Gibraltar companies are widely used for operational activities, particularly in fintech, online gambling and cryptocurrency projects. Gibraltar was one of the first jurisdictions to develop specialised legislation for blockchain businesses, attracting many international ventures in this sector.

Gibraltar offers a comprehensive favourable environment for digital operations and other sectors:

• supportive legislation and licensing opportunities
• tax advantages for cryptocurrency operations, including no capital gains tax on trading
• direct access to the European market with a lower tax burden (10% corporate tax vs. ~20–30% in EU countries)
• local crypto-friendly banking and brokerage infrastructure
• active government support and potential for obtaining regulatory clearance

Gibraltar companies are frequently used as general partners (GPs) in fund structures across various jurisdictions. They are also required for the establishment of Gibraltar funds, which may only be managed by a local company.

Using a Gibraltar company as a general partner offers several regulatory advantages:

• cryptocurrency payments: companies may legally accept and make payments in cryptocurrency
• English law: all agreements can be governed by English law ensuring legal predictability
• tax benefits: 10% corporate tax, no VAT or dividend tax
• simplified reporting: no audit requirement for companies with turnover under £1 million and assets under £1.5 million
• confidentiality and asset protection: use of trust structures and a high level of confidentiality in asset management

Gibraltar offers various financial licences for companies wishing to conduct regulated activities internationally. The principal regulator is the Gibraltar Financial Services Commission (GFSC).

Available licence types include:

• Payment Institution licence – allows money transfers and the opening and maintenance of payment accounts
• E-Money Institution licence – allows issuance, distribution, and redemption of electronic money
• DLT licence (Distributed Ledger Technology) – for companies working with blockchain and cryptocurrencies
• Brokerage licence – for companies providing financial instruments trading services

Key features of the DLT licence in Gibraltar:

• capital requirement: minimum of £50,000–£100,000 depending on business type
• at least two directors with relevant qualifications and experience
• mandatory physical presence in Gibraltar (office, staff)
• cybersecurity and client asset protection requirements
• detailed business plan and financial projections

It is important to note that obtaining a financial licence in Gibraltar does not require implementing complex AML procedures typical for most EU jurisdictions. The regulator adopts a more flexible approach while maintaining compliance with international standards.

The licensing process typically takes 3 to 6 months and includes the preparation of required documentation, interviews with the regulator and payment of licensing fees.