The minimum capital required is Β£ 1.

Incorporation of an offshore company in Gibraltar

Country analysis: legal structures

Everything you need to know to set up an operating company with a bank account.

1. Exchange of banking information

β€’ There are prison terms for disclosing customer bank details to third parties (and possibly fines).

β€’ Banks are partially subject to strict customer due diligence regulations (old FATF recommendation 5 / new FATF recommendation 10).

β€’ Banks are partially obliged to maintain sufficient records of customer and transaction data for law enforcement (old FATF recommendation 10 / new FATF recommendation 11).

β€’ Banks and / or other covered entities are not required to report large transactions in currency or other monetary instruments to designated authorities.

β€’ The national administration has sufficient powers to obtain and provide bank information on request without qualifications.

β€’ There are undue notification and recourse rights against the exchange of prior banking information
request, but with major problems.

2. Legal forms

Gibraltar non-resident company (offshore company)

The Gibraltar non-resident company is a limited liability company requiring only one shareholder and one director. The minimum capital required is Β£ 1.

This business entity is incorporated in Gibraltar with Companies House Gibraltar, but is owned and managed by non-residents of Gibraltar whose meetings are also held outside the territory of Gibraltar.

The non-resident company is not recognized as a taxpayer and enjoys tax-free status. Therefore, this is a simple and inexpensive offshore establishment available to clients looking to incorporate a company in Europe.

In order to retain its non-resident status for tax purposes, the non-resident company cannot trade or remit income to Gibraltar.

Gibraltar Limited Liability Company (LLC)

A Gibraltar LLC requires only 1 director and 1 shareholder of any nationality. The minimum paid-up capital required is Β£ 100.

If the company makes sales in excess of Β£ 500.000 per year, it is mandatory to appoint a Gibraltar resident auditor who is registered with the Financial Services Commission. The company must present annual audited financial statements.

The Gibraltar Public Limited Company (PLC)

Customers interested in setting up the Gibraltar company can also register a PLC. A Gibraltar PLC must appoint a minimum of two directors and seven shareholders of any nationality. The minimum paid-up capital required is Β£ 20.500 and a company secretary must also be appointed.

The Gibraltar branch of a foreign company (International Business Branch)

Foreign companies can also establish a branch in Gibraltar.

The branch must appoint at least one corporate agent who must be a resident of Gibraltar authorized to accept service of any notice on behalf of the company.

The branch is treated as a separate legal entity and is subject to the standard corporate tax of 10% on income earned within the territory of Gibraltar. However, there is no tax on branch remittances.

Remember

Nor a Gibraltar resident director is required for any business entity. Holding companies are available in Gibraltar. Gibraltar is a Bitcoin friendly country.

Why register the Bitcoin company in Gibraltar?

Gibraltar is one of the few jurisdictions that has a comprehensive and fully regulated framework for companies involved in blockchain activities.

The regulatory framework aims to make Gibraltar a reliable, safe and well-regulated place to do business in the field and to encourage cryptocurrency operations.

Why register the Bitcoin company in Gibraltar?

Gibraltar does not tax companies for their profit-making activities located outside of Gibraltar.

For activities carried out within Gibraltar, the corporate tax rate is only 10%. Gibraltar's common law system based on the English model makes the legal regime highly accessible to foreign lawyers and businessmen.

Given the jurisdiction's support for DLT businesses, it is easy to open DLT-compliant corporate bank accounts to support business registration in Gibraltar.

Gibraltar is the only financial center in the European Union (EU) exempt from value added tax (VAT).

OFFICES

Foster Swiss helps our Clients secure offices or we provide an office address. Most emerging markets require our Clients to have a 12-month office lease before company registration is approved.

We help our Clients overcome this challenge in the following ways:

Virtual office service

DDepending on the country and city, the rates range from US $ 900 to US $ 2000 and the annual active virtual office services range from US $ 1500 to US $ 4000).

Shared office space

LThe one-time fee is US $ 850. Thereafter, our Client pays the monthly rent directly to the owner).

Permanent office space

D Depending on the country and the city, the rates range from US $ 5.000 to US $ 8.000).

ACCOUNTING AND TAX

LResident companies registered in Gibraltar suffer a corporate tax rate of 10%.

There are no VAT requirements in Gibraltar.

Tax losses can carry over up to three years for a company incorporated in Gibraltar.

There are no tax withholdings in Gibraltar. Consequently, payments that include: i) dividends ii) interest and iii) royalties are fully exempt from tax.

Gibraltar companies must always submit financial statements to the Gibraltar Income Tax Office within nine months of the end of their financial year. The audit is also mandatory if the company has annual sales of more than Β£ 500.000.

There is no capital gains tax in Gibraltar. Social security contributions are paid weekly and are capped at Β£ 36,50.

The personal income tax is formed under two progressive regimes, based on income, with a limit of 25%.

Gibraltar has not signed any bilateral double taxation agreements. However, 27 Tax Information Exchange Agreements (TIEAs) are signed under OECD legislation.

COUNTRY PROBLEMS

DInce January 2019, the Government of Gibraltar requires all Gibraltar LLCs to comply with the new substance requirements.

After the registration of a Gibraltar LLC, the details of the shareholders and directors are available for public consultation in the official register of the Gibraltar Companies Register.

Despite being part of the EU, Gibraltar is not part of the EU customs or VAT zone. Consequently, it is not the best option to use a Gibraltar company to sell products to Europe.

Despite its strict enforcement laws, Gibraltar can be perceived as a tax haven abroad.

All Gibraltar registered companies are legally required to submit annual financial statements to the Gibraltar Income Tax Office within nine months of the end of their financial year. However, companies with annual sales of less than Β£ 500.000 are exempt from the audit requirements.

During the pre-Brexit era, many companies had relocated to Gibraltar due to i) it was a tax-free residence and ii) its proximity to the attractive EU market. However, after Brexit, these companies will no longer be able to freely enter the EU. As a result, these companies could decide to dissolve or relocate again.

In Gibraltar, company agents may require our Clients to appoint them as directors and bank signatories to supervise the activities carried out by the company. In some cases, registered local agents will also request a legal opinion before proceeding with company registration.

MORE CONFIGURATION SERVICES SOLUTIONS

  • Shareholders and Agents
  • Office permits
  • Protection of trademarks and copyrights. - Market study.
  • Legal support
  • Proportion of details of temporary unions or associations
  • Fusions and acquisitions.
  • Internal control.
  • Group restructuring.
  • Financial management consulting.
  • Buy a business.
  • Valuation of companies.
  • Credit recovery
  • Job solutions
  • Due diligence search on existing companies and individuals

3. Commercial register

The national registry comprises all the identity information of the legal owner.

Information on legal owners is not always available online (up to 10 EUR / GBP / USD).

4. Transparency of society

All businesses require the registration of all legal owners.

All names plus countries of residence plus addresses or NITs or dates of birth, passport or personal identifications, or incorporation numbers are always registered.

Updating the information on the identity of the legal owners is not mandatory.

5. Shareholders publications

All companies require the registration of all final beneficiaries at a threshold of more than 25% (FATF).

All names plus countries of residence plus addresses or VAT numbers or dates of birth, passport or personal identifications are always recorded.

Updating the information on the identity of the final beneficiaries is not mandatory.

Real property is not always available online (up to 10 EUR / GBP / USD)

6. Publication of the company account

It is mandatory to carry accounting data.

There is an obligation to present annual accounts for all types of companies.

Business accounts are not always online (up to € 10 / US $).

7. Country-by-country financial reports

No country-by-country public reporting at all.

8. Corporate tax return

The secondary mechanism is not subject to the restrictions imposed by the OECD model legislation: any national affiliate of a group would have to submit the CbCR in all cases where the jurisdiction cannot obtain the CbCR through AEoI.

Unilateral cross-border tax rulings (eg advance tax rulings, advance tax rulings) are available in laws or regulations, or administrative practice.

9. Identifier of legal entities

β€’ The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.

β€’ The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.

β€’ The use of an annually updated LEI for the identification of reporting financial institutions (in accordance with the Common Reporting Standard (CRS) is not mandatory.

10. Measures to avoid tax evasion

Dividend payments: No unilateral relief for double taxation through a tax credit system

Interest payments: No unilateral relief for double taxation through a tax credit system.

11. Tax matters judicial secrecy

None or restricted access to both criminal and civil tax procedures.

None or restricted access to both criminal and civil tax judgments / verdicts.

12. Opaque structures

β€’ The jurisdiction does not issue or accept the circulation of large notes / cash notes of its own currency (with a value greater than 200 EUR / GBP / USD).

β€’ Bearer shares are not available / not circulated.

β€’ Serial LLC / Shielded Cell Companies are available.

β€’ Trusts with escape clauses are not prohibited.

13. Anti-money laundering legislation

Gibraltar is not on the FATF list of countries that have been identified with strategic AML deficiencies.

The last Mutual Evaluation Report related to the implementation of the anti-money laundering and terrorist financing regulations in Gibraltar was carried out in 2019. According to this Evaluation, Gibraltar was considered to meet 15 and largely meet 15 of the 40 FATF Recommendations. It was considered Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness and Technical Compliance ratings.

Overall Non-Compliance Score of FATF Standards in Percentage: 37,4%. (100% = all indicators rated as not met / low level of effectiveness; 0% = all indicators rated as completed or highly effective).

14. Automatic exchange of information

You signed the MCAA and committed to sharing information on or before 2019.

Number of significant activated AEOI relationships (under the MCAA) published by the OECD as of October 2019: 88.

What type of private banking exists in Gibraltar?

International Banking
Local banking

Central bank security ⭐⭐⭐

The international and digital banks They're available.

CRS: SI

Real bank operations: 90%.

Type of visa: Β£, €, $.

Joint accounts:

Remote management account: To consult.

Asset management Depending on the rating of the company.

Rates: It depends on the type of account.

Credit / debit cards in local currency.

Crypto friendly banks: It depends on the correspondent bank.

Portfolio availability: It does not depend on the correspondent bank.

Ability to issue letters of credit: SI.

Why with Foster Swiss?

Foster Swiss is an international company registered in Switzerland aimed at providing financial and compliance advice on a variety of topics related to company formation
and commercial banking internationally. We are specialized in the implementation of businesses in different jurisdictions, which means that we offer value-added services helping our clients in their expansion abroad.

Some of these services include:
Advice and consultancy,
visas, offices, nominated director / shareholder / secretary,
accommodation if necessary… to name a few.
Check with your assigned consultant for more information.

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