Foreign investors seeking to have their own business in Gibraltar can do that in several ways. The most popular choice is the registration of a new company in the small territory, however, there are also foreign investors selecting an easier way of becoming owners of a Gibraltar company: by purchasing shares. The main advantage of buying shares in a Gibraltar company is the time saved with the company incorporation and licensing procedures. No matter how you decide to become a shareholder in a local company, our Gibraltar company registration agents can help you.
Foreign investors can purchase shares in both public and private companies in Gibraltar, however, the procedures differ. The purchase of shares in a private limited liability in Gibraltar can be done in accordance with the Company Act by signing a sale-purchase agreement between the parties involved in the transaction. The agreement must bear the seal of the Gibraltar company selling the shares, otherwise the transaction in null.
Share purchases in a private company in Gibraltar are divided into:
The off-market share purchase refers to buying those shares for other purposes than investment or exchange ones, or the shares are bought for investment exchange purposes, but are not subject to a marketing agreement. The market share purchase refers to purchases made on an investment exchange.
The purchase of shares in Gibraltar public companies also fall under the Companies Act which provides for the acquisition of shares. Under the merger and acquisition legislation, one can purchase shares in a public company after the company has issued a prospectus with the shares put on sale through the Gibraltar Stock Exchange.
Related to the taxation of such transactions, one must know that share sales and purchases are taxable only if the company selling the shares owns real estate in Gibraltar. These companies must pay the stamp duty imposed by the authorities.
If you want to buy shares in a company in Gibraltar, you can refer to our local representatives for detailed information about the transaction. You can also contact us if you want to register a new company in Gibraltar.