Non-resident company

Non-resident company is a company that is incorporated in Gibraltar, and owned, managed, and controlled by non-residents. The company status is legally supported by the Gibraltar Companies Ordinance, which is based on the Companies Act 1929 of the United Kingdom. Along with the development of Gibraltar as a financial center certain amendments have been made to it. A non-resident company is not subject to local corporate tax, except for the part of profits remitted over to Gibraltar. It means that those companies without local bank accounts may not be taxed. Non-resident companies pay neither annual duty nor other fees payable by local resident companies. Non-resident company though must maintain local registered office with a local corporate secretary. Nominee services are available for owners and directors. Annual report is required.

Companies carrying on their business outside Gibraltar are required to apply for a license if they are involved in businesses such as Investment Management, Banking, Insurance, Company & Trust Management etc. Further on, they are required to state their license number on all letters and advertising. They are inspected by the Financial Service Commission to ensure that they are complying with the Financial Service Ordinances. They are also required to file a set of audited accounts with the commission within four months of their year-end.
The standard rate of tax for resident companies currently makes 35% (small companies rate 20%). The company may be of four types: a share limited company, a company limited by guarantee having a share capital, a company limited by guarantee without a share capital and an unlimited company. Companies with management offices in Gibraltar and resident employees (mainly Qualifying companies) will still need to register with the Employment & Training Board and Tax office as before. Non-resident companies are never described as ‘offshore’ in legislation of Gibraltar. Company forms, which fit most for carrying offshore operations, are the Exempt Company, the Qualifying Company, the Gibraltar 1992 Company and Trust. Company names should end in “Limited”, unless the shareholders have unlimited liability.

Name for Your Company

The government by legal notice published a list of sensitive names for companies. That is any name that is identical or similar to an existing company; any name, which is undesirable or offensive, by the opinion of the Registrar, any name which suggests royal or government patronage, or which may imply a field of activity associated with the banking or finance industry. “Association”, “Bank”, “Imperial”, “Assurance”, “Group”, “International”, “Royal”, or “Trust” and any derivatives thereof usually require special permission.

Management and Taxation

Gibraltar was the first European financial center to introduce the tax exempt company as an offshore holding vehicle, and its unique status within the EU makes it the jurisdiction of choice for certain types of investors or traders: there are over 60,000 companies registered in Gibraltar (more than two per inhabitant!), many of them being exempt.

Gibraltar non-resident company is not taxable in Gibraltar. It is a company, which is incorporated in Gibraltar, owned by non-residents and controlled by directors who reside and hold board meetings outside Gibraltar. Non-resident company is another offshore business form which escapes taxation on foreign income. The Companies Taxation and Concessions Ordinance (amended) introduced the exempt taxation status for companies trading outside Gibraltar. A company registered in Gibraltar will not be liable to Gibraltar taxation, including income tax and estate duty, if it’s owned and controlled by non residents of Gibraltar, does not trade in Gibraltar and does not remit income to Gibraltar.
A non-resident company pays an annual tax of G£200. Gibraltar corporation tax is demanded only in the case if company’s income is derived from or remitted to Gibraltar.