The ordinary company registered in Gibraltar may be owned both by residents and non-residents of Gibraltar and is subject to the prevailing rate of corporation tax on its profits. Nominee directors and shareholders may be used.

Unlike tax exempt and qualifying companies, beneficial shareholders of an ordinary company are liable to Gibraltar inheritance taxes (Estate Duty) in the event of their death on the value of their shareholding in the ordinary company unless the shares are held through the medium of a trust.

An ordinary company may obtain tax exempt or qualifying status provided it complies with the requirements.

Because there is no capital gains tax liability in Gibraltar, non-residents of Gibraltar might elect to use an ordinary company for holding dormant assets with no income arising such as property which is not let. However, the future sale of the shares of the company would give rise to stamp duty on the value of the shares if the company is not tax exempt.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.