Why is Gibraltar an advantageous choice for your company?
07 March, 2016
The recent trend shows that finding banks that would be willing to open business accounts for standard offshore structures (BVI, Seychelles, etc) has become more complicated. Even if there still are some reputable and stable European and other banks which are ready to review applications from exotic offshore jurisdictions, the chances are conditions for an account opening will not be the same as for those companies, incorporated in white-listed countries.
Gibraltar company formation as an alternative:
Luckily, there is no need to search for long in order to find good alternatives. One of them is Gibraltar. The same banks that will say no to your Seychelles company, will be more than happy to open a business account for a Gibraltar company. The corporate tax rate the key point for someone who is willing to set up an offhsore company remains the same, it is 0% both in the Seychelles and Gibraltar. There are two main matters regarding Gibraltar that at first glance may appear slightly uncompetitive in comparison to, for example, Seychelles' companies. First, there is an opportunity to receive information about the directors and shareholders of the company. However, in most of the cases when Gibraltar company is being set up, nominee services are used, so the names which appear on the register can be very far from that of the real owners of the company. Second, there is a requirement to file accounts. Despite the first impression that may reduce the jurisdiction's attractives in one's eyes, it is not as bad as it sounds. First of all, it is necessary to clarify that only medium sized or large companies have to report detailed financial statements to the local autorities. And by "medium sized" companies, Gibraltar means companies whose turnover is bigger than 6.5 million GBP. If the turnover of your offshore company is less than the figure named, it only has to file a very simple abridged balance sheet where no profit and loss accounts need to be included. This balance sheet can be easily and quickly prepared.
Advantages of company formation in Gribraltar:
Besides the previosuly mentioned advantage of Gibraltar companies ease for business account opening, there are other convenient features to be remembered as well:
- The exempt certificate that gives a 25 year guarantee of exemption from taxes in Gibraltar;
- the only EU finance centre exempt from value added tax (VAT).
Sometimes people tend to choose to set up companies in those jurisdictions which are relatively cheaper than the others. It is an understandable preference, as price is an important factor whenever we buy something. However, nowadays entrepreneurs also have to bear in mind that the choice of a low cost company is likely to lead to pricey bank account conditions. Gibraltar is a good alternative in order to find a balance in ever-changing offshore business.
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