Gibraltar – Ready Made Shelf Companies – Company Formation

Gibraltar

Gibraltar is a UK overseas territory with a local government and a great deal of independence on internal politics. It is located in a peninsula at the southern tip of Spain. It has approximately 33,000 inhabitants and the area of 7 sq. kilometres. The official currency is Gibraltar pound (GIP), which is pegged to British pound sterling. The official language is English.

As a British territory, Gibraltar is officially a part of the European Union and European Economic Area. The territory is of significant importance due to its strategic location and being the gate to the Mediterranean Sea. For this reason, Gibraltar is one of the places where British Armed Forces maintain a military base.

Company law in Gibraltar is governed by Companies Act 2014 and based on British solutions. The following types of business structures are allowed in the territory: a company limited by shares, a company limited by guarantee and an unlimited company.

A company limited by shares needs to have at least one shareholder and one director who will manage company affairs. All business entities registered in Gibraltar are under obligation to appoint a secretary. The required minimal capital is just 1 pound. Company registration takes approximately seven days.

Business entities need to be incorporated in Companies House Gibraltar, the body that holds company information and makes it available to the public. Entities need to file annual accounts to Companies House, but small and micro companies submit abridged balance sheets only and are exempted from audit.

Gibraltar fiscal law is separate from the UK. Companies are taxed on their Gibraltar income. The corporate income tax rate is 10%, with the exception of income tax on utility companies, which is 20%. In Gibraltar there is no levy on capital gains. Dividends received by a Gibraltar company are not subject to taxation either. Loss carryforwards are allowed indefinitely on condition there is no change of shareholders. There is no withholding tax.

Key sectors for the Gibraltar economy are financial services, shipping, tourism and online gambling. Services are the main driving factor for the GDP growth. Main exports are petroleum products and manufactured goods. The main trading partners are the United Kingdom and Spain. Gibraltar is a big bunkering centre. The territory also benefits from the presence of the military personnel.

Gibraltar is a British Overseas Territory which means that the head of state is the ruling British monarch. The king or queen is represented by the Governor of Gibraltar. The Governor is also the chief of the armed forces. Gibraltar is self-governed in domestic affairs and has its own unicameral Parliament and Government headed by the Chief Minister. Member of the two bodies are elected through popular vote.

Financial services are very important to Gibraltar economy and numerous financial institutions operate in the territory despite its small area. Numerous international banks have their presence in Gibraltar. The list includes such banks as Barclays, Credit Suisse and Lloyds. Gibraltar banks participate in Deposit Guarantee Scheme that protects depositors up to the amount of 100,000 EUR.