Offshore Company Formation – Gibraltar
Gibraltar is located opposite the northern coast of Africa and belongs to the EU. It’s one of the oldest financial offshore centers with stable legal system based on common and statute laws of England and current EU directives. The major corporate act applicable to the offshores is the Companies Act dd. 1929 as amended. Legal entities are incorporated in the form of a non-resident company. GB pound is a widely used currency.
Basic Information and Calculation of Expenses
Offshore companies in Gibraltar are not entitled to carry out any business or trade within Gibraltar. They are also obliged to obtain a special license if their business is related to investments, insurance, banking, trust, etc.
Note that the GM of Shareholders must be convened every year in any part of the world, whereas the Meeting of Directors is not required by law. The registered office, address and secretary are obligatory.
The incorporation full package costs approximately USD 1,800 and USD 2,100 with nominee services. The renewal price which includes government, registered Agent and Office fees is USD 990. A bank account costs from USD 300 to USD 1,100 depending on a jurisdiction. The issuance of additional certificates for day-to-day activities is USD 150-300.
The annual filing fee is GBP 30 paid to the Registrar; the annual fixed tax rate is GBP 200 paid to the tax authorities. Moreover, a special fee in the amount of 0.5 per cent of the authorized capital is paid upon registration (the capital duty).
Most entrepreneurs seek legal consultants’ assistance for registration procedure which takes 5-6 working days (notary certification takes 1-3 working days, and 3-5 days for delivery of documents):
- Selecting a corporate name for a new company. Note that there are a number of name restrictions imposed by law. Ready-made companies are also available.
- Considering corporate structure, the authorized capital, class and types of shares, nominee services if needed.
- Preparation of the documents.
- Filing the documents to the Companies Registry; approval of a company’s name by the Registry.
- Upon the confirmation of registration the set of corporate documents is sent to the client by courier.
- Additional services if applicable (Notary certification, Apostille, translation services).
Taxation in Gibraltar
Non-resident companies are free from any taxes provided that income is derived outside the country. Instead of this, offshores pay annual tax in the amount of GBP 200. It should be noted that a bank account opened in a bank in Gibraltar is subject to taxes, that is why it is recommended to open an account outside the jurisdiction. The country didn’t enter into any exchange treaties.
Unlike most offshore jurisdictions, companies in Gibraltar must comply with a certain requirements in respect of accounting and records. Small companies with an annual turnover of GBP 4.8 mln submit a balance sheet in a simplified form. Auditor’s report is not required. Large companies provide financial statements, auditor’s report and balance sheet to the tax authorities. All financial records are kept confidential and not available to the public.
Offshore companies also keep the Register of Directors and Shareholders. The statutory books are kept in the registered office.
Advantages of Offshore Companies in Gibraltar
- Exemption from any taxes.
- Stable and reputable EU jurisdiction.
- Full secrecy and strict confidentiality of beneficial owners provided that they are not involved in illegal activity.
- Simple reporting procedure for small businesses.
- Nominee services.
- No need to visit Gibraltar for offshore business.
- Flexible corporate requirements.
- Absence of exchange control.
- Paid up capital is 1 pound only.