There’s never been a better time to set up a business in Gibraltar because it has long been a number one for organizations wishing to profit from the low-tax regime and phenomenal telecommunications facilities. The financial services and technology sectors are developing quickly. In fact the Gibraltar‘s economy is looking very stable with strong growth for the future. Gibraltar is a very favourable offshore jurisdiction with all the advantages of being situated in Europe.
Gibraltar Business Structure
- Sole Trader
It is possible for a person to trade in Gibraltar, using either their own name or a business name of their choosing, by registering as a self-employed entity with the Income Tax Office and Employment Service.
A sole trader is the most direct business structure and also the most economical. There are, notwithstanding, critical burdens to working along these lines.
Sole traders are taxed on an individual basis and pay income tax at personal tax rates. Moreover, the risk of a sole trader is limitless, and that implies that the individual would in this way be liable for any loss their organizations might incur.
- Partnerships
Two or more persons or entities might set up a business via a normal association. A partnership is made by the execution of a deed by both or all of the partners concerned. The individual partners of an ordinary partnership are mutually and severally responsible for every one of the obligations of the association without constraint of risk.
A limited partnership is different from an ordinary partnership in that it consists of one or more general partners who are liable all for all of the obligations and commitments of the firm and one or more persons called limited partners.
The limited partners must at the time of entering such partnership contribute either a sum as capital or property valued at a stated amount, furthermore, their obligation to banks is restricted to the capital presented.
A limited partner may not partake in the management of the partnership business and has no power whatsoever to bind the firm. A limited partnership also has no separate legal personality.
Limited liability partnerships are therefore more appropriate for businesses in which all investors intend to fully partake role in management.
- Companies
The utilization of a limited company is also well known on the grounds that the legal personality of a limited company is independent from that of its members. A company might possess assets, go into contracts, borrow and loan money, as well as sue and be sued in its own name.
A company can be incorporated in any one of the following structures:
- a privately owned company restricted by shares
- a privately owned company restricted by guarantee and having a share capital
- a privately owned company restricted by guarantee and not having a share capital
- a private limitless company or
- a public company restricted by shares.
So far, the most common is a privately owned company limited by shares.
The responsibility of shareholders in limited companies is limited by the price agreed upon for the issued shares. The Directors of the company must be selected, and such directors owe duties to the company and to various people. For instance, directors owe specific obligations to the shareholders of the company and they must exercise their powers to support the company as a whole and not with regard to any one specific shareholder.
Business Name
Any individual, partnership or company looking to set up a business in Gibraltar must register a business name if they are trading with a name other than their own, even if the individuals are trading under their own name, the Registrar suggests that such name is registered as a business name.
A business name should be approved by the Registrar, and a charge of twenty pounds is payable on application for the registration.
The application must consist the following important documents:
• Proof of identity of Applicant
• Proof of address of Applicant
• Proof of right to use the address where the applicant business is stated to be located or trading from.
• Power of Attorney if the person presenting application is not an officer of the company.
As considered underneath, the Office of Fair Trading won’t give a Business License to any business that works from a private Government premises, and the Registrar will correspondingly not register a Business Name where it expresses that it works from such a location. Upon enrollment the Registrar will give a Certificate of Registration of a Business Name.
Gibraltar Business Licensing
Under Gibraltar’s Fair Trading Act 2015, lots of individuals that are doing business in Gibraltar needs to apply for a Business Licence.
And as set out in the OFT (Office of Fair Trading ) Guidance Notes, any applications submitted for a business license must be made by the business director and it requires the following:
- Proof of premises, including a copy of the rental agreement and site plan
- Copy of Certificate of Registration of the Business Name
- Copies of submitted notices
And if you’re applying as a company, you must submit Profile of company from Companies House. And if the company is situated outside of Gibraltar, the application should also contain a copy of their Part twelve or fourteen Certificate of Registration.
When all the correct information are submitted the BLA (Business Licensing Authority) tends to grant the license within 3 business days of receiving all the documentation, with the license being valid for a year.
Income Tax Office
A business in Gibraltar must also be registered with the Income Tax Office. It is a requirement to first be registered with the Department of Employment before been registered at the Income Tax Office and can be finalise.
To register an unincorporated business, a full self-employed registration form must be submitted to the Income Tax Office together with the following;
• a duplicate of the person’s ID card or a passport
• the Certificate of Registration of the Business Name
Companies are also required to register with the Income Tax Office as soon as they begin trading in Gibraltar. A company registration form must be filed, and the following additional documentation must be presented :
• a duplicate of the company’s Certificate of Incorporation
• a duplicate of the company’s Memorandum & Articles of Association;
• a company profile from Companies House
• a duplicate of the Certificate of Registration given by the Employment Service.
Advantageously, there is no fee payable on submitting these forms to the Income Tax Office.
Advantages of setting a business in Gibraltar
- Conducting your business in a quality low-tax jurisdiction which incorporates low levels of corporate tax and a stable currency with few restrictions in moving capitals.
- A legal system modelled on the English structure that contributes to making Gibraltar the duly regulated and globally acclaimed jurisdiction it is today.
- Start-up incentives, including a start-up rate of 10% applicable to any new businesses established in Gibraltar.
- Benefits from EU membership.
- A multi-talented, reasonably qualified workforce with training assistance to update skills when needed.
- Legislation is in place to encourage High Net Worth Individuals and High Executives Possessing Specialist Skills in establishing tax residency in Gibraltar and affording them opportunities to have the tax payable on their income limited to a short amount.
Gibraltar savors from warm summers and gentle winters, close to 300 days of daylight which is fortunate way of life with the impressive skill and liveliness of a cutting edge yet mature area.
To setup your company in Gibraltar, please contact your Damalion expert now.
