Gibraltar is a small country, which is a well-known offshore jurisdiction. Until recently, Gibraltar, being the dependent territory of the United Kingdom, was a member of the European Union. Despite the exit, this destination remains to be popular among various businesses, including companies offering online services and products, companies operating in such industries as digital currencies. Investors express their optimism towards the future of Gibraltar and its economy.
Did Gibraltar exit the European Union?
Since the UK departure from the European Union, Gibraltar having a status of the British Overseas Territory is no longer a member of the Union. During the transitional period there will be some changes that would probably impact on customs and immigration laws, but most probably it will not influence on the process of company formation, taxes and non-resident companies benefits.
Gibraltar remains an excellent jurisdiction for setting up online business. This jurisdiction is especially favourable for such legal structures as offshore companies and trusts. As explained below, your company is not required to perform any business in Gibraltar. Thus, it is unlikely that your company will face any difficulties with customs or immigration problems.
How can a company incorporated in Gibraltar benefit from its tax regime?
Companies incorporated in Gibraltar with a status of a non-resident company benefit from its favourable tax conditions. Non-resident companies are exempt from taxation and reporting requirements as long as they do not perform any business within the country.
To maintain non-resident status a company should not have office and perform any operations within Gibraltar or any local companies. In order to have such status it is necessary to follow these requirements:
- Non-resident company’s shareholder(s) should be residents of countries other than Gibraltar;
- All annual and extraordinary meetings should be held outside of Gibraltar;
- Non-resident company should not have an office in Gibraltar;
- It should not perform any activities in Gibraltar or gain any income from Gibraltar.
Non-resident companies benefit from the zero-tax regime. Coupled with non-expensive maintenance costs this jurisdiction is highly favored by business owners.
What is the process of company formation in Gibraltar?
Before we prepare documents for company formation in Gibraltar, we advise our clients to analyze the type of business to be performed. In particular, it is essential to understand the source of income. If the future company would operate outside of Gibraltar and no business is intended to be performed in this country, then it is recommended to obtain a non-resident status for the company. In this case, it is advisable to appoint non-resident directors and make sure that shareholders are not Gibraltar residents as well.
It takes 1-2 weeks to complete the company incorporation process. If you plan to register the company by yourself, then you can submit all documents electronically through Companies House. English is the official language, so business owners do not face any difficulties with communication.
What are the most popular types of business for company formation in Gibraltar?
Gibraltar is a well-known international offshore center with such developed sectors as financial services, banking services, shipping and tourism. Many clients set up Gibraltar trusts for asset protection or property ownership. As with LLCs, there is no taxes imposed on trusts if their income is derived from outside of Gibraltar and its beneficiary is not resident of Gibraltar.
Gibraltar supports businesses that operate in the sphere of cryptocurrencies and conduct an ICO. This country is one a few pioneers in the legislative development of distributed ledger technology regulation. On 1 January 2018 the Distributed Ledger Technology framework was entered into force making Gibraltar the first country to regulate businesses that use DLT.
Besides, Gibraltar is a favourable jurisdiction for IT business. Many companies operating in cloud services, software development and sale, software licensing find that Gibraltar has a positive legislation for such businesses.
Did you know that you can use our website to incorporate a company in Gibraltar? For further information, please contact us for any questions related to company formation and reporting requirements.