Company registration in Gibraltar: Legal aspects and advice

Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.

To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.

If you plan to start a business in Europe, Gibraltar is an excellent choice for registering your company.?

The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Gibraltar, and is ready to share its results and help you choose the right jurisdiction.?

What are the main advantages of incorporating a company (business) in Gibraltar?

1.Promising location

Gibraltar is located on the southern coast of Spain, at the crossroads of Europe and Africa, with easy access to the Mediterranean Sea and the Atlantic Ocean. This strategic location makes it ideal for companies looking to do business with European and North African countries.

2.Transparent legal system

Gibraltar’s stable legal system is based on English law, known for its reliability and transparency. This system protects the rights of entrepreneurs and investors by offering clear rules for doing business. As a result, Gibraltar attracts international companies that value legal predictability and security.

3. Ease of the registration process:

The incorporation process in Gibraltar is relatively quick and straightforward, with minimal bureaucratic requirements. To register a company, only one shareholder and one director are needed, both of whom can reside anywhere in the world, simplifying business management. The absence of minimum share capital requirements allows companies to be registered without significant initial financial expenses.

4. Favorable tax system

One of Gibraltar’s main advantages is its favorable tax system. The standard corporate tax rate for companies is only 15%, one of the lowest in Europe. Additionally, there is no value-added tax (VAT) in Gibraltar, significantly reducing the overall tax burden for companies. Non-resident companies in Gibraltar are exempt from local taxes and benefit from reliable asset protection through a developed banking infrastructure.

5. Highly skilled workers

Gibraltar boasts a high level of education and skilled workers, a significant number of them are fluent in English. This facilitates communication with international partners, enables global business operations, and ensures the effective functioning of companies across various sectors of the economy.

How to register a company in Gibraltar and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process
• Preparation and filing of the package of documents

Step 2. Company registration

• Verification and reservation of the company name at the Companies House Gibraltar
• Facilitating the notarial process for the company’s official registration
• Incorporating the company’s data into the Companies House Gibraltar
• Obtaining the Certificate of incorporation, Memorandum and Articles of Association
• Corporate bank account opening

Requirements for registering a company in Gibraltar on the example of a? Private Company Limited by Shares (LTD):

• Shareholders: at least one shareholder (can reside from anywhere in the world).
• Director: at least one director (can reside from anywhere in the world).
• Company Secretary: at least 1 company secretary.
• Minimum Share Capital: there is no minimum capital requirement.
• Liability: the shareholders’ liability in a Gibraltar company is limited to the amount of shares respectively held by them.
• Accounting: an annual return must be filed annually with the Companies Registration Office regardless of whether the company has traded or not.

What do you have to know about taxes when registering a company in Gibraltar?

Corporate income tax (CIT):

The standard CIT rate is 15%.

The CIT in Gibraltar is charged on the income accruing in or derived from Gibraltar, on the profits or gains of a company or trust from any trade or business corporation.

Utility companies or companies enjoying a dominant market position are liable at a higher rate of 20%. Included in the latter are companies providing electricity, fuel, water and telephony services.

Personal income tax (PIT):

The standard rate of PIT is 20%.

Individuals have the choice of being taxed under either an Allowance Based System (ABS) or under a Gross Income Based System (GIBS) and will be assessed for tax under the system that results in the lower tax.

Individuals who have opted to be taxed under the ABS will pay tax on their taxable income (assessable income less allowances) at the following rates:

• 1. Individuals with gross assessable income not exceeding ￡100,000:the first ￡4,000 of taxable income – 15%;the next ￡12,000 of taxable income – 18%;balance – 40%.
• 2. Individuals with gross assessable income exceeding ￡100,000:the first ￡4,000 of taxable income – 16%;the next ￡12,000 of taxable income – 19%;balance – 41%.

Individuals who have opted to be taxed under the GIBS will pay tax on their assessable income at the following rates:

• 1. Individuals with gross assessable income not exceeding ￡25,000:
• the first ￡10,000 of assessable income – 7%;
• the next ￡7,000 – 21%;
• balance – 29%.

• 2. Individuals with gross assessable income exceeding ￡25,000 & up to ￡100,000:the first ￡17,000 of assessable income – 17%;the next ￡8,000 – 20%;the next ￡15,000 – 26%;balance – 29%.
• 3. Individuals with gross assessable income exceeding ￡100,000:the first ￡17,000 of assessable income – 18%;the next ￡8,000 – 21%;the next ￡15,000 – 27%;the next ￡65,000 – 30%;balance – 27%.

Value-added tax (VAT):

• There is no VAT in Gibraltar.

For readers?

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Gibraltar. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.?

By choosing our company formation service in Gibraltar, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Gibraltar and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.