Foreign enterprisers come to Gibraltar because of the numerous investment opportunities in various industries this country offers, but also because the new Companies Act allows them to set up companies through simplified procedures. In the case of those coming to the Rock for a temporary project or for a collaboration with a local company, the solution is the joint venture. This type of entity is defined as a joint business project in which two or more parties contribute with the purpose of realizing a specific undertaking. The joint venture implies each participant to be liable for their own profits, costs and losses, while the venture is a separate legal entity. Joint ventures in Gibraltar can be regarded as “short-term” limited liability companies or as partnerships.
Setting up a joint venture in Gibraltar implies drafting an agreement, also known as a joint venture contract, which stipulates:
Other aspects such as matters related to intellectual property for common work should also be discussed when starting a joint venture in Gibraltar. It is also usual for companies to include dispute resolution and confidentiality clauses in joint venture agreements.
It is best to refer to consultants in Gibraltar when preparing a joint venture contract.
Gibraltar is a very attractive country from a taxation point of view, because it offers one of the lowest corporate taxes in Europe. Joint ventures will be subject to taxation in Gibraltar only for the income arising here. In the case of foreign companies participating in a joint venture here, Gibraltar’s double tax treaties can be enforced depending on their country of residence. In case a foreign entity enters a joint venture with the Gibraltar Government is can benefit from compensations for certain amounts invested in the project.
For assistance in setting up a joint venture in Gibraltar, you can contact our local company formation agents.