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Overview
As of January 2018, a new regulatory framework for Distributed Ledger Technology (DLT) is becoming operational. Companies, that operate in or from Gibraltar within the field of virtual currency exchange are required to apply for DLT License under HM Government of Gibraltar.
Timeframe: around 6 months
Minimum paid up capital: No specific minimum share capital requirement is mandated for obtaining a Distributed Ledger Technology (DLT) license in Gibraltar. However, the Gibraltar Financial Services Commission (GFSC) expects companies to demonstrate financial stability and sufficient capital to cover their business operations and potential risks
Overview
Gibraltar offers an attractive environment for cryptocurrency companies, featuring low tax rates and favorable regulations. Cryptocurrencies are legally recognized as a means of payment, and activities such as exchanges, token issuance, and ICOs are permitted and regulated. This makes Gibraltar a prime location for fintech and crypto projects.
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪A minimum of one shareholder is required to establish a cryptocurrency business in Gibraltar. Shareholders can be individuals or legal entities, and there are no restrictions on nationality
- ▪At least two directors are required. Directors must have the necessary expertise and experience in the cryptocurrency or financial services sector. One of these directors should ideally reside in Gibraltar
Confidentiality
- ▪Beneficial owners’ details – disclosed to the Authorities
- ▪Shareholders’ details – part of public record
- ▪Directors’ details – part of public record
Taxation
Gibraltar offers a favorable tax regime for businesses. Companies are subject to a flat corporate tax rate of 10% on profits derived from activities within Gibraltar. There is no capital gains tax, VAT, or inheritance tax
Accounting requirements
- ▪Filing annual report is obligatory
Secretary – Required
Registered office – A physical office in Gibraltar is required to ensure that the business is managed and controlled from within the jurisdiction. This is crucial for complying with local regulations and for effective communication with the GFSC
The application process involves several steps:
- ▪Initial Consultation: Engage with the GFSC for an initial discussion.
- ▪Submission of Application: Prepare and submit a comprehensive application, including business plans, risk assessments, and compliance policies.
- ▪Assessment: The GFSC reviews the application, conducts interviews, and may request additional information.
- ▪Approval: Upon satisfactory review, the license is granted
To apply for a crypto license in Gibraltar, the following documents are typically required:
- ▪Detailed business plan
- ▪Proof of identity and address for shareholders and directors
- ▪Financial statements or evidence of financial capability
- ▪Risk management and AML/CFT compliance policies
- ▪Corporate documents such as the Articles of Association and Memorandum of Association
- ▪Application forms and fees