Setting Up a Company in Gibraltar: Costs, Benefits & Process

Setting up a company in Gibraltar has become rather attractive for entrepreneurs and investors seeking a jurisdiction with low tax rates globally. British Overseas Territory presents a singular amalgamation of advantages like rock-solid political stability and exposure to vast global markets.

In this article, we explore everything you need to know: the legal framework, the incorporation process, the cost of setting up a company in Gibraltar, and the benefits of setting up a company in Gibraltar, particularly for international stakeholders.

Why Choose Gibraltar for Business Incorporation?

For global entrepreneurs, setting up a limited company in Gibraltar offers long-term value with relatively low administrative burdens. Strategic advantages, here:

• Location: Positioned at the crossroads of Europe and Africa, near the Mediterranean and Atlantic trade routes.
• Language & Legal System: English is the official language. Gibraltar operates under a legal system based on English Common Law, familiar to international investors.
• Tax Regime: Corporate income derived from within Gibraltar is taxed at a flat rate of 12.5%, with no VAT, capital gains tax, inheritance tax, or withholding tax on dividends.
• Access to Skilled Professionals: Gibraltar hosts a competitive ecosystem of accountants, lawyers, and corporate service providers.

Gibraltar Is the Best Place for Business Incorporation

Types of Companies in Gibraltar (update 2025)

Foreign investors have access to several legal structures, but the most popular form is the Private Company Limited by Shares (Ltd).

1. Private Limited Company (LTD)

• Minimum Shareholders: One
• Minimum Directors: One (no local residency requirement)
• Minimum Share Capital: No fixed minimum, but often issued at £100 or more
• Company Secretary: Mandatory
• Registered Office: Required in Gibraltar
• Tax Residency: Only on income accrued in or derived from Gibraltar

2. Non-Resident Company

A “non-resident company” in Gibraltar is one controlled and managed from outside the territory and generates no Gibraltar-source income. Non-resident companies must ensure they are effectively managed outside Gibraltar and have sufficient substance elsewhere to avoid tax residency challenges under global anti-abuse rules.

Used for international trading or holding purposes, this type of entity is not considered tax-resident if managed and controlled outside Gibraltar.

The Benefits of Setting Up a Company in Gibraltar

Gibraltar provides several strategic and financial advantages for entrepreneurs and corporations:

1. Favorable Tax Environment

• Corporate income is taxed at 12.5% (only on income earned in Gibraltar)
• Income must have a clear nexus to Gibraltar to be taxed. Companies managed and controlled from Gibraltar may be considered residents even if they claim non-residency, so professional tax advice is essential.
• No VAT
• No capital gains or inheritance tax
• No tax on dividends or interest payments made to non-residents (provided the recipients are not tax residents and the income is not sourced from Gibraltar-derivative assets).

2. Simplified Regulatory Framework

The Gibraltar Companies House offers quick incorporation times—often within 5 working days and digital filing systems. The territory encourages entrepreneurship while ensuring international compliance standards.

Advantages of Setting Up a Company in Gibraltar

3. Financial and Legal Stability

As a British Overseas Territory, Gibraltar enjoys a high degree of legal and political stability, making it a trusted environment for banking, insurance, gaming, and fintech industries.

4. Confidentiality and Asset Protection

Although Gibraltar complies with EU data protection rules and anti-money laundering frameworks, the jurisdiction offers high levels of corporate privacy and asset protection for legitimate business owners.

5. Access to Skilled Workforce and Global Networks

Businesses have access to an English-speaking, well-educated talent pool. Additionally, Gibraltar-based companies enjoy easy access to the UK and European markets (particularly in financial services and insurance).

Step-by-Step Guide to Setting Up a Limited Company in Gibraltar

Here’s how international entrepreneurs can register a company in Gibraltar efficiently.

Setting Up a Limited Company in Gibraltar

Step 1: Select a Unique Company Name

The name must not be identical or misleadingly similar to existing companies. It must also not include restricted words (e.g., “bank,” “insurance”) unless licensed.

Step 2: Choose the Company Type

Decide whether a private limited company or a non-resident company best fits your business goals.

Step 3: Appoint Directors and Secretary

• Minimum one director (individual or corporate)
• Mandatory company secretary (can also be a director)
• No residency requirement

Step 4: Register Your Company

Submit the following to Gibraltar’s Companies House:

• Memorandum and Articles of Association
• Form detailing director(s), secretary, and registered office
• Copies of identification and proof of address for shareholders and directors
• Payment of registration fee

Step 5: Open a Corporate Bank Account

You’ll need a Gibraltar or international bank that accepts offshore clients. Due diligence and KYC checks apply.

Step 6: Register for Corporate Tax

If your business earns income in Gibraltar, registration with the Gibraltar Income Tax Office is required. Note: if the company is non-resident, no registration is necessary unless local income is earned.

Cost of Setting Up a Company in Gibraltar

The cost of setting up a company in Gibraltar is competitive compared to other European and offshore jurisdictions. Below is an estimated breakdown:

Expense Category	Estimated Cost (GBP)
Company Incorporation Fee	£100 – £200
Legal/Professional Services	£800 – £1,500
Registered Office & Secretary (annual)	£600 – £1,200
Bank Account Setup	£300 – £500
Business License (if applicable)	£250 – £1,000
Annual Return Filing	£70 – £200
Accounting & Compliance (yearly)	£500 – £2,000+ (varies by business activity)

Total Initial Setup: Typically ranges between £1,500 and £3,500, depending on complexity and licensing needs.

Industries Best Suited for Gibraltar

Gibraltar is particularly well-suited for:

• iGaming and Online Casinos: Gibraltar is a global leader in online gaming licenses with a reputable regulatory regime.
• Financial Services & Fintech: The territory offers a well-regulated and tax-efficient base for investment firms, crypto projects, and insurance companies.
• International Trading Companies: Companies engaged in import/export or e-commerce can benefit from favorable tax treatment and ease of operations.
• IP Holding & Consultancy Firms: Intellectual property companies and international consultants benefit from legal protections and tax structuring opportunities.

Who Should Consider Incorporating in Gibraltar?

Setting up a company in Gibraltar is ideal for:

• Digital entrepreneurs and e-commerce businesses
• FinTech, blockchain, and gaming companies
• Holding and investment firms
• International service providers looking to minimize taxes legally
• Individuals seeking asset protection and privacy

Consider Incorporating in Gibraltar

Common Challenges (and How to Overcome Them)

Despite its many advantages, Gibraltar incorporation may present the following challenges:

Banking Difficulties

Some banks impose strict due diligence, especially for non-resident directors or companies with complex structures. To navigate this:

• Work with a local incorporation agent or legal firm
• Be prepared with detailed business plans and supporting documents

Regulatory Compliance

While Gibraltar supports business freedom, it adheres to OECD and EU standards. Hiring a local compliance expert ensures your company meets its tax, filing, and AML obligations.

Working with a Gibraltar Incorporation Service

Given the nuances of Gibraltar’s legal and regulatory framework, many international clients partner with local experts. Services typically include:

• Name reservation and registration
• Provision of registered office and company secretary
• Assistance with tax and banking matters
• Ongoing compliance and bookkeeping support

This partnership streamlines the setup process, avoids administrative pitfalls, and ensures peace of mind.

Final Thoughts: Is Gibraltar the Right Jurisdiction for You?

Whether you're starting a new venture or expanding internationally, setting up a company in Gibraltar can offer significant advantages low taxation, global credibility, and ease of administration. The benefits of setting up a company in Gibraltar are especially relevant in 2025 as regulatory scrutiny increases and businesses seek efficient, compliant jurisdictions.

With the support of experienced professionals like Offshore Company Corp, the process becomes simple, fast, and reliable. Their expertise in company formation and corporate services ensures that your Gibraltar entity will be up and running with minimal stress and maximum compliance.