Qualifying company

Gibraltar legislation concerning qualifying and exempt companies has changed; please read important information on the changes in Gibraltar exempt company registration procedures. The purpose of this chapter is to provide you historical information on the Gibraltar qualifying companies and their benefits.

Qualifying Company form rather fits for offshore company with a significant operating presence in Gibraltar in terms of staff and office than an Exempt Company. This form is particularly aimed at helping finance sector companies.
The conditions for Qualifying Company incorporation in general are the same as those for an exempt company. A qualifying company certificate is valid for 25 years from the date of issue. It pays tax on its profits at beneficial rates ranging from 1% to 35% (compared to the obligatory 35% rate for standard companies). Qualifying companies need to submit accounts to the Gibraltar Commissioner of Income Tax, and normal income tax legislation applicable to resident companies is applied to calculate the assessable profits of the company. Most Qualifying Companies now pay between 5% and 10% tax, that is the usual amount required to escape rules of home country against tax avoidance.

Minimum paid-up capital of a qualifying company makes G£1,000; other G£1,000 should be deposited with the Accountant-General against future tax liabilities.
The Gibraltar exempt company has maximum efficiency where profits are made, e.g. if the company is intended to be used for share investments or bank deposits, or for some trading activity.
If the company is not formally directed by the beneficial owners themselves, the directorship function can be outsource worldwide to suitable corporate or private third-party directors. Audited returns will not be required for most companies, as they usually qualify as “small” companies under the relevant rules.