COMPANY REGISTRATION IN GIBRALTAR

Company registration in Gibraltar will open your possibilities within the European market with a highly reputable jurisdiction and one of the lowest tax rates available in Europe.

Gibraltar continues to provide several benefits to both entrepreneurs and big businesses seeking to take use of the spectrum of solutions available in Gibraltar for various businesses, financial services and gaming licences.

Gibraltar combines a warm, Mediterranean climate and a vibrant lifestyle with robust economic growth and a favourable tax structure. It has a great international reputation for stability and efficiency, thanks to its well-developed infrastructure and cautious regulatory framework. 

A company in Gibraltar can be formed in less than 2 weeks and has great infrastructure of services in areas such as banking, accounting and other related business services. Below, EU LAW FIRM lawyers answer a set of general questions regarding the jurisdiction, company registration in Gibraltar and the requirements for businesses.

Description of Limited Liability Company in Gibraltar:

• The most common type of company in Gibraltar;
• Liability is limited only to share contributions;
• No restrictions of nationality for directors and shareholders;
• Minimum 1 director and 1 shareholder;
• Only income which accrues in or is derived from Gibraltar is subject to tax in Gibraltar. In essence, as long as the income-generating activity of a company takes place outside Gibraltar, it will not pay corporate tax in Gibraltar;
• There are two exceptions: royalty income and interest income of more than £100,000 in any one tax year. In such cases, all such income will pay corporation tax at the standard rate of 12.5% per annum;
• Great banking & accounting infrastructure;
• Friendly business environment.

Why start a business in Gibraltar?

Gibraltar is home to a number of important organizations from many industries, including insurance, gambling, real estate, and cryptocurrency, and is the jurisdiction of choice for foreign companies seeking to establish a strategic European presence.

• Tax rules

Gibraltar is immune from EU VAT rules and has complete fiscal autonomy. In general, companies are taxed in Gibraltar on revenue earned and generated from the territory. There is no VAT in Gibraltar. 

• Economy and business

Gibraltar allows international shareholders, encourages foreign direct investment, and does not impose restrictions on capital imports or foreign earnings like interest, royalties, or other comparable sources of income. Particular industries, on the other contrary, are subject to regulations that need special authorization, for example, gaming businesses established in Gibraltar.

• Reputability of jurisdiction

Gibraltar’s top priorities are its reputation, improved regulatory environment, and legitimacy. The jurisdiction keeps its financial regulation, supervisory law, and anti-money laundering legislation up to date in order to meet EU requirements and UK standards. 

Tax system in Gibraltar

1. Corporate income tax in Gibraltar: The ordinary corporate income tax rate is 12.5 % (from 1 August 2021), with a higher rate of 20 percent for utility and energy suppliers and enterprises that abuse a dominating position. Corporate income tax in Gibraltar is paid only on income generated from Gibraltar. On all foreign profits 0% tax applies.
2. Value added tax in Gibraltar: There is no VAT in Gibraltar.
3. Withholding tax: There are no WHTs in Gibraltar, except payments to subcontractors in the construction industry and payments to employees under the PAYE system.

DOCUMENTS REQUIRED FOR COMPANY REGISTRATION IN GIBRALTAR

For individuals:

• Passport copy of all shareholders;
• Passport copy of all directors;
• Copy of a recent utility bill not older than three (3) months.

If shareholder is a legal person:

• Copy of Certificate of Incorporation or other similar document; evidencing the entity’s existence; 
• Copy of the Register of Directors;
• Copy of the Register of Shareholders;
• Copy of valid passport of the Directors;
• Copy of a recent utility bill issued no more than three (3) months ago of the Directors;
• Copy of valid passport of the Shareholders holding 25% or more shares;
• Copy of a recent utility bill issued no more than three (3) months ago of the Shareholders holding 25% or more shares.

For each ultimate beneficial owner (owns at least 25% or more shares):

• Copy of valid passport;
• Copy of a recent utility bill issued no more than three (3) months ago;
• Bank Reference Letter;
• Professional Reference Letter. The professional letter can be issued by an independent professional, such as a lawyer or an accountant

Note: All documents in a foreign language must be translated into English and certified by a qualified translator.

DOCUMENTS REQUIRED FOR GIBRALTAR COMPANY BANK ACCOUNT

• Passport copy of all directors and shareholders.
• Utility bill not older than 3 months.
• CV of the company management.
• Business plan.

Banks may request additional documentation from case to case.

Note: All documents in a foreign language must be translated into English and certified by a qualified translator.

Need more help to set up a business in Gibraltar?

Just get in touch with us to get more information about company formation in Gibraltar. We typically respond in 2 hours.