Offshore Company Formation in Gibraltar

BridgeWest offers full services for the formation of your offshore company in Gibraltar. We also cover other related services in Gibraltar: opening representative offices, establishing branches or subsidiaries, starting an NGO, or providing accounting services. We can also offer legal consultancy, tax planning and tax minimization strategy.

This countryis a desirable location for opening offshore companies in Gibraltar by foreign businesses. Offshores are considered very advantageous by the foreign investors because Gibraltar taxes companies only on income accrued in or derived from Gibraltar (the former tax-exempt company regime was abolished in 2010). In order to benefit from this type of company, the income must not be accrued in or derived from Gibraltar; the residence of the owners and managers is no longer the test.

A major advantage for both local and foreign companies is that no capital gains are taxed here. In Gibraltar, there is no minimum share capital requested at registration. No VAT is paid in Gibraltar. Also, no wealth tax or estate duty are imposed.

Steps for company formation in Gibraltar

Foreign investors willing to set up a company in Gibraltar are advised to note that the former tax exempt, hybrid and qualifying company regimes have been abolished and that all companies are now taxed on a territorial basis. All of them are regulated by the Companies Act 2014, which is modelled on UK company law.

The registration procedure is made in the same manner as the one applied to domestic companies and is usually advisable to be undertaken by a law firm, which is familiar with the local legislation (a service provided by BridgeWest).

A memorandum of association is required. It has to contain the name of the company and its objectives. Secondly, the articles of association containing the internal regulations must be provided. The above must be deposited at the Companies House which will issue a certificate of registration.

The advantage of setting up a company in Gibraltar is that the founders don’t need to provide a minimum share capital at registration, unlike domestic companies. Once the above steps are completed, foreign investors may start operating business and enjoy the benefits of having an offshore company.

An offshore cannot perform business in the banking area, insurance, assurance, reinsurance or other related financial areas. An offshore company with the owner and the management outside Gibraltar is taxed only on income accrued in or derived from Gibraltar (remittance is no longer the test).

The characteristics of a non-resident company in Gibraltar

One of the most suitable options for offshore company formation in Gibraltar is the non-resident company. An offshore company is usually defined as being a legal entity that is incorporated by foreign investors who do not reside in the country where they set up a business. Another pillar of an offshore is that, although it is incorporated in a given jurisdiction, its operations must not be connected to that country.

In this sense, the non-resident company is the ideal vehicle for offshore company setup in Gibraltar. In the list below, our consultants have highlighted some of the most important traits of this business form:

the owners of the company are not residents of Gibraltar;
its director is also not a resident;
the company can’t trade or carry on business activities with any resident of Gibraltar (thus, its operations must be conducted with entities located overseas);
concerning the 3rd point, the non-resident company may establish business relationships with similar companies set up here;
this legal entity is obligated to maintain its records in Gibraltar and appoint a secretary who is a resident of Gibraltar;
its registered office must also be in Gibraltar;
it is not allowed to remit income in this country.

Company requirements in Gibraltar

Any type of offshore company opened in Gibraltar must have at least one shareholder and one director (they are not required to have their residency here). Nevertheless, the residency of the appointed secretary must be in Gibraltar. The names of these company’s members are confidential, according to the legislation.

An offshore company must have a registered office in Gibraltar and must keep the following registers: the register of directors, the registers of shareholders and the statutory books. There are few records that an offshore is advised to keep. An offshore business has accounting obligations towards local tax authorities, therefore it is necessary to employ the services of an accountant (this is a service provided by our specialists) familiarized with applicable procedures.

As a general rule, an offshore company must pay an annual fee at the Companies House, with a value that may differ from year to year.

Gibraltar company incorporation services

We offer full incorporation services including drafting the Articles of Association (necessary for company incorporation in Gibraltar). The Articles of Association of the Gibraltar company can be signed through Power of Attorney.

We can also draft all other documents required for the incorporation of the Gibraltar company. These documents include: specimen signatures, special forms provided by the Company Registration Office in Gibraltar, passport copies etc.

Also, we can offer a registered office in Gibraltar for your company, which is mandatory to have for starting a business in this offshore jurisdiction. The registered office may be a PO Box. Please address us for setting up a bank account for your Gibraltar company. Investors who will operate through an offshore company should open an offshore bank account.

How can investors open an offshore bank account in Gibraltar?

Investors can choose from several banks that can serve non-resident businessmen. Some of them offer top digitalized services and in some cases, foreigners can complete the entire procedure online. The registration procedure follows the same steps, as established by the law, so all foreign investors should provide the same documentation.

However, banks may have different requirements concerning the minimum capital, the types of currencies in which investors may set up the account and other matters. In the list below, we invite you to find out a few important matters regarding this subject:

the bank account can be set up in a period of 2 to 4 weeks;
investors can set up the account in at least 3 international currencies (USD, GBP, EUR) and they can also opt for multicurrency accounts;
for online bank account registration, the application can be processed in around 24 hours;
there are around 10 banks in Gibraltar.

Gibraltar key facts

The following incomes are charged in Gibraltar: the profits from businesses, professions, trades, rent, profits from property and those arising from employment. Companies pay corporate tax at 15% (since 1 July 2024; previously 12.5%); energy and utility providers are taxed with a 20% rate. Individuals are taxed under either the allowance-based system (14%–39%) or the gross income-based system (6%–28%), whichever gives the lower tax, but certain incentives are granted according to the tax system used in calculation of the taxes.

Gibraltar’s economy is especially based on the service industry, financial services and retail shopping. Nowadays, higher importance is granted to the telecommunication systems, the import and export activities and light manufacturing.

Known especially as a touristic location, Gibraltar has started to develop its commercial sector in the last few years, mostly because of the favorable economic environment.

Bridgewest provides company formation services in Gibraltar. Please contact us for more information and prices on our packages for opening a company in Gibraltar.