Creating and incorporating a new business can be very exciting. From the initial idea to the start of trading, there are numerous different processes that must be completed (some harder than others), we understand this at Knightsbridge as we have years of experience dealing with new and changing businesses.
We recommend as a new business you seek out professional advice, it may seem daunting at first as there is a general misconception that it is expensive. However, easily avoidable mistakes that are made at the beginning could be costly and you should view the steps you take at the early stages as a long term investment.
Advantages of incorporating your business
- You have a solid structure that can be scaled when you grow
- You can bring in investors and make a succession or exit plan
- A company can also enter its own legal contracts or obtain financing
- The owner’s liability is limited thereby providing protection
- Structured tax planning is available
Disadvantages of incorporating
- Complex paperwork to incorporate (which we can help with)
- Additional ongoing annual statutory processes
- Additional requirements when applying for finance
- Lack of direct ownership of company assets
- Understanding how to draw money for personal use
Key Takeaways
At Knightsbridge we can advise you about all the financial aspects whilst you concentrate on the business!
Company tax is 10% in Gibraltar, the standard rate of Income Tax is 25% in Gibraltar and VAT does not apply.
Every business is different. We understand that and are always happy to have an initial non-committing conversation.
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