities that Gibraltar offers to its investors.
If you are going to create an offshore company in Gibraltar, a company of this type is not allowed to sell goods and services to the citizens of Gibraltar.
Registration Requirements and Steps
- Defining your business priorities in Gibraltar and composing a business plan.
- Identifying a business name.
- Collecting information about founders and beneficial owners.
- Arranging the business address for the prospective entity.
- Drafting statutory documents (Memorandum and Articles of Association).
- Completing registration forms and submitting the set of documents for the registration. The information about the newly-founded entity is entered to the Business Register maintained by the Companies House.
- Registration for tax and social security purposes.
- Opening a bank account in a local bank.
- Obtaining licenses and permits for conducting certain activities.
The exact registration procedure may vary depending on a certain case. Contact Prifinance specialists for obtaining more precise information on this matter.
Legal and Regulatory Framework
The legal system of Gibraltar is quite stable and based on the UK model. The legal environment may be generally considered very favorable for doing business, especially in terms of taxes. The registration procedure was simplified to encourage foreign investors to enter Gibraltar.
The major legal acts regulating business creation and operation are the Companies Act, the Limited Partnerships Act, the Limited Liability Partnerships Act, the Partnership Act, the Protected Cell Companies Act, the Financial Services Act.
The major state bodies non-resident investors can potentially deal with here are the Companies House, the Financial Services Commission.
Advantages of the Jurisdiction
If you think about setting up a company in Gibraltar, you may potentially enjoy these opportunities:
- Generally favourable conditions for doing business
- Rapidly growing financial sectors
- Numerous opportunities for entering European markets
- Encourages the operation of start-ups
- Skilled and qualified employees
- Opportunities for sufficient asset protection
- Comparatively reasonable costs for establishing an entity here
- Modern and well-developed infrastructure
- Comparatively low tax rates
If you Consider Gibraltar as your target jurisdiction, it can offer you the next tax benefits:
- Corporate income tax rates – 10% (general) but 20% for entity’s (i) abusing the dominant position, and (ii) energy and utility providers.
- VAT – N/A
- Withholding tax rates – N/A
- Capital gains tax rates – N/A
How Prifinance Specialists May Help You
If you are uncertain about opening a company in Gibraltar, financial specialists may consult with you more precisely about all the peculiarities of the process and assist you with submitting all required documents and opening a bank account for your company. Our specialists will also be glad to facilitate resolving any other matters that may potentially arise in the course of the next operation of your company. Don’t hesitate to reach out to us if you have questions in this regard.