Types of Company in Gibraltar

Qualifying/Non-Resident Company

Quite often the non-resident company is directed by the beneficial owners themselves, or by non-resident third-party directors appointed by the owners. The non-resident company will still need to maintain a registered office in Gibraltar and to have a Resident Secretary - these functions are provided by us at a competitive fee.

The non-resident company is usually preferred by more relaxed clients whose personal or business circumstances allow them to be at relative ease from tax scrutiny. Such clients would often be individuals who spend most or all of their time outside their home jurisdiction - for instance, management consultants, software engineers or other professionals who tend to travel between various countries on short-term assignments. Just as well, a clients' business may be purely international and not particularly tied-up to his home country - like many internet businesses are.

A non-resident company may also be sufficient for use by clients whose home country does not have the sophisticated management and control tax-rules - this is still the case in many countries of the world. And, finally, there is no need to use a sophisticated tax-exempt company when there is no tax planning purpose - for example, when the company is simply used as a personal asset-protection vehicle to passively hold some property or investments.

In all these cases the simpler, cheaper non-resident company could be a choice well made. The non-resident company is not subject to the fixed rate GBP 225 annual duty and other fees (notably, management fees) which are payable by the exempt company. Just in case, it can also be trans incorporated into an exempt company if and when the circumstances require.

Ordinary Resident Company

The ordinary company registered in Gibraltar may be owned both by residents and non-residents of Gibraltar and is subject to the prevailing rate of corporation tax on its profits.  Nominee directors and shareholders may be used.

Unlike tax exempt and qualifying companies, beneficial shareholders of an ordinary company are liable to Gibraltar inheritance taxes (Estate Duty) in the event of their death on the value of their shareholding in the ordinary company unless the shares are held through the medium of a trust. However, Estate Duty has now been removed where the inheritance is between husband and wife.

An ordinary company may obtain tax exempt or qualifying status provided it complies with the requirements.

Because there is no capital gains tax liability in Gibraltar, non residents of Gibraltar might elect to use an ordinary company for holding dormant assets with no income arising such as property which is not being let out.