Company Formation in Gibraltar
- Registered office services
- 12.5% corporate tax rate
- No inheritance or wealth tax
- No capital gains tax
- No VAT
Company formation in Gibraltar is an attractive option for many business owners due to its favorable tax regime, strategic location at the entrance to the Mediterranean, and status as a British Overseas Territory, which provides a stable legal and regulatory environment. Here’s an overview of the key steps and considerations for forming a company in Gibraltar:
1. Choose a Company Type
The most common type of company formed in Gibraltar is a private company limited by shares. Other types include companies limited by guarantee, unlimited companies, and public limited companies.
2. Company Name
Your company name must be unique and not similar to existing companies in Gibraltar. It’s advisable to check the availability of your proposed name with the Companies House in Gibraltar to avoid any conflicts.
3. Registered Office
Every company in Gibraltar must have a registered office within the territory, which serves as the official address for all formal communications.
4. Directors and Shareholders
You’ll need at least one director and one shareholder, which can be the same person. Directors can be of any nationality and do not need to be residents of Gibraltar. Corporate directors are permitted, but at least one director must be a natural person.
5. Memorandum and Articles of Association
These documents outline the company’s activities, the internal management affairs, the rights of the shareholders, and the powers of the directors. They need to be prepared and filed with the Companies House as part of the incorporation process.
6. Share Capital
There is no minimum share capital requirement for a private company limited by shares in Gibraltar, but the standard authorized share capital is £2,000 divided into 2,000 shares of £1 each.
7. Tax Considerations
Gibraltar has a corporate tax rate that is competitive within the European Union. Companies that are managed and controlled from Gibraltar are subject to corporation tax on their worldwide income. However, there are special tax regimes for certain types of businesses, such as gaming companies and financial services companies, which might offer more favorable rates.
8. Legal and Regulatory Compliance
Depending on the nature of your business, you may need specific licenses or permits to operate legally in Gibraltar. This is particularly relevant for financial services, gaming, and other regulated industries.
9. Banking and Finance
Opening a corporate bank account in Gibraltar or elsewhere is an essential step for operational and transactional purposes. The banking sector in Gibraltar is well-developed, with many local and international banks offering corporate banking services.
10. Annual Requirements
Companies in Gibraltar must file annual returns and financial statements with the Companies House and may need to audit their accounts, depending on their size and turnover.
Conclusion
Forming a company in Gibraltar can be relatively straightforward, but it’s essential to ensure that you comply with all legal and regulatory requirements.