Business Licensing Requirements

Licences to trade in goods

Persons seeking to carry out business by way of trade are required to be in possession of a business licence to do so. Trade can be carried out by:

1. Wholesale - the sale of goods by a business to another businesses for onward sale to the end user;
2. Retail - the sale of goods by a business to the end user exclusively; or
3. Export - the sale of goods exclusively for exportation out of Gibraltar. 

Good Categories List

Any application for a licence to trade, be it byretail, wholesale or export, should specify the goods which are to be traded from the OFT’s Good Categories List.

Customs and the importation of goods

A Business Licence is necessary for a business to obtain a HM Customs code for the importation of goods in commercial quantities into Gibraltar. It is a legal requirement for any Business registered in Gibraltar to obtain a Customs registration number in order to be included within the Customs database. Without this registration number the Business will not be allowed to import any goods in its name. See the HM Customs section of the Single Point of Contact for more information or contact HM Customs.

Premises requirements for traders

Traders are required to have appropriate commercial premises from which to trade as set out in section 27 of the Fair Trading Act. Traders' premises shall be commercial premises and are usually either a retail unit or a store. Traders cannot operate from their homes (see 'Businesses from home' section below) and office space is not generally considered appropriate commercial premises for trading. These premises requirements apply even where the business is delivering the goods being sold to consumers. Furthermore trades are not eligible to a waiver from the requirement to have premises (see 'Premises waiver' section below).

The factors to which the OFT may have regard in considering the appropriateness of premises include, but are not limited to–

1. the type, nature and volume of goods to be sold (if any);
2. (the degree and type of contact with clients and supplies; and
3. the number of employees that the business has or will require (if any) to carry on the business appropriately.

For more information about business premises please see the “Business Premises” section below.

Online retailers

Where a person is selling their goods online they will be regarded as a trader and will need to comply with the premises requirements set out above. This is the case even where the goods are delivered to the consumer. They will not be regarded as a person providing online services from Gibraltar.

An online service is one where:

1. the main benefit of the service provided by the business to consumers is carried out online; and/or
2. where the service cannot be provided without the use of the internet.

A business trading in goods is not regarded as providing an online service simply because it:

1. advertises its goods online;
2. makes contact with consumers online;
3. receives an order for the goods online; and/or
4. makes a sale online.

These are ancillary activities related to the main purpose of the business, which is to sell the goods. The business's use of the internet to promote and to advertise these goods and take orders from consumers does not make it an online service provider. The business could also, for example, sell its goods in person, advertise its goods elsewhere (e.g. in a newspaper) or take orders on a telephone.

Drop shipping

Businesses that provide a fulfilment service (also known as drop shipping) are regarded as providing a service and are not considered to be traders. These are business which meet all of the following criteria:

1. Does not handle goods or keep goods in stock;
2. Only take orders for goods (usually online); and
3. Arranges for a manufacturer or retailer of the goods to deliver the goods directly to the consumer.

A licence for drop shipping does not permit the licence holder to import goods sold into Gibraltar in its own name. For more information about importations please contact HM Customs.

Licences to provide services

Persons seeking to carry out business by providing a service are required to be in possession of a business licence to do so.

Service Categories List

Any application for a licence to provide services should specify the services which are to be provided from the OFT’s Service Categories List.

It is important that the OFT understands what type of services will be provided by the business. It is therefore recommended that each application provides a description of the services to be provided where these are not obvious from the service categories selected from the list. If the OFT requires a clarification, this it may delay the processing of the application while the OFT gets in contact with the applicant to find out more information. If in doubt provide as much information as possible about the type of business to be carried out.

For guidance for online retailers and business that provide a fulfilment service (also known as drop shipping) please see the 'Licences to trade in goods' section above.

Non-licensable service providers

If a is carrying on business as a service provider and, that person’s annual turnover does not exceed £20,000, then the person does not need to apply for a business licence as long as they are not carrying out a “Specified Business” for the purposes of section 28(2) to the FTA.

“Specified Business” 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.

Person who meet the above criteria are however 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.

Business premises

Business licences are issued in respect of the business premises and allow the applicant to conduct the business from those premises.

Pursuant to section 24(2)(b) of the FTA, it is an offence for a person to carry on business from premises other than those in respect of which he holds a licence, although

1. a business may deliver goods to customers’ premises; and
2. a business may deliver services to customers at premises other than the premises specified in the licence where it is in the nature of the business to do so.

Pursuant to subsection 27 of the FTA, a business must submit evidence that he will operate the business from premises that are appropriate for the carrying on of that business.

Unless the requirements for a premises are waived (see “Premises Waiver” section below), a licence shall only be granted in relation to premises in which commercial activities of the kind comprising the business are permitted to be carried out. Prior to submitting an application for a Business Licence, applicants should therefore ensure suitable commercial premises have been acquired. Without suitable commercial premises the licence cannot be issued. For businesses wanting to trade in goods, an office shall not generally be considered appropriate premises.

Businesses are required to produce proof that they can occupy the premises at the time of their application to the OFT. These are normally tenancy agreements or leases and should be for a minimum term of 12 months.

Please note that the following shall not be regarded as appropriate premises by the OFT:

1. a company's registered offices address which is provided by a trust and corporate service provider; and
2. "virtual office" addresses where a business can only receive mail etc. but from where the business does not operate.

Businesses from home

Subsection 27(3) of the FTA stipulates that a licence shall only be granted in relation to premises in which commercial activities of the kind comprising the business are permitted to be carried out, and are not designated as residential accommodation.

If however the person:

1. falls within the definition of:
   1. a cottage industry - a small-scale manufacturing process or other business that takes place in residential premises; or
   2. an artisan - a craft worker who makes or creates material objects partly or entirely by hand; and
2. that person’s annual turnover does not exceed £20,000,

then the person does not need to apply for a business licence and shall not therefore be restricted by the business premises criteria in the FTA.

The person shall however 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.

Premises waiver

The requirements of section 26 of the FTA relating to premises may be waived by the OFT in cases where the OFT is satisfied, in its absolute discretion, that the business can be properly carried on without premises.

An application for a waiver may be granted by the OFT if it is satisfied that–

1. the business does not require premises in order to carry on business;
2. the business would not enjoy an unfair advantage over similar businesses to the detriment of consumers and the economy. For this purpose, the efficiency, effectiveness, innovativeness or other similar competitive quality of a competitor shall not be considered to be an unfair advantage.

The granting of a waiver from the requirement to have premises is a matter for the OFT to determine based on the information received with the relevant application. If you wish to apply for a premises waiver you will therefore be required to provide information about how, in your view, your business can operate without a premises. The factors to which the OFT may have regard in considering the appropriateness of granting a waiver include, but are not limited to:

1. whether the business is an online provider of services;
2. the type, nature and volume of goods to be sold (if any);
3. the degree and type of contact with clients and supplies; and
4. the number of employees that the business has or will require (if any) to carry on the business appropriately.

Waivers are not considered appropriate for business that want to trade in goods and for some services providers who, for instance, handle client monies.

The grant of a business licence under a premises waiver does not grant the licence-holder any right to operate their business from any premises that are residential Government premises, or from non-Governmental premises under which the terms of the title deeds restrict commercial activities. Furthermore, businesses operating without a premises are required to obtain separately all necessary approvals and consents from the headlessor or freehold owner of any premises from which the licence-holder is to operate all or any part of their business.

Compatibility of two businesses in the same premises

Subsection 27(6) of the FTA permits the OFT may to allow more than one licence over the same premises should it be of the opinion that the businesses to which the licences relate can be carried on compatibly in the same premises.

Multiple premises

Pursuant to section 27(7) FTA, the OFT may, in the case of a person carrying on a business that involves the provision of goods or services remotely, grant a licence that authorises that person to carry on that business in or from multiple locations. In this context, ‘remotely’ means–

1. in or from locations or premises other than its own business premises; and
2. by means of an automated, mechanical or electronic process that does not involve human intervention at those locations or premises.

Persons licensed under separate legislation

Pursuant to section 36 of the FTA, business which under the provisions of any other enactment–

1. cannot lawfully be carried out without licensing, approval, authorisation, registration or enrolment under that enactment; and
2. is regulated or supervised under that enactment by an authority in Gibraltar or elsewhere,

need not obtain a licence under the FTA.

This includes, but is not limited to:

1. services to which the Financial Services Act 2019, or regulations made thereunder, apply;
2. services to which the Medical & Health Act 1997, or regulations made thereunder, apply;
3. services to which the Legal Services Act apply;
4. services to which the Gambling Act 2005 apply;
5. the sale of petroleum products authorised to be sold by a licence issued under the Petroleum Act;
6. the sale of firearms authorised to be sold by a licence issued under the Firearms Act;
7. the sale of goods authorised by any of the following licences under the provisions of the Leisure Areas (Licensing) Act 2001–
   1. any bar, restaurant cafeteria or other such establishment situated within a Leisure Area as defined by the Leisure Areas (Licensing) Act 2001 engaged in the sale or provision of food, drink or intoxicating liquor for consumption within the premises or any external area of that establishment; or
   2. any discotheque in Gibraltar, whether or not situated in a Leisure Area.

Notwithstanding the above, a business licensed under the Tobacco Act 1997 shall also require a separate business licence.

Unlicensed businesses

Pursuant to section 24(2)(a), it is an offence it is an offence for a person to carry on business without a licence and the OFT may take enforcement action against you in this regard.

The OFT has systems in place to monitor the markets in Gibraltar and it collaborates with other authorities to identify businesses who may be operating without a business licence.

If you identify a business that you believe is operating without a licence please provide the relevant details to the Business Licensing Team and they will investigate it. All communications of this type are treated in confidence and will not be disclosed to the relevant business.

You can check the business licence register for free on the OFT’s website.