The Isle of Man is a prime location to operate a business offering 0% corporate tax, no withholding taxes or taxes on trading or investment income. Additionally, Isle of Man companies are not required to register for VAT until the registration threshold is not met; VAT taxable turnover more than £85,000 in the next 30-day period.

An Isle of Man company formation is an attractive option for international entrepreneurs seeking ways to reduce taxes and overhead expenses. Key benefits include:

• Only one director is required, and he/she does not need to be resident;
• A single shareholder is required;
• As little as one share with no minimum value.

The Isle of Man does not belong to the UK or the EU but is rather classified as a British crown dependency. Under the 1979 Customs and Excise Agreement, the Isle of Man is treated as part of the UK for VAT purposes and customs duties are not applicable. Under European Union law, the Isle of Man is currently free from any trade restrictions and free trade between the United Kingdom and the British crown dependency status is set to continue after Brexit.

TBA & Associates can assist with a full range of Isle of Man company formation services including registered office, bank account and ongoing compliance. For more information, please contact our team on + 44 203 2827159 or email enquiries@ireland-lsc-partners.com.

Key Corporate Features

General
Type of Company – Private Limited
Type of Law – Common
Shelf company availability – Yes
Our time to establish a new company – 1 – 6 days
Corporate Taxation – 0% – 10%
Double Taxation Treaty Access – Only IOM

Share capital or equivalent
Standard currency – GBP
Permitted currencies – Any
Minimum paid up – £1
Usual authorised – 2,000

Directors
Minimum number – Two
Local required – No
Publicly accessible records – Yes
Location of meetings – Anywhere

Shareholders
Minimum number – One
Publicly accessible records – Yes
Location of meetings – Anywhere

Company Secretary
Required – Yes

Accounts
Requirements to prepare – Yes
Audit requirements – Yes, but with some exceptions
Requirements to file accounts – Yes
Publicly accessible accounts – No

Other
Requirement to file annual return – Yes
Change in domicile permitted – Yes

General Information

Infrastructure and Economy

In the last few years new economic activities have been developed, such as aircraft registration and most significantly, e-gaming and other areas of e-commerce due to an infrastructure of world-class telecommunications and services which cater for the full range of modern corporate voice and data communication requirements.

The Isle of Man has been awarded Triple “A” Ratings from Standard and Poor and Moody’s.

Type of Company for International Trade and Investment

Procedure to Incorporate

Restrictions on Trading

Private Limited Companies are not permitted to:

• Undertake banking or insurance activities or any other activity that might suggest an association with same, without a license.
• Undertake investment business other than the investment of the company’s own assets without a license.
• Neither solicits funds from the public nor offer their shares or membership to the public without a license.

Registered Office Required

Shelf Companies Available

Time to Incorporate

Disclosure of Beneficial Ownership to Government Authorities

Authorised and Issued Share Capital

Classes of Shares Permitted

Taxation

Companies that are in the business of banking, insurance or are connected with the business of Isle of Man property pay corporation tax at a rate of 10% and a withholding tax at the same rate is imposed if the dividend is paid to a non-resident individual or corporate body.

All Private Limited Companies pay an annual charge of £380.

VAT

Double Taxation Agreements

Financial Statements Required

Failure to maintain accounts or make them available for inspection at a company’s registered office is an offence punishable by imprisonment or a fine.

The Assessor of Income Tax reserves the right to call in the financial records for inspection.

Directors

A body corporate is only eligible to act as a corporate director if it, or another body corporate of which it is a subsidiary, is:

• the holder of an appropriate license issued by the Isle of Man Financial Supervision Commission under the Financial Services Acts 2008; or
• permitted to act as a corporate director by regulations made pursuant to the Act.

Company Secretary

Shareholders