Why an Isle of Man Company?
Zero percent tax on corporate and personal income
Shareholders, Directors as well as beneficial owners can be undisclosed through nominee services
Shareholders, directors and officers can reside anywhere in the world
Geographically well placed next to the UK
A minimum requirement of one director and one shareholder
Very popular location for E-commerce business due to it's excellent telecommunications infrastructure
One of the world's most advanced and established banking systems
Sophisticated legal system based on English common law
Isle of Man Company Key Facts
Isle of Man Company Tax Information
The Isle of Man is a highly exclusive and trusted jurisdiction enabling maximum tax efficiency benefits to be sought by offshore companies as a result of its tax neutral status. The jurisdiction is a highly prestigious offshore international financial centre, and unlike other offshore territories with negative tax haven associations, the Isle of Man accounts for less than 1% of total global offshore industry and is a reputable jurisdiction to conduct business.
Offshore companies on the island are exempt from paying any form of direct tax on corporate or personal income derived outside of the territory. This is inclusive of corporation tax, income tax, stamp duty tax, asset tax, gift tax or exchange control taxes.
Moreover, non-residents are only ever obligated to pay tax on business conducted within the jurisdiction itself.
Type of Shares
Registered shares, preference shares, bearer shares are not permitted, redeemable shares and shares with or without voting rights attached.
Corporate or individual
Must the Director/ Manager be resident?
Minimum paid up capital
Restrictions on trade
Cannot trade within Isle of Man or own real estate there. The company may not engage in banking, insurance related business, assurance, fund and collective investment schemes.
Type of Company
Isle of Man 2006 Act company
Location of meetings
Companies must maintain a registered office in the Isle of Man.
The Manx Pound (IMP)
Name of the company
The name of the required company should be checked with the Registrar. The ending will be either ‘Limited’ or Public Limited Company. Certain types of company, i.e. those wishing to use International’ in their name, will need significantly higher authorised share capital. Restricted names include any name identical or too similar to an existing company within the state.
An Isle of Man offshore company enjoys strong privacy and confidentiality assurances through the Companies Act 2006 and Common Law which the jurisdiction firmly upholds. Isle of Man offshore companies have an obligation to file annual return forms and tax disclosures signed by the director(s) with the Isle of Man Treasury, which however are kept away from the public domain. In addition, it is required for the company’s accounting records to be kept at the address of the registered agent.
Anonymity over an Isle of Man offshore company’s operation can be maintained through the additional use of nominee services to safeguard the identity of director(s) and shareholder(s).
The Isle of Man since December 2013 has become a signatory to FACTA, complying with the automatic international exchange of information relating to the offshore accounts of US citizens over to the US Internal Revenue Service (IRS). Under the Act, the Isle of Man Competent Authority is required to transfer information to the relevant jurisdiction’s Competent Authorities. This partnering agreement has prevented Isle of Man based financial institutions to pay otherwise a 30% withholding tax on US source income.
The Isle of Man has been one of the early jurisdictions to implement the OECD Common Reporting Standard (CRS) principle of transparency and exchange of information. The jurisdiction has thereafter taken a leading role amongst jurisdictions in implementing these principles earning itself a position on the OECD’s ‘White list’ jurisdictions.
IoM Background Information
The Isle of Man has one of the strongest financial based economies from popular offshore jurisdictions to incorporate within with its diverse economy and over thirty years worth of consecutive economic growth. It has been considered an international financial centre for over twenty years, with strong e-commerce, banking and telecommunication industries aiding competitive business operation. The Isle of Man’s financial sector accounts for over 35% of total national income. According to Moody’s credit rating report, the Isle of man is an ‘AA+’ economy predicted strong and consistent economic growth. Furthermore, the Isle of Man has been placed in the top ten world’s wealthiest nation in respect of its impressive Gross National Income per capita. GDP per capita stands at £4.32bn (2014).
The Isle of Man is one of the world’s leading jurisdictions in the e-commerce sector. There are at present five prominent Internet Service Providers (ISPs) on the Isle of Man, all of which offer superior internet hosting facilities. Moreover, the island has an advanced telecommunications system with seven data centres of microwave radio and Fibre Optic Submarine Cable links with the UK providing one of the world’s fastest connections.
In recent years e-gaming has become one of the fastest growing sectors within the Isle of Man with over 56 licensed e-gaming companies including Microgaming and Playtech. The presence of these large corporations has attracted significant foreign investment of around £1bn to the jurisdictions’ telecom infrastructure further advancing the industry.
The Isle of Man’s other economic advantages derive from its EU membership, both geographically and structurally the jurisdiction is placed on a strong platform to conduct business and trade.In addition, the Isle of Man’s economy is set grow with the Ronaldsway Airport expansion of commercial flights.
The Isle of Man is a crown dependency of the United Kingdom and has a trusted political system based on representative democracy. Tynwald, the jurisdiction’s parliament, is one of the world’s oldest legislative bodies and is an autonomous law-making entity who are considered to adopt business friendly approaches to legislation drafted.
Courts within the Isle of Man make ruling decisions based on well established English common law and civil.
The prevailing legislation governing company operation is the Isle of Man Companies Act 2006. Legislation is business friendly providing significant autonomy to offshore companies within the jurisdiction.
In addition, the Isle of Man has modern legislation on banking, collective investment funds, insurance, investments and trust companies to protect the investor and ensure that the industry is highly regulated and fully complaint with anti- money laundering regulations.
Isle of Man Banking Services
- High-level confidentiality – Banking privacy is reinstated by Isle of Man statutes. Authorities have access to bank information in criminal tax matters where a court order is present only.
- Variety of payment options – With accounts in several currencies, internet banking, international wire transfers, debit and credit cards, prepaid cards, checkbooks, merchant accounts, brokerage accounts Isle of Man bank account holders enjoy great payment flexibility.
- Low initial deposit requirements
- Full operative control– Secure Internet-banking facilities, with no need to install specific software on computers or other devices.
- Wide choice of payment cards
- No personal visits to the Island is required to open an Isle of Man bank account.
- Free account application – The bank charges no fee for account opening.
Bank Account Requirements:
✓ Certified copy of passport
✓ Bank reference from a bank, which knows the person over 2 years
✓ Professional reference from an individual who knows the person over 2 years. If you do not have a relationships with a professional, the bank needs a second bank reference from another bank.
✓ Proof of address (original utility bill with individual’s name and residential address).