Contractors And Independent Consultants

Independent contractors and consultants have traditionally defaulted to operating through UK private limited companies. For established professionals looking for an alternative corporate environment, a Gibraltar company provides a compelling option.

Gibraltar is particularly relevant to independent consultants, IT and technology professionals, engineers, energy specialists, project managers, management consultants and other professionals providing their expertise on a genuine business-to-business basis.

An Alternative To The UK Limited Company

A Gibraltar company is a separate corporate entity incorporated under Gibraltar law. It contracts directly with customers, raises its own invoices, receives payments into its own business bank account and meets its own commercial obligations.

For contractors already familiar with running a limited company, the structure itself is recognisable. The significant difference is that the company is incorporated in Gibraltar rather than the United Kingdom and operates within Gibraltar's corporate and territorial tax framework.

There is no requirement for the contractor to relocate to Gibraltar or become personally resident there simply because they own or direct a Gibraltar company.

IR35 And Gibraltar Companies

IR35 has fundamentally changed the environment for many independent professionals operating through UK intermediaries. A Gibraltar company is not a UK company and is not itself subject to IR35 in the same way as a UK personal service company.

For genuinely independent contractors operating commercially on a business-to-business basis, this is one of the important distinctions between continuing with the conventional UK limited company model and establishing a company in Gibraltar.

The commercial relationship remains between the Gibraltar company and its customer or contracting counterparty, with the company providing the contracted services and issuing invoices accordingly.

Gibraltar's Territorial Tax System

Gibraltar operates a territorial system of corporate taxation rather than taxing companies simply because they are incorporated there. Where a non-resident Gibraltar company's income is not accrued in or derived from Gibraltar, that income falls outside the scope of Gibraltar corporation tax.

For contractors and consultants whose work generates no Gibraltar-source income, this represents one of the jurisdiction's principal corporate advantages. Our Gibraltar Tax Position page explains the territorial tax framework in greater detail.

Keep Control Of Your Business

A Gibraltar structure does not require contractors to surrender control of their company to third parties.

The contractor remains responsible for running the business, negotiating contracts, dealing with customers and making commercial decisions.

There is no requirement to appoint nominee directors or hand day-to-day management of the business to somebody in Gibraltar.

This is an important distinction for experienced independent professionals who have spent years developing their own businesses, customer relationships and reputations.

Banking Without Losing UK Functionality

Operating a Gibraltar company does not mean giving up modern banking and payment facilities. Multi-currency business banking solutions are available with the ability to receive and make payments in sterling and other major currencies. 

UK banking details, including a UK sort code and account number, are also available through appropriate payment providers. For contractors accustomed to invoicing customers and being paid electronically, the practical banking experience can therefore remain straightforward.

Built For Independent Professionals

For many contractors, the question is no longer simply whether they should operate through a limited company. It is whether that limited company necessarily needs to be incorporated in the UK.

Gibraltar offers an established English-speaking jurisdiction, a familiar private limited company structure, modern banking facilities, corporate flexibility and a territorial tax system.

For established independent contractors and consultants seeking an alternative to the conventional UK limited company structure, those advantages make Gibraltar a serious corporate option.

Contact Gibraltar Corporate Partners to discuss establishing a non-resident Gibraltar company for your contracting or consultancy business.