The Isle of Man is 572 square miles with a population of over 85,000 and is situated in the middle of the Irish sea between the coastlines of England, Scotland, Ireland and Wales. The Island is not part of the United Kingdom but is a member of the British Commonwealth and an affiliated member of the EEA.
The Isle of Man is a well-regulated European offshore finance centre with financial services contributing a large proportion of the GDP. The island has excellent connections by sea and air to the UK and Ireland along with a state-of-the–art telecommunications structure. The Isle of Man Government has positively encouraged economic growth by creating a sympathetic tax regime and suitable legislative framework for expansion.
The Isle of Man Companies Registry has been in existence since 1865 and maintains the register and records of all companies and other business types incorporated in the Isle of Man. It also provides a facility for the public to view documents which have been filed.
Company Formation in the Isle of Man: a quick guide
|Company Law||Two distinct regimes – the traditional Companies Acts 1931 – 2004, which is based on the UK Companies Act 1929, and the more modern regime under the Companies Act 2006.|
|Types of Company||1931 Act Companies – Limited by Shares, Limited by Guarantee, Limited by Guarantee and by having share capital and by having a Share Capital with Unlimited Liability.
2006 Act Companies – Limited by Shares, Limited by Guarantee, Limited by Shares and by Guarantee and Unlimited with or without Shares.
|Taxation rates applied to Companies||Companies are subject to income tax and not a separate corporate tax. The rate of income tax, is in most cases, 0%. If companies are engaged in earning profits from Isle of Man land then the rate of tax is 10%. There are no inheritance or capital gains taxes in the Island.|
|Double Taxation Treaty||The Isle of Man has signed 83 International Agreements which are currently in force, this includes 9 Double Taxation Agreements and 25 Tax Information Exchange Agreements.|
|Capital Requirements||1931 – Every company must state in its Memorandum the share capital with which it is to be registered and how that share capital is divided into shares. The usual number is £2,000.
2006 – No nominal share capital is required.
|Members||Minimum number of shareholders is one.|
|Directors||1931 Act Companies – Minimum number of two Directors. Corporate Directors are not permitted.
2006 Act Companies – Minimum number of one Director appointed within one month of incorporation. Corporate Directors are permitted however they must hold the appropriate fiduciary licence.
|Secretary||1931 – Appointment of Company Secretary is required.
2006 – Appointment of Company Secretary is not required.
|Annual Meetings||1931 – Must hold an AGM each year unless formally dispensed with.
2006 – No AGM requirement.
|Accounts||1931 – Company must prepare annual accounts which are laid before the members in a general meeting.
2006 – Whilst there is no requirement to prepare regular financial statements, a Company must keep reliable accounting records which correctly explain the transactions, enable the financial position to be determined and allow financial statements to be prepared.
|Method of incorporation and timescale||1931 – Submission of signed Memorandum and Articles of Association along with relevant form and fee
2006 – Submission of Memorandum and Articles of Association and fee. All 2006 Act companies must have a Registered Agent in the Isle of Man who holds the appropriate licence and only Registered Agents can incorporate companies.
Timescales include three options – Standard 48 hours, 2 hours or ‘While you wait’.
To download this information as a PDF click to access our Isle of Man Company Factsheet.
To set up an Isle of Man Company today please email me at email@example.com – or read more about our company incorporation and administration services.