In accordance with the Fair Trading Act 2023, businesses in Gibraltar that are not regulated by another enactment are required to obtain a business licence issued by the Office of Fair Trading.

Please note that the new Fair Trading Act 2023 commenced on the 1st October 2023. If you are in the process of making a business licence application under the now repealed Fair Trading Act 2015, this will still be processed by the OFT under the provisions of that Act.

 

Licence renewal notices are sent out by e-mail automatically. In the unlikely event that you do not receive a renewal notice by e-mail please first check your spam folder. If no e-mails have been received by the date of the licence's expiry, please e-mail business.licensing@gibraltar.gov.gi stating your licence's 'BL' number. We will then send you payment details. If you do not have an e-mail address please call 200 71700.

Business Licensing requirements

Pursuant to section 24 of the Fair Trading Act 2023 (FTA), in order to carry out business in Gibraltar you must have a business licence issued for that purpose by the Office of Fair Trading (OFT). Furthermore, it is an offence to carry on business without a licence.

What is a business licence?

A business licence authorises the person named in that licence to carry on:

(i) the business specified in the licence;

(ii) at the premises specified in the licence; and

(iii) subject to any terms and conditions as may be specified in the licence. 26.(2)(a)

Who needs a licence?

Any person wishing to carry on business in Gibraltar by:

  1. trading in goods; or
  2. providing a service,

must hold a valid business licence issued by the OFT.

A business will not however need a licence where:

  1. that business or profession is already licensed by separate local legislation (see “Persons licensed under sperate legislation” below for more details); or
  2. the FTA does not require a business licence for that type of business. Pursuant to section 25.(1) of the FTA, no person shall be deemed to require a business under the Act licence where:
    1. the person is an employee of a business;
    2. the person is a director or shareholder of a company which carries on business;
    3. the person is a company providing services to others in the same group (as defined in the Companies Act) ;
    4. the persons is a company providing services to a single family office;
    5. the person (“A”) is carrying out domestic services to a single private household as an employee of a person residing in that household and:
      1. A has not been introduced to that household by a business; and
      2. the employment of A does not result in a payment by any person to a business.
    6. the person is a journalist or is printing and distributing a printed newspaper as defined in the Newspapers Act;
    7. the person is carrying on business as a cottage industry, artisan or as service provider and, that person’s annual turnover does not exceed £20,000 (the persons will however be required to register with the OFT - See the ‘Licence or Registaration?” section below);
    8. the person is appointed to conduct a sale of any goods in execution of an order of any court;
    9. the person sells any goods or provides any services:
      1. solely as a necessary incident to the provision of any professional or other personal services; or
      2. in connection with the raising of funds for philanthropic, charitable, cultural, sporting or educational purposes (the person will however be required to inform the OFT in writing prior to selling the goods or providing the services s25(4) FTA).
    10. the person receives rental income from real property in Gibraltar.

Licence or registration?

Pursuant to section 25.(1) of the FTA and the Fair Trading (Annual Turnover) Regulations 2023, no person shall be deemed to require a business licence where they meet the following two criteria:

  1. the person is carrying on business as:
    1. a cottage industry - a small-scale manufacturing process or other business that takes place in residential premises;
    2. artisan - a craft worker who makes or creates material objects partly or entirely by hand; or
    3. as service provider (excluding Specified Businesses – see definition below); and
  2. that person’s annual turnover does not exceed £20,000.

The businesses who meet these two criteria do not therefore need to apply for a business licence but shall be required to register with the OFT and to renew their registration annually in accordance with section 25(3) of the FTA. Registration is done electronically on HM GoG's eServices website.

Those businesses who do not meet one or any of these criteria shall be required to obtain a business licence.

“Specified Business”, as defined in section 28(2) to the FTA, means a business or activity which involves one or more of the following–

  1. the introduction or insertion by injection or by any other means of any substance into the body of a person;
  2. the tattooing of any part of a person’s body;
  3. the application or administration to another person of any prescription only medicine;
  4. the provision of therapy;
  5. the infliction or carrying out of any process that involves the breaking of another person’s skin;
  6. the provision of counselling, analysis or other therapy or services designed or intended to identify and or to assist a person to understand, accept, overcome or recover or obtain relief from any form of mental condition, mental state, attitude, behaviour or other situation that derives in the mind of that person or any activity that could cause harm to a person’s mental state; and
  7. the management, organisation or provision of healthcare services to which the Medical and Health Act 1997 applies or a medical laboratory, an ambulance service or a pharmacy.

Licences to trade in goods

If you're licensed to trade, you can trade by:

  1. wholesale — selling goods to another business for onward sale
  2. retail — selling goods to the end user only
  3. export — selling goods exclusively for export from Gibraltar

Your application must specify the goods you intend to trade, using the OFT's Good Categories List.

Customs

You need a business licence to obtain an HM Customs code, which you need to import goods commercially into Gibraltar. Without it, you can't import goods in your business's name. You can contact HM Customs directly here.

Premises

Traders must have appropriate commercial premises - usually a retail unit or store. You can't trade from home, and office space is not generally considered appropriate for trading. This applies even if you deliver goods directly to customers. Traders are not eligible for a premises waiver (see below).

We will consider factors including the type, nature and volume of goods you sell, your contact with clients and suppliers, and your number of employees.

Selling online

If you sell goods online, you're still a trader and still need appropriate commercial premises, even though you deliver to customers. You're not treated as providing an "online service." An online service is one where the main benefit to consumers is delivered online, or the service can't be provided without the internet - simply advertising, taking orders, or making sales online doesn't make a goods business an online service provider. You could, for example, also sell in person, advertise elsewhere, or take orders by phone.

Drop shipping

If your business only takes orders (usually online), doesn't hold stock, and arranges for a manufacturer or retailer to deliver goods directly to the consumer, you're treated as providing a service, not trading. A drop-shipping licence doesn't let you import goods sold through your business in your own name.

Licences to provide services

Service Categories List

Your application must specify the services you intend to provide, using the OFT's Service Categories List. If your services aren't obvious from the categories listed, describe them - this helps avoid delays caused by us needing to follow up for clarification. If in doubt, provide as much detail as possible about the business you intend to carry on.

For guidance on selling goods online or drop shipping, see 'Trading in goods' above.

Non-licensable service providers

If your annual turnover doesn't exceed £20,000 and you're not carrying on a Specified Business (see above), you don't need a licence - but you must register using a corporate account on the egov platform.

Business premises

A licence lets you carry on business only from the premises specified in it. It's an offence to trade from other premises, except that you may deliver goods to customers' premises, or deliver services at other premises where that's the nature of the business.

You must show us that you'll operate from premises appropriate to your business. Unless a waiver applies, your premises must permit the type of commercial activity your business involves. Get suitable premises before you apply - a licence can't be issued without them. For businesses trading in goods, an office is not generally considered appropriate.

You'll need to provide proof of occupation, usually a tenancy agreement or lease of at least 12 months.

The OFT will not accept:

  • a registered office address provided by a trust and corporate service provider
  • a "virtual office" address that only receives mail, with no operations carried out there

Working from home

This is only permitted if you're a cottage industry or artisan with turnover under £20,000 - in which case you should register a Non-Licensable Registration rather than apply for a licence (see 'Licence or registration?' above).

Premises waiver

The OFT may waive the premises requirement, at its discretion, if satisfied that:

  • your business doesn't need premises to operate, and
  • your business wouldn't gain an unfair advantage over similar businesses, to the detriment of consumers and the economy (efficiency or competitive quality isn't considered an unfair advantage)

If you apply for a waiver, explain how your business can operate without premises. The OFT will consider factors including whether you provide services online, the type/volume of goods (if any), your contact with clients and suppliers, and your number of employees.

Waivers aren't available for traders, or for some service providers who handle client money.

A waiver doesn't give you the right to operate from residential government premises, or from premises where the title deeds restrict commercial use. You must still obtain any necessary approvals from the headlessor or freehold owner of any premises you use.

Sharing premises

The OFT may allow more than one licence over the same premises if it's satisfied the businesses can operate there compatibly.

Multiple premises

If your business provides goods or services remotely - from locations other than your own premises, using an automated, mechanical or electronic process without human intervention at those locations - we may grant a licence covering multiple locations.

Persons licensed under separate legislation

You don't need an FTA licence if your business can't lawfully operate without a licence, approval, authorisation, registration or enrolment under another enactment, and is regulated or supervised under that enactment. This includes services regulated under:

  • the Financial Services Act 2019
  • the Medical & Health Act 1997
  • the Legal Services Act
  • the Gambling Act 2005
  • the Petroleum Act (sale of petroleum products)
  • the Firearms Act (sale of firearms)
  • the Leisure Areas (Licensing) Act 2001 (bars, restaurants, cafeterias and similar establishments in a Leisure Area, and discotheques anywhere in Gibraltar)

A business licensed under the Tobacco Act 1997 still requires a separate business licence.

Unlicensed businesses

It's an offence to carry on business without a licence, and we may take enforcement action. We monitor the Gibraltar market and work with other authorities to identify unlicensed businesses.

If you believe a business is operating without a licence, contact the Business Licensing Team - all reports are treated in confidence and won't be disclosed to the business concerned.

You can check whether a business holds a valid licence, free of charge, on our business licence register.

Licence renewals

A licence is valid for one year from the date of issue and must be renewed annually, on payment of the renewal fee.

We send a renewal notice by email about a month before your renewal date, using the contact details it holds for you. Make sure we have your up-to-date email address - you're responsible for telling us if your contact details change, and we won't be responsible if you miss a renewal notice because we weren't told.

If you don't receive a renewal notice by email, first check your spam folder. If you still haven't received one by the time your licence expires, email the Business Licensing Team with your licence's 'BL' number, and we'll send you payment details. If you don't have an email address, call 200 71700.

If your licence expires, your business is not licensed until you renew it - carrying on business during this time is an offence, and we may take enforcement action. If your licence remains expired for more than 6 months, we will begin the process for revoking it permanently. Once a licence is revoked, you'll need to apply for a new one.

Cancelling your business licence

If you want to cancel your business licence, submit a cancellation form at our offices.

Contact us

Email: business.licensing@gibraltar.gov.gi Telephone: 200 71700 In person: Suite 932, Europort