Gibraltar

Key benefits

Gibraltar is a small British overseas territory located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean.

Total area of the country is 6.8 square kilometers. Population is 32 thousand people.

Local currency – GBP.

Gibraltar has signed Hague Convention in 1961, all the documents issued in the country can be certified by Apostil.

There are no Information Exchange Treaties between Gibraltar and other countries.

Gibraltar has no Double Taxation Treaties signed.

Gibraltar is not included in “black list” of FATF.

Benefiting from a stable and growing economy and a favourable tax regime, Gibraltar has established itself as prosperous financial centre. Being a member of EU, Gibraltar can offer tax heaven advantages for companies that are registered as non-residents, including easy access to the EU financial markets. Gibraltar is one of the most attractive European offshore jurisdictions with its political stability, robust commercial and professional infrastructure.

Tax and accounting regulations

Gibraltar Non-resident Company will not be liable to Gibraltar taxation, including income tax and estate duty.

Non-resident status:

  • Company should be owned by non-residents
  • Company should be controlled by directors who reside and hold board meetings outside Gibraltar
  • No trading and business activities in Gibraltar

Filing of accounts

Annual accounts must be drawn up in accordance with the Companies Act 1999 and must give a true and fair view of the Companies assets, liabilities, financial position and profit or loss. The Act prescribes the accounting principles to be observed in preparing the annual accounts, the layout of the balance sheet and profit and loss account and the content of the notes to the accounts.

Filing of accounts ‐ companies are classified as small, medium-sized or large. Documents to be filed at the Companies Registry vary according to their classification:

  • Large companies ‐ to file full accounts including the balance sheet, profit and loss account, notes, directors’ report and auditors’ report
  • Medium-sized companies ‐ filing as for large companies except that the profit and loss account may be in abridged format
  • Small companies – required to file abridged balance sheet only

Definitions

Companies are classified by size according to the following parameters

 SmallMedium-sizedLarge
Net Turnover (pro-rated if more than or less than a year)up to £6.5 millionup to £25.9 millover £25.9 mill
Balance sheet totalup to £3.26 millionup to £12.9 millover £ 12.9 mill (total assets)
Average number of persons employedup to 50up to 250over 250

Basically a company must fall within two out of three parameters in the financial year in question and the preceding year in order to be classified as small or medium‐sized. However, if a company exceeds or ceases to exceed the limits of more than one of the parameters it will continue to qualify for the relevant year unless it occurs in two consecutive years. For a newly incorporated company the conditions need only be met in its first financial year.

Filing due dates

The relevant documents must be filed within 13 months of the financial year end in the case of a private company and 10 month of the financial year in the case of a public company.

If the financial year‐end is the company’s first then the period allowed is the greater of 18 months from the first anniversary of the incorporation of the company or 13 months from the end of that financial year.

If a company chooses the 31st of March 2001 as the beginning of its financial year, its financial year ends on the 30th March 2002 and it then has 13 months to file the accounts. It has till the end of April 2003 to file accounts.

If company fails to file accounts it may be subjected to penalties.

If company doesn’t pay penalties, it may be proceeded against for the offence of failure to comply with a requirements of Company Act.

Procedure of company registration

Typically Gibraltar companies are used:

  • To operate as a trading company
  • To act as a holding company
  • To hold property or other assets
  • To own or operate ships
  • To act as an investment company

Company type:

  • Gibraltar Non Resident Company

Requirements

Directors:
  • Minimum requirement – 1
  • No requirements for Director’s residency
  • Legal entities can be appointed as Director
Secretary:
  • Required registered local Secretary and registered office address
Shareholder:
  • Minimum requirement – 1
Nominee Services:
  • Nominee Directors and Shareholders are accepted
Share capital:
  • Standard share capital – £ 1500
  • No requirement for paid up capital

Name of the Gibraltar Company

Names which suggests royal or government patronage, or which may imply a field of activity associated with the banking or finance industry are restricted. Names that include “Association”, “Bank”, “Imperial”, “Assurance”, “Group”, “International”, “Royal”, or “Trust” and any derivatives will require special permission.