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Company formation in Gibraltar

Company formation in GibraltarWhy businessmen choose Gibraltar and why is it so attractive for starting and running a business?

The Gibraltar's economy is one of the greatest achievements of the country. It has grown steadily in recent years: GDP for 2019 was estimated at

£ 2.35 billion, up 8.2% over the previous year. Occupying the 9th position in the world list of the level of GDP, Gibraltar was able to overtake a number of European countries, including France, Italy and Spain.

The indicators of the stability of the financial situation in the country are also the level of employment and the percentage of unemployment. Thus, the number of sales jobs registered in 2018 amounted to 29,995, which is 7% more than in the previous year. Thanks to foreign investment and the physical presence of new companies, the number of jobs is correspondingly increasing.

Finally, on public finance, the government posted a budget surplus of £ 82.8 million for 2019.

In addition, with an unemployment rate of just one percent, Gibraltar ranks as one of the richest places in the world.

Company taxes and why should you pay attention to them?Company taxes and why should you pay attention to them?

Gibraltar's low tax rates attract a lot of foreign investment every year.

If the company makes profits with a Gibraltar origin, the corporate tax rate is only 10%.

If the company does not receive its income from the territory of Gibraltar, then the income is not subject to tax.

This tax system is called “territorial”.

Passive income (includes dividends) is also not taxable.

Royalties are taxed at a rate of 10% if such income is accrued in Gibraltar or received from a source in Gibraltar (it is considered as such by default if the recipient of the royalty is registered in Gibraltar).

It should be noted that in this country there is no tax on deposits, real estate and capital gains.

Also, dividends paid by one Gibraltar company to another are not subject to taxation.

By default, non-resident companies do not pay taxes. Why?

Firms incorporated in Gibraltar are not always considered to be Gibraltar tax residents.

If a company can prove that it is controlled and managed by a non-resident outside the borders, the tax authorities will consider such a company not taxable in that country.

As long as you do not conduct business with any person or entity in Gibraltar, the company will not be subject to Gibraltar corporate tax.

So, the main conditions for avoiding taxationof a company in Gibraltar:

  1. The beneficial owners must be non-residents of Gibraltar;
  2. The directors and shareholders of the company must be non-residents of Gibraltar or they must be professionally licensed Corporate Directors and / or Nominee Shareholders;
  3. The company must operate exclusively outside Gibraltar and have no source of income in Gibraltar. If you decide to conduct business in the territory of a country with residents, then you will need to obtain a license and pay only 10% income tax.

VATVAT: for or against?

Given the volume of reporting and spending on accountant services, the absence of VAT in Gibraltar is more of a plus than a minus. In the absence of VAT, it is much easier to maintain accounting records and generate financial statements.

Gibraltar is outside the EU Common Customs Tariff Area for VAT purposes. Accordingly, a Gibraltar company can issue its invoices without VAT, which makes its services cheaper and the company itself more competitive.

Despite the fact that Gibraltar will remain in the European Economic Area, the registered company can no longer be considered as belonging to the European Union.

It can be concluded that Braxit has, in some ways, been a good influence on Gibraltar, given that the country has become even more independent in its tax policy choices. On the other hand, the inhabitants of Gibraltar themselves often did not share the idea of Great Britain leaving the European Union.

Who is interested in a Gibraltar company formation?Who is interested in  a Gibraltar company formation?

As a commercial center in continental Europe, Gibraltar has earned a reputation as an attractive place to register a business.

Overall, Gibraltar is a popular investment fund jurisdiction as it has fundamental fund legislation, a favorable tax environment, effective legal regulation and undoubtedly protection of property rights.

Also, many of the world's leading gaming companies are headquartered in Gibraltar due to, among other things, world-class telecommunications, experienced professionals and favorable taxation.

Gibraltar is, among other things, a "Mecca" for owners of cryptocurrency exchanges. To open a crypto exchange in Gibraltar, you will need a local lawyer's advice. Moreover, in some cases, when the company's activities come into contact with clients' money, a special license is required. Obtaining such a license in Gibraltar is quite difficult, but realistic. Do not forget that Gibraltar was the first jurisdiction to coordinate the activities of companies working with Distributed Ledger Technology (DLT).

In the bottom line, Gibraltar has established itself as a fairly reliable business location, which is perfect for trading, real estate and securities transactions, asset ownership, founding investment funds and cryptocurrency exchanges.

How to get a DLT license in Gibraltar and why do you need it?How to get a DLT license in Gibraltar and why do you need it?

The legal regulation of working with cryptocurrency in Gibraltar began in 2014, but it was not until 2017 that the Financial Services Law was enacted. This is the main cryptocurrency law in Gibraltar. It simultaneously supports new blockchain projects and reduces the risk of defrauding investors, as well as obliges companies with such activities to obtain a DLT license. Today the regulation of cryptocurrency and blockchain projects in Gibraltar is carried out by the GFSC (Gibraltar Financial Services Commission).

To work legally in Gibraltar, you need to submit an initial application, which will cost £ 2,000. The GFSC will then evaluate the project and draw up a list of requirements that the company must meet.

GFSC names general and fundamental requirements for company policy:

  • Business reputation and transparency to eliminate the risks of financial crimes;
  • Effective communication with clients and experience of working with them, to protect clients from possible risks;
  • Substance in Gibraltar (it is necessary to confirm that the company actually operates from Gibraltar: leases an office and has local employees);
  • Reliable computer systems to protect customer data and secure platform access.

The Gibraltar license is an indicator of the reliability of the company. Getting a DLT and working with it is a great way to show counterparties and clients that the company is running a strong and stable business. Having a license will also make it easier to open an account in payment systems and banks.

The Gibraltar government openly supports the cryptocurrency business, so registering an exchange in Gibraltar probably won't be too energy-intensive.

Which documents are needed to open a company?Which documents are needed to open a company?

To register a company, it is mandatory to provide a standard package of documents:

  • Passport of each director, shareholder and UBO;
  • Proof of the address of each director, shareholder and beneficiary;
  • Documentary confirmation of the source of funds of the UBO for the creation of the company;
  • Description of activities and business plan;
  • Website;
  • CV of each director, shareholder and UBO.

how to register a company in Gibraltar?Okay Google, how to register a company in Gibraltar?

Company registration in Gibraltar is fast if we accompany the process.

One director and one shareholder are required to register a company in Gibraltar (minimum).

There is no need to pay for the authorized capital.

Registration of a company in Gibraltar takes 7-10 business days from the moment when the full package of documents is formed and submitted.

Is it possible to run the company remotely?Is it possible to run the company remotely?

Sure! The company can be completely controlled from anywhere in the world, and the director, being a non-resident of Gibraltar, can manage it remotely without any problems.

The physical presence of the director in the country is not required.

Gibraltar company managingGibraltar company managing

A Gibraltar company is required to prepare and submit an accounting report to the Registrar of Companies once a year.

In addition to the accounting report, it is also necessary to prepare a full income tax return. It is filed regardless of the presence of tax liabilities in the reporting period.

Gibraltar law allows you to select the start date of the company's fiscal year from April 1st to March 31st.

Next, the company submits the balance sheet to the Registrar of Companies for the selected annual financial period within 13 months after the selected financial year. These balance sheets simply need to be signed by the directors of the companies, without having to be checked by an auditor. This procedure greatly simplifies the process of maintaining and submitting reports.

TaxtersWhy Taxters?

We will accompany the procedure for registering a company in Gibraltar "from A to Z", including:

  • Providing a legal address in Gibraltar;
  • Provision of corporate secretary services;
  • Provision of nominee service (if necessary);
  • Provision of notarized and apostilled documents after incorporation;
  • Obtaining a tax number;
  • Direct registration of the company.

For Gibraltar companies, we additionally provide services:

  • preparation and submission of a financial report (balance sheet);
  • preparation and filing of the CT1 Tax Return tax report.

Contact us in any convenient way, and we will fully accompany the registration of the company in Gibraltar for your business!


❓How much tax will my cryptocurrency company pay?

The company will only pay 10% corporate tax. Moreover, capital gains and dividends are not taxed at all.

?How can I file reports in Gibraltar if I don't have an accountant there?

Our company will help you prepare and submit your income tax return and balance sheet.

✈️Can I register a company remotely?

Yes, you do not need to fly to Gibraltar to register a company there.

?To avoid paying tax, how can I prove that the company is not operated from Gibraltar?

It is enough to show that your counterparties are not Gibraltar companies / residents of the country. Also, if the manager of the company is a non-resident of Gibraltar, the tax authorities will consider such a company not taxable in the territory of this country.

?How long does it take to register a company?

On average, it takes 7-10 working days from the moment when the complete package of documents is formed and submitted.

✍How much does it cost to register a company in Gibraltar?

Contact us and we will discuss everything in detail!
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