Offshore company in Gibraltar: what you need to know
Gibraltar is a small British overseas territory located in the south of the Iberian Peninsula. The region is an ideal place for companies looking for a jurisdiction that is not considered offshore, but offers low or zero corporate tax. The region is also a fast-growing financial center, located in Europe, and has access to EU trade agreements. Hence, it is beneficial to open an offshore company in Gibraltar.
The advantages of Gibraltar
Local incorporation is an ideal option for businesses that plan to operate in the EU, because you don't have to pay tax on income earned outside of Gibraltar. It is only paid on income that has been generated locally, which makes it profitable to do business abroad. Gibraltar companies also benefit from not having to pay tax on the following:
- capital gains;
- value added;
- sales tax;
An important note: the company is not subject to tax if it conducts its business outside the jurisdiction, owned by non-residents, and directors reside and hold meetings outside Gibraltar.
Other advantages of Gibraltar offshore
Gibraltar provides non-resident companies with the same benefits as local businesses, as well as sole foreign ownership, access to European markets, and minimal financial reporting for small businesses.
Among the advantages of registering companies offshore Gibraltar 2022:
- A well-developed banking system where you can easily open a corporate account;
- English is official, so there are no problems with documentation;
- Modernized economy and infrastructure.;
- Close ties with the UK and its territories, the EU;
- Company name can be in any language;
- Possibility of sole ownership of the enterprise;
- Strong asset protection.
Features of the registration in Gibraltar
An offshore company in Gibraltar is a legal entity which can be registered and established in a few days with a minimal fee and a small package of documents. To register it, the client must come up with a unique name and provide the registrar with these:
- Memorandum and Articles of Association of the company;
- A certificate that confirms the existence of a legal office. The company must keep in it a copy of the Register of Shareholders and Directors;
- Authorized share capital;
- Payment of the state fees;
- Details of the local secretary (physical or legal person);
- Copies of passports and resumes of the directors.
The minimum capital required is £1. However, it is better to put a standard amount of £2000, which is needed for the minimum capital tax to be paid at registration. The capital duty above £2000 is 0.5%.
All non-resident companies must keep and maintain accounting records. If the company qualifies as a "small business" can be limited to an abbreviated balance sheet and do not file a profit and loss account, auditor.
In order for a business to qualify as a small business, 2 of the 3 requirements must be met:
- Net annual turnover of no more than £6.5 million;
- Total balance sheet total under £3.26 million;
- The number of employees is not more than 50.
Annual returns must be filed with the Gibraltar Registry of Companies. The first declaration must be filed within the first 15 months, then once a year.
What is important to know
Information about the beneficiary, directors, and shareholders is publicly available and is disclosed in the corporate registry. If the owner wants to remain incognito, nominee services can be used.
Financial and accounting records are not publicly available. But you should know that Gibraltar is on the white list of the OECD and FATF (fighting against money laundering), as it has signed three dozen agreements on the exchange of tax information.