Forms of Offshore Companies in Gibraltar

Gibraltar resident company is not charged to local taxes on non-Gibraltar source income. There are no withholding taxes on dividends, interest, royalties and management fees payable to non-residents.

Gibraltar non-resident company is a company incorporated in Gibraltar, owned by non-residents of Gibraltar, managed and controlled by directors who reside and hold meetings outside Gibraltar. It is probably the simplest and the most cost-efficient type of all offshore corporate entities available in the jurisdiction.

A non-resident company pays Gibraltar corporation tax only on its income derived from or remitted to Gibraltar. A non-resident company pays an annual tax of GŁ200. A Gibraltar non-resident company pays only annual fee to the Registrar of Companies, in the amount of GBP 30. The fee is payable at the time of filing the Annual Return.

The non-resident company still has to maintain a registered office in Gibraltar, and to have a Resident Secretary. More details on non-resident companies you can find in the chapter Gibraltar Non-resident Company.

The Gibraltar tax exempt company (does not work longer) - a limited company which has obtained a certificate of tax exemption from the Gibraltar Financial and Development Secretary. Until recent time companies could obtain tax exempt status and be exempt from all taxes in Gibraltar, even if managed and controlled from the territory. Howeer, after some changes in legislation, exempt status is no longer required to avoid local taxation on income derived outside Gibraltar or investment income.

The existing exempt companies may preserve their status until 2010, but no new companies can apply for exempt status.

Exempt company is the original company form in Gibraltar, its concept was introduced in the Companies (Taxation and Concessions) Ordinance 1967. Later on it was taken by other jurisdictions. Its main characteristics were low set up cost, which made it the most suitable form for property and investment holding, and especially for trading between two high tax jurisdictions.

Gibraltar Qualifying company, in general, is incorporated under the same conditions as the exempt company, and now Gibraltar legislation for qualifying companies has changed in the same mode as for exempt companies. Qualifying company rather fitted for offshore company with a significant operating presence in Gibraltar in terms of staff and office than an Exempt Company. This form was created particularly to help finance sector companies.

Private Company Limited by Shares is incorporated under the following rules:

- it is required to have at least two members, either individuals or companies, the maximum number of members is 50;

- one shareholder can be a nominee company holding a share on trust for the other shareholder;

- the Memorandum and Articles of Incorporation should state that the company is private, restrict the transfer of shares, and prohibit public offerings of the shares;

Private Company Limited by Shares pays annual tax in the amount of GBP225. There is a 0.5% duty on authorised share capital (Annual tax of GBP225 is payable by a limited company.

Two types of the Company Limited by Guarantee are the Company Limited by Guarantee and the Company Limited by Guarantee and having Shares. Both have the nature of mutual companies, and as such have normally been used for charitable and non-profit purposes. Later on, they have been used for private family foundations in place of discretionary trusts. They have also been used for proprietary and members' clubs in the international leisure and timeshare resort industry, meeting all the requirements of modern EU and Spanish law.