Company formation for non-residents in Gibraltar
Like most British Overseas Territories, Gibraltar is considered an international financial center. This status invites non-residents to utilize the local infrastructure of the jurisdiction. Even though Gibraltar is geographically located in Europe, direct access to the European single market is provisionally blocked due to the Brexit agreement. Like most companies registered in offshore financial centers, access to the European single market is not always necessary and ample solutions are available to international businesses. This makes Gibraltar an excellent jurisdiction for non-resident company formation.
Taxation in Gibraltar is mainly imposed on individuals. Offshore companies in Gibraltar benefit from a variety of tax benefits. As such, there is no capital gains tax, wealth tax or VAT, and companies that do not trade in Gibraltar can receive tax exempt status for corporate income tax. The neutral fiscal status of Gibraltar offshore companies is justified by the authorities with relatively high fees to set up and maintain these company structures. As such public income from the offshore industry is derived in an alternative way. Still, the location, infrastructure and credibility of the jurisdiction appeals to professionals and small and medium-sized enterprises availing themselves of the serious and well-grounded reputation of Gibraltar.
Business people not residing in Gibraltar but willing to incorporate in the jurisdiction need a licensed corporate service provider to follow the administrative procedures for company formation and registration. Equation CS is a licensed corporate service provider with extensive experience in many tax- and cost efficient jurisdictions, Gibraltar included. Its collaboration with Legal Floris LLC ensures a holistic approach towards risk management, where the most appropriate relationships with financial institutions are selected. The result is that mutual clients of Legal Floris LLC and Equation CS can focus on growing the business itself, instead of the peripheral matters that deviate from the original purpose.
Gibraltar companies often have bank accounts overseas. Financial institutions and investment firms can fail, placing their customer deposits at risk. Legal Floris LLC provides Gibraltar companies with asset and fund recovery services in case of bank failure and investment fraud. Our asset recovery services include unexpected bank account blocks and closure, theft, embezzlement and other illicit acts to depart creditors from their assets.
Business people who set up a company in Gibraltar need to open a bank account to officially start trading. Bank account opening for offshore companies differs from personal account opening in the home country of the beneficiary. Customer due diligence includes the verification of the identity of the beneficiary and the good standing of the company. We assist Gibraltar companies with bank account opening.
Offshore companies formed in Gibraltar have their tax residency in the jurisdiction, provided that proper structuring occurs. This is one of the considerable advantages of incorporation in offshore jurisdictions. Corporate tax residency can be challenged by foreign tax authorities when argued that management and control, or a so-called ‘’permanent establishment’’ are elsewhere. Therefore, international company structures must be established with care and diligence.
Gibraltar companies are used for a variety of activities. Alongside the traditional trading activities, management of subsidiaries or property rights in a Gibraltar holding company can be advantageous as well by separating and protecting these rights from the trading entity. Gibraltar holding companies can qualify for tax exemption for their income. Capital gains then accumulate in a vacuum while resulting in increased profitability in the holding company.
A Gibraltar company separates the company from its shareholders. The incorporation procedures are codified in the Companies Act. The Act describes the incorporation matters, legal requirements and operation of companies incorporated in Gibraltar. Incorporation includes the formulation of the memorandum and articles of association, the appointment of the first director, a secretary and shareholder.
Gibraltar companies have at least one director, secretary and shareholder. The beneficial owner of the company can protect himself from visibility by appointing an external director and a professional secretary. These appointments also enable the company to emphasize its local presence. Nominee services are provided by a licensed corporate service provider. This same corporate service provider incorporates the Gibraltar company.