General Information

A company incorporated in Gibraltar which is owned by non-residents thereof and does not conduct business with other Gibraltar Resident Companies or individuals, may apply for Tax Exempt Status under Gibraltar legislation.

In order to qualify for exempt status in Gibraltar, investors must supply references from a bank, accountant, or qualified attorney with regard to the company,s ultimate beneficial owners and its future activities.

Company Specifics include:

  • That the minimum paid-up share capital of the company be no less than L100
  • That no Gibraltarian or resident of Gibraltar or resident of Gibraltar has a beneficial interest in the shares of the company. (This does not preclude Gibraltarians or residents of Gibraltar from acting as nominees).
  • That the company can only carry on business with similar companies which must originate from persons other than Gibraltarians or residents of Gibraltar.
  • That the company must maintain its Company Register and Registered Office in Gibraltar.

Advantages of a Tax Exempt Company

A Gibraltar Tax Exempt Company can be ordinarily resident in Gibraltar, fully managed and controlled from Gibraltar, set-up a place of business here, employ staff, and in effect, control its world-wide operations from the Rock while enjoying total exemption from income tax and only paying a low flat rate of tax of L225 per annum.

If on the other hand, it was decided to make the Tax Exempt Company non-resident in Gibraltar, then a flat tax of just L200 per annum would become payable to the Gibraltar Government.

Advantages of a smaller individual investor

Resident directors as well as resident nominee or trustee shareholders must be appointed which means that the company can have its Registered Office, management, and all its officers and members in Gibraltar at the same time as the Beneficial Owner of the Company enjoys and element of privacy/anonymity. This means that a resident of Gibraltar having experience in a relevant business or trade can be appointed as director to the company, thereby ensuring that “resident expertise” can sit on the company,s Board of Director to take decisions in Gibraltar. A Bank account can be opened in Gibraltar, which accrues interest tax-free, and shares and debentures in the company which are not liable to Estate Duty in Gibraltar can be held.

Shares in the company can be transferred without this becoming subject to Stamp Duty, provided prior permission from the Financial and Development Secretary has been obtained.

Incorporation of a Tax Exempt Company

Corporate Name

Names must end with the word “Limited” or “Ltd”.
Any of the following words or abbreviations can not be included:

  • Bank
  • Building
  • Society
  • Chartered
  • Co-operative
  • Municipal
  • Fund Management
  • Insurance
  • Trust

What is the minimum authorised capital for a Tax Exempt Company

Companies are incorporated, under normal circumstances, with an Authorised Share Capital of L2,000. This is the maximum Share Capital for the minimum Duty payable at the time of incorporation.

Shares

Registered Shares can only be issued.

Directors and Officers

The minimum number of Directors is one, either corporate or individual. Directors may be of any nationality and there is no requirement that they should be residents of Gibraltar. All Gibraltar Tax Exempt companies must appoint a resident Company Secretary, which may be either an individual or a corporate entity. Details of the Directors appear on public record; however, anonymity may be preserved by using offshore Directors.

Meetings

Board and shareholder meetings may be held anywhere.