How to profitably use a company in Gibraltar?

Content:

• General information about the establishment of the company;
• How does Gibraltar compare favorably with other jurisdictions? 

General information on company formation

Gibraltar is a British Overseas Territory located on the border of Europe and Africa and is an extremely attractive jurisdiction. Gibraltar is currently in the stage of economic growth, attracting a large number of investments from all over the world. Also, this jurisdiction is considered one jurisdiction with a high level of confidentiality and a fairly moderate tax regime.

The first step in transferring your assets to Gibraltar is to set up a company. This is quite simple to do compared to other offshore jurisdictions.

First of all, it is necessary to decide on the organizational and legal form of the company, they are of the following types:

• Limited Liability Companies;
• Firms with liability limited by shares;
• Unlimited companies;
• Trusts.

When establishing a company, regardless of its OPF, it is necessary to prepare the following documents:

1. Identity document (passport, ID);
2. Foreign passport and its copy;
3. Application to join Companies House;
4. The constituent documents of the company, such as:
   1. Charter;
   2. Memorandum;
   3. Founders' passports;
5. Application for a taxpayer number.

Also, the future company must meet a number of other requirements, such as:

1. The presence of at least one director;
2. Local secretary;
3. Maintenance and provision of financial and accounting reports;
4. The presence of a legal address.

Certain activities require a special license. One of the most popular licenses is a gambling license that covers bookmaking, gambling, lotteries, as well as a cryptocurrency Distributed Ledger Technology Regulatory Framework license for operating cryptocurrency exchanges, opening electronic wallets, and providing custody services.

How does Gibraltar compare favorably with other jurisdictions?

One of the most important advantages of this jurisdiction is the reduced corporate tax rates - 12.5%, which is competitive with other jurisdictions. But, it is important to understand that only resident companies are subject to taxation. Non-resident companies are exempted from paying taxes, but a number of requirements must be met:

1. The company must be managed outside Gibraltar;
2. The income must be received outside the jurisdiction;
3. The income must not be transferred to the territory of the jurisdiction;
4. The company must not conduct business or any transactions with residents;
5. The founders of the company must not be residents. 

Observing all of the above requirements, the company is recognized as non-resident and, as a result, is exempt from paying taxes. 

In addition to corporate income, non-resident companies are also exempt from the following taxes:

• Value added tax;
• Income tax on dividends;

The Gibraltar government has also entered into a number of double taxation treaties, for example with the UK, which allows for the selection of the optimal tax regime for future business. 

Thus, Gibraltar is an extremely attractive jurisdiction, the laws of which allow avoiding unnecessary taxation and maintaining an adequate level of confidentiality. If you have any questions or need to establish a company in Gibraltar, you can contact the lawyers of A4 Law Firm, where you will be provided with highly qualified support.