Foreign companies wanting to have an established presence without incorporating a company in Gibraltar can set up a liaison or a representative office. Liaison offices are usually employed by companies wanting to promote their services or use them as a contact point for existing clients. The Gibraltar legislation does not consider representative offices as independent legal entities. Foreign companies opening liaison offices in Gibraltar are required to register the entity with the Commercial Register and the licenses obtained will be under the name of the parent company. It is best to request the services of company formation agents in Gibraltar in order to set up a representative office.
| Quick Facts | |
|---|---|
| Office type | Liaison office |
| Purpose | It facilitates communication between entities. |
| Legal status of a liaison office in Gibraltar | No legal personality, it represents the parent company. |
| Ownership | Fully owned by the parent company |
| Registration | Requires approval from the Commercial Register in Gibraltar |
| Decision-making | No decision-making entuty, only advisory role |
| Staff | Allowed with the approval of the parent company |
| Reporting | Reports to the parent company |
| Profit Generation | No, it cannot engage in commercial activities. |
| Compliance required for a liaison office in Gibraltar (Yes/No) | Yes, must adhere to local regulations and laws. |
| Funding | Financed by the parent company. |
| Expansion | This may lead to establishing a permanent presence later in Gibraltar. |
| Cultural sensitivity | It needs awareness and adaptation to local cultural norms. |
| Contracts | Limited business activities, it has no contracts signing power. |
| Legal assistance (Yes/No) | Yes, our company formation agents can help you set up a liaison office in Gibraltar. |
Unlike Gibraltar branch offices that can conduct the same business activities as the parent company, the liaison office is restricted from these activities. A Gibraltar liaison office cannot produce any goods or deliver any services.
It can only engage in marketing, promotion and advertising activities and provide support for the parent company. The liaison office can also undertake different types of research and act as an intermediary between the parent company and its clients in Gibraltar.
Opening a liaison office in Gibraltar requires its registration with the Commercial Register. Also, depending on the type of activity the parent company undertakes, the liaison office will be subject to different regulations. For example, foreign banks opening liaison offices in Gibraltar must register the office under the Financial Services Act and appoint representatives, such as directors and controllers according to the local legislation. Unlike in other countries, Gibraltar liaison offices are also allowed to hire employees.
When opening a representative office in Gibraltar, a foreign company must submit its articles of association, the shareholders’ identification documents and a letter approving the opening of the liaison office. In case of hiring employees, the parent company must state their number and the functions they will occupy.
The video below shows the main steps to open a representative office in Gibraltar:
For complete company incorporation services, please contact our Gibraltar agents.
