How to start a business in Gibraltar
Low taxes, a stable legal system, and proximity to the EU are reasons to start a business in Gibraltar. Moreover, it is easy to register a company there. The main thing is to fulfill all the conditions and collect the required package of documents.
The form of business registration
Before opening a company in Gibraltar, it is necessary to choose the company type. The most popular are individual entrepreneurs, LLC, and partnerships.
Individual entrepreneur
The easiest and cheapest way to start a business is to register an individual entrepreneur in different state organizations. In this case, a person pays taxes as an individual and bears unlimited responsibility for his actions. Some entrepreneurs prefer to conduct business under a business name, but in this case it is necessary to issue it in the Registration Chamber. t's vital to remember that some types of activity requires a license.
LLC
One or more people can open an LLC. This form of registration makes the shareholders responsible within the limits of their shares. Before opening an LLC, it is necessary to develop a Charter, which sets out the objectives, rights, duties, dispute resolution mechanisms, and other issues.
The company acts as a separate legal entity, which allows its owners to enter into an agreement and provide services without unlimited personal liability. The owners pay taxes based on the company's profits.
Gibraltar partnership
A Gibraltar partnership (full or limited liability) is one of the most common business options because of its simple form of incorporation. It has no separate legal entity, and the partners' liability is not limited to a share.
Both partners are liable with full liability. A limited partnership implies the following:
- The general partner is responsible for the entity and its operations;
- Investor, who does not interfere in the company's work and has limited liability.
- While you form a partnership, it is essential to spell out all the rights and obligations of the parties.
Business registration
Once you choose the form of business, it is necessary to register a unique company name in the Registration Chamber. Then you need to fill out a special form, attaching the necessary documents:
- Copies of passports of owners, directors, and shareholders of the company.
- The contract for the lease of an office in Gibraltar.
- Certificate from the bank, which confirms the availability of share capital in the account.
- A receipt that confirms the payment of public duties.
- For the successful registration of a company in Gibraltar, you must hire a secretary, shareholder, and director. If there is more than one director, one can be the secretary. When complete confidentiality is required, you can hire nominee secretaries and directors and run the business on their behalf.
When the documents have been sent to the registrar, you must apply to the Tax Inspectorate. Then you need approval from the Ministry of Employment, after which a tax officer will complete the registration process and issue a package of corporate documents.
What to do after starting a business
If you need a license to run your business, you must get one. You also need to comply with these requirements:
- Each employee must be registered with the IRS and have a tax code.
- Income tax and social security fees must be remitted by the 15th of each month.
- You must keep records of all business transactions.
- You must regularly submit all required reports (employer's tax return, contribution to a pension plan, and so on).
- The business tax year runs from 1 July to 30 June. You must submit your tax returns no later than November 30th.
- If your company was working in deficit, you should submit tax returns.
- If the company was idle during the year, you must submit a letter of explanation instead of the accounts. If you do not plan to continue working, you need to supplement the form on the company's liquidation.
How to quickly start a business in Gibraltar
Contact IT-OFFSHORE to start a business in Gibraltar in 2023.