Gibraltar is a small island off the coast of Spain, governed by the United Kingdom, and due to its geographical location, is a major port in addition to its role as an offshore financial center. Company formation in Gibraltar has been a popular option for European companies for many years, providing a quintessentially British experience but with the benefits of an offshore financial centre.

However, while it offers flexibility to the corporate structure with a minimum of a single director (which can be a corporation), it does not offer the same degree of privacy with a public registry containing the names of directors and shareholders.

There are no requirements to disclose to anyone the identity of the owners or shareholders of a non-Gibraltar resident company and the Gibraltar government would only do so if the High Court is ordered. This would only be granted in the event of suspicion or serious criminal activity. This privacy is further protected by minimum reporting requirements, for example companies are not required to keep accounts and submit them to the Gibraltar government. Whilst still providing this high level of privacy, Gibraltar is one of the high disclosure offshore hubs which puts it in the same category as Jersey and Guernsey. In most cases, this is seen as a good thing, as it makes Gibraltar one of the safest destinations for companies looking to relocate abroad.

Gibraltar offers a slightly different corporate tax structure to many offshore jurisdictions in which taxes on residents are actually comparatively high, however non-resident companies are taxed much lower, one of the cheapest offshore jurisdictions. The tax advantages of owning an offshore company in Gibraltar include the fact that there are no capital gains taxes, gift taxes or estate taxes. Due to the close relationship between Gibraltar and the UK, Gibraltar has an income tax on companies and they are also required to pay stamp duty on any property purchased, debt obligations, shares and any other securities.

One of the reasons for the rapid growth of smaller companies and individuals forming offshore companies, especially in Gibraltar but also in similar jurisdictions, is the development of offshore banking systems. Not only have they increased regulations and security around international banks in Gibraltar while still maintaining full privacy, they also provide more secure banking solutions, and even major local banks such as HSBC have a dedicated offshore arm to provide a quality banking solution to leaders. financial jurisdictions such as those mentioned above.

Due to its close links to the UK, Gibraltar is a popular choice for companies looking to relocate or start operations somewhere where they can benefit from tax breaks whilst being in a highly disclosed financial centre, which essentially means which have all the protection and reliability associated with the UK, even having their local currency as GBP.